PMP Notes - 1

Scope
Accuracy of Estimates:
Order of Magnitude	Done during Initiating	- 25% to +75%
Budget Estimate	Done during Planning	-10% to +25%
Definitive Estimate	Done during Planning	- 5% to +10%
Project Planning Methodology	A structured approach used to guide the project team during development of the project plan	Use Hard tools (Project Management Software) and Soft tools (facilitated meetings)
CWBS	Contractual WBS	For Seller
OBS	Organization Breakdown Structure	Work components to Organization Units
RBS	Resource Breakdown Structure
BOM	Bill of Material	Manufacturing
PBS	Project Breakdown Structure	Same as WBS; used when WBS is used instead of BOM

  

Cost/Schedule
Project Network Diagram – also called PERT (Program Evaluation & Review Technique)	PDM – Precedence Diagraming Method aka AON – Activity on Node	4 relations: Finish to Start (Common) Finish to Finish Start to Start Start to Finish (Rare)
PERT & CPM can be drawn only using ADM/AOA	ADM or Acitivity Diagraming Method Aka AOA – Activity on Arrow	Use Dummies Only one relation: Finish to Start
Hammock	When two activities meet	Portions of Network also called Fragnet/Subnet
GERT – Graphical Evaluation Review Technique	Loops & Conditional Branches	Probabilistic Treatment
PERT – drawan using AOA	Uses weighted average; is rarely used	For time or cost
CPM – drawn using AOA	Uses most likely estimate	Can have dummies
Duration Compression	Crashing – Putting more resource Increases cost	Fast-Tracking – Doing in Parallel instead of Sequence Rework and more risky
Monte-Carlo Analysis	Simulation for What-if Conditions	Does not use PERT formula; uses path convergence
Analogous Estimating	Topdown approach	Is a kind of Expert Judgement
Reserve	Contingency, Buffer	10% in general
Float/Slack = LS – ES or LF – EF; also called Free Slack, Total Slack & Path Slack	Amount of time a task can be delayed without delaying the successor	Critical Path tasks will have zero slack
Total Slack	Amount of time a task can be delayed without delaying the project
Project Slack	Amount of time a project can be delayed without delaying the externally imposed date
Lag	Waiting time between tasks		Concrete Curing Time
Lead	Successor task can start early
Network Diagram – For Dependency	Bar/Gantt Chart – Progress Reporting		Milestone – Status Reporting for Management
CV = EV – AC	+ ve Is good		- ve is bad (over budget)
SV = EV – PV	+ is good		- ve is bad (behind schedule)
CPI = EV/AC	CPI > 1 is good		CPI < 1 is bad
SPI = EV/PV	SPI > 1 is good		CPI < 1 is bad
EAC = BAC/CPI	Estimate At Completion
ETC = EAC - AC	Estimate to Complete
VAC = BAC - EAC	Variance At Completion
PV = FV/ (1+r) n	Present Value		Today’s value for future value
NPV	Net Present Value		Years included so go with $ amount (higher the better)
IRR	Internal Rate of Return		Higher the % the better
BCR	Benefit to Cost Ratio		Payback to Cost; > 1 is good
Payback Period	Time when you start getting returns		Lower the better
Opportunity Cost	NPV2 – NPV1		Return on choosing one over another
Sunk Costs	Expended Costs		SCORE Project 20 m
PERT = (P + 4ML + O)/6	Std. Dev = (P-O)/6		Variance = [P-O/6]2

+- 6 Sigma = 99.99
+- 3 Sigma = 99.73
+- 2 Sigma = 95.46
+- 1 Sigma = 68.26
Direct Cost	Project cost	Salary, Travel, Awards, Material
Indirect Cost	For group and for all projects; % of direct cost	Tax, Fringe Benefits, Janitorial Service
Fixed Cost	Does not change with work	Rental, setup
Variable Cost	Changes with work	Material, Wages
Crashing Cost	Find the difference between Crash Cost and Original Cost	The lowest is the choice
Heuristics	Rule of Thumb	80/20

Quality
Design of Experiments	Tire/Wheel in a car
Benchmarking	Comparing with others
Ishikawa Diagram	Cause and Effect or Fishbone Diagram
Flow Chart	How elements flow through
Quality Audit	Part of QA – To check overall process
Inspection (review, walkthrough, audit)	Part of QC – To check specific deliverable
Control Chart	Upper and lower control limit; Specification limits; Baseline or mean; Rule of seven; Assignable cause; Out of control
Paretto Diagram	A Histogram – 80/20: 80% of problems are caused by 20% of causes
KAIZEN	Continuous Improvement
Variable – Characteristic like Shape, Wieght	Attribute – Measurement like inches, pounds

HR
RAM - Responsibility Assignment Matrix			War Room
Resource Histogram		Resource Gantt Chart
Fringe Benefits		Insurance, Bonus etc.
Perks		Corner office, Executive Dining
Conflict Management
Smoothing		Both agree or similarities and do not talk about differences		also called Accommodating
Forcing		Its my way		also called Competing, Assertive
Withdrawal		I give up		also called Avoidance
Compromising		Both give up little
Confronting		Solve the problem		Also called Problem Solving or Collaborative
Maslow’s Theory		Pyramid		Self Actualization Esteem Social Safety Physiological
McGregor’s Theory		Theory of X & Y		X – Need to be watched Y – Independent
Herzberg’s Theory		Hygiene Factors		Motivating Agents
Halo Effect		Engr -> PM
Expectancy Theory	Awards <-> Work		Achievement Theory		Importance of friendship and sense of camarederie in work environment
Source of Conflict		Schedules Priorities Resources Technical Opinions Administrative Procedures Cost Personality

Communication
Formal Written	Complex Problems, Charter/Plan, Distance	Informal Written	Memo, Email, Notes
Formal Verbal	Prezo, Speech	Informal Verbal	Meetings
Channels of Communication		N*(N-1)/2