PMP Study Notes - (250+ pts)

PMP Study Notes

·         Project – temporary work endeavor to produce a unique product, service, or result; it consumes resources; has a beginning & end; and is a one-time event

·         Program – a group of related projects managed together

·         Operation – ongoing and repetitive tasks that produce the same result every time

·         Portfolio – a collection of projects, programs and/or operations managed together for a business reason

·         PMO – centralized, permanent, administrative unit that supports project managers, and hold Organizational Process Assets

·         Enterprise Environmental Factors (EEF) – culture, internal politics, reporting structure, business climate

·         Organizational Process Assets (OPA) – policies, procedures, templates, methodologies, lessons learned

·         Stakeholders – people that have influence over or are influenced by a project

·         Phase-to-Phase Relationships – Sequential, Overlapping & Iterative

·         Phase – has all five process groups in it

·         Progressive Elaboration – successive layers of detail added, rolling wave planning is a type of progressive elaboration

·         Decomposition – breaking down into smaller pieces

·         Triple Constraint – Scope (requirements, goals & objectives), Time (schedule), Resources (money, budget, cost, personnel, materials, facilities, equipment)

·         Process Groups – Initiating, Planning, Executing, Monitoring & Controlling, Closing

·         Knowledge Areas – Integration, Scope, Time, Cost, Quality, Human Resources, Communications, Risk & Procurement, Stakeholder

·         Stakeholder Analysis – identify potential stakeholders, classify as positive or negative, plan for their reaction or response, team members involved with projects, project sponsor, and can be negative or positive stakeholder

·         Organizational Structure – dictates how various groups within an organization interrelate

o   Functional

o   Matrix - Weak Matrix, Balanced Matrix, Strong Matrix; in a weak matrix org a project manager is more of an expeditor or coordinator; strong matrix is best for project manager

o   Projectized - no functional depts., all work is project based

·         Code of Ethics – Responsibility, Respect, Fairness & Honesty

·         Milestone – is a point in time, not a duration

·         Project Selection – based on a business case, tied to one or more strategic goals, select the project with the highest possible profit that meets the acceptable timeframe

·         Statement of Work (SOW) – list everything that must be done

  

·         Project Charter – clear, concise description of business case / need to address; formally launches & authorizes project; names Project Manager & authorizes resources

·         Stakeholder Register – output of Identify Stakeholders process; identifies stakeholders of project; list includes name, position, location, role, contact info

·         Stakeholder Management Strategy - output of Identify Stakeholders process; strategy created to ensure maximum support of stakeholders and to maximize support & minimize negative impacts throughout project life cycle

·         Project Management Plan – details how a project will be executed to achieve its objectives; includes outputs from all planning processes

  

·         Decision Tree – selection criteria arranged as branches, go down each branch until one fails, once fail = stop, not selected

·         Criteria Profiling – similar to Decision Tree, but not eliminated even if one criterion fails

·         Weighted Factor – selection criteria is weighted different and factored into the score

·         Q-Sorting – group of people rate rank from highest to lowest, results are compared, and lowest is thrown out, and performed again until you get to selected group

·         Delphi Technique – Anonymous experts rank and provide feedback on their ranking, results are collated and send back to group of experts until a censuses is reached

·         Feasibility Analysis – can company do this; do they have capability to do it

·         Cost Benefit Analysis – providing foretasted cost alone with projected benefits in order to assist in decision making

  Focus Groups – run by a trained moderator, provide open ended questions

·         Questionnaires & Surveys – based on output from focus group

·         Facilitated Workshops – a mixture of in house cross functional stakeholders

·         Group Creativity Techniques – Brainstorming, Nominal Group technique (voting process), Delphi technique, Mind Mapping & Affinity Diagram (categorizing ideas)

·         Observations – Job Shadowing 

·         Prototypes – working model designed to get feedback to provide detailed requirements

·         Requirements Traceability Matrix – output from the Collect Requirements process; a list or table that links requirements to their origin & tracks them throughout the project life cycle

·         Requirements Document – includes Assumptions, Constraints & Dependencies

·         Scope Statement – includes Project Description, Acceptance Criteria, Deliverables, Constraints (includes Primary Constraint: Scope, Time or Resources), Assumptions & Milestones

·         Product Analysis Techniques – 

b                   Functional Analysis (analyze entire product, identify unnecessary functions), 

                     Value Analysis (cost verses benefit ratio), 

                     Quality Function Deployment (customer needs, translate those needs into technical requirements),                  Systems Engineering (analyzing technical pieces – integration factors, usage, related hardware / software)

·         Alternatives Identification – Lateral Thinking, Brainstorming, Delphi Techniques

·         Decomposition – breaking down into manageable pieces

  Work Breakdown Structure (WBS) – logical grouping of deliverables arranged in a hierarchical structure; defines the total scope of work required; graphical presentation

·         Work Package – smallest most granular deliverable that cannot be further subdivided

·         WBS Purpose – serves the Project Team

·         8/80 Rule – guidelines regarding work packages; should be more than 8 hours and less than 80 hours of work

·         Scope Baseline – Project Scope Statement, WBS & WBS Dictionary; get approval & sign off from Sponsor before moving forward

  

·         Activity – an element of project work that requires action to produce a deliverable

·         Project Schedule Network Diagram – an output of Sequence Activities; graphical representation of the sequence of activities & the dependencies among them

·         Types of Activity Dependencies – Mandatory, Discretionary & External

·         Precedence Relationship – logical relationship between two activities that describes the sequence in which activities should be done

o   Predecessor Activity – activity that comes first

o   Successor Activity – activity that comes next

·         Precedence Relationship Types: in order from normal to rare

o   Finish to Start (FS) – predecessor activity must finish before successor activity begins

o   Finish to Finish (FF) - predecessor activity must finish before successor activity finishes

o   Start to Start (SS) - predecessor activity must start before successor activity can start

o   Start to Finish (SF) - predecessor activity must start before successor activity finishes

·         Lag – a delay in the start of a successor activity; extra time between activities

·         Lead – a change in the logical relationship of a FS relationship that allows the successor activity to start before the predecessor activity ends; crunch time between activities

·         Precedence Diagramming Method (PDM) – a graphical representation that uses boxes to represent activities & arrows to represent relationships between activities; does not show time

·         Hammock Activity or Summary Activity – groups many related activities together

·         Estimate Activity Resources – determining specific resources necessary for completing project; includes quantity & availability of resources

·         Resource Breakdown Structure (RBS) – an output of Estimate Activity Resources process; a hierarchy of identified resources organized by category & type (labor, equipment)

  Bottom-up Estimating – decomposes work in an activity to the last executable level; accuracy is very high; very time consuming process

·         Analogous Estimating – top down estimating technique that uses previous similar activities

·         Parametric Estimating – multiplying a productivity rate by the quantity to be performed; mathematical process

·         Three Point Estimating (PERT) – estimating technique using a weighted average of most likely, optimistic & pessimistic

o   PERT estimate = Optimistic + 4(Most Likely) + Pessimistic / 6

·         Reserve Analysis – adding extra resources to serve as a buffer

·         Schedule Network Analysis – technique used to calculate the early and late start and finish dates for activities; includes Critical Path Method, Critical Chain Method, What-if Scenario & Resource Leveling

• ·         Critical Path Method (CPM) – analysis method that uses a sequential FS relationship network logic and calculates early & late finish & start for each activity uses duration estimates
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•  ·         Critical Chain Method - analysis method that allows you to alter project schedule to accommodate limits on resources
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•  ·         Resource Leveling – used to analyze the schedule model; allows you to readjust work as appropriate so that people are not over allocated; Fully Allocated, Under Allocated, Over Allocated
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•  ·         What-if Scenario Analysis – method that allows you to consider different situations; helps in selecting optimal plan
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·         Applying Leads & Lags – may need to be applied to accommodate scheduling elements

·         Schedule Compression – shortening the schedule without affecting the scope; includes Fast Tracking & Crashing

·         Schedule Baseline – version of schedule created through schedule network analysis; features approved baseline start & finish dates

·         Standard Schedule Diagramming Notations:

o   Early Start (ES)

o   Early Finish (EF)

o   Late Finish (LF)

o   Late Start (LS)

o   Duration (DU)

·         Critical Path – the network path that has the longest total duration; has zero float

·         Total Float – slack time; is how late an activity can run without delaying the project

o   TF = LF – EF or LS - EF

·         Free Float – how late an activity can run without delaying the ES of the Successor Activity

o   FF = ES (Successor) – EF (Predecessor)

·         Critical Activity – an activity on the critical path

·         Fast Tracking – schedule compression method that compresses project duration by performing some activities concurrently instead of sequential; no added cost, but added risk or rework

·         Crashing – schedule compression method that allocates more resources to activities on critical path to obtain the greatest schedule compression for the least cost

o   Only activities on Critical Path

o   First Pass: activity with least cost per week

o   Second Pass: activity with least cost per week & greatest time savings

o   Choose activity closest to end

·         Common Estimate Types – in order of accuracy lowest to highest

o   Rough Order of Magnitude

o   Budgetary

o   Range of Estimates

o   Approximate Estimates

o   Definitive Estimates

·         Cost Baseline – time phased budget that will monitor & measure cost performance throughout life cycle of project; typically includes budget contingency to accommodate unidentified risk

·         Cost Aggregation – activity costs are added up until project cost is determined

·         Funding Limit Reconciliation – adjusting spending, scheduling and resources to bring into alignment with budgetary constraints

·         Contingency / Reserve Allowances – additional funds set aside to cover identified, planned risks

·         Management Reserves – company sets aside additional funds to cover unforeseen, unidentified risks not planned for

·         Benchmarks for Measuring a Projects Success: Project Schedule, Cost Baseline & Quality

·         Inputs into Plan Quality Process: Stakeholder Register, Scope Baseline, Cost Baseline & Schedule Baseline

·         Control Chart – graph used to analyze the variability of a process over time by showing multiple runs of a process with control limits; components are mean, upper control limits (UCL) & lower control limits (LCL); process is in control if variables are between UCL & LCL

o   Seven Run Rule – when 7 or more consecutive points are on one side of the mean, then the process is out of control

·         Benchmarking – comparing to other groups; used to identify best practices

·         Cost of Quality (COQ) – total cost of effort needed to achieve an acceptable level of quality

o   Types of Quality: in order of costs, lowest to highest

o   Prevention Costs – Conformance Costs

o   Appraisal Costs – Conformance Costs

o   Internal Failure Costs – Non-conformance Costs

o   External Failure Costs – Non-conformance Costs

·         Design of Experiments (DOE) – systematically identifying levels of independent variables by running experiments, changing one variable at a time

·         Statistical Sampling – measures entire population by taking a representative sample of population; the larger the sample the more representative it is

o   Attributive Sampling Data – data from sample is counted

o   Variable Sampling Data – data from sample is measured on a scale

·         Flowcharting – graphical representation of relationships between process steps

·         Quality Planning Tools – Brainstorming, Affinity Diagrams, Matrix Diagrams

·         Quality Management Methodologies – Six Sigma, Lean Six Sigma, TQM, etc

o   Total Quality Management (TQM):

§  Continuous process improvement

§  Quality = planning, control & improvement

§  Quality means it meets requirements

§  Adding Value – must know long term strategy of company

§  Quality caused by prevention rather than inspection

·         Cause & Effect Diagram, aka Ishikawa or Fishbone Diagram – similar to root cause analysis; organize potential problems into branches, evaluate each branch to find all problems

·         Standards – voluntary guidelines that have been approved by industry experts

·         Regulations – mandates & rules that must be followed

·         Quality Assurance – focuses on process; concerned with the future; is an iterative process; includes Process Improvement

·         Quality Control – focuses on product; concerned about past performance

·         Quality Audits – independent evaluation of quality process; can be scheduled or unscheduled; not looking at team, but whether team has training & resources to perform work: how well team is using quality data, determine if best practices are being used

·         Histogram – Bar chart of variables represented vertically or in columns

·         Pareto Chart – histogram that shows causes in order of severity with a trend line

o   80/20 Rule or Pareto rule – 80% of defects are caused by 20% of causes

·         Run Chart – similar to control chart without control limits; tracks a single run instead of multiple runs

·         Scatter Diagram – diagram showing the relationship between two variables; the more closely the points form a diagonal line, the more closely they are related

·         Variance – quantifiable deviation from the expected results

o   Random Causes – everyday occurrences that are always present; typically long term and cost a lot to fix

o   Special or Sporadic Causes – unusual; typically short term and does not involve high costs to fix

·         Six Sigma – improve quality of process outputs by removing causes of defects and variability in process; no more than 3.4 defects per million; 3 Sigma = 99.7%

·         Activity Resource Requirements – list of required people & competencies necessary for each activity; need a skills inventory of current staff to identify resources

·         Responsibility Assignment Matrix (RAM) – an output of Develop Human Resources Plan process; a list that links stakeholders to deliverables by assigning stakeholders to each element of work

·         RACI – Responsible, Accountable, Consultive & Informed; similar to RAM

·         Staffing Management Plan – forecasts what types of people will be needed, when needed, how they will be recruited, and when they will be released

·         Communications Management Plan – output of Plan Communications process; describe what will be communicated, by whom, when, and in what format

·         Communication Methods – Push (mail, email), Pull (post on SharePoint, Website) & Interactive

·         Communications Channels = n(n-1) / 2

·         Risk – an uncertain event that may have either a positive or negative impact; probability that risk will occur & impact of risk; can be classified into effect based, source based, and level of uncertainty (known, known-unknown & unknown-unknown)

·         Effect Based Risks – major risks including time, cost, quality & scope

·         Risk Management Plan – a  document that describes the team’s approach to identifying risks; identifies the methodology, approaches and tools to be used; documents roles and responsibilities of those involved; identifies the budgeting and scheduling for risk activities; includes Probability & Impact Matrix; and identifies risk categories

·         Risk Management Plan – does not address responses to risks, those are addressed in the Risk Response Plan

·         Insurable Risks – insurance for Negative Risks

·         Business Risks – may be insurable; competitive, legislative, monetary (increased price of materials) & operational (fraud, theft, injury)

·         Risk Breakdown Structure (RBS) – a hierarchical arrangement of identified risks; very detailed

·         Probability Scale – assignment of a value to the likelihood of a risk occurring; ranging from 0 to 1

·         Impact Scale – rating system showing the assignment of a value that reflects the magnitude of the impact of a risk event; ranging from very low to very high

·         Risks Analysis – assigning the probability & impact of the occurrence of risks

·         Risk Tolerance – level of acceptable risk; Risk Adverter, Risk Seeker & Risk Neutral

·         Risk Register – a document that identifies & categorizes risks, responses, and their triggers

·         Risk Identification – responsibility of entire team and is an iterative process

  SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats

·         Diagramming Techniques – used to identify causes; Cause and Effect Diagram, Flowcharts

·         Information Gathering Techniques – Brainstorming, Delphi technique, interviewing & root cause analysis

·         Qualitative Analysis – determine the probability of risk occurrence & the impact

·         Always do Qualitative Risk Analysis, but not necessarily Quantitative Risk Analysis

·         Risk Data Quality Assessment – evaluation of the usefulness of available data concerning risk

·         Probability & Impact Risk Rating Matrix – graph showing the assignment of risk rating to risk or conditions; combines the probability & impact scales to prioritize risks and identify risks that need further analysis

·         Watchlist – risks that are not urgent and do not require near term action

·         Quantitative Risk Analysis – numerically assessing the probability & impact of each risk and determining the extent of the overall project risk; helps identify time & cost contingencies

·         Quantitative Analysis Methods:

o   Sensitivity Method – effect of changing one variable to see effect on entire plan

o   Expected Monetary Value – calculates the average outcome under uncertainty

o   Decision Tree Analysis – factors both probability & impact for each variable; choose the largest expected value

o   Modeling & Simulation – technique used to make predictions about the future, includes Monte Carlo Analysis

·         Standard Deviation – the measure of a spread of data

·         Mean – sum of all events divided by the number of occurrences

·         Median – the number that separates the higher half of the probability distribution from the lower half

·         Monte Carlo Analysis – computerized model using a large number of variables that produce a range of results; used to make predictions about optimistic, most likely and pessimistic estimates

·         Subjective Probability – a person’s opinion

·         Objective Probability – deduced mathematically

·         Inputs to Risk Response Plans – Risk Register & Risk Management Plan

·         Negative Risk Strategies:

o   Risk Avoidance – change the scope or plan to avoid high risk activities

o   Risk Transference – shifting risk to 3^rd party; outsourcing activity

o   Risk Mitigation – reduce risk to an acceptable level; implement a new course of action

o   Risk Acceptance – may be passive or active

·         Positive Risk Strategies:

o   Exploit – make sure risk is fully realized

o   Share – partner with another party to ensure best change of seizing opportunity

o   Enhancement – focuses on trigger in order to optimize change of occurrence

o   Acceptance

·         Contingency Plans – risk response strategy developed in advance, before things go wrong, to use if risk becomes reality; active acceptance of negative risk

·         Contingency Reserves – predetermined amount of resources (time, money, equipment) set aside to handle planned identified foreseen risks

·         At the End of Planning (Integrated Planning):

o   Approved Scope Baseline – WBS, WBS Dictionary & Scope Statement

o   Approved Cost Baseline [The cost baseline is a time-phased budget that will be used to measure and monitor cost performance on the project. It is shown as an S curve. The difference between maximum funding and the end of the cost baseline is Management Reserve in the S curve]

o   Approved Schedule Baseline [Schedule Baseline – the original, approved project schedule; should never be changed without approved Change request.  Any approved change should be documented in writing. Should be created at the beginning of the project and used during the project to gauge (measure) overall project performance, not just schedule. The project Performance Measurement Baseline should generally change only in response to a scope or deliverable change.]

·         Inputs to Direct & Manage Project Execution – Approved Project Plan & Approved Change Requests (are recorded and can either increase or decrease project scope)

·         Project Management Information System (PMIS) – system used by project team to gather, analyze, communicate & store project information

·         PMIS Common Problems – Lagging Indicators (must enter data first), Manage Symptoms verses Problems (system can’t explain reason for problems), Over Reliance on Reports, Invalid data & too much information

·         Work Authorization System – tool used to communicate official beginning of work on an activity or work package

·         Work Performance Information – output of Direct & Manage Execution process; periodically collected information about project activities; includes start & finish dates, scheduled progress, deliverables completed and not complete

·         Acquire Project Team Tools & Techniques – Pre-assignment, Negotiation, Acquisition & Virtual Teams

·         Virtual Teams – rarely meet face to face; collaborate using communications bridge; bonding & team identity hard to create, individual contributions may be overlooked

·         Develop Project Team Tools & Techniques – Interpersonal Skills (soft skills), Training, Team building activities, Ground rules, Co-location, Recognition & rewards (should be part of planning)

·         Team Development Stages:

o   Forming – people are polite, non-committal, hesitant & confused

o   Storming – people begin to assert themselves, conflict arises

o   Norming – team begins to work productively, begin to operate with mutual trust

o   Performing – team working at optimal level

o   Adjourning – completed assignment, mourning

·         Manage Project Team process – monitors individual performance, gives feedback, solves issues & organizes changes to improve performance

·         Conflict is natural and forces the need for exploring alternatives; focus should be on issues, not individuals; should be about present situation, not about past

·         Conflict Management Approaches:

o   Confronting / Problem Solving (Good) – focuses on identifying underlying problems & working out solutions

o   Collaborating (Good) – incorporating insights and viewpoints from different perspectives

o   Smoothing / Accommodating (Bad) – preventing conflict

o   Compromising (Bad) – lose-lose choice

o   Forcing (Bad) – win-lose situation; one side wins, one side loses

o   Withdrawing / Avoiding (Bad) – worst

·         Procurement Management Plan – document that outlines specifics for procuring work from outside sources; specifies types of contracts; describe process for obtaining & evaluating bids, mandates standard procurement documents & describes how to manage providers

·         Procurement Statement of Work (SOW) – detailed description of the resources, goods or services that are being sought from outside source

·         Procurement Process:

o   Plan                 What you Need? Make or Buy Analysis

·         Where you get them? RFI

·         RFI – List of Supplies / Bidders

·         What you need done? RFP

·         Distribute RFP

o   Conduct          Bidders Conference – Questions & Answers

·         Get Bids in from RFP

·         Evaluate Bids - Source Selection Criteria

·         Award Contract – Contract, SOW

o   Admin Proc.    Perform

·         Vendor = Seller

·         Grants are RFP’s

·         Standard Parts                        Things you need

·         Where you get them

·         RFQ

·         Quotes come in from bidders

·         Award Contract

·         Make or Buy Analysis – assess the cost effectiveness of making in-house verses buying outside; factors to consider:

o   Impact – consider the impact on cost, tine or quality

o   Ongoing Need – will organization continue to need a specific skill set?  Is it a worthwhile investment to train current personnel?

o   Learning Curve – while it may make financial sense to develop an in-house solution, there may not be enough time to train staff

o   Cost Effectiveness – based on financial analysis

·         Lease, Rent or buy Decision – based on financial analysis

·         Bidders Conference – potential vendors get to ask Questions about RFP; Q&A’s must be distributed to everyone RFP sent too

·         Teaming Agreements – legal contractual agreements; exclusive rights to do something; preferred vendor

·         RFI – use to develop list of qualified sellers

·         RFQ – use to order standard parts; mainly used for comparison purposes when price is the main factor

·         RFP – use when deliverables are not well defined or when you need the seller to solve the problem

·         Types of Contract:

o   Fixed Price – total price for product / service; provides maximum protection to buyer

o   Cost Reimbursable – seller gets a refund of expenses incurred, plus a fee for profit; Cost Plus Award Fee Contract (CPAF) – buyer has subjective determination of performance

o   Time & Materials – buyer pays seller a negotiated hourly rate & full reimbursement for materials used

·         Point of Total Assumption (PTA) – Fixed Price Incentive Fee Contract (FPIF) in which seller bears all cost overruns

·         Conduct Procurement (Executing Process Group) – getting seller responses, vendor selection & contract award

·         Source Selection Criteria – ranking & weighted factors used to evaluate seller’s proposals and to make comparison between proposals; should be included in RFP so bidders know what criteria they will be scored on

·         Procurement Negotiations – 5 steps of contract negotiations

o   Introduction

o   Probing

o   Bargaining

o   Closure

o   Agreement

·         Term Contract – for a specific amount of service over a set time

·         Completion Contract – until project is complete & contract is fulfilled

·         Administering Procurement (Monitoring & Controlling Process Group) – process of managing relationship with vendor/seller

·         Force Majeure Clause – protects parties from extraordinary circumstances, “Act of God”

·         Warranty – promise that goods or services will meet a predefined standard

o   Express Warranty – predetermined standard specified

o   Implied Warranty - predetermined standard NOT specified

o   Warranties of Merchantability – goods fit for sale

o   Warranties of Fitness for Purpose – goods fit for intended use

·         Waivers – giving up a contract right, even inadvertently

·         Breach of Contract – failure to do something in contract

o   Immaterial Breach – minor, no damage to parties

o   Material Breach – series breach, one party is injured

o   Fundamental Breach – negates fundamental part of contract

o   Anticipatory Breach – unavoidable indication that one party can’t fulfill contract

·         Close Procurement happens naturally at end of contract

·         Incomplete Contract Closeout – call sellers ASAP & provide written notice ASAP

·         Contract Closeout Tools – Procurement Audits (verify work performed), Negotiated Settlements (negotiating an end to contract)

·         Alternative Dispute Resolution (ADR) – Mediator handles contract termination negotiations

·         Distribute Project Information – involves getting the right information to the right people at the right time

·         Manage Stakeholders Expectations – occurs at the same time as you update stakeholders on project status

·         Face to face Meetings are the best way to communicate with stakeholders

·         Use Issues Log to assign, track & resolve open issues

·         Monitor & Control Project Work – done throughout the project life cycle

·         Change Categories:

o   Corrective Action – bring back on track

o   Preventive Action – diminish effect of negative risks

o   Defect Repairs – address defects

·         Performance Reports – current project status, significant accomplishments, scheduled activities (completed vs. should be completed), issues & forecasts

·         Perform Integrated Change Control – process of identifying, documenting, approving or rejecting & controlling any changes to the project baseline

·         If a Change is Rejected project manager should get back in touch with Submitter to let them know status

·         Change Control Board (CCB) – addresses issues that affect cost, time & product quality

·         Configuration Management – tool used to manage changes to a product or service being produced; includes version control

·         Process Control Structure – defines how modifications will be reviewed, documented, delivered, communicated & revised

·         Verify Scope (Deliverables / Closing) – process of demonstrating to stakeholders that they have received what they were promised in a given deliverable & getting their acceptance; done after quality control process

·         Inspection (Tool) – an official examination or work results to verify that requirements are met; AKA Review, Product Review, Audit or Walkthrough

·         Control Scope – process of monitoring project scope & holding changes to project scope baseline in check

·         Variance Analysis (Tool)

·         Control Project Schedule – process of monitoring schedule performance & controlling changes to schedule baseline

·         Earned Value Management (EVM) – method of measuring project progress by comparing actual schedule & cost performance against planned performance

o   Budget At Completion (BAC)

o   Planned Value (PV): Time% x BAC; Time% = Status Date/Length of Project

o   Earned Value (EV): EV = $Work% x BAC; $Work% = $Work Done/$TotBudget

o   Actual Cost (AC) – actual money spent for work that has been completed

o   Scheduled Variance (SV): SV = EV – PV (negative SV indicates project is behind schedule)

o   Scheduled Performance Index (SPI): SPI = EV / PV (SPI of less than 1 indicates planned schedule was not very good and you are getting less work done than planned)

o   Cost Variance (CV): CV = EV – AC (negative CV indicates project cost are over budget)

o   Cost Performance Index (CPI): CPI = EV / AC (CPI of less than 1 indicates budget costs were low and you are paying more than planned)

o   Estimate To Complete (ETC): ETC = BAC – EV

o   Estimate At Completion (EAC): EAC = AC + ETC

·         Risk Audit – examining the Team’s ability to identify risks, effectiveness of Risk Response Plan & performance of risk owners

·         Administrative Closure – verifying & documenting project results; ensures project requirements were met

·        Test Strategies for PMP Exam:

·         What should PM do First? Next? 

o   Same question, weed out what’s not relevant & what’s already done, then put answers in order

·         Tools & Techniques = 80% of exam; understand them and where they will be used

·         PMO – if in answer, then it is probably the correct choice

·         Check Policy, Procedures & Templates (OPA) first

·         Lessons Learned - if in answer, then it is probably the correct choice

·         Consult the Plan - if in answer, then it is probably the correct choice

·         Conflict question – answer is never about personality

·         Procurement question – never ask seller / vendor to speed up their process; respect vendor’s procurement process

·         Make the Plan, Consult the Plan, Follow the Plan