PMP Prep Flashcards
Budget at Completion (BAC)
Original budget of project
PV
Planned Value
Amount of money worth of work that should have been done on the project
EV
Earned Value
Amount of money worth of work actually done
AC
Actual Cost
Amount of money already spent on the project
CV
Cost Variance
Difference between work done and money spent. Negative values = bad
CPI
Cost Performance Index
Rate of how we are spending to actually earning. 1 and over is good
SV
Schedule Variance
Difference between amount of work you should have done vs actually done. Negative value = bad
SPI
Schedule Performance Index
Rate of how we are meeting project schedule. 1 and over is good
EAC
Estimate at Completion
Forecasting total cost of the project at the end based on current spending rate
ETC
Estimate to Completion
Forecasting the amount of money that will be needed to complete the project based on current performance
VAC
Variance at Completion
Difference between original budget and new forecasted budget. Negative = bad
TCPI
To-Complete Performance Index
Performance needed to finish the project within budget
Process Groups
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Knowledge Areas
Project Integration Management
Project Scope Management
Project Schedule Management
Project Cost Management
Project Quality Management
Project Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management
Project Stakeholder Management
Project Integration Management Processes
7
Develop Project Charter (i)
Develop Project Management Plan (p)
Direct and Manage Project Work (e)
Manage Project Knowledge (e)
Monitor and Control Project Work (mc)
Perform Integrated Change Control (mc)
Close project or Phase (c)
Project Scope Management Processes
6
Plan Scope Management (p)
Collect Requirements (p)
Define Scope (p)
Create WBS (p)
Validate Scope (mc)
Control Scope (mc)
Project Schedule Management Processes
6
Plan Schedule Management (p)
Define activities (p)
Sequence activities (p)
Estimate activity duration (p)
Develop schedule (p)
Control schedule (mc)
Project Cost Management Processes
4
Plan cost management (p)
Estimate costs (p)
Determine budget (p)
Control costs (mc)
Project Quality Management Processes
3
Plan quality management (p)
Manage Quality (e)
Control Quality (mc)
Project Resource Management Processes
6
Plan resource management (p)
Estimate activity resources (p)
Acquire resources (e)
Develop team (e)
Manage team (e)
Control resources (mc)
Project Communications Management Processes
3
Plan communications management (p)
Manage communications (e)
Monitor communications (mc)
Project Risk Management Processes
7
Plan risk management (p)
Identify risks (p)
Perform qualitative risk analysis (p)
Perform quantitative risk analysis (p)
Plan risk response (p)
Implement risk responses (e)
Monitor risks (mc)
Project Procurement Management Processes
3
Plan Procurement management (p)
Conduct procurements (e)
Control Procurements (mc)
Project Stakeholder Management Processes
Identify stakeholders (i)
Plan Stakeholder engagement (e)
Manage stakeholder engagement (e)
Monitor stakeholder engagement (mc)
Communication Channel Formula
N(N-1) / 2
PERT
Project evaluation and review technique - uses optimistic, pessimistic, and realistic values to get an estimate
PERT Beta Formula (Regular PERT Formula)
(O + 4R + P) / 6
Pert Standard Deviation Range Formula
(P - O) / 6
Pert Triangle Distribution Formula
(O + R + P) / 3
Initiating Major Outputs
Project Charter
Assumption Log
Stakeholder Register
Major Components of Project Management Plan
- Knowledge Areas management plans
- Scope baseline
- Schedule baseline
- Cost baseline
- Perf management baseline
- Project life cycle description
- Development approach
Executing Major Outputs
Work performance data
Change request
Team performance assessments
Selected seller
Agreements
Issue log
Lessons learned register
Monitoring & Controlling Major Outputs
Accepted deliverables
Work performance information
Work performance reports
Approved change request
Closing Major Outputs
Final product, service, or result transition
Final report
Schedule Management - Key Documents
Activity attributes
Activity list
Duration estimates
Milestone list
Project calendars
Project schedule
Project schedule network diagram
Schedule data
Schedule forecast
Integration Management - Key Documents
Assumption log
Change log
Issue log
Lessons learned register
Cost Management - Key Documents
Basis of Estimates
Cost estimates
Cost forecast
Resource Management - Key Documents
Physical resource assignemnts
Project team assignments
Resource breakdown structure
Resource calendars
Resource requirements
Team charter
Communications Management - Key Documents
Project communications
Scope Management - Key Documents
Project scope statement
Requirements documentation
Requirements traceability matrix
Quality Management - Key Documents
Quality control measurements
Quality metrics
Quality report
Risk Management - Key Documents
Risk register
Risk report
Stakeholder Management - Key Documents
Stakeholder register
PMO Organizational Structures
From lax to strict
Supporting
Controlling
Directive
Supporting PMO Org Structure
Supports PjM
Provides templates, training, lessons
Controlling PMO Org Structure
Determines framework/methodology & use of forms
Directive PMO Org Structure
Controls project and assignments, project managers report to the PMO
Organizational Structures
Functional
Matrix (weak, balanced, strong) - applies to PjM and PMO as a whole
Project Oriented Organizations (Projectized)
Hybrid
Functional Organizational Structure
Team members report to their dept managers
Matrix Organizational Structure
Weak: Functional > PjM
Balanced: Functional = PjM - likely scenario on exam
Strong: Functional < PjM - likely scenario on exam
Project Oriented Organizations Organizational Structure
Project manager has ultimate power
Hybrid Organizational Structure
A combination of multiple individuals having the power
Types of Project Managers
From strongest to weakest:
Project Manager
Project Coordinator
Project Expeditor
Organization Process Assets (OPAs)
Process documents policies, tools, knowledge base
Enterprise Environmental Factors (EEFs)
Impacts projects or organization positively or negatively, and can be internal or external
Leadership Styles
Laissez-Faire
Transactional - focused on goals
Servant Leader
Transformational - empowering
Charismatic
Interactional - combination
Forms of Power
Reward
Expert
Legitimate - given power/position
Referent - Respected/charisma
Punishment
Project Selection Methods
Benefit / Cost Ratio
Economic Value Add
Internal Rate of Return
Opportunity Cost
Payback period
Present value
Net Present Value
Return on Investment
Perform Integrated Change Control
Integration management and Monitoring & Controlling process that consists of reviewing, approving, managing changes
When are control processes executed vs validating?
Control: Throughout the process
Validating: At the end
Critical Path Method
Visual way to show how multiple, dependent, parts of a project will impact each other. The critical path is always the project that will take the longest
Float/Slack/Total Float
Amount of time you can delay an activity without delaying project
Float = late start - early start OR late finish - early finish
How to move through the forward pass on CPM
Look at the early starts and finishes
Calculated: early start + duration - 1
How to move through backward pass on CPM
Look at late finishes and late starts
Calculated: Late finish - duration +1
Free Float
Amount you can delay one task without delaying the next task
Calculated: Early start of next activity - Early Finish of current activity - 1
Precedence Diagramming Method
Used to construct a schedule in which the activities are represented graphically using nodes and are linked based on their relationship
Analogous (Top Down) Estimating
Based on prior projects
Parametric Estimating
Uses statistical relationship between historical data and other variables
Three Point Estimating
Weighted average of 3 possibilities (optimistic, realistic, pessimistic)
Bottom Up Estimating
Most comprehensive approach. Break down work at lowest level then aggregate work
Reserve Analysis
Building in ‘non-work’ time
Definitive Estimates
Closest to truth
-5% to +10% accuracy
Budget Estimates
Second most accurate
-10% to 25% accuracy
Rough Order of Magnitude Estimates
Least accurate
-25% to 75% accuracy
Cost of Quality
Money spent achieving quality
Fast Tracking
Compression technique that attempts to work activities in parallel
Crashing
Compression technique that adds additional resources
Tuckman’s Ladder
Forming
Storming
Norming
Performing
Adjouring
Marlow’s Hierarchy of Needs
Pyramid describing what is needed to get to highly motivated (from bottom to top)
Physiological
Safety
Social
Esteem
Self Actualization
Herzberg Motivational Theory
Hygiene agents contribute to motivation for EEs, these are expected and hurt when not present
McGregor’s Theory of X
People are not trustworthy and need to be micromanaged
McGregor’s Theory of Y
People are self led and can motivate and accomplish things themselves
Theory of Z
Providing benefits and loyalty to increase productivity and loyalty in return
Expectancy Theory of Motivation
People behave based on what they expect to receive out of their work
McClelland 3 Need Theory
Achievement
Power
Affiliation
Fixed Price (Lump Sum) Contracts
Set scope including all labor/materials
Worse for seller, better for buyer
Firm Fixed Price Contract
Cannot be changed
Fixed Price Incentive Fee Contract
Includes bonus for meeting targets
Fixed Price Economic Price Adjustment
Adjusting based on inflation/price changes
Cost Reimbursable Contracts
Pay for expenses then fee for profit
Better for sellers, worse for buyers
Cost Plus Fixed Fee Contract
Pays for costs and fixed fee
Cost Plus Incentive Fee Contract
Pays for costs plus a fee if a target is met
Cost Plus Award Fee Contract
Pays for costs plus an award fee based on satisfaction of work
Time and Materials Contracts
Pays for all materials and labor, buyer takes on risks as they will pay for any overages and should only be used when scope is high level
Total Quality Management
All members of organization are responsible for quality
Continuous Improvement (Kaizen)
Japanese philosophy where all parties are responsible for improvement
Affinity Diagrams
Used to group ideas together
Matrix Diagrams
Used to show relationships amongst processes
Cause and Effect/Ishikawa/Fishbone Diagrams
Will tell you the cause of defects
Flowcharts
Show you a graphical representation of the process and any room for improvements, can also help you pinpoint where issues are in the process
Histogram
Bar charts that show the distribution of numerical data
Pareto Chart
A combination bar and line chart that uses a technique to identify the few factors that have the greatest impact on an outcome, result, or on measures of quality, satisfaction or performance.
Separating these “vital few” from the “trivial many” is generally known as the “80/20” rule
Scatter Diagram
Show trends in relation to different variables
Agile Manifesto
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
Delphi Technique
Process of gathering a panel of experts and engaging in several rounds of questions about how to make certain business decisions or solve an organizational problem
Escalate Risk Response
Escalate outside the team for help
Avoid Risk Response
Eliminate risk entirely
Transfer Risk Response
Transfer to 3rd Party
Mitigate Risk Response
Reduce the possibility
Accept Risk Response
Deal with it, take advantage but don’t seek if its positive
Exploit Risk Response
Usually for positive risk (opportunity) and seeking to make it happen
Enhance Risk Response
Increase probability
Share Risk Response
Cooperating with other party to reduce negative risk or increase positive
Resource Breakdown Structure
Grouping of resources into certain categories and breaking down sub-categories underneath
Quantitative Risk Analysis
Using information from qualitative risk analysis and analyzing and determining risk impact on project as a whole to determine the best course of action for the project with risks considered
Actually coming up with the schedule/cost numbers
Management Reserve
Additional reserves set by functional managers to account for any additional unaccounted risk or unforeseen delays, mostly for unknown unknowns
What process is vendor payment a part of?
Control procurements
Attribute Sampling
Measures whether the results conform to the established specifications
Qualitative Risk Analysis
Prioritizing individual project risks by assessing their probability of occurrence and impact as well as other characteristics
When is customer scope validation done?
Monitoring and controlling
Configuration Management Plan
Establish policies around naming conventions and versioning control
When can stakeholders NOT be identified?
Closing
What should you do if a contract is taking a while to be signed but work is urgent?
Utilize letter of intent
Project performance appraisal
Feedback is gathered from team members’ supervisors that may point out a need for additional training
Individual assessment
Used to determine information about an individual about their decision-making process, interactions with others, and how they prefer to be led.
Compliance counsel
Individuals who represent compliance-related groups like legal, environmental, or security, assess project compliance as a member of a compliance counsel.
Data vs information vs reports
Data is raw and hasn’t been analyzed
Information has been analyzed but is not ready for consumption
Reports take information and packages/distributes them so they can be acted on
Stakeholder engagement assessment matrix
Graph that shows how stakeholders should be engaged vs how they are actually being engaged
What do you need to consider project closed?
Phase complete, project complete, project cancelled
Invoices paid
Procurements fulfilled
Deliverables accepted by customer
Final performance reporting completed
Impediment vs Blocker
An impediment slows down the progress of the team. A blocker completely stalls the team from delivering on time.
Immediate action after Change Control Board makes a decision
Update change log
Stakeholder Cube
A three-dimensional model showing aspects of a stakeholder or stakeholder group that measures power, interest, and influence
Lead and Lag
A task that must wait for its predecessor to complete before it can be started has lag
A task that does not need to wait for its predecessor to complete before it can be started has lead
Indirect Cost
Costs that are incurred for more than one project or an organization’s overhead (ie internet to allow team to work properly)
Iterative vs Incremental
Incremental delivery yields a useable piece of the project in each iteration.
Iterative development means that the project is built in successive levels, but it is not always useable in the first few iterations.
Secondary Risks
Risks that are created by the implementation of enacted risk responses
Why should a project manager be present for contract negotiations?
To protect the relationship with the seller
Who can change the team charter and when?
Anyone, anytime
Who can validate scope?
Sponsor OR customer
Testers can verify but not validate
Net Present Value Formula
Deciding I don’t need to memorize this, but:
Positive = good
Formula = Revenue / (1+ interest rate) ^ time frame
Internal Rate of Return
The rate at which cash inflows equal cash outflows without consideration of external factors
Net Future Value
Shows an investments future value
Positive = good
Residual risk
A risk that remains after a team has planned risk responses
Emotional intelligence impact on productivity
Does not DIRECTLY impact, impacts things like reduced tension, better relationships, communication, trust, etc that then directly impact productivity
Value analysis
Refers to trying to get the most scope for the least financial spend
360-degree assessment
Allows members to assess their own strengths and weaknesses for project manager to react to
Stakeholder register vs Stakeholder Engagement Plan
Register lists stakeholders and information about their knowledge/impact
Engagement plan lists how they want to be involved/communicated to and how often
Planning Major Output
Project management plan and all of its components
Salience Model
Assesses stakeholders by power, urgency (immediate attention), and legitimacy (how appropriate is their involvement)
Stakeholder Prioritization Method
Ranks stakeholders on their influence based on multiple factors
Lean Principles
Eliminating waste
Amplifying learning
Deciding late
Delivering fast
Empowering the team
Building quality in
Optimizing the whole.
Product Analysis
Translates project objectives into tangible deliverables and requirements by improving the project team’s understanding of the product
Funding limit reconciliation
A technique of reconciling the expenditure of funds with the funding limits set for the project
What process is claims administration done in?
Control procurements
What to do when discovering risk
Add it to risk register, then analyze impacts
What process is most associated with process improvement?
Manage quality
What to do first when a project is cancelled?
Do a scope verification to determine what has been completed
Upward Influence
Higher ups in company telling subordinates what to do
Downward Influence
Individual contributors/SMEs influencing project
Single source contract
Company chooses to do business with one vendor despite there being other options
Stakeholder Analysis
Talking with the stakeholders to gain their perspective and thoughts/expectations for a project
Tacit knowledge
Knowledge that is difficult to communicate. This kind of knowledge is typically related to experience, ability, or emotion
Typically deals with team dynamics and how people get along
Change driven project
A project that has a fixed cost and schedule but flexible scope
Risk triggers
Will alert the team when a risk is about to become an issue.
Sole source contract
Company does business with one vendor because they are the only vendor availabe
Knowledge Areas Acronym
ISSCQRCRPS
I sold silly crepes quickly regardless of crying ranchers playing soccer
Matrix Organizational Structure
Weak: PjM has a little more power than functional, authority is low and PJM is part time
Strong: PM has most of the power over resources, full time position
Balanced: PMs power is almost equal to functional managers
Functional Organizational Structure
Funtional manager has most of the power, project manager is likely part time and reports to that manager
Project Oriented Organizational Structure
Project manager has ultimate power, control of all resources, full time
WBS dictionary
Has all the detail information about each work package, such as who is doing it, where it’s getting done, and cost of it
Purpose of stakeholder engagement plan
Express why information needs to be communicated and how it will manage expectations and engagement
Contingency Reserve
Time or money assigned in the schedule or cost baseline for known risks with response strategies
Purpose of managing stakeholder activity
Keep stakeholders expectations in check
What tool do you use for resource leveling?
Resource histogram
Project perf appraisal vs team performance assessment
Appraisal: meet with team and solution
Assessment: observe
What does the scope baseline consist of?
Scope statement
WBS
WBS Dictionary
