Project+ Extra 11 Flashcards
??? hierarchical arrangement of identified risks that helps PMs organize potential sources of risk to a project. Much like WBS, RBS arranges categories into hierarchy, which allows project team to define risk at detailed levels.
Risk Breakdown Structure :
Risk Analysis : evaluation of prob/impact of occurrence of risk in project. Qualitative/quantitative techniques used.
Risk-Averter : not likely to take risk thats considered high risk.
Risk-Neutral : tolerance to risk is proportional to amount of money at stake.
Risk-Seeker : accepts uncertain outcome, may be willing to take high risk regardless of consequences.
Communication Channels Formula : (n(n-1)) / 2
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??? standards used to rate or score proposals, quotes, or bids and form a part of procurement solicitation documents. Objective Criteria -> can be readily demonstrated, specific, and measured. Subjective Criteria -> open to different interpretations.
Source Selection Criteria :
??? project scope baseline, requirements documentation, existing teaming agreements, project risk registers, risk-related contract decisions, activity resources requirements, project schedule, activity cost estimates, cost performance baseline, enterprise environmental factors, existing organizational process assets; after procurement plan is created other relevant outputs of procurement process -> procurements SOWs, make-or-buy decisions, procurement documents, source selection criteria, change requests.
Procurement Document Includes (procurement management plan) :
ROM : developed w/o any detailed base data and based on high-level historical data, expert judgement, or costing model. Made early in project. Accuracy -> -25% - +75%.
Range of Estimate : used as alternative to ROM where accuracy of estimate is not well known. Accuracy -> +-35%.
Approximate Estimate : based on more info than ROM estimates but lacks the detail for high accuracy. Estimate may be possible if project is similar to previous ones w/reliable historical data for costing or where proven costing model is applicable. Accuracy -> +-15%.
Budgetary Estimate : used for appropriation purposes. Accuracy -> -10% - +-25%.
Definitive Estimate : based on detailed info about project work and is developed by estimating cost for each work package in WBS. Accuracy : -5% - +10%.
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??? allows use of ROM or approximates for later parts of work, while work that must be done earlier in project life cycle is estimated at definitive level.
Rolling Wave Estimate :
??? cost estimation based on bids obtained from vendors. Proposed costing from vendors is considered while developing estimates for project.
Vendor Bid Analysis :
??? estimates of costs necessary to finish project work. Including -> costs of direct labor, materials, equipment, facilities, service, IT, contingency reserves, and indirect costs. Costs estimates for each activity are added together to create overall cost estimate for work package.
Activity Cost Estimates :
??? involves supporting and extra info needed to justify cost estimates. Details can include project scope, justification for estimate, assumptions, constraints, confidence level of estimate, and expected range of estimates.
Basis of Estimates :
??? method of adjusting, spending, and allocating resources in order to bring expenditures into alignment w/budgetary constraints.
Funding Limit Reconciliation :
