Quick reference before you take up your PMP certification

PROJECT MANAGEMENT KNOWLEDGE AREAS

Knowledge Areas	Major Processes	Primary Inputs	Tools & Techniques	Primary Outputs
INTEGRATION
Project Plan Development	Create a consistent, coherent document that can be used to guide project execution and project control	Other planning outputs Historical information Organization policies Constraints Assumptions	Proj planning methodology Stakeholder skills & knowledge Proj mgt info system Earned Value Mgt (EVM)	Project plan Supporting detail
Project Plan Execution	Primary process for carrying out the project plan. Most of the budget will be expended on this process. It is the process most directly affected by the project application area.	Project plan Supporting detail Organizational policies Preventive action Corrective action	General mgt skills Prodt skills & knowledge Work authorization syst’m Status review meetings Proj mgt info system Organizational procedures	Work results Change requests
Integrated Change Control	It ensures that changes are agreed upon, determining that a change has occurred and managing the actual change.	Project plan Performance reports Change requests	Change control system Configuration mgt Performance measures Additional planning Proj mgt info system	Project plan updates Corrective action Lessons learned
SCOPE	I Pack Dynamite Very Cautiously – (IPDVC)
Initiation	Committing the organization to begin the next phase	Product description Strategic plan Project selection criteria Historical information	Project selection mtds Expert judgment	Project charter Project Mgr assigned Constraints Assumptions
Scope Planning	The process of progressively elaborating and documenting the project work that produces the product of the project.	Product description Project charter Constraints Assumptions	Product analyses Benefit/cost analysis Alternatives identification Expert judgment	Scope statement Supporting detail Scope Management Plan
Scope Definition	Subdividing the major project deliverables into smaller, more manageable components	Scope statement Constraints Assumptions Other planning outputs Historical information	Work breakdown structure templates Decomposition	Work Breakdown Structure Scope statement updates
Scope Verification	Formalizing acceptance of the scope by the stakeholders; reviewing products for completion at end of project	Work results Product documentation Work breakdown structure Scope statement Project plan	Inspection	Formal Acceptance
Scope Change Control	Processes that influence the factors that create scope changes, determine that scope change has occurred, and managing the changes.	Work breakdown structure Performance reports Change requests Scope management plan	Scope change control system Performance measurement Additional planning	Scope changes Corrective action Lessons learned Adjusted baseline
TIME	DSDDC
Activity Definition	Identifying the specific activities that must be performed to produce the project deliverables	Work breakdown structure Scope statement Historical information Constraints Assumptions Expert judgement	Decomposition Templates	Activity List Supplemental detail Work breakdown structure updates
Activity Sequencing	Identifying and documenting interactivity logical relationships	Activity list Product description Mandatory dependencies Discretionary dependencies External dependencies Milestones	PDM ADM Conditional diagramming methods Network templates	Project Network diagram Activity list updates
Activity Duration Estimating	Estimating the number of work periods which will be needed	Activity list Constraints Assumptions Resource requirements Resource capabilities Historical information Identified risks	Expert judgment Analogous estimating Quantitatively based durations Reserve time (contingency)	Activity Duration estimates Basis of estimates Activity list updates

Schedule Development	Determines the start and finish dates for project activities	Project network diagram Activity duration estimates Resource requirements Resource pool descriptions Calendars Corrective actions WBS Constraints Assumptions Leads and lags Risk management plan Activity attributes	Mathematical analysis Duration compression Simulation Resource leveling heuristics Proj mgt software Coding structure	Project schedule Supporting detail Schedule Management Plan Resource requirement updates
Schedule Control	This process influences factors that create schedule changes, determines that schedule changes have occurred and manages the changes in the project schedule	Project schedule Performance reports Change requests Schedule management plan	Schedule change control system Performance measuremt Additional planning Proj mgt software Variance analysis	Schedule updates Corrective action Lessons learned
COST	"Pepsi (PEBC)"
Resource Planning	Determining what resources and what quantities of each should be used	Work breakdown structure Historical information Scope statement Resource pool descritions Organizational policies Activity duration estimates	Expert judgment Alternatives identification Proj mgt software	Resource Requirements (list and understanding)
Cost Estimating	Developing an estimate of the costs of the resources need	Work breakdown structure Resource requirements Resource rates Activity duration estimates Estimating publications Historical information Chart of accounts Risk	Analogous estimating Parametric modeling Bottom up estimating Computerized tools Other cost estimating methods	Cost estimates Supporting detail Cost management plan
Cost Budgeting	Allocating the overall cost estimate to individual work packages to establish a baseline for measuring project performance	Cost estimates Work breakdown structure Project schedule Risk management plan	Cost budgeting tools and techniques	Cost baseline
Cost Control	Process for influencing factors that create changes to the costs baseline, determining that the cost baseline has changes and managing the changes to the project budget	Cost baseline Performance reports Change requests Cost management plan	Cost change control system Performance measuremt Earned Value Mgt (EVM) Additional planning Computerized tools	Revised cost estimates Estimate at Completion Budget updates Corrective action Project closeout Lessons learned
RISK	It's risky to have an IQ in DC.
Risk Management Planning	Deciding how to approach and plan risk management activities.	Project charter Organization’s risk management policies Defined roles & responsibilities Stakeholder risk tolerances Template for the organization’s risk management plan Work breakdown structure	Planning meetings	Risk management plan
Risk Identification	Determining which risks are likely to affect the project & documenting their characteristics	Risk management plan Project planning outputs Risk categories Historical information	Documentation reviews Info-gathering techniques Checklists Assumptions analysis Diagramming techniques	Risk Triggers Inputs to other processes
Qualitative Risk Analysis	Assessing the impact and likelihood of identified risks.	Risk management plan Identified risks Project status Project type Data precision Scales of probability and impact Assumptions	Risk probability & impact Probability/impact risk rating matrix Project assumptions testing Data precision ranking	Overall risk ranking for the project List of prioritized risks List of risks for additional analysis and management Trends in qualitative risk analysis results

Quantitative Risk Analysis	A process that analyzes numerically the probability of each risk and its consequence on project objectives	Risk management plan Identified risks List of prioritized risk List of risk for additional analysis & management Historical information Expert judgment Other planning outputs	Interviewing Sensitivity analysis Decision tree analysis Simulation	Prioritized list of quantified risks Probabilistic analysis of the project Probability of achieving the cost & time objectives Trends in quantitative risk analysis results
Risk Response Planning	Developing options & determining actions to enhance opportunities to reduce threats to project objectives	Risk management plan List of prioritized risks Risk ranking of the project Prioritized list of quantified risks Probabilistic analysis of the project List of potential responses Risk thresholds Risk owners Common risk causes Trends in qualitative & quantitative risk analysis results	Avoidance Transference Mitigation Acceptance	Risk response plan Residual risks Secondary risks Contractual agreements Contingency reserve amounts needed Inputs to other processes Inputs to a revised plan
Risk Monitoring & Control	Tracking identified risk, monitoring residual risks, and identifying new risk, ensuring the execution of risk plans and evaluating the effectiveness in reducing risk.	Risk management plan Risk response plan Project communication Additional risk identification & analysis Scope changes	Project risk response audits Periodic project risk reviews Earned value analysis Technical performance measurement Additional risk response planning	Corrective Action Workaround plans Project change requests Updates to the risk response plan Risk database Updates to risk identification checklists
QUALITY	3 PAC
Quality Planning	Identifying which quality standards are relevant to the project and determining how to satisfy them.	Quality policy Scope statement Product description Standards & regulations Other process outputs	Benefit/cost analysis Benchmarking Flow-charting Design of experiments Cost of quality	Quality management plan Operational definitions Checklists Inputs to other processes
Quality Assurance	The planned and systemic activities that provide confidence that the project will satisfy all relevant quality standards.	Quality management plan Results of quality control measurements Operational definitions	Quality planning tools and techniques Quality audits	Quality improvement
Quality Control	Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes.	Work results Quality management plan Operational definitions Checklists	Inspection Control charts Pareto diagrams Statistical sampling Flow-charting Trend analysis	Rework Acceptance decisions. Completed checklists. Quality improvement Process adjustments
HUMAN RESOURCE	PAD
Organizational Planning	Identifying, documenting, and assigning project rules, responsibilities, and reporting relationships	Projects interfaces Staffing requirements Constraints	Templates Human resource practices Organizational theory Stakeholder analysis	Role and responsibility assignments. Staffing management plan. Organizational Chart. Supporting detail
Staff Acquisition	Getting the human resources needed assigned to and working on the project	Staffing management plan Staffing pool description Recruitment practices	Negotiations Preassignment Procurement	Project Staff assigned. Project team directory.
Team Development	Developing and enhancing individual and group skills to enhance project performance	Project staff Project plan Staffing management plan Performance reports External feedback	Team building activities Gen mgt skills Reward & recognition sys Colocation Training	Performance Improvements. Input to performance appraisals
COMMUNICATIONS
Communications Planning	Determining the information and communications needs of the stakeholders	Communication requirements Communications technology Constraints Assumptions	Stakeholder analysis	Communication mgmt plan

Information Distribution	Making needed information available to project stakeholders in a timely manner	Work results Communication management plan Project plan	Communication skills Info retrieval systems Info distribution methods	Project records Project reports Project presentations
Performance Reporting	Collecting and disseminating performance information to ensure project progress	Project plan Work results Other project records	Performance reviews Variance analysis Trend analysis Earned value analysis Info distribution tools & techniques	Performance reports Change requests
Administrative Closure	Documenting project results to formalize acceptance of the product by the sponsor or customer.	Performance measurement documentation Product documentation Other project records	Performance reporting tools & techniques Project reports Project presentations	Project archives Formal acceptance Lessons learned
PROCUREMENT	PPSSAC
Procurement Planning	Determining what to procure and when (make or buy)	Scope statement Product description Procurement resources Market conditions Other planning inputs Constraints Assumptions	Make or buy analysis Expert judgment Contract type selection	Procurement mgmt plan Statement(s) of Work
Solicitation Planning	Preparing the documents needed to support solicitation	Procurement management plan Statement(s) of work Other planning inputs	Standard forms Expert judgment	Procurement documents Evaluation criteria Statement of work updates
Solicitation	Obtaining quotations, bids, offers, or proposals (answer questions)	Procurement documents Qualified seller lists	Bidder conferences Advertising	Proposals
Source Selection	Involves the receipt of bids or proposals and the application of evaluation criteria to select a provider	Proposals Evaluation criteria Organizational policies	Contract negotiation Weighting system Screening system Independent estimates	Contract
Contract Administration	Ensuring that the seller’s performance meets contractual requirements	Contract Works results Change requests Seller invoices	Contract change control system Performance reporting Payment system	Correspondence Contract Changes Payment requests
Contract Closeout	Product verification and administration closeout (finish)	Contract documentation	Procurement audits	Formal acceptance & closure Contract file

PROJECT LIFE CYCLE / PROJECT MANAGEMENT PROCESS GROUPS

INITIATION (Concept)		PLANNING (Development)				EXECUTION (Implementation)		CONTROL		CLOSE-OUT (Termination) (Finishing)
Select project		Create Scope Statement & scope management plan				Execute the project plan		Integrated change control		Procurement audits
Determine project objectives		Determine project team				Manage project progress		Project performance reporting		Product verification
Determine high level deliverables, time & cost estimates		Create WBS				Complete work packages or tasks		Performance reporting		Formal acceptance
Determine high level constraints & assumptions		Finalize the team & create resource management plan				Distribute information		Scope change control		Lessons learned
Determine business need		Create WBS dictionary				Quality assurance		Quality control		Update records
Develop product description
Define responsibilities of the project manager		Create Network Diagram				Team development		Risk monitoring & control		Archive records
Determine high-level resource requirements		Estimate time & costs				Progress meetings		Schedule control		Release resources
Finalize project charter		Determine Critical path						Cost control
		Develop Schedule & schedule management plan						Scope verification
		Develop Budget						Manage by exception to the project plan
		Create Communications Management Plan						Ensure compliance with plans
		Create Quality Management Plan						Reassess plans
		Risk management planning, identification, qualification, quantification & response planning						Take corrective action
		Create procurement management plan
		Create stakeholder management plan
		Create project control plan
		Develop formal project plan
		Gain formal project plan approval
		Hold kickoff meeting
Overall	Influencing the organization		Leading	Solving problems	Negotiating		Communicating		Holding meetings		Stakeholder management

SCOPE

Project Scope Management - processes required to ensure that the project includes only the work required to complete the project successfully.

Management by Objective (MBO) – determining company’s objective and how the project fits into them. MBO focuses on the goals of an activity rather than the activity itself (manager is responsible for results rather than performing certain activities)

Project Scope - the work that must be done in order to deliver a product; completion is measured against the project plan.

Product Scope - features and functions that are to be included in a product; completion is measured against the requirements.

Design Scope – contain the detailed project requirements (used for FP contract)

Scope Definition – subdividing major project deliverables.

Decomposing – subdividing project work packages into smaller, more manageable components (activities/action steps). The heuristic (rule of thumb) used in project decomposition is 80 hours.

Scope Management Plan - describes how scope will be managed and how changes will be integrated into project; also includes assessment of expected stability of project scope. (e.g. project manager would refer to the Scope Management Plan to make a change)

Stakeholder Management – the project manager must identify the stakeholders, determine their needs and expectations, then manage and influence expectations to ensure project success.

Configuration Management - a means of monitoring and controlling emerging project scope against the scope baseline; its purpose is to control change throughout the project. It is any documented procedures used to apply technical and administrative direction and surveillance to audit the items and system to verify conformance requirements. . It documents the physical characteristics of formal project documents and steps required to control changes to them (e.g. would be used by a customer who wishes to expand the project scope after the performance measurement baseline has been established). When more than one individual has sign a Charter, you have to be concerned with competing needs and requirements impacting your efforts on configuration management

WBS - subdividing project deliverables into smaller, more manageable components. It is a deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. It is a communication tool and it describes what needs to be done and what skills are required. Anything missing in the WBS should be added. The 1^st level should be the project life-cycle (not product). The WBS is created by the team (helps to get buy-in) and it is used to make certain that all the work is covered. It provides a basis for estimating the project and helps to organize the work. Its purpose is to include the total project scope of all the work that must be done to complete the project. Defines the project’s scope baseline.

The 3 most common types of WBS are system/sub systems, life-cycle phasing and organizational

WBS Dictionary – Defines each item in the WBS, including description of the work packages and other planning info such as schedule dates, cost budgets and staff assignments..

Scope Statement - a documented description of the objectives, work content, deliverables, and end product; it includes a description of project assumptions and constraints. Provides stakeholders with a common understanding of the scope of the project and is a source of reference for making future project decisions.

Statement of Work - a narrative description of products or services to be supplied under contract.

Project Charter - formal document used and approved by senior management that explains purpose of the project including business needs addressed and the resulting product (deliverables and objectives). It describes responsibilities and authority of the project manager to apply organizational resources to project activities. Clarification to the Project Charter must be addressed to the sponsor(s) who approved the charter. Resources cannot be committed without the Charter. The Charter is an input to ALL the project management processes.

Code of Accounts - any numbering system used to uniquely identify each element of the WBS.

Project Selection Method - Benefit Measurement (comparative approach) and Constrained Optimization (mathematical approach).

Work Package - deliverable at the lowest level of WBS. They are control points in the WBS and are used for assignments to work centers. They are used to pass a group of work for further breakdown in the executive organization.

Scope Verification – to verify that the work done satisfies the scope of the project. It must be done at the end of each phase. A similar activity during closure is Product Verification. Focuses on customer acceptance /performance measurement, not change to project scope. Scope Verification is normally done in parallel with quality control (which checks for product correctness). Occur during the control phase of the project, not at the end. The review at the end of the project phase is called phase exit, stage gate, or kill point.

Cost Account – one level above the Work Package.

Cost/Benefit analysis – (part of scope planning) technique used to validate that the project can meet the technical/business objectives set forth by Sr. Management

Project success depends primarily on customer satisfaction.

Assumptions – factors that, for planning purposes, are considered to be true, real or certain

The principal sources of project failure are organizational factors, poorly identified customer needs, inadequate specified project requirements, and poor planning and control.

Constrained optimization – includes analytic hierarchy process, logical framework analysis and multi-objective programming.

Most Change Requests are the result of:
An external event
An error or omission in defining the scope of the product
An error or omission in defining the scope of the project
A value-adding change

A Change Request is the most effective way of handling the disconnect between what users actually want and what management thinks they want. The project manager’s role related to project change is to influence the factors that affect change. He should ask for a change order and look for impacts to the triple constraint. Scope Changes on project can be minimized by spending more time developing the scope baseline.

If there is enough reserve to accommodate a change, the Project Manager can approve the change (we are paid to manage the scope completion within our budget and reserves)

HUMAN RESOURCE

Project Human Resource Management - process required to make the most effective use of the people involved with the project

Responsibility Assignment Matrix (RAM) – Show who does what (x=person, y=phase). The most important feature of the RAM is the participatory development process involving all stakeholders. Show who is participant, who is accountable, who handles reviews, who provides input and who must sign off on specific work packages or project phases.

Linear Responsibility Chart (LRC) – identifying responsibility, assignments by work packages and action required. Also referred to as RAM.

Organizational Breakdown Structure (ORS) - A depiction of the project organization arranged so as to relate work packages to organization units.

Resources Histogram – often part of Staffing Management Plan; shows resource usage (eg staff hours) per time period (eg wk, mth) of a specific job function.

Rewards and Recognition Systems -- to be effective, must make the link between performance and reward clear, explicit and achievable.

Types of Power
Legitimate (Formal)	Derived from formal position
Coercive	Predicated on fear
Reward	Involves positive reinforcement and ability to award something of value Project often needs their own rewards system to affect employee performance. Used correctly, bring the team’s goals and objectives in line with each other and with the project.
Expert	Held in esteem because of special knowledge or skill (requires time)
Referent	Ability to influence others through charisma, personality, etc.

The best forms of power are generally Reward and Expert

Conflict Management
Problem Solving / Confrontation			address conflict directly in problem solving mode [win/win]
Compromising			bargaining and searching for solutions; neither party wins but each gain some satisfaction [lose/lose] this is very rarely a good way to resolve technical issues.
Smoothing			de-emphasize differences and emphasize commonalities; friendly but avoids solving root causes; delaying (eg. Manager says an issue is valid but doesn’t think it will be a big problem later)
Withdrawal (Ignoring)			retreating from actual or potential disagreement; delaying (e.g. “Just document the problem”)
Forcing			exerting one’s viewpoint; a last resort [win/lose] (e.g. “Call the customer and demand that you receive the approval today.”
Collaborating		Involves incorporating multiple ideas and viewpoints from people with different perspectives and offers a good opportunity to learn from others (good when project is too important to be compromised)
Sources of Conflict	INITIATION			PLANNING	EXECUTION & CONTROL	CLOSE-OUT	Most tension
Priorities	1			1			+
Admin Procedures	2			3
Schedules	3			2	1	1	+
Technical Issues					2		+
Personnel Resources					3	3	+
Personality Conflict						2
3 steps of problem solving: 1. Analyze the situation / Document the situation 2. Develop alternatives with the team 3. Go to management
Motivational Theory: Content & Process Theories Content: “What” energizes, directs behavior – 1. Maslow’s Hierarchy of Needs Theory (Physiological, Safety, Social/Belonging, Esteem, Self-Actualization) 2. Hertzberg’s Motivator/Hygiene Theories (Motivator: Self-Actualization, Esteem ; Hygiene: Social, Safety, Physiological) Process: “How” personal factors influence behavior 1. McGregor’s Theory X and Theory Y (X: Assumes people lack ambition, dislike responsibility, are inherently self-centered and are not very bright; motivate by reward and punishment. Y: Assumes people become lazy w/o recognition, will accept responsibility, can become self-motivated and exercise self-control; motivate by removing obstacles and providing self-directed environment.) 2. Ouchi’s Theory Z/Japanese Theory ( focus on team, company; usually lifetime employment, collective decisionmaking )

Other Motivational Theories:

Behaviorism – people behavior can be modified through manipulation of rewards and punishments

Expectancy Theory – Motivation is explained in terms of expectations that people have about (1) their ability to perform effectively on the job, (2) the rewards they might obtain if they do perform effectively and (3) the value or degree of satisfaction they anticipate from those rewards.

MBO – More support to team, not more power (remain to PM)

Leadership Theories:

McGregor – Theory X (employee lack ambition) and Theory Y (org structure are responsible for motivation)

Tannenabaum-Schmidt model – Continuum of leadership styles between the autocratic and participative styles

Blake and Mouton – ref to managerial grid (Concern for People Vs Concern for Production), whereas 1,1 is laissez faire mgmnt, 1,9 is Country Club mgmnt, 9,1 is Task oriented mgmnt, 5,5 is Compromise mgmnt and 9,9 is team mgmnt.

Forms of Organization
Functional	Groups people by specialization. Project manager has no formal authority of resources and must rely on informal power structure and his own interpersonal skills to obtain resource commitments from functional managers.
Project Expeditor	Retains functional but adds a Project Expeditor who serves as a communications link and coordinator for the project across functional units
Project Coordinator	Similar to Project Expeditor except the Coordinator reports to a higher level manager and has some authority to assign work
Weak Matrix	Vertical functional lines of authority maintained with a relatively permanent horizontal structure containing managers for various projects. Balance of power leans toward the Functional Manager. Can cause a project to fall behind because functional managers are pulling resources away to perform non-project related tasks. The Project Manager may be able to make resource decision on his own but not technical decision.
Strong Matrix	Same as Weak except that the balance of power leans towards the Project Manager
Projectized	A separate, vertical structure is established for each project. All the project team members report directly and solely to the project manager.
**Memorize PMBOK “Organizational Structure Influence on Projects” Team building is most difficult in a matrix organization. Its main purpose is to improve team performance. Team development is based on the individual development of each member.
Leadership Styles
Autocratic	PM makes decision without soliciting information from team
Consultive	Intensive information solicited; PM makes decision
Consensus	Team makes decision; open discussion and information gathering by team
Shareholder	Little or no information exchange; team has ultimate authority for final decision

Roles of the Project Manager	Functions of the Project Manager
Integrator	Planning
Communicator	Organizing
Team Leader	Leading
Decision Maker	Controlling
Climate Creator/Builder

Documentation

· Staffing Management Plan – describes when resources will be brought into and taken off the project.

· Employee Record Update – as part of closure, the project manager should update employee’s record with the new skills acquired.

· Resource calendar – identifies period when work is allowed.

COMMUNICATIONS

Project Communications Management - process required to ensure proper collection and dissemination of project information.

Team Meetings – periodic team meetings is the most effective way to accelerate the project integration process.

Performance Reviews – meetings held to assess status and/or progress.

Communications Model
Communicator	The originator of the message
Message	Thoughts, feelings, or ideas reduced to "code" that is understood by both sender and receiver
Medium	The vehicle or method used to convey the message
Recipient	The person for whom the message is intended
[Sender] -- Encoding à Transmission à Decoding -- [Receiver] à Feedback

Communications Channels = (n²- n)/2 or n(n-1)/2

…the fact that two team members are working “directly” together does not reduce the number of communication channels.

Tight Matrix - all team members allocated in a single office space

A variance is considered to be significant if it jeopardizes project objectives.

The purpose of project plan development is to create a document to guide project execution and control.

The output of project plan execution consists of work results and change requests.

Types of Communications
Formal Written	Project Charter, Management Plan (this is the best type of communication method to use when there are cultural differences and distance between team members)
Informal Written	Notes, memos
Formal Verbal	Presentations
Informal Verbal	Conversations
Note: 55% of communications is non-verbal (it is the most important aspect of a conversation)
90% of Project Manager's time is spent acquiring and communicating information
Objectives of a Kickoff Meeting
Get to know each other
Set team goals and objectives
Review project status
Review project plans
Identify problem areas
Establish responsibilities and accountabilities
Obtain commitments

Barriers to Communications (which lead to conflict)

Lack of clear communication channels

Physical or temporal distance

Difficulties with technical language

Distracting environmental factors

Detrimental attitudes

The most likely results of communication blocker and miscommunication as a whole is conflict.

Building Effective Team Communications

Be an effective communicator

Be a communications expeditor

Avoid communication blockers

Use a "tight matrix" (single office space)

Make meetings effective (meeting during execution is the best format to communicate)

Management Styles
Authoritarian	Lets individuals know what is expected of them
Combative	Eager to fight or be disagreeable over any situation
Conciliatory	Friendly and agreeable
Disruptive	Tends to disrupt unity and cause disorder
Ethical	Honest and sincere
Facilitating	Does not interfere with day-to-day tasks, but is available for help and guidance when needed
Intimidating	Reprimands employees for the sake of a "tough guy" image
Judicial	Applies sound judgment
Promotional	Cultivates team spirit; rewards good work; encourages subordinates to realize their full potential
Secretive	Not open or outgoing in speech, activity, or purpose

Management Skills
Leading	Establishing direction, aligning people, and motivating and inspiring
Communicating	The exchange of information in a variety of dimensions
Negotiating	Conferring with others in order to come to terms or reach an agreement
Problem Solving	A combination of problem definition and decision making
Influencing the Organization	The ability to get things done based on an understanding or the formal and informal structures of the organization
Documentation …the prevailing measurement of what information to accumulate and communicate on a project is that it contributes to its success.
· Progress Report - summarize project status. Preferred report to quickly review where a project now stands. · Reports are a method to distribute information, not just to report on progress Trend Report – show performance over time (shows if it is improving or deteriorating) · Variance Report – compare project results, looks at specific project items or tasks · Forecasting Report – only looks into the future · Status Report – relating a moment in time (static)
· Project Plan · Staffing Management Plan
· Communications Management Plan - should cover all phases of the project
· Performance reports – provide info on schedule performance, thereby alerting the team to problems that may arise in the future.

TIME

Project Time Management - processes required to ensure timely completion of the project

Activity Definition – defines activities that must take place to produce project deliverables

Activity – consumes time (eg testing)

Events – specified accomplishment / does not consume time (eg tested)

PERT Weighted Average = (O + 4M + P)/6 standard deviation = (P - O)/6 variance = standard deviation² (To add standard deviations: convert to variance then add; take the square root of the sum). Best method when you have no historical data for a similar task. Results is the 50% point (mean).

Monte Carlo Analysis - computer simulation of project outcomes using PERT estimates; result represented in S curve. Provides the ability to compute the probability of completing a project on a specific day. Can also be used to assess feasibility of schedule under adverse conditions (eg when a schedule constraint is identified)

Heuristics - rules of thumb

Critical Path – longest path (almost always have no float)

Variance - Plan minus Actual

Float / Slack – Time an activity may be delayed from its early start without delaying the project finish date. Difference between the required end date and the expected project completion date. A negative slack on the critical path means that the project is behind schedule.

Free Float – Amount of time a task can be delayed without delaying the early start of its successor

Total Float – amount of time that an activity may be delayed from early start without delaying the project finish date

Lag – waiting time between two tasks (negative lead)

Schedule Baseline - the original, approved project schedule; should never be changed without proper review and approval. 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. The project performance measurement baselines should generally change only in response to a scope or deliverable change.

Corrective action - in project time management primarily concerns expediting to ensure that activities remain on schedule. Is anything done to bring expected future schedule performance in line with the project plan.

Revisions are changes to the scheduled start and finish dates in the approved project schedule; generally revised only in response to scope changes. Rebaselining may be needed to provide realistic data to measure performance.

Scheduling and allocating resources to multiple projects may affect schedule slippage and in-process inventory.

The most important element necessary for project control is clear requirements.

Duration Compression Methods – occurs after activity duration estimating and before finalizing the schedule. Include crashing, fast track,

Crashing – when you are worried about time, not so much about costs.

Fast Track – resources in parallel, involve increase rework. Should fast track tasks on the critical path (float = 0) in order to save time.

Resource Leveling – often results in a project duration that is longer than the preliminary schedule. Resource reallocation from non-critical to critical path activities is a common way to bring the schedule back, or as close as possible, to the originally intended overall duration.

Finish to Finish - activities must finish on a specific sequence

“Start no earlier than” & “Finish no later than” – Respectively #1 and #2 most popular date constraint in project management software.

Root Cause Analysis – used to identify the cause of the variation

Variance analysis – key element to time control. Float variance is an essential planning component for evaluating project time performance.

Revision – category of schedule update that result in change to the project’s scheduled start or finish dates. New target schedule should be the usual mode of schedule revision.

Schedule Management Plan – defines how schedule changes will be managed; may be formal or informal.

Schedule Change Control System – defines procedures for changing the project schedule and includes the documentation, tracking systems, and approval levels required for authorizing schedule changes.

Project Time Management
Arrow Diagramming Method (ADM):	PERT and CPM focuses on float duration, to determine which activities have the least scheduling flexibility.
PERT	Program Evaluation and Review Technique Emphasis on meeting schedules with flexibility on cost Three time estimates per activity: pessimistic, most likely, and optimistic The probability of completing a project at or later than its expected time is 50% Event oriented; uses dummy; activity on arrow (AOA) Finish-to-Start logical relationship Time estimates appear on arrow
Critical Path Method (CPM)	Emphasis on controlling cost and leaving the schedule flexible One time estimate per activity Activity oriented; uses dummy; activity on arrow Time estimates appear on arrow
Precedence Diagram Method (PDM)	Represents improvement to PERT and CPM by adding lag relationships to activities [Start to Start; Start to Finish; Finish to Start; Finish to Finish] Work is done during activity. Arrow indicates dependancy Activity on node; no dummy
GERT	A network diagram drawing method that allows loops between tasks. It is a method of sequencing (e.g. a project requires redesign after completion of testing)
Dependencies
Mandatory or Hard	Often involve physical or technological limitations (based on the nature of work being done)
Discretionary	Soft: desirable and customary (based on experience) Preferential: preferred or mandated by a customer (also, need of the project sponsor)
External	Input needed from another project or source

Resource Planning Tools
Responsibility Matrix	Identify who does what at what time/phase of the project
Resource Spreadsheet	Quantifies how much work is needed from each resource during each time period
Resource Gantt Chart	Identify the periods of time (e.g. calendar date) when a particular resource is working on a particular task
Resource Histogram (Resource Loading Chart)	Vertical bar chart showing the total number of resources needed during each time period

Scheduling Tools
Networks (PERT, CPM, PDM)	Interdependencies; how related
Barchart (Gantt)	Effective progress reporting tool; no logical relationships shown between activities
Milestone Chart	Significant events; good for communicating status (used to track success)

COST

Project Cost Management	Processes required to ensure that the project is completed within the approved budget.
Benefit Cost Ratio	Expected Revenues / Expected Costs. Measure benefits (payback) to costs; not just profits. The higher the better (if rating over 1, the benefits are greater than the costs)
Internal Rate of Return	Interest Rate which makes the PV of costs equal to PV of benefits
Payback Period	Number of time periods up to the point where cumulative revenues exceeds cumulative costs. Weakness in this approach is the lack of emphasis on the magnitude of the profitability. Does not account for time value of money nor consider value benefits after payback.
Opportunity Cost	Cost of choosing one alternative and therefore giving up the potential benefits of another alternative: it is the value of the project not selected (lost opportunity).
Sunk Cost	Expended costs which should be ignored when making decisions about whether to continue investing in a project
Law of Diminishing Returns Straight Line Depreciation	The point beyond which the marginal addition of resources does not provide a proportional amount of utility. Same amount each time period (e.g. 10 – 10 – 10)
Contingency Reserve	Separate quantity of time/money for known unknowns. Designed to cover specific risk events previously identified and measured in the Risk Management Process.
Management Reserve	Separate quantity of time/money for unknown unknowns
Working Capital	Current Assets - Current Liabilities
Value Analysis	Cost reduction tool that considers whether function is really necessary and whether it can be provided at a lower cost without degrading performance or quality. Finding the least expensive way to do the scope of work.
Value Estimating	Part of Cost Control
Value Engineering Tool	Tool for analyzing a design, determining its function, and assessing how to provide those functions cost effectively.
50-50 Rule	At beginning, charge 50% of its BCWS to the account. Charge remaining at completion.
Analogous Estimating	Top down; based on similar projects. Represents a form of expert judgment. Gives project team an understanding of management’s expectations (part of cost budgeting and cost estimating)
Bottom-up Estimating	Detailed cost estimates of work packages are aggregated. Would provide best overall quality of the estimate.
Parametric Estimating	Relies on knowledge of mathematical relationships; measured in $/unit (scalable, quantifiable). It does not make use of team estimate. (part of cost budgeting and cost estimating). Using a mathematical model to predict the duration of a task (e.g. taking the average duration of all past tasks)
Regression Analysis	Statistical technique graphically represented on scatter diagram
Learning Curve	Mathematically models the intuitive notion that the more times we do something, the faster we will be able to perform
Variable Costs	Costs rise directly with the size and scope of the project
Fixed Costs	Costs do not change; non-recurring (e.g. project setup costs)
Direct Costs	Incurred directly by a specific project. The PMI want the team to participate in the cost estimates to get their buy-in.
Indirect Costs	Part of the overall organization's cost of doing business and are shared by all projects. Usually computed as a percentage of the direct costs.
Cost accounts	Represent the basic level at which project performance is measured and reported. The purpose of cost accounts is to monitor and report on project performance.
Cost Change Control Systems	Includes the documentation, tracking systems, and approval levels needed to authorize a change.
Budget updates	Should be the next steps after an approved cost baseline has changed because of a major change on a project.
Operating profit	Amount of money earned: Revenue – (direct + indirect costs)
Discounted cash-flow approach	Present value method determines the net present value of all cash flow by discounting it by the required rate of return.
Parametric modeling	Involves using project characteristics (parameters) in a mathematical model to predict project costs.
Life-Cycle Cost	Provide a picture of the total cost for the product (project, operations and maintenance).
Project Closeout	(output to cost control) Process and procedures developed for the closing or canceling of projects

Formulas
Expected Value Present Value	Probability * Impact FV / (1 + r)t
Cost Variance	EV – AC [BCWP – ACWP] Variance = planned – actual
Schedule Variance	EV – PV [BCWP – BCWS] (if <0;>
Cost Performance Index	EV/AC [BCWP / ACWP] I am getting ____ out of each dollar. (>1 good; <1>
Schedule Performance Index	EV/PV [BCWP / BCWS] I am progressing at ____% of the rate originally planned
Estimate at Completion (EAC)	BAC / CPI AC+ETC (when original estimates are considered flawed) AC+BAC-EV (when everything is OK and variance will not occur in the future) AC+((BAC-EV)/CPI) (when everything is OK and variance will occur in the future)
Estimate to Completion (ETC)	EAC - AC or (BAC - EV) / CPI
Variance at Completion (VAR)	BAC – EAC
% Spent	AC/BAC
Cost Variance in %	CV/EV
Schedule Variance in %	SV/PV
BCWS (PV)	How much should be done? This is the performance measurement baseline.
BCWP (EV)	How much work is done? (Progress) Budgeted cost of work performed. Value of the work completed in terms of what you budgeted (your baseline)
ACWP (AC)	How much did the “is done” work cost?
BAC	Budget at Completion – How much is budgeted for the total job? BAC would change every time there is a funded scope change approved for activity to be performed in the future.
EAC	Based on project performance and risk quantification
ETC	Estimate to Completion
CPI	Cumulative CPI does not change by more than 10% once a project is approximately 20% complete. The CPI provides a quick statistical forecast of final project costs.
EV=PV [BCWP=BCWS]	EV equals PV when the project is completed.
AD	Work Quantity(scope of the activity) / Production rate
Slope	(crash cost - normal cost) / (crash time - normal time) ; if <0,>

Documentation

· Cost Management Plan – (from Cost Estimating) The action taken by the project manager for all variances are described in the Cost Management Plan.

RISK

Project Risk Management – processes concerned with identifying, analyzing, and responding to uncertainty. The most likely cause of poor risk management is lack of prioritized list of risks.

Types of Risk
Business			Normal risks that offer gain and loss
Pure / Insurable			Only loss: property damage, indirect consequential loss, legal liability, personnel. For risk we can outsource, we have contract. For pure risks, we obtain insurance.
Risk Factors
Risk event
Risk probability
Amount at Stake
Statistical Independence Data Precision Ranking Secondary Risk			Occurrence of one event is not related to occurrence of the other Purpose is to test the value of data (input to Qualitative Analysis) (part of Risk Response Planning)
Path Convergence			Tendency of parallel paths of equal duration to delay the completion of the milestone where they meet
Contingency Plan Uncertainty			Planned action steps to be taken if an identified risk occurs. (e.g. developing alternative activity sequences) An uncommon state of nature, characterized by the absence of any information related to a desired outcome.
Workaround			Unplanned response to negative risk events (requires to be impacted by the risk first)
Expected Monetary Value			= Probability * Monetary Impact (used in Decision Tree Analysis)
Risk Event			A discrete occurrence that may affect the project for better or worse. After a risk event, the project manager’s role is to reassess the risk ranking. The risk owner is responsible to take action when an identified risk occurs.
Risk Trigger			A symptom of risk; indirect manifestation of actual risk event; output of risk identification; example is poor morale
Risk Portfolio			Risk data assembled for the management of the project
Utility Theory			Technique that characterizes an individual’s willingness to take risk
Sensitivity Analysis Risk Auditor Risk Tolerance			Places a value on the impact to the project plan by adjusting a single project variable; simplest form of analysis Role is to investigate the effectiveness of the risk owner (which can cause potential conflict with risk owner) Risk Taker, Risk Adverse, Risk Neutral; if you know the tolerance of the stakeholders, you can determine how they might react to different situation and risk events. You use this information to help assign levels of risk on each work package.
Responses to Risk
Avoidance (elimination/abatement)	Eliminating cause eliminates risk. Can be done by changing the Project Plan or protecting project objectives from its impact.
Mitigation (reduction)	Reduce the Expected Monetary Value. Float can be use to mitigate potential risks
Transfer	Deflect or share (eg. Insurance, warranties)
Acceptance	Accept or retain consequences. 2 types: Active Acceptance (develop a contingency plan) or Passive Acceptance (no action).
Numbers to Know
Cost Estimates: Order of Magnitude (ballpark estimate)		-25%		+75%
Budget		-10%		+25%
Definitive		-5%		+10%
1 sigma		68.3%
2 sigma		95.5%
3 sigma		99.7%
6 sigma		99.99%

The range of an estimate with the smallest range is the least risky.

Documentation

Risk Management Plan – would most likely be developed during scope planning phase of the scope management process.

QUALITY

Project Quality Management – processes required to ensure that the project will satisfy the needs for which it was undertaken.

Quality is the conformance to requirements/specifications and to fitness of use.

Quality function deployment – provide better product definition and product development. Its main feature are to capture the customer’s requirements, ensure cross functional teamwork, and link the main phases of product development.

Rework – action taken to bring a non-conforming item into compliance. Rework is a frequent cause of project overruns.

Quality Variable	A quality characteristic that is measurable
Quality Attribute	A quality characteristic that is classified as either conforming or nonconforming
Benchmarking	Comparing practices of other projects. Provides a standard to measure performance (time consuming). (e.g. investigating quality standards that other companies are using)
Statistical Analysis	Involves determining the probability of an occurrence
Trend Analysis	Uses mathematical techniques to forecast future outcomes based on historical results; used to measure technical, cost, and schedule performance
Quality Audit	Structured review of other quality management activities performed to identify lessons learned (used for process improvement) Part of Quality Assurance. Provide management confidence that the project will satisfy relevant quality standards.
Inspection	Prevent errors from reaching the customer before delivery to the customer. Can be done throughout product development.
Design of Experiments	A technique to identify which variables have the most influence on overall outcomes (part of Quality Planning) (e.g. analyze the color/size combination that will contribute most to the functionality of the new product). Can be applied to cost and schedule tradeoffs.
Flow chart	Help analyze how problems occurs
Attribute Sampling	Measures whether or not the results conforms to specifications
Variable Sampling	Are characteristic you want to measure (size, shape, weight, etc…). An attribute is what you are measuring. The result is rated on a continuous scale that measures the degree of conformity.
Assignable Causes	Data point on a control chart that requires investigation
Specification Limit	Shows customer’s expectations for quality (on a control chart)
Control Chart	…help newly assigned project manager determine whether the project is out of control (in order to verify quality level). Can be used to monitor project management processes such as coscard, schedule variance, volume and frequency of scope changes, and errors in project documents.
Statistical Control Chart	Are used to monitor process variations overtime. Help people understand and control their process work.
“Out of Control”	Non-random points that are still within the upper and lower control limit
Upper and Lower Control Limit on a Control Chart	Acceptable range of variation of a process. [These limits are set based on the company’s quality standards. The control limits are determined from data obtained from the process itself.]
Specification Limit	Fixed by the customer
Pareto Diagram	Used to show how results were generated, by type or category of identified cause
Ishikawa	Made popular Pareto Chart, Cause-and-Effect Diagram and Control Chart
Taguchi Method	Is used to estimate the loss associated with controlling or failing to control process variability. If you select good design parameters, you can produce products that are more forgiving and tolerant. The tool helps determine the value or break-even point of improving a process to reduce variability.
ISO 9000	Provides a basic set of requirements for a quality system, without specifying the particulars for implementation.
Checklists	Used to verify that a set of required steps has been performed in quality control process
“Statistically Independent”	Determine if problems are related before planning what to do about them
Mutually Exclusive	If two events cannot both occur in a single trial (?)
Special Cause	Unusual event
Random Cause	Normal process variation
Cause and Effect Diagram (Fishbone)		(1) Creative way to look at actual causes and potential causes of a problem (2) Process of constructing helps stimulate thinking about an issue; helps to organize thoughts; generates discussion (3) Used to explore a wide variety of topics (4) Also known as Ishikawa or Fishbone diagram
Quality Planning	Refers to potential problems. Although it usually occur during planning phase, it can occur during execution if there is a change.
Quality Control	Refers to specific performance of a task (measuring quality and comparing results to the quality plan)
Quality Assurance	Refers to overall quality requirements (standards) (e.g. evaluating overall project performance regularly)

Cost of Quality
Conformance			Non-Conformance (most accurate)
Planning			Scrap
Training			Rework and repair
Process Control			Additional Material
Design and process validation			Repairs and service
Test and evaluation			Complaints
Quality audits			Liability
Maintenance and calibration			Product recalls
Inspection			Field service
Field testing			Expediting
Impact of Poor Quality
Increased cost
Decreased productivity
Increased risk and uncertainty
Increased costs in monitoring

Goal of the cost of quality program should be 3 - 5% of total value.

Cost of non-quality is estimated to be 12 - 20% of sales.

Cost of Quality Includes Prevention Costs (training), Appraisals Costs (inspection/testing) and Internal (scrap, rework)/External (warranty) Failure costs

Management is 85% responsible for quality. The team member is ultimately responsible for quality management. The project manager is primarily responsible for quality management.

Two components of product availability are reliability and maintainability.

To effectively use statistical quality control, the project team should know the differences between special causes and random causes.

Sampling and probability are the most important topics to understand in statistical process control.

Top management should direct continuous improvement.

Quality control measurement are records of quality control testing and measurement in a format for comparison and analysis (input to quality assurance).

Documentation

· Quality Management Plan – describes method for implementing quality policy project quality system and organizational structures, responsibilities, procedures, processes and resources needed to implement project quality management.

PROCUREMENT

Project Procurement Management - the processes required to acquire goods and services from outside the performing organization.

Make or Buy Decision – it is generally better to do the work yourself if using an outside company means you have to turn over highly confidential proprietary data to other company.

Contract Types and Risk
Cost Plus Percentage of Cost (CPPC)	No valid for federal contracts
Cost Plus Fixed Fee (CPFF)	Used for research and development contracts (which generally have low level of detail in the scope); fixed fee can change if there is a change to the contract (usually through change orders). The risk rests with the buyer.
Cost Plus Incentive Fee CPIF)	Buyer and seller share in savings based on predetermined %s; long performance periods and substantial development and test requirements (incentive to the vendor to perform on or ahead of time)
	· In Cost plus contract, the only firm figure is the fee
Fixed Price Plus Incentive Fee (FPI)	High-value projects involving long performance periods
Firm Fixed Price (FFP)	Reasonably definite specifications (e.g. SOW). Shift risk to seller. Good when deliverable is not a core competency.
Time & Material (T&M)	Good if the buyer wants to be in full control and/or the scope is unclear/not detailed or work has to start quickly. Profit factor into the hourly rate.
Fixed Price Award Fee	“bonus” to the seller based on performance (e.g. 100K + 10K for every designated incremental quality level reached.
Purchase Order	A form of contract that is normally unilateral and used for simple commodity purchases.
Contract type Vs Risk	FFP – FPI – CPIF – CPFF – CPPC Fixed Price – Cost Reimbursable – T&M Buyer’s risk from low to high Seller’s risk from high to low

Elements of a Contract
Offer	Assent to certain terms by both parties
Acceptance	Agreement, written or spoken
Consideration	Something of value
Legal Capacity	Able to contract
Legal Purpose	No violation of public policy

Stages of Contract Negotiation
Protocol	Introductions
Probing	Identify concerns, strengths, weaknesses
Scratch bargaining	Actual bargaining
Closure	Positions summed up
Agreement	Documenting

Specification - precise description of a physical item, procedure, or service. The SOW supplements the specification in describing what must be done to complete the project.

Privity - legal relationship that exists between any contracting parties (e.g. if company “A” hires “B” and “B” subcontract to “C”, “C” is not legally bound by anything “A” can say; the privity is with “B”)

Waiver - a party can relinquish rights that it otherwise has under the contract. Forebearance can mature into waiver.

Retainage – withholding of funds under contract.

Warranty - assurance of the level of quality to be provided

A contract ends by:
Successful performance
Mutual agreement	Last two are Termination
Breach of contract

Terms and Conditions – the project manager must uphold the Terms and Conditions of the contract, even if it meets the needs of the project, it has to also meet the requirement of the contract.

Liquidated damages -

Contract Control System vs Project Control System – they both include procedures. The contract control system requires more documentation and more signoff.

Work Authorization Systems – can be used to coordinate/control what time and sequence work is done. It helps with integrating tasks into a whole.

Performance Scope of Work – describes the performance – not the functionality-- required by the customer

Independent Estimate – most concern with costs, comparing cost estimates with in-house estimates or with outside assistance (part of Source Selection)

Procurement Audit – structured review that flush out issues, and set-up lessons learned. Helps ensure problems are resolved for future projects. Identify successes and failures that warrant transfer to other procurements.

Beneficial Efficiency – when the work is being used for the intended purpose and has been certified

Terminating contract for Convenience – if a project is terminated before it is complete, the level of extent of completion should be established and documented.

Contracting
Centralized	Decentralized
+ More economical	+ Project Manager has more control
+ Easier to Control	+ Contracting personnel are more familiar with project
+ Higher degree of specialization (expertize)	+ More flexible and adaptable to project needs
+ Orders can be consolidated	- Duplication of contracting efforts
- May become a bottleneck	- Higher costs
- Less attention to special needs	- No standard policies

Negotiating Tactics
Deadline	Strategic Delay
Surprise	Reasoning Together
Limited Authority	Withdrawal
Missing Man	Unreasonable
Fair and Reasonable	Suggesting Arbitration
	Fait Accompli

Documentation

· Statement of Work – describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item. (Scope Statement between Client and PM / SOW between PM and Seller)

INTEGRATION

Project Baseline – should be changed for all implemented changes. Sometimes, certain classification of changes get automatic approval on a project and do not need Change Control Board approval.

Changes - if the functional manager wants to make a change to time associated to a task (change in goals and objectives of the Charter) and there is not enough reserve, senior management (not the Project Manager) should authorize the change. The best method to control changes on the project is to look for sources of change. The best method to deal with changes is to direct the changes to the Change Control Board.

Change Control System – must also include procedures to handle changes that may be approved without prior review (e.g. result of an emergency)

Schedule Change Control System – can include the paper, systems and approvals for authorizing changes. The project manager is normally not the approval authority, and not all the changes approved

Project Plan – as an input to team development, the project plan describes the technical context within which the team operates.

PROFESSIONAL RESPONSIBILITIES

Routine Government Fee (Transfer Fee) – only government official can collect routine government fees (this is not a bribe)

Company Policies - It is the project manager’s professional responsibility to ensure that company policies are followed during the project.

Copyright laws – do not violate

Employee mistake - when a team member makes a mistakes, allow him to save face and to fix the problem. Try to workout an issue before escalating. Exception: if it is not considered a project related issue (e.g. harassment), it should be reported directly to the employee’s manager.

Do not make illegal payments, report thefts

Company and Customer’s Interest - professional responsibility requires the investigation of any instances where the legitimate interests of the customer may be compromised. If such compromise is found, action must be taken. Protect your company’s interests

Budget tampering - presenting anything besides your original estimate to allocate more to the budget is inaccurate and calls into question your competence and integrity as project manager (e.g. if a customer ask to estimate “pessimistically”, you should add as a lump sum contingency fund to handle project risks)

Rights - do not do business with a country where there is a clear violation of the fundamental rights (e.g. non-discriminating treatment).

POSSIBLE EXAM QUESTIONS

Scope Questions
Why is a careful and accurate needs analysis important?	To make sure customer or stakeholder expectations can be identified and satisfied.
How is a change control board used? Can there be more than one?	To approve or reject change requests according to responsibilities defined and agreed upon by key stakeholders. Multiple CCBs may be used on large projects.
What is the purpose of the project charter? How does it benefit the project manager?	To formally document the existence of the project, including the business need that the project was undertaken to address and the product description. It provides the project manager with the authority to apply organizational resources to project activities.
What is the Delphi Technique?	A forecasting technique used to gather information; it relies on gathering expert opinions. Usually goes three rounds. Obj.: Gain consensus of expert opinions.
What is the purpose of the scope management plan?	To describe how project scope will be managed and how scope change will be integrated into the project.
What is the purpose of the WBS dictionary?	To provide interested parties with work package descriptions and other planning information such as schedule date, cost budgets, and staff assignments for each WBS element.
What is the 80 hour rule?	Each task should be broken down into work packages that require no more than 80 hours to complete.
What is the difference between scope verification and quality control?	Scope verification is primarily concerned with acceptance of the work results; quality control is primarily concerned with the correctness of the work results.
What are the three steps involved in MBO?	(1) Establish unambiguous and realistic objectives (2) Periodically evaluate whether project objectives are being achieved (3) Act on the results of the evaluation.
When should scope verification occur?	At the end of the project.
HR Questions
Which are the five methods of managing conflict is recommended? Why?	Problem Solving/confrontation because both parties can be fully satisfied if the work together to find a solution that satisfies both their needs.
What are the three types of project interfaces that serve as inputs to the organizational planning process. When can they occur?	(1) Organizational interfaces (2) Technical interfaces (3) Interpersonal interfaces They can occur simultaneously.
What is McGregor’s Theory X? What is management’s role in this approach?	Traditional approach: workers are self-centered, lazy, lacking ambition. Managers organize the elements of the productive enterprise in the interest of economic ends.
What is McGregor’s theory Y? What is management’s role in this approach?	Workers are not by nature resistant to organizational needs; they are willing and eager to accept responsibilities and are concerned with self-growth and fulfillment. Managers should try to create an environment where workers can achieve their own goals.
What is an organizational breakdown structure (OBS)?	A specific type of organizational chart that shows which units are responsible for which work items
What is the purpose of a resource Gantt chart?	It identifies when a particular resource is or will be working on a particular task
Does the matrix form of project organization facilitate or complicate project team development?	It complicates team development because team members are accountable to both a functional manager and a project manager.
Name three major forms of project organizational structure.	Functional, Matrix, and Projectized
What is the expectancy theory?	It holds that people tend to be highly productive and motivated if they believe their efforts will lead to successful results and they will be rewarded for their success.
What is problem solving/confrontation?	Addressing conflict directly by getting the parties to work together to define the problem, collect information, develop and analyze alternatives, and select the most appropriate alternative.
Give three examples of hygiene factors in Herzberg’s theory of motivation. How do they affect motivation.	Pay, attitude of supervisor, and working conditions. Poor hygiene may destroy motivation, but improving hygiene factors in not likely to increase motivation. Motivators are an opportunity to achieve and experience self-actualization.
Who is responsible for addressing individual performance problems?	Senior and functional management
Describe the difference between a weak matrix and a strong matrix.	Weak matrices are similar to functional organizations. Strong matrices are similar to projectized organizations (with balance of power tipped toward the project manager)

What is a projectized organization?

One in which a separate, functional organization is established for each project. Personnel are assigned on a full-time basis. Project manager’s concern is that the team may not be focused on completing the project (team looks for new mandate or tries to extend the length of the project). According to PMI, the biggest problem in Administrative Closure is retaining team members until closure of the project.

Communications Questions
What is a project "war room"? What is its primary benefit?	A single location for the team to get together for any purpose. It provides a repository for project artifacts, records, and up-to-date schedules and status reports. It gives an identity to the project team.
Describe the six parts of a Communications Management Plan.	(1) What information will be collected (2) How the information will be collected (3) How and to whom the information will be distributed (4) When the information will be communicated (5) How to obtain information between regular communications (6) How the Communications Plan will be updated through the project
What is variance analysis?	Comparing actual project results to planned or expected results in terms of cost, schedule, scope, quality, and risk.
What are six actions project managers should take to ensure effective project team communications?	(1) Be an effective communicator (2) Be a communications expeditor (3) Avoid communications blockers (4) Use a tight matrix (5) Have a project war room (6) Make meetings effective
What is active listening?	Listening in which the recipient is attentive and asks for clarification of ambiguous messages
What is major cause of conflict with functional managers?	Schedules
What is most difficult conflict to deal with?	Personality conflicts
What is earned value analysis? How is it used in performance reporting?	An analysis that integrates cost and schedule measures. It is used to help the project management team assess project performance.
What is the tool for used for communication planning?	Stakeholder analysis
What is the most important characteristic for a project manager?	Ability to work well with others
What factor has the greatest effect on the project's communication requirements?	The project's organizational structure
What is the primary condition leading to conflict in both the weak and strong matrix organizations?	Ambiguous jurisdictions. They exist when two or more parties have related responsibilities, but their work boundaries and role definitions are unclear.
When is a project considered closed?	When the archive is completed. All project docs goes into the archives; this is the last thing to create before releasing the team.
Time Questions
What is the critical path?	The longest path through the network which represents the shortest amount of time in which the project can be completed.
What is crashing?	Taking action to determine how to obtain the greatest amount of duration compression for the least incremental cost; generally increases cost.
What is fast tracking?	Compressing the schedule by overlapping activities that would normally be done in sequence; may result in rework and increased risk; logical relationships are modified
How does resource leveling work?	By using positive float available on non-critical paths, schedule by smoothing or leveling peaks and valleys of resource utilization
What is activity duration estimating?	Assessing the number of work periods likely to be needed to complete each activity
What is a dummy activity?	One that consumes no time or resources; it shows only dependency
What is slack or float? Free float?	Amount of time that an activity can be delayed without delaying project. Free float is the amount of time an activity can be delayed without delaying the early start of the next activity
What is lag?	Required waiting time between activities

Cost Questions
What is life cycle costing?	Concept of including acquisition, operating, maintenance, and disposal costs; total cost of ownership
Which of the following includes an audit; Administrative Closure or Contract Closure?	Contract Closure includes an audit.
What is "chart of accounts"?	Coding structure used to report financial information in general ledger. Code of accounts is numbering of WBS elements
What are cost accounts?	They represent the basic level at which project performance is measured and reported.

Risk Questions
Generally speaking, in what project phase are risk and opportunity greater than the amount at stake by the widest margin?	Initiation
Describe the difference between an internal risk and an external risk.	An internal risk is under the control or influence of the project team; external is beyond control or influence.
What is purpose of a risk management plan? What should it include?	To document the procedures that should be used to manage risk throughout the project. It should include the risk identification and risk quantification; how contingency plans will be implemented; how reserves will be allocated.
What is a reserve?	A provision in the project plan to mitigate cost and/or schedule risk. Management reserves are for “unknown unknowns” and contingency reserves are for “known unknowns”.
What are the two most common types of management reserves? How are they used?	Cost and Schedule, used to reduce the chance of overruns in either area
When is the highest risk impact generally occur?	During Implementation and Close-out - the Amount at Stake is high though risk has decreased. Risk is highest during Initiation and Planning.
Who is ultimately responsible for identifying and managing risk?	Project manager
You are finding it difficult to evaluate the exact cost consequences of risks. You should:	Evaluate them on a qualitative basis.
In what circumstance would you have to update the Risk Response Plan?	If a risk occurs and has a greater impact on the project than what was anticipated. (part of Risk Monitoring and Control)
What should be done after competing/updating the Risk Response Plan?	Add tasks to the WBS
How do you address unknown risks?	By applying a general contingency based on past experience
What is a known-unknown risk?	Risk that can be identified as possibly happening (e.g. Flood if a business is located in a flood zone)

Quality Questions
What are control limits as used in control charts?	Control limits describe the natural variation of a process. Assignable cause is a point outside the control limits
Define "kaizen"?	Continuous improvement
What is gold-plating?	Giving the customer more than what was required. It has no value.
What is the effect of sample size on the standard deviation?	Whenever sample size increases, the standard deviation decreases.
What is the Rule of Seven?	If seven or more observations in a row occur on the same side of the mean, even though within control limits, they should be investigated as an assignable cause.
What is Just-In-Time?	An inventory control approach that attempts to reduce work -in-process inventory; there is no extra stock kept in reserve
What is meant by the cost of quality?	Cost of conformance and cost of nonconformance
How are cause and effect diagrams used?	They show how various causes and subcauses relate to create potential problems. After these are identified, corrective action can be taken.
What is the principal purpose of the Quality Management Plan?	To describe how the project management team will implement its quality policy
What is a Pareto Diagram?	A bar chart in which data are arranged in descending order of importance. It puts issues into an easily understood framework.
What is the underlying concept of a Pareto Diagram?	A relatively small number (20%) of causes will typically produce a large majority (80%) of the problems or defects.

Who is ultimately responsible for quality?	The individual. The project manager has overall responsibility.
Procurement Questions
What is make or buy analysis?	A technique used to determine whether a product can be produced cost effectively by the organization.
What are contract incentives?	Inducements provided by the buyer to the contractor in an attempt to ring the objectives and interests of the contractor in line with those of the buyer; positive and negative. Usually cost effective
What is a bidder's conference?	Meetings with prospective sellers to ensure that they have a clear, common understanding of the procurement; held before sellers prepare their proposals.
What is part of the contract document?	Proposal, Scope of Work, Terms and Conditions (which should be the result of a risk analysis), general provision, special provisions (which takes precedence over general provisions)
What do you do if a seller does not perform according to the contract?	Take action. (1) Contact seller and ask what’s going on. (2) let seller know he is in default (e.g. default letter).
Integration Questions
Lessons learned are completed by?	Project team
What are the major constraints on a project?	Refers to the Triple Constraints: Cost, Time, Quality, along with customer satisfaction and scope of work.
When many changes are made to a project, what should a project manager do?	Make change as needed, but maintain a schedule baseline (baseline is there to determine how the project is progressing)
What is the purpose of a Project Plan?	1. Guide the project execution 2. Document project planning assumption 3. Document project planning decisions regarding alternatives chosen 4. Facilitate communications among stakeholders 5. Define key management review 6. Provide a baseline for progress measurement and project control
You are a new project manager. It is best to rely on ?? to improve your chances of success?	Historical information

STRATEGY FOR VARIOUS TYPES OF QUESTIONS:

#1: “What has the project manager FORGOTTEN to do?”

a) determine what process they are referring to

b) determine if answer choices are/should be input/output/tools (activities)

c) determine which input/output/tool the question is looking for

d) select the one missing

#2: “What is the BEST thing to do?”

The correct answer should resolve the underlying problem.

#3 “The project manager must be MOST careful to / Which is the MOST important?”

The easiest way to deal with these questions is to look for the choice that will have the highest impact on the project.

#4 Tip: However accurate answer choice are, pick the one that answer the question.

#5 Tip: Know problem solving processes (e.g. for a change: (1) Evaluate impact of the change with the team, (2) determine option and (3) go to management or customer.)