Udemy Course Terms Flashcards
1
Q
Steering Commitee
A
helps choose the projects, goals, vision of the projects, priortizing between projects.
2
Q
Transactional Leadership
A
Gives rewards to top performers and punishments the bottom performers.
3
Q
Servant Leader
A
Focuses on the needs of the project team and people served. Makes certain that team members have what they need to get the work done.
4
Q
Laissez-Faire Leadership
A
Hands off approach. Dont make decisions. Team is all self-led and on their own.
5
Q
Transformational Leader
A
Inspiring and motivating. Tells team they can do more than you think possible, empowers team to get work done
6
Q
Charasmatic Leader
A
Does the work with you. “Do as I do now”. Someone who is high energy and takes part in the activity
7
Q
Interactional Leader
A
Hybrid type leadership between transactional, transformational, and charasmatic leader blended together
8
Q
Positional Power
A
power due to position as PM
9
Q
Informational Power
A
PM can control data gathering and distribution. All data goes through them, PM has control of data
10
Q
Referent Power
A
Project Team or Stakeholders have workedwith PM in past. Respected due to past projects.
11
Q
Situational Power
A
Due to certain situations (ie change in power or leadership, new person emerges with power)
12
Q
Personal or Charasmatic Power
A
power due to being likeable or friendly
13
Q
Reward Power
A
Team see the PM as someone who can reward them. Respect and behave to get award
14
Q
Ingratiating power
A
Gain flavor through flattery. “You are so great, etc” False power, wears down over time
15
Q
Pressure based Power
A
PM can restrict choices to get team to do the work “You have to do the 5 assignments by Friday”
16
Q
Guilt-based Power
A
PM can make project team feel guilty in order to gain compliance, “I let you take off last Friday but now we’re really behind” hoping to get extra work done
17
Q
Persuasive Power
A
PM has the ability to persuade the project team through Sales Pitch
18
Q
Avoiding Power
A
refuses to act, get involved, or make decisions
19
Q
Cognitive Level Integration
A
based on experience and maturity of PM. You have insight in project work and know what needs to be done (ie see problems coming, know how to fix)
20
Q
Context-Level integration
A
How the project is managed by changing times (technology changes, environment changes, etc)
21
Q
Benefits Measurement
A
Tool/technique to compare benefits among multiple projects to choose the project most valueable to the company
22
Q
Benefits-Cost ratio (BCR)
A
ratio summarizing the relationship between the costs and benefits of a proposed project
BCR greater than 1.0 the project is expected to deliver a positive net present value to a firm and its investors. (Benefits greater than costs - B>C)
23
Q
Scoring Model
A
Benefit Measuring Method (Choosing a project)
Break characteristics of project (cost, time, benefits, etc) into categories and give individual scores
24
Q
Murder Board
A
PM, sponsor, etc (whoever is representing project) goes in front of group of executives who asks questions about the project and then determine if they want to invest or not. “Murder” or kill project in that room.
25
Payback Period
How long will it take to payback the investment for the project. If someone invests 100k and it takes 6 months before you break even, payback period is 6 month (time before creating ROI)
26
Future Value
Future value of money - What is your current money worth in the future
FV=PV(1+i)^n
i= interest rate
n=number of time periods (# of years)
27
Present Value
Present Value of money -
PV= FV/(1+i)^n
i= interest rate
n=number of time periods (# of years)
28
Net Present Value (NPV)
finds true value of a project. NPV greater than 0 is good
If you invested $80,000 in a project and 5 years later that project is worth $130,000, you need to find the present value (or orignal value) of that $130,000. It the present value of $130,000 when n=5 (assuming i=6%), than present value is $97,143.56. Therefore, NPV is $17,143.56 (97,143-80,000)
29
Internal Rate of Return
Present value equals cash inflow (money coming in)
IRR with higher values are good
Greater than zero means income (decent project selection)
30
Assumption Log
A document that has a record of all of your assumptions, but also has all of your constraints.
31
Kickoff Meeting
The purpose of the kickoff meeting is to ensure that everyone is aware of the project details and his or her role within the project
A kickoff meeting typically occurs at the end of the planning process, prior to beginning the project work.
32
What 3 documents make up the Scope Baseline
Scope Statement
WBS
WBS Dictionary
33
Requirements Traceability Matrix
Table where we track requirements throughout the project.
34
PMIS (Project Management Information Systems)
Typically one or more software applications for collecting and using information. Helps PM's plan, execture, and close the project (ie Microsoft Project)
35
3 Types of Action in Execution
- Corrective Action
- Preventative Action
- Defect Repair
All 3 action require change requests
36
Corrective Action
In corrective action, you have found defects and you take action so the future products can be defect-free.
Realigns project back on track. "Current Results"
37
Preventative Action
Prevents future issues. Ensuring future performance. "Dont want to make the same mistake twice"
38
Defect Repair
Defect repair is about fixing the product. Modifies nonconformance to meet requirements again
39
Scope creep
refers to how a project's requirements tend to increase over a project lifecycle, e.g. what once started out as a single deliverable becomes five. Approved changes by customer have increased project scope
40
Gold Plating
refers to the Project Team adding the extra features that were not part of the product scope. Adding scope above the baseline that customer may or may not be happy with.
41
Deliverables
Throughout your project, you'll be creating things. Things that your project create are deliverables. Basically, anything that gives us product, result, or capability. An output of the work you do.
Example: In planning, we create a quality management plan, that is a deliverable. Customer never sees it, but the project still created it so it is a deliverable.
42
Configuration management
Managing the configuration of all products and assets in a project (to control multiple versions of a deliverable)
Examples: Blueprints, documents, plans revisions (Rev 1.1, Rev 3.4, etc) keep everyone on same page by controling all versions of documents/products.
43
Issue Log
An issue log is a simple list or spreadsheet that helps managers track the issues that arise in a project and prioritize a response to them
44
Two types of Project Knowlege
Explicit and Tacit
45
Explicit Knowledge
knowledge that can easily be communicated through conversations, documention, etc.
"To use this equipment, you have to hit this button and this button to turn it on" or "There's 10 boxes on the left side of warehouse when you first walk in, grab those".
In short, easily to expain.
46
Tacit Knowledge
More difficult to explain. Its the knowledge that comes from years of experience and doing the same task over and over.
47
Reverse Shadowing
Opposite of shadowing, the "expert follows you"
48
Alternative Analysis
Corrective and preventative actions to fix problems and to prevent problems. "What are my alteratives? What are the different solutions I can use to fix this?"
49
Cost Benefit Analysis
cost of the proposed corrective actions compared the the benefits it brings. "Its going to cost us $1200 to fix this issue. What benefits will it bring to fix it? Should we just keep it, is it worth fixing"
50
Earned Value Analysis
A suite of formulas that helps show project performance. Formulas to show how healthy the project is.
51
Root Cause
Not looking to treat the symptoms, looking to treat the cause.
Example - You have a runny nose. Blowing nose or wiping nose is symptom. Having an allergy or cold is the cause.
52
Causal Analysis
What is actual causing an issue? Looking for causal factors contribuiting to the effect
53
Trend analysis
Finding a trend (recurring problems, threats, opportunities)
54
Variance analysis
Difference between what was planned and what was experienced (Cost variance, schedule variance, etc)
Helps us find root cause
55
Autocratic decision making
One person decides
56
Requirements Management Plan
How you will plan, track, and report progress on requirements
57
Product Scope vs Project Scope
Product Scope - Features and Functions - A way to describe things or characteristics or usability customer will receive as a result of the project.
Project Scope - The work completed to create product.
58
Business Analyst
Individual who can gather requirements, package them, and define what the project scope will be.
59
PM vs Business Analyst Relationship
Collaborative Partnership- Business Analyst has requirement responsibilities and PM has project delivery responsibilities.
60
Affinity Diagram
Similar to brainstorming but we group ideas into clusters. Each of those can be broken down again to analyze each subset. Logically structured into groups
61
Mind mapping
A way to brainstorm ideas and helps generate ideas. A way to visualize ideas.
Not very logically structured, all over the place
62
Nominal Group technique
Nominal Group technique is a way for the group to sort of anomonsly rank requirements.
1)Each participant individually brainstorms the problem or opportunity with their ideas
2)The facilitator will add all ideas to a white board
3)The ideas are all discussed so everyone clearly understands the ideas
4)Then privately vote on each idea from 1 to 5.
Whichever requirements get highest score and highest ranked on requirements list
63
Context Diagram
Shows the flow of data through a system or flow of a process through the system.
64
Requirements Traceability Matrix
document which defines the requirements, status of each requirements, details of each requirement. (Table tracking or tracing all requirements and its status)
65
Project Scope Statement
The actual document that defines the project scope. Detailed desciption of the product and project scope.
Create a WBS from Scope Statement
66
Validate Scope
Customer inspects the project deliverables (ie. walkthrough of new house). Typically done at end of each phase and at completion of project.
67
Quality Control vs Validate Scope
Quality refers to the PM or project team inspecting the work before the customer sees it.
Scope validation is when customer inspects to provide approval.
Both inspections driven processes, but quality is an internal inspection.
68
Rolling Wave Planning
Planning in adaptive environment (activities added to backlog for next iteration and then you complete). "Plan then do, plan then do"
Delivers incremental value (complete in iterations)
Each wave is an iteration (2-4 weeks)
69
Lean Manufacturing
We have backlog of assignments and then as team members become available, it goes to next available team member.
Not as much planning as we dont decide which team member does what, we just assign next project in line to next available team member
70
Theory of Constraints
Examine the most limiting factor in our processs and we then improve that trait to where its no longer our most limiting factor.
71
8/80 rule
Each work package should take between 8 hours and 80 hours. Anything smaller than 8 hours is too granular. More than 80 hours needs to be broken down further.
72
Milestone Chart
A way to visualize when milestones are planned and when you actually hit the milestone.
73
Mandatory dependencies - Hard Logic
Activities that must follow a particular order
| Have to have a foundation before you can frame house
74
Discrentionary dependencies (Soft Logic)
You can change the order and it would still work
| You should paint before you replace carpet, but you can replace carpet and then paint after if you needed to
75
External dependencies
external constraints (vendors/inspectors - very little control over them) (Cant start building until inspector improves foundation)
76
Internal dependencies
A type of hard logic (No external factors - Team member B cant start work until team member A is done his part)
77
The precedence diagram method (PDM)
A tool for scheduling activities in a project plan. Successors and Predessesors
78
Network Diagram
A way to visualize the project work and sequence activities
79
Activity-on-node (AON)
Network Diagram a precedence diagramming method which uses boxes to denote schedule activities
80
Lead time
negative time (accelerated time -allows activies to overlap)
81
Lag time
positive time (waiting time - moves activities further apart)
Ex. Waiting for concrete to dry
82
Law of Diminishing returns
You can only get so much return when one factor remains the same
(ie. Wheat Field - Theres only so much wheat in the field. Just because you add more people, more machines, etc, doesnt mean you'll get more wheat. You might get it faster, but theres still only so much wheat)
83
Parkinson's Law/Student syndrome
Work will expand to fill the time alotted to it
84
Analogous Estimating
Creating an analogy between projects (similiar project work and comparing to current work). Also called Topdown estiimating
Fast but least reliable
Example:
Project A took 6 months to complete. Project B is similiar, just a little larger, so I estimate it will take 8 months
85
Parametric Estimate
Uses parameters for estimating. Used for repetitive work when a learning curve is involved.
Examples: It takes 2 hours to install each light fixture. 100 fixtures will take 200 minutes.
86
Duration vs Effort (not the same)
Duration is how long the activity will take.
Effort is the billable time for the labor.
87
Three-Point Estimating
ind the average of the three following:
1) Optimistic
2) Most likely
3) Pessimistic
(O+ML+P)/3 = Estimate
88
PERT Estimates
(Also Three-Point Technique but weighted towards most likely)
Formula is (O+ (4ML) +P)/6= Estimate
89
Bottom Up estimating
Starting at bottom and accounting for all time (or costs) in WBS. Add up all very detailed activities on WBS
Have to have WBS to use bottom up estimating.
Takes longest to estimate durations with this method, but it is the most reliable.
90
Two types of reserves
Management Reserves and Contigency Reserves
91
Contingency Reserve
Usually associated with money. For risk events that disrupt project. Known/unknowns. Controlled by PM
92
Management Reserve
Associated with time or money. For when uncertain events arise, typically a percent of project. Controlled by management, PM cannot touch
93
Schedule Network Analysis
Tool & Technique to find the earliest and latest project completion date
"Float Diagram"
94
3 types of float and differences
Free Float - Activity can be delayed without delaying next activity
Total Float - Activity can be delayed without delaying project completion. Whats the total amount of duration I can have on a task without effecting end date.
Project Float- Whole Project can be delayed without delaying project completion (ie Project takes 30 days, but you have a year to get it done)
95
Monte Carlo Analysis
Gives you probability in schedule and risk
"Probability Simulator"
96
Two types of Schedule Compression
Crashing- Adding people and cost to get done faster
Fast tracking - Allow phases to overlap. This increases risk. Two phases that should probably be done one after the other are overlapping to get done faster.
97
Resource Leveling
A resource-leveling heuristic is a method to flatten the schedule when resources are over-allocated.
This is "Bar graph - Workers over 40 hours" example. Workers capped at 40 hours so schedule will need to increase and work will extend to next week, rather than allowing workers to work 45 hours and get all work done this week.
98
Resource Smoothing
We keep 40 hour max, but only applies to activites not on critical path. Smoothing on activities with float (because there is free time)
Activities on critical path allow people to work more time.
99
Agile Release Planning
Create a high level summary (# of iterations planned and DOD) of when we expect the product to be released. "Plan to release the agile product"
Typically every 3-6 months
100
Breakdown of Agile Releases (Relationship between user stories, releases, iterations, and tasks)
Releases > Iterations > User Stories > Tasks
So tasks (few hours) make up user stories, user stories make up iterations (2-4 weeks), iterations make up a release (3-6 months), multiple releases make up the product vision
101
Burndown Chart
A way to identify how much work do we have to do.
The closer you get to bottom, the closer you are to completion
102
Life Cycle Costing
How much will it cost to maintain the "thing" your project creates (ie Cost of ownership)
Think of the yellow stickers when you buy an appliace. It shows how much you can expect to pay (total cost of ownership
103
3 types of Cost estimates
ROM (Rough Order of Magnitude)
Budget Estimate
Definitive Estimate
104
Rough Order of Magnitude (ROM)
Initial estimate, very broad estimate. Unreliable and not very accurate.
105
Budget Estimate
Based on scope, a little more precise. Have a lot more info on scope when you make this estimate.
106
Definitive Estimate
"Bottom Up" Estimate - Very detailed, accounts for all costs. Takes the longest to create because its the most detailed/accurate
107
4 types of costs
Direct
Indirect
Variable
Fixed
Note: Costs can be mixed and match (ie Direct and also fixed at same time)
108
Direct Costs
An expense only for your project
109
Indirect Cost
An expense shared to more than one project (piece of equipment that can be used on other projects)
110
Variable Cost
Price varies depending on how much you order and when you order (ie. Travel - Flight costs change based on market conditions
111
Fixed Cost (not Fixed Price Contract)
Any cost thats uniformed throughout the project (ie. Equipment rental that costs $500 each month through duration of project)
112
Funding Limit Reconciliation
A technique that compares the funding available in each time period (say a month) to the planned expenditure in that time period to ensure that the planned expenditure is within the available funding
IF they dont match, we have a cost variance. If we have a cost variance, we probably need a corrective action (go back and reestimate or trim scope, or ask for more money, etc)
113
Cost Baseline
Shows predicted costs and when we will have those costs over Project. Typically an S-curve.
114
Phase Gate
End of a phase. Way to examine what happened in this phase before you can go onto next phase.
Phase Gate can also be called Stage Gate or Kill Point. If called Kill Point, it means its an opportunity to kill the Project.
115
To-complete performance index (TCPI)
Formula asking ourselves, based on performance now, can you hit the original BAC, or is it more likely youll hit the new EAC
TCPI=(BAC-EV)/(BAC-AC)
vs
TCPI=(BAC-EV)/(EAC-AC)
The lower the number, the more likely it is that you'll hit that number
116
Earned Value (EV)
EV=%complete x BAC
117
Planned Value (PV)
PV= %planned x BAC
118
Cost Variance (CV)
the difference between the actual cost and the budgeted cost
CV= EV-AC
119
Schedule Variance (SV)
indicator of whether a project schedule is ahead or behind
SV= EV-PV
120
Cost Performance Index (CPI)
Formula - CPI = EV/AC
The closer we are to 1, the better we are
121
Schedule Performance Index (SPI)
measure of how close the project is to being completed compared to the schedule.
Formula - SPI= EV/PV
The closer we are to 1, the better we are
122
Estimate at Completion (EAC)
At this trend, how much will we spend by end of project.
EAC= BAC/CPI
123
Estimate to Complete (ETC)
How much more money do you need to get to end of Project
ETC = EAC-AC
124
Attribute Sampling
Look at the attributes of what were creating. Each attribute we can look at and test it.
The results either conform to requirements or it doesnt. Binary (Its good and can go on or its bad and we need to fix the problem)
125
Variable Sampling
The results of what we inspect are rated on a continuous scale to measure conformity (How close are we to perfect?)
How far away from quality is it? Allowable tolerable range of the results "It doesnt conform but just a 1/16" off"
126
Checklists
Type of Data Gathering
Helps ensure work is done the same way each time (Step 1, Step 2, Step 3- check off each time)
127
Check sheets (Tally Sheets)
Type of Data Gathering
Helps organize data when you have a quality issue. (ie Manufacturer cars - You can do a check sheet where you tally any car that has scratch, or window crack, defect, etc) Helps tally up how many of each defect exists.
128
Statistical Sampling
Randomly select a few items from the pool of deliverables.
For example, if we installed 1,000 doors we might go out and randomly inspect 200 of those doors. If we find defects in 10 of the 200 doors, this will help us estimate that we'll likely find defects in 50 doors out of the 1,000.
129
Ishikawa Diagram
Fishbone - Cause and Effect Diagram
130
Flowchart
illustrate the flow of process throught a system. Boxes and arrows. Doesnt have to be PM activities. It could be how you handle a vendor or how you schedule an inspector, etc. Just shows how you get to that result
131
Control Chart
Typically used for repetitive activities (manufacturing or call center - repetive activities).
A way to track results of a batch.The specs/metrics are established by customer requirements. Upper control limits and lower control limits (worst and best we expect to do). Just know that the greater the sigma, the less room for error. (ie. +/- 1 = 68%, +/ -2 =95%, +/ -3= 98%, +/- 6=99%)
Upper Control Limits (UCL's) - + 3 or +6 sigma.
Lower Control Limits (LCL's) - -3 or -6 sigma.
132
Rule of 7
is a non-random trend when you have 7 in a row on one side of the mean on a control chart
133
Pareto Diagram
Pareto Diagram is bar chart (Histogram) that shows categories of defects, from largest to smallest.
Background - Pareto developed the 80/20 rule, also called Pareto Principle. examples: "80% of your calls will come from 20% of your users" "80% of your income comes from 20% of your clients"
134
Scatter diagram
Shows relationship between two variables. Individual dots (represent sampling) that you can draw a trend line through ( Example: X-axis = shoe size, Y = height. There is a trend there and you can conclude the two variables have relationship (correlation)
135
Run Chart
Similar to a control chart, but it shows the time it takes to accumulate each grouping of instances (ie. 1,000 phone calls). Also shows trends. "Running across calendar"
136
JIT (Just in Time)
- Supply chain philosophy where you only have materials on hand when youre going to utilize those materials.
137
Kaizen
Small changes over time for continuous improvement "Marathon example"
138
Total Productive Maintenance
Preventative Maintenance on Equipment.
You have to schedule maintenance on equipment so it doesnt break down later.
139
Emotional Intelligence (EI)
Being able to control our emotions, understand others, and being able to influnce the emotion of others.
140
Two types of emotional intelligence:
Inbound - Self management. Control our own emotions.
Outbound- Relationship management. We try to understand where this person is coming from.
141
Organization Chart (Org Chart)
Looks like family tree, details who reports to who (heirarchy). Project manger -> Team leads -> Team members
142
RACI Chart or Matrix
(Responsibe, Accountable, Consulted, Informed)
-Note on RACI - There can only be one person Accountable. There can be mulitiple people responsible, but only one accountable
143
Roles and responsibilites Chart
Similar to RACI, but generic roles are used(not individual names of people)
144
Responsibilty Assingment Matrix (RAM Chart)
Simililar to RACI, but it could use a different legend. You can make up your own legend. Examples below:
R- Report
I- Implement
P- Participant
145
Maslow's Hierarchy of Needs
- Triangle Chart "Think Food Pyramid". Theory is you cant satisy the need above, until the need below is taken care of.
1) Physiological Needs - Water, food, air
2) Safety Needs - We need to be safe and feel secure (Safe working environment)
3) Social Needs - We need friends and to interact with others (Making friends with coworkers)
4) Esteem Needs - You take pride in work. You want to feel valued at work
5) Self Actualization - "Your calling" - What your doing is your purpose of being alive
146
Herzberg's Theory of Motivation
There are demotivators and motivators
147
McGregor's X and Y
management perspective to employees. In short, X is bad and Y is good.
148
McClellands Theory of Needs
Over time, our needs change and are acquired by life experiences.
149
Thematic Apperception Test (TAT)
Test used in Mclellands Theory of Needs.
How you determine which need is driving you or an individual. Answer questions and based on how you answer will tell which need is driving you.
150
Ouchi's Theory Z
Japanese management style is a participantory and that people want to be involved and valued. Life long employment.
151
Vroom's Expectancy Theory
People behave based on what their behavior will bring them. (how your kids behave around you is different than how they behave around other people)
152
Halo Effect
A person has one positive attribute and thats how they are percieved. Example: Person A is good at software development so people assume they would be great at being a PM as well. Two different skill sets. Ie. False perception.
153
Resource Breakdown structure
Similar to WBS, but shows resource utilization
154
Zero sum awards
Like employee of the month.
You want to avoid zero sum awards. Other employees who think they performed well but didnt get recognized will be hurt by it.
155
Tuckman Model
Forming, Storming, Norming, Peforming, Adjourning
156
360-degree appraisal
Type of Assessment. Everyone around this person will provide an assessment. Managers, PM, other team members, etc would provide assessments.
157
Collaborative/Problem Solving (Conflict Technique)
preferred option. You and I work together. Dont care who's right or wrong, we just want best resolutions.
158
Forcing/Directing (Conflict technique)
The person with power or authority makes the decision. We'll do it this way becuase what I say goes.
159
Comprimising/Reconcile (Conflict technique)
hile it sounds positive, its actually a lose/lose. Both people have to give up something
160
Withdrawal/Avoiding (Conflict technique)
When one person just leaves the arguement. "Fine, just do whatever you want, I'm done"
161
Smoothing/Accomodating (Conflict technique)
Downplay the differences. Smooth out a small petty conflict.
162
Autocratic Management
PM makes all the decisions
163
Democratic Management
The project team is involved in the decisions
164
Laissez Faire Management
The PM allows the team to lead and make decisions
165
Exceptional Management
The PM manages by exception (reactive). Reward top team members and punish bottom team members. Similiar to transactional.
166
Communications Channel Formula
n(n-1)/2
167
Interactive Communications
Two or more parties in real time (Can be phone calls, meetings, hallway convo)
168
Push communication
Sent to specific recipients. Info is distributed, does not ensure reception or understanding .We push it out, one way communication (Email, memo)
169
Pull communication
Have website or database and you pull info from the website. Ideal for large complex info sharing (Website, web portal, e-learnin, lessons learned database)
170
Interpersonal Communication
Individual, typically face to face
171
RAG Rating
Red (bad) / Amber/Yellow (Caution) / Green (Good)
172
Stakeholder Engagement Matrix
shows different categories of stakeholders and how involved they are.
```
Unaware
Resistant
Neutral
Supportive
Leading
```
173
Paralingual Communication
Pitch, tone, and inflections (how you say something)
174
Active Listening vs Effective Listening
Active Listening - Receiver confirms the message by paraphrasing the message back
Effective Listening - Paying attention to visual clues from the speaker and paralingual characteristics to understand intent
175
Two categories of Risk
Business Risk and Pure Risk
176
Business Risk
The investment you could lose. Potential to lose on your investment (Risk of investments in stock market, starting up new business)
177
Pure Risk
Danger. Loss of life or limb. Has no positive opportunity. (Dangerous work of Construction, healthcare, etc)
178
Risk Appetite
the level of risk that an organization is prepared to accept in pursuit of its objectives
179
Risk Tolerance
Whats their unease? Whats their level of tolerance for amount of risk in project.
180
Risk Threshold
At what point would i cross that risk threshold, and now I'm uncomfortable with that risk
181
Stakeholder Tolerance
How tolerant are the stakeholders to assume some risk
In a high profile project, stakeholder tolerance is low (not very tolerant to risks).
182
Individual Project Risk
The Independant risk events of your project (vendor could be late, software may not be compatible)
183
Overall Project Risk
How risky is the project in the organization. Overall risk exposure.
184
Non-event based risks
Variable risks. Unknows or uncertainties around a project activity ( We anticipate we can make 1,000 units per hour, but this could vary based on several variables - who's maning the equipment, any defects in marterial, etc) Weather is good example of Non-event based risks
185
Warning Sign (Trigger)
indicator that a risk event is emerging or likely to happen
186
Prompt list
predetermined list of risk categories
187
Assumptions validiity testing
Where you test your assumptions. If assumptions prove to be false, thats a risk
188
SWOT Analysis
Examining the project from each of the below characteristics
Strenths
Weaknesses
Opportunities
Threats
189
Risk Register
Document that contains all informations on risk. We update when we identify new risks, update status', progress, responses, and outcomes. We track the risks in this document.
You also document the risk owner/s, root cause, triggers (warning signs), and deadlines.
190
Probability Impact Matrix
Chart (table) that identifies Risk, Probability it will occur, the impact, and Risk Score .
Categories can be Ordinal (subjective - "Low, moderate, high") or Cardinal (Obective- "numerical)"
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Ordinal scale
gauge or judge seriousness of risk in subjective - "Low, moderate, high" way - Qualitative
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Cardinal scale
gauge or judge seriousness of risk in Obective "numerical" way- Quantitative
( Think "Cardinal- counting")
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Risk Parameters (Differences between Urgency, Proximity, and Dormancy)
Urgency of the Risk - How long before the risk may happen (Risk could happen in 10 days)
Proximity - How long before the risk will affect the project (Risk could affect the project after 15 days)
Dormancy- How long after the risk occurs will you notice the effect.
Example -The risk will happen in 10 days (urgency), it will affect the project after 15 days (Proximity), but we didnt notice until 18 days (Dormancy)
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Propinquity
The perceived importance of a risk according to a key stakeholder
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Bubble Diagram
Graph that charts dots (bubbles) where there are risks. The larger the bubble, the more significant the impact. Dont want bubbles in upper right hand corner.
A bubble chart displays three dimensions of data, where each risk is plotted as a disk (bubble), and the three parameters are represented by the x-axis value, the y-axis value, and the bubble size
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Sensitivity Analysis
Where we take 1 risk event, and ask ourselves "If this event happens, how will it affect our whole project?" Not necessarily domino effect of what could happen, but how will this single event effect the overall project
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Expected Monetary Value (Ex$V)
risk management technique to help quantify risks.
To find the Expected Monetary Value (Ex$V) you multiply the probably of risk and the impact. For example:
If a risk occurs, it will cost $10,000 and we believe there to be a 20% change of it occuring. Ex$V would be $10,000 x .20 = $2,000
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Risk Exposure
risk management technique to help quantify risks
(ie. if the sum of all our risk events' Expected Monetary Value -Ex$V =$25,000, our risk exposure will be -$25,000. The inverse of that ( + $25,000) is our contingency reserve
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Contingency Reserve
the amount of funds we should put aside only for risk events.
The inverse is Risk Exposure (ie. if the sum of all our risk events' Expected Monetary Value -Ex$V =$25,000, our risk exposure will be -$25,000. The inverse of that ( + $25,000) is our contingency reserve
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Utility Function
A company’s willingness to accept risk
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Decision Tree
Visualization of a decision you need to make. Take two or more scenarios and determine which scenario is best.
Decision Tree Examples:
Buy vs Build
Lease vs Purchase
In house resource vs outsource to contratractor
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Plan Risk Responses
Creating strategies for risk events if they were to occur, both negative (threats) and positive (opportunities). Goal is to enhance opportunies and reduce risk
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5 ways to respond to a Negative Risk
Escalate - outside of PM abilitity to respond. Escalate to management
Avoid -Change plan to avoid risk all together (Example : Reduce scope to avoid a task)
Transfer - Hire someone else. Transfer the risk to someone else
Mitigate - What can we do to reduce the probability and impact of the event (Example : wear a harness on roof to reduce probability and impact that they fall of roof)
Accept - For risks that you have little control over. You just deal with it (Weather, vendor is late)
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5 ways to respond to a Postive Risk
Escalate - outside of PM ability, escalate to management
Exploit - You want to make everything right in the project to take advantage of scenario (Construction crew gets bonus if they finish early, so they are working 24 hours a day to get done early. They are exploiting that they can work nights to get a bonus)
Share - Partner up with another group to take advantage of positive risk (You join up with another company to provide a good result to a customer)
Enhance - Want the risk to come true. You try to enhance the scenario to put odds in your favor
Accept - Accept the positive risk (Accept discount)
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Contingency plan
"Backup plan" "What are we going to do if this happens"
Also called fallback plan, Its put in place so all team members know what actions to take when the specified risk event occurs.
It's a worst case scenario.
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Residual Risks
When you complete a risk response and then it creates new, smaller risks.
Example: You do transferance. You have to climb a tower so you contract someone else, transfer the risk, but now it turns into new, smaller risks (Vendor late, vendor could steal equipment)
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Secondary Risks
Complete risk response and that creates domino effect with more risks, not necessary smaller.
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Risk Register vs Risk Report
The risk register is used to identify, assess, and manage risks down to acceptable levels through a review and updating process. ... Risk Report contains summary information of overall project risk, opportunities exposure and trends.
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Sole source
Only 1 seller that can meet the needs (Unique skill set that nobody else can copy)
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Single source
Lots of different sellers, but you prefer to only work with one (ACG was single sourced Harris)
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Oligopoly
Market conditions are so tight, that the actions of one seller affects the price and availabilities of others (Example : Airfare - if one airline puts flight on sale, the other generally follow because market conditions are so tight)
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Firm Fixed Price (FFP)
Firm price, wont go up or down
Seller delivers 10 tons of mulch for $500. Buyer doesnt pay more if something goes wrong (traffic, etc)
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Fixed-Price Incentive Fee (FPIF)
Firm price, but also an incentive to complete.
Incentives can be schedule related (complete by March 1st), technical related (If you can hit 300 mbps, you'll get incentive)
There is a price ceiling to incentives (You get $1,000 bonus for every day you get done early, up to $10,000. The $10,000 is the ceiling (max bonus))
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Fixed Price with Economic Price Adjustment (FP-EPA)
If external conditions affect the price of materials, we can adjust the price (Cost of steel fluctuates with inflation)
Price can be adjusted up or down
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Cost plus Fixed-Fee (CPFF)
Cost of materials plus flat fee. Fee is flat unless scope is changed.
Example: I'll build that deck for you, but it will be costs plus $5k.
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Cost plus Incentive Fee (CPIF)
All costs covered plus incentive
Example : Costs $100,000 to build a shed but you will get a bonus to get done early. All material used (or wasted) is still covered.
Incentive Sharing (Often 80/20) - Sometimes in larger projects.
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Cost Plus Award Fee (CPAF)
All costs covered and fee is mysterious. Buyer determines what the fee is after completion.
Example - Deck building - It will be $10,000 and once complete, the buyer provides and award fee. It could be $1, it could be $5,000, solely up to buyer.
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Bid or Quote
From seller to buyer. Price is determining factor
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Proposal
From seller to buyer. Price is a factor but also can be about the proposded solution, skillset of seller, etc
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Invitation for bid (IFB)
From buyer to seller. Requests seller provide a price
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Request for Quote (RFQ)
Same as IFB - From buyer to seller. Requests seller provide a price
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Request for Proposal (RFP)
From buyer to seller. Request to provide a price, solution, ideas, etc (not just quote)
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Request for Information (ROI)
From buyer to seller. Not ready to buy yet, just want some information
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Bidders conference
Prospective sellars are invited to conference where they can ask questions on the SOW
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stakeholder analysis
a process of identifying Stakeholders before the project begins; grouping them according to their levels of involvement, interest, and influence in the project; and determining how best to involve and communicate each of these stakeholder groups
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Stakeholder register
project document that has information about the project stakeholders. It identifies the people, groups, and organizations that have any interest in the work and the outcome. Use stakeholder register throughout the project
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5 Levels of Stakeholder Engagement
Unaware
Resistant
Neutral
Supportive
Leading
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Inputs to Project Charter
- Business Documents
- Business Case (Business Need/Value and Cost
Benefit Analysis)
- Benefits Management Plan
- Agreements
- OPA's
- EEF's
