PMP Class Notes

8/12/2019 PMP Class Notes

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Welcome to PMP Exam Prep Class................................................................................................2STUDY TIPS................................................................................................................................... 4Project Integration Management.....................................................................................................6Project Time Management............................................................................................................2Project Cost Management.............................................................................................................6Project !"alit# Management.........................................................................................................$Project %"man &eso"rce Management........................................................................................22

Project Comm"nications Management.........................................................................................2'Project &is( Management.............................................................................................................2)Project Proc"rement Management................................................................................................*2+orm"las ,or Exam........................................................................................................................ *'

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Welcome to PMP Exam Prep Class

Session C-apters 2 o/er/ie0 o, *. 1ote C-apter * s-o"l3 e re/ie0e3 # #o" a,ter classcompletion. It s"ccinctl# co/ers all.

Session 2 C-apters 4 an3 ' 5Integration an3 Scope 0e ma# not co/er all Scope processes7

Session * C-apters 6 an3 eginning o, 8 5Time an3 Cost 0e ma# egin 0it- t-e last ,e0 scopeprocesses an3 0e ma# not get to t-e ,irst Cost process7

Session 4 C-apters 8 an3 ) 5Cost an3 !"alit#7

Session ' C-apters $ an3 9 5%"man &eso"rces an3 Comm"nication7 Please st"3#comm"nication on #o"r o0n. We 0ill e ta(ing t-is at a /er# -ig- le/el 3"ring lect"re.

Session 6 C-apters 5&is(7 an3 Exam prep

1:TE C-apters9 an3 2 are -ome0or(. 5;tten3 t-e Encore /ersion o, Comm"nication an3Proc"rement7 +eel ,ree to ta(e t-em e,ore t-e en3 o, o"r * <li/e= 0ee(s toget-er an3 c-at in>"estions e,ore ? a,ter class an3 rea(. Yo" ma# also email at an#time.

T-e @i/e Sessions are t-e lect"re component o, t-e class. PreAtests postAtests an3 practiceexams are a major piece o, t-e entire learning str"ct"re. T-ese ma# e complete3 at #o"r o0n3iscretion.

I, #o" miss a @i/e Session or 0ant to re/ie0 #o" can atten3 an Encore session. Encore sessionsare st"3ioA>"alit# preArecor3e3 sessions t-at incl"3e grap-ics an3 a"3io. T-e# co/er t-e samematerial "t are slig-tl# 3i,,erent.

T-e PMB: 4t- e3ition is t-e st"3ent g"i3e. T-is is t-e o,,icial ,rame0or( ,rom PMI. PMB:

stan3s ,or Project Management Bo3# o, no0le3ge. T-e PMB: St"3ent "i3e is a .p3, ,ilea/ailale on S(illport. @icensing restricts #o" to printing one entire cop# an3 #o" t-e print "ttonis onl# acti/e * times. PMI memers can 3o0nloa3 t-e PMB: 4 t- e3ition ,or ,ree 3irectl# ,rom-ttp??000.pmi.org.

T-e st"3ent g"i3e re>"ires a pl"gAin calle3 +ileA:pen. T-e lin( to install it is /isile once #o" clic(t-e st"3ent g"i3e lin( on S(illport. Yo" m"st -a/e local a3ministrati/e rig-ts to install t-e +ileAopen pl"gAin. ;lso #o" nee3 to -a/e an ;3oe &ea3er t-at is ol3er t-an /ersion 9. 5/ersion 7

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T-e 3oc"ment t-at #o" are c"rrentl# rea3ing is a Wor3 /ersion o, t-e Classnotes. We -a/epro/i3e3 t-is ,"ll# e3itale an3 streamline3 /ersion o, t-e co"rse ,or #o"r noteAta(ing an3st"3#ing con/enience. T-e exam co/ers e/er#t-ing in t-e PMB: an3 also concepts not in t-ePMB:. T-e Classnotes ring toget-er all t-e content ,rom t-e lect"res an3 t-e PMB:. T-elast page in3icates exactl# 0-at #o" s-o"l3 memoriFe ,or t-e exam. T-ese notes are also poste3as %TM@ on S(illport.

Yo" m"st appl# to ta(e t-e PMP an3 C;PM exams. PMI a"3its ro"g-l# 2'G o, t-e applications.I, #o" are a"3ite3 #o" 0ill nee3 to pro/i3e proo, or #o"r -ig- sc-ool or college 3iploma orinternational e>"i/alent 0or( experience an3 project management e3"cation. T-is co"rse meetst-e *' -o"rs o, e3"cation necessar# to appl# ,or t-e exam. Yo" ma# appl# to ta(e t-e PMP orC;PM exam e,ore #o" -a/e #o"r certi,icate o, completion ,or t-is co"rseH -o0e/er i, PMI a"3its#o"r application t-en #o" 0ill -a/e to ,"rnis- t-e certi,icate e,ore t-e# 0ill accept #o"rapplication. Yo" nee3 onl# ,"rnis- #o"r certi,icate o, completion i, #o" are a"3ite3. I recommen3creating a special ,ol3er in #o"r o,,ice ,or o,,icial PMI 3oc"mentation.

In or3er to earn #o"r certi,icate o, completion #o" m"st atten3 all 6 sessions @i/e or Encore an3pass all 6 postAtests 0it- a 89G or -ig-er. 5Yo"r c"rrent emplo#er ma# -a/e -ig-er stan3ar3scon,ig"re3 t-ro"g- S(illport.7 T-e pro/i3er is S(illso,t co3e 99).+or more in,ormation

-ttp??000.s(illso,t.com?ao"t?cre3itprograms?cre3entialprograms?pmi.asp

+or co"rse material relate3 >"estions I can e reac-e3 at emil#err#@@J@i/e.com ;lsomentors are a/ailale t-ro"g- S(illport o"tsi3e o, class -o"rs.Tec- s"pport?C"stomer s"pport can assist 0it- acco"nt S(illport an3 tec-nical >"estions.-ttp??s"pport.s(illso,t.com

Sincerel#

Emil# Berr#

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STUDY TIPS

.7 MemoriFe t-e process gro"ps an3 (no0le3ge areas

2.7 Un3erstan3 t-e p"rpose o, t-e process gro"ps an3 (no0le3ge areas. Ex W-# ist-ere an integration (no0le3ge areaK W-at is t-e 3i,,erence et0een monitoring ?controlling an3 exec"tingK

*.7 ItLs not necessar# to memoriFe all t-e processes "t it is important to (no0 0-at t-e#are 0-# t-e# are important an3 to e ale place t-em into t-e appropriate processgro"ps an3 (no0le3ge areas.ex W-atLs t-e 3i,,erence et0een t-e >"alit# monitoring ? controlling process an3 t-escope monitoring ? controlling processK W-atLs t-e 3i,,erence et0een t-e 2 closingprocessesK W-# are t-ere ' time planning processes an3 0-# are t-e# or3ere3 t-e 0a#t-e# areK W-at is t-e 3i,,erence et0een scope /eri,ication an3 >"alit# controlK I, itLs #o"r st"3# -ait or learning st#le to memoriFe t-en ma(e a tale 0it- ' col"mns

an3 $ ro0s 5not co"nting -ea3ers7 an3 practice ,illing in t-e processes.

4.7 Its not necessar# to memoriFe all t-e inp"ts?tools an3 tec-ni>"es?o"tp"ts 5ITT:s7 "te ale to place t-em 0it- t-e appropriate process.

'.7 Un3erstan3 t-e signi,icance o, eac- o"tp"t.

6.7 Un3erstan3 t-e signi,icance o, eac- inp"t. enerall# t-e o"tp"t ,rom t-e prece3ingprocess is an inp"t to t-e next.

8.7 Dig more into t-e tools an3 tec-ni>"es especiall# in !"alit# an3 &is(. Tools an3Tec-ni>"es are "s"all# action 0or3s 5tec-ni>"es7 or c-arts 0it- 3ata an3 templates5tools.7

).7 &ea3 t-e glossar# o/er an3 o/er 5an3 o/er7. no0ing all t-e terms 0ill -elp #o" to>"ic(l# 3isco"nt o/io"s incorrect ans0ers.

.7 MemoriFe t-e ,orm"las. T-e important items to memoriFe are all on t-e last page o,t-e classnotes. Classnotes are -an3e3 o"t in class an3 also a/ailale /ia t-e We portalin t-e S"pplemental @earning ;ssets.

9.7 !"alit# ;ss"rance is an exec"ting process an3 >"alit# control is a monitoring ?controlling process. T-e# ,ee3 into eac- ot-er. Yo"r team !Cs t-e 3eli/erale it eit-er

passes or ,ails i, it ,ails t-en t-e c-ange re>"est goes t-ro"g- t-e per,orm integrate3c-ange control process an3 t-en t-e c-ange is exec"te3. W-ile t-e c-ange is exec"te3t-e >"alit# ass"rance processes are ,ollo0e3. !; also in/ol/es inspecting t-e !;processes to ma(e s"re t-e# are appropriate an3 eing ,ollo0e3 correctl#. ;lt-o"g-inspection so"n3s li(e a monitoring ? controlling process 0-en #o" are "sing t-e !;inspection tec-ni>"e #o" are in t-e exec"ting process gro"p.

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.7 T-is is not a /oca"lar# or a mat- test. T-is is a critical t-in(ing test. Us"all# moret-an one o, t-e ans0ers 0ill seem correct. T-ere is onl# one correct ans0er so #o" m"ste ale to pic( t-e most correct option. ;l0a#s rea3 all 4 o, t-e m"ltiple c-oices. DonLtlose points eca"se #o" 3i3nLt rea3 t-ro"g- e/er#t-ing an3 j"st simpl# selecte3 t-e ,irstans0er t-at ,its t-e >"estions.

2.7 T-is is a PM exam ass"ming #o" -a/e * #ears experience on t-e jo. E/en i,

#o"L/e ne/er 3one some o, t-e items #o" are st"3#ing itLs ass"me3 t-at #o" -a/e. ;pproac- t-e exam as i, #o" are a ,"llAtime PM 0it- a"t-orit# across all areas. 5strongAmatrix organiFation7 Be open to t-e possiilit# t-at #o" -a/e 99 team memers am"ltimillion 3ollar "3get an3 a co"ple #ears to complete #o"r project.

*.7 T-ereLs no magic pill ,or passing. no0 #o"rsel,. Do #o" get ner/o"s ta(ing examsKDo #o" ,in3 t-at most o, t-ese processes are ne0 an3 strangeK Is t-is all a re/ie0K Setan appropriate st"3# sc-e3"le. Ta(e as man# practice exams as #o" can. Tal( to ot-ers0-o -a/e ta(en t-e exam. +orm a st"3# gro"p i, t-atLs #o"r st#le.

4.7 It is a stren"o"s 4 -o"r exam. et a goo3 nig-t sleep. Eat a n"tritio"s meal. Wear anicotine patc- i, #o" nee3.

'.7 %a/e con,i3ence in #o"rsel, an3 relax. Yo"Lre ao"t to ecome a PMP

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Project Integration Management

Project Integration Management incl"3es t-e processes an3 acti/ities nee3e3 to i3enti,#3e,ine comine "ni,# an3 coor3inate t-e /ario"s processes an3 project managementacti/ities 0it-in t-e Process ro"ps.

Project Integration Management Processes

De/elop Project C-arter is t-e process o, 3e/eloping a 3oc"ment t-at ,ormall#a"t-oriFes a project or a p-ase an3 3oc"menting initial re>"irements t-at satis,# t-esta(e-ol3ersN nee3s an3 expectations.

Inp"ts

• Project Statement o, Wor(

• B"siness Case

•

Contract• Enterprise En/ironmental +actors

• :rganiFation Process ;ssets

Tools an3 Tec-ni>"es

• Expert O"3gment

:"tp"ts

• Project C-arter

Content 1ot in t-e PMB: "t exam rele/antProject Selection Tools an3 Tec-ni>"es

• :pport"nit# Cost T-e /al"e o, t-e next est project t-at 0as ,orgone as a res"lt

o, ma(ing a 3ecision.

• S"n( Cost Mone# t-at -as een spent an3 cannot e reco/ere3.

• 1P 1et Present al"e meas"res -o0 m"c- /al"e a project 0ill a33 to an

organiFation. It ta(es into acco"nt t-e /al"e o, mone# o/er time. %ig- 1P isetter t-an lo0 1P.

• I&& Internal &ate o, &et"rn pre3icts t-e ret"rn rate t-at can e earne3 on

internall# in/este3 capital. I, a projectNs I&& excee3s itNs cost o, capital t-en it is

pro,itale. %ig- I&& is etter t-an lo0 I&&.• Pa#ac( Perio3 T-e amo"nt o, time e,ore a compan# reco/ers t-e in/estment.

T-is tec-ni>"e onl# ta(es time into consi3eration an3 3oes not loo( at re/en"eearne3 e#on3 t-e initial in/estment reco/er#. T-e lo0er t-e pa#ac( t-e etter.

• Bene,it Cost &atio Di/i3e t-e ene,t o, t-e project # t-e cost. T-e -ig-er t-e

ratio t-e etter.

• Constraine3 :ptimiFation ; comp"ter program "se3 to mo3el t-e project

selection c-oices.

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De/elop Project Management Plan is t-e process o, 3oc"menting t-e actions necessar#to 3e,ine prepare integrate an3 coor3inate all s"si3iar# plans. T-e projectmanagement plan 3e,ines -o0 t-e project is exec"te3 monitore3 an3 controlle3 an3close3.

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Inp"ts

• Project C-arter

• :"tp"ts ,rom Planning Processes

• Enterprise En/ironmental +actors

•

:rganiFational Process ;ssets


• Expert O"3gment

:"tp"ts

• Project Management Plan

Direct an3 Manage Project Exec"tion is t-e process o, per,orming t-e 0or( t-at is3e,ine3 in t-e project management plan to ac-ie/e t-e projectNs ojecti/es. T-e projectmanager along 0it- t-e project team 3irects t-e per,ormance o, t-e planne3 projectacti/ities an3 manages t-e /ario"s tec-nical an3 organiFational inter,aces t-at exist 0it-t-e project

Inp"ts


• ;ppro/e3 C-ange &e>"ests


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• :rganiFational Process ;ssets


• Expert O"3gment

• Project Management In,ormation S#stem

:"tp"ts

• Deli/erales

• Wor( Per,ormance In,ormation

• C-ange &e>"ests

• Project Management Plan Up3ates

• Project Doc"ment Up3ates

Monitor an3 Control Project Wor( is t-e process o, trac(ing re/ie0ing an3 reg"latingt-e progress to meet t-e per,ormance ojecti/es 3e,ine3 in t-e project management

plan. Monitoring is an aspect o, project management per,orme3 t-ro"g-o"t t-e project.Control incl"3es 3etermining correcti/e or pre/entati/e actions or replanning an3,ollo0ing "p on action plans to 3etermine i, t-e actions ta(en resol/e3 t-e per,ormanceiss"e.

Inp"ts


• Per,ormance &eports



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• Expert O"3gment

:"tp"ts

• C-ange &e>"ests



Per,orm Integrate3 C-ange Control is t-e process o, re/ie0ing all c-ange re>"estsappro/ing c-anges an3 managing c-anges to t-e 3eli/erales organiFation processassets project 3oc"ments an3 t-e project management plan. T-e Per,orm Integrate3C-ange Control process is con3"cte3 ,rom project inception t-ro"g- completion.Inp"ts



• C-ange &e>"ests




• Expert O"3gment

• C-ange Control Meetings

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:"tp"ts

• C-ange &e>"ests Stat"s Up3ates



Close Project or P-ase is t-e process o, ,inaliFing all acti/ities across all o, t-e Processro"ps to ,ormall# complete t-e project or p-ase. W-en closing t-e project t-e projectmanager 0ill re/ie0 all prior in,ormation ,rom t-e pre/io"s p-ase clos"res to ens"re t-atall project 0or( is complete an3 t-at t-e project -as met its ojecti/es.

Inp"ts


• ;ccepte3 Deli/erales



• Expert O"3gment

:"tp"ts

• +inal Pro3"ct Ser/ice or &es"lt Transition

• :rganiFation Process ;ssets Up3ates

Project Scope Management

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Project Scope Management incl"3es t-e processes re>"ire3 to ens"re t-at t-e projectincl"3es all t-e 0or( re>"ire3 an3 onl# t-e 0or( re>"ire3 to complete t-e projects"ccess,"ll#.

Project Scope Management Processes

Collect &e>"irements is t-e process o, 3e,ining an3 3oc"menting sta(e-ol3ersN nee3s tomeet t-e project ojecti/es. T-e projectNs s"ccess is 3irectl# in,l"ence3 # t-e care ta(enin capt"ring an3 managing project an3 pro3"ct re>"irements. &e>"irements incl"3e t-e>"anti,ie3 an3 3oc"mente3 nee3s an3 expectations o, t-e sponsor c"stomer an3 ot-ersta(e-ol3ers.

Inp"ts

• Project C-arter

• Sta(e-ol3er &egister


• Inter/ie0s

• +oc"s ro"ps

• +acilitate3 Wor(gro"ps

• ro"p Creati/it# Tec-ni>"es

• ro"p Decision Ma(ing Tec-ni>"es

• !"estionnaires an3 Ser/e#s

• :ser/ations

• Protot#pes

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:"tp"ts

• &e>"irements Doc"mentation

• &e>"irements Management Plan

• &e>"irements Traceailit# Matrix

De,ine Scope is t-e process o, 3e/eloping a 3etaile3 3escription o, t-e project an3pro3"ct. T-e preparation o, a 3etaile3 project scope statement is critical to projects"ccess an3 "il3s "pon t-e major 3eli/erales ass"mptions an3 constraints t-at are3oc"ment 3"ring project initiation.

Inp"ts

• Project C-arter




• Expert O"3gment

• Pro3"ct ;nal#sis

• ;lternati/es I3enti,ication

• +acilitate3 Wor(s-ops

:"tp"ts

• Project Scope Statement

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Create Wor( Brea(3o0n Str"ct"re 5WBS7 is t-e process o, s"3i/i3ing project3eli/erales an3 project 0or( into smaller more manageale components. T-e WBS is a3eli/eraleAoriente3 -ierarc-ical 3ecomposition o, t-e 0or( to e exec"te3 # t-e projectteam to accomplis- t-e project ojecti/es an3 create t-e re>"ire3 3eli/erales 0it-3escen3ing le/el o, t-e WBS representing an increasingl# 3etaile3 3e,inition o, t-eproject 0or(. T-e WBS organiFes an3 3e,ines t-e total scope o, t-e project an3represents t-e 0or( speci,ie3 in t-e c"rrent appro/e3 project scope statement.

Inp"ts





• Decomposition

:"tp"ts

• WBS

• WBS Dictionar#

• Scope Baseline


eri,# Scope is t-e process o, ,ormaliFing acceptance o, t-e complete3 project3eli/erales. eri,#ing scope incl"3es re/ie0ing 3eli/erales 0it- t-e c"stomer or

sponsor to ens"re t-at t-e# complete3 satis,actoril# an3 otaining ,ormal acceptance o,3eli/erales # t-e c"stomer or sponsor.

Inp"ts

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• ali3ate3 Deli/erales


• Inspection

:"tp"ts

• ;ccepte3 Deli/erales

• C-ange &e>"ests


Control Scope is t-e process o, monitoring t-e stat"s o, t-e project an3 pro3"ct scope

an3 managing c-anges to t-e scope aseline. Controlling t-e project scope ens"res allre>"este3 c-anges an3 recommen3e3 correcti/e or pre/enti/e actions are processt-ro"g- t-e Per,orm Integrate3 C-anges Control process. Uncontrolle3 c-anges areo,ten re,erre3 to as project scope creep.

Inp"ts







• ariance ;nal#sis

:"tp"ts

• Wor( Per,ormance Meas"rements

• :rganiFational Process ;ssets Up3ates

• C-ange &e>"ests



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Project Time Management

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Project Time Management incl"3es t-e processes re>"ire3 to manage timel# completiono, t-e project.

Project Time Management Processes

De,ine ;cti/ities is t-e process o, i3enti,#ing t-e speci,ic actions to e per,orme3 to

pro3"ce t-e project 3eli/erales. Project 0or( pac(ages are t#picall# 3ecompose3 intosmaller components calle3 acti/ities t-at represent t-e 0or( necessar# to complete t-e0or( pac(age. ;cti/ities pro/i3e a asis ,or estimating sc-e3"ling exec"ting an3monitoring an3 controlling t-e project 0or(.

Inp"ts

• Scope Baseline




• Decomposition

• &olling Wa/e Planning

• Templates

• Expert O"3gment

:"tp"ts

• ;cti/it# @ist

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• ;cti/it# ;ttri"tes

• Milestone @ist

Se>"ence ;cti/ities is t-e process o, i3enti,#ing an3 3oc"menting relations-ips amongt-e project acti/ities. ;cti/ities are se>"ence3 "sing logical relations-ips. E/er# acti/it#an3 milestone except t-e ,irst an3 last are connecte3 to at least one pre3ecessor an3

one s"ccessor.

Inp"ts

• ;cti/it# @ist


• Milestone @ist




Prece3ence Diagramming Met-o3 5PDM7 is a met-o3 "se3 in Critical Pat- Met-o3olog#5CPM7 ,or constr"cting a project sc-e3"le net0or( 3iagram t-at "ses oxes orrectangles re,erre3 to as no3es to represent acti/ities an3 connects t-em 0it- arro0st-at s-o0 t-e logical relations-ips t-at exist et0een t-em.

PDM incl"3es ,o"r t#pes o, 3epen3encies or logical relations-ips

• +inis-AtoAstart 5+S7

• +inis-AtoA,inis- 5++7

• StartAtoAstart 5SS7

• StartAtoA,inis- 5S+7

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Depen3enc# Determination is t-e met-o3 "se3 to 3e,ine t-e t#pe o, 3epen3enc# amongt-e acti/ities. T-ere are t-ree t#pes

• Man3ator#

• Discretionar#

• External

;ppl#ing @ea3s an3 @ags is 3etermine3 # t-e project management team on 0-et-er alea3 or lag is re>"ire3 to acc"ratel# 3e,ine t-e logical relations-ip o, acti/ities.

; lea3 allo0s an acceleration o, t-e s"ccessor acti/it#

; lag 3irects a 3ela# in t-e s"ccessor acti/it#.

1ot in t-e PMB: ;cti/it# on ;rro0 1et0or( Diagram 5;:;7 ;cti/ities are in3icate3 on t-e arro0s an33as-e3 lines are "se3 to in3icate 3"mm# acti/ities.D"mm# acti/ities -a/e 9 3"ration "t in3icate a relations-ip et0een acti/ities.

Sc-e3"le 1et0or( Templates can e "se3 to expe3ite t-e preparation o, net0or(s o,project acti/ities. T-e# can incl"3e an entire project or onl# a portion o, it.

:"tp"ts

• Project Sc-e3"le 1et0or( Diagrams


Estimate ;cti/it# &eso"rces is t-e process o, estimating t-e t#pe an3 >"antities o,material people e>"ipments or s"pplies re>"ire3 to per,orm eac- acti/it#.

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Inp"ts

• ;cti/it# @ist


• &eso"rce Calen3ars

•

Enterprise En/ironmental +actors• :rganiFation Process ;ssets


• Expert O"3gment

• ;lternati/es ;nal#sis

• P"lis-e3 Estimating Data

• BottomAUp Estimating

• Project Management So,t0are

:"tp"ts

• ;cti/it# &eso"rce &e>"irements

• &eso"rce Brea(3o0n Str"ct"re


Estimate ;cti/it# D"rations is t-e process o, approximating t-e n"mer o, 0or( perio3snee3e3 to complete in3i/i3"al acti/ities 0it- estimate3 reso"rces. Estimating acti/it#3"rations "ses in,ormation on acti/it# scope o, 0or( re>"ire3 reso"rces t#pesestimate3 reso"rce >"antities an3 reso"rce calen3ars.

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Inp"ts

• ;cti/it# @ist



•

&eso"rce Calen3ars• Project Scope Statement




• Expert O"3gment

• ;nalogo"s Estimating

• Parametric Estimating

• T-reeAPoint Estimates

• &eser/e ;nal#sis

:"tp"ts

• ;cti/it# D"ration Estimates


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De/elop Sc-e3"le is t-e process o, anal#Fing acti/it# se>"ences 3"rations reso"rcere>"irements an3 sc-e3"le constraints to create t-e project sc-e3"le. Entering t-eacti/ities 3"rations an3 reso"rces into t-e sc-e3"ling tool generates a sc-e3"le 0it-planne3 3ates ,or completing project acti/ities. De/eloping an acceptale projectsc-e3"le is o,ten an iterati/e process. It 3etermines t-e planne3 start an3 ,inis- 3ates ,or project acti/ities an3 milestones.

Inp"ts

• ;cti/it# @ist


• Project Sc-e3"le 1et0or( Diagrams



• ;cti/it# D"ration Estimates



•

:rganiFation Process ;ssets


• Sc-e3"le 1et0or( ;nal#sis

• Critical Pat- Met-o3

• Critical C-ain Met-o3

• &eso"rce @e/eling

• W-atAi, Scenario ;nal#sis

• ;ppl#ing @ea3s an3 @ags

• Sc-e3"le Compression

• Sc-e3"ling Tool

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:"tp"ts

• Project Sc-e3"le

• Sc-e3"le Baseline

• Sc-e3"le Data

•

Project Doc"ment Up3ates

Sc-e3"le compression tec-ni>"es are "se3 to s-orten t-e project sc-e3"le 0it-o"tc-anging t-e project scope to meet sc-e3"le constraints impose3 3ates or ot-ersc-e3"le ojecti/es. Sc-e3"le compression tec-ni>"es incl"3e

• Cras-ing

• +ast Trac(ing

• Sc-e3"le Tool

Control Sc-e3"le is t-e process o, monitoring t-e stat"s o, t-e project to "p3ate projectprogress an3 manage c-anges to t-e sc-e3"le aseline.

Inp"ts






• Per,ormance &e/ie0s



• &eso"rce @e/eling

• W-atAi, Scenario ;nal#sis

• ;3j"sting @ea3s an3 @ags

• Sc-e3"le Compression

• Sc-e3"ling Tool

:"tp"ts

•

Wor( Per,ormance Meas"rements• :rganiFational Process ;ssets Up3ates

• C-anges &e>"ests



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Project Cost Management

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Project Cost Management incl"3es t-e process in/ol/e3 in estimating "3geting an3controlling costs so t-at t-e project can e complete3 0it-in t-e appro/e3 "3get.

T-e 0or( in/ol/e3 in per,orming t-e t-ree processes o, Project Cost Management isprece3e3 # a planning e,,ort o, t-e project management team. T-is planning e,,ort ispart o, t-e De/elop Project Management Plan process 0-ic- pro3"ces a cost

management plan t-at sets o"t t-e ,ormat an3 estalis-e3 t-e criteria ,or planningstr"ct"ring estimating "3geting an3 controlling project costs. T-e cost managementprocesses an3 t-eir associate3 tools an3 tec-ni>"es are "s"all# selecte3 3"ring t-eproject li,e c#cle 3e,inition an3 are 3oc"mente3 I t-e cost management plan.

Project Cost Management Processes

Estimate Costs is t-e process o, 3e/eloping an approximation o, t-e monetar# reso"rcesnee3e3 to complete project acti/ities. Cost estimates are a pre3iction t-at is ase3 ont-e in,ormation (no0n at a gi/en point in time.

Inp"ts

• Scope Baseline


• %"man &eso"rce Plan

• &is( &egister




•

Expert O"3gment• ;nalogo"s Estimating

• Parametric Estimating

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• BottomAUp Estimating

• T-reeAPoint Estimates


• Cost o, !"alit# 5C:!7

• Project Management Estimating So,t0are

• en3or Bi3 ;nal#sis

:"tp"ts

• ;cti/it# Cost Estimates

• Basis o, Estimates


Determine B"3get is t-e process o, aggregating t-e estimate3 costs o, in3i/i3"alacti/ities or 0or( pac(ages to estalis- an a"t-oriFe3 cost aseline. T-is aselineincl"3es all a"t-oriFe3 "3gets "t excl"3es management reser/es.

Inp"ts


• Basis o, Estimates

• Scope Baseline



• Contracts


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• Cost ;ggregation


• Expert O"3gment

•

%istorical &elations-ips• +"n3ing @imit &econciliation

:"tp"ts

• Cost Per,ormance Baseline

• Project +"n3ing &e>"irements

Control Costs is t-e process o, monitoring t-e stat"s o, t-e project to "p3ate t-e project"3get an3 managing c-anges to t-e cost aseline. Up3ating t-e "3get in/ol/esrecor3ing act"al costs spent to 3ate.

Inp"ts


• Project +"n3ing &e>"irements




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• Earne3 al"e Management

• +orecasting

• ToAComplete Per,ormance In3ex 5TCPI7

• Per,ormance &e/ie0s



:"tp"ts


• B"3get +orecasts


• C-ange &e>"ests



1ot in t-e PMB:+ixe3 Costs Expenses t-at 3o not c-ange in relation to project acti/it#. Us"all# timerelate3. &ent leasing e>"ipment.ariale Costs Expenses t-at 3o c-ange in proportion to t-e 0or( acti/it#. Us"all#/ol"me relate3. Materials o/ertime pa# ,or -o"rl# emplo#ees.Total Cost +ixe3 costs Q /ariale costsDirect Costs Costs t-at are 3irectl# attri"tale to t-e project. Wages ,or reso"rcesre>"ire3 ,or one speci,ic project.In3irect Costs Costs t-at are inc"rre3 # more t-an one project. &ental ,ees ,or t-ecomp"ters t-at are eing "se3 # more t-an one project.@a0 o, Diminis-ing &et"rns Be#on3 some point eac- a33itional "nit #iel3s smaller an3smaller increases in o"tp"t.

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Project Quality Management

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Project !"alit# Management incl"3es t-e processes an3 acti/ities o, t-e per,ormingorganiFation t-at 3etermine >"alit# policies ojecti/es an3 responsiilities so t-at t-eproject 0ill satis,# t-e nee3s ,or 0-ic- 0as "n3erta(en. It implements t-e >"alit#management s#stem t-ro"g- polic# an3 proce3"res 0it- contin"o"s processimpro/ement acti/ities con3"cte3 t-ro"g-o"t as appropriate.

Project !"alit# Management Processes

Plan !"alit# is t-e process o, i3enti,#ing >"alit# re>"irements an3?or stan3ar3s ,or t-eproject an3 pro3"ct an3 3oc"menting -o0 t-e project 0ill 3emonstrate compliance.

Inp"ts

• Scope Baseline



• Sc-e3"le Baseline

• &is( &egister • Enterprise En/ironmental +actors



• CostABene,it ;nal#sis

• C:!

• Control C-arts

• Benc-mar(ing

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• Design o, Experiments 5D:E7

• Statistical Sampling

• +lo0c-arting

• Proprietar# !"alit# Management Met-o3ologies

• ;33itional !"alit# Planning Tools

:"tp"ts

• !"alit# Management Plan

• !"alit# Metrics

• !"alit# C-ec(lists

• Process Impro/ement Plan


Per,orm !"alit# ;ss"rance is t-e process o, a"3iting t-e >"alit# re>"irements an3 t-eres"lts ,rom >"alit# control meas"rements to ens"re appropriate >"alit# stan3ar3s an3operational 3e,initions are "se3. Per,orm !"alit# ;ss"rance is an exec"tion process t-at

"ses 3ata create3 3"ring Per,orm !"alit# Control.

Inp"ts


• !"alit# Metrics


• !"alit# Control Meas"rements


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• Plan !"alit# an3 Per,orm !"alit# Control Tools an3 Tec-ni>"es

• !"alit# ;"3its

• Process ;nal#sis

:"tp"ts


• C-ange &e>"ests



Per,orm !"alit# Control is t-e process o, monitoring an3 recor3ing res"lts o, exec"tingt-e >"alit# acti/ities to assess per,ormance an3 recommen3 necessar# c-anges. !"alit#control is per,orme3 t-ro"g-o"t t-e project. !"alit# stan3ar3s incl"3e project processesan3 pro3"ct goals.

Inp"ts


• !"alit# Metrics

• !"alit# C-ec(lists



• Deli/erales


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• Ca"se an3 E,,ect Diagrams

• Control C-arts

• +lo0c-arting

• %istogram

• Pareto C-art• &"n C-art

• Scatter Diagram

• Statistical Sampling

• Inspection

• ;ppro/e3 C-ange &e>"ests &e/ie0

:"tp"ts

• !"alit# Control Meas"rements

• ali3ate3 C-anges

• ali3ate3 Deli/erales• :rganiFational Process ;ssets Up3ates

• C-ange &e>"ests



1ot in t-e PMB:MTT& Mean time to repair 5reco/er7. ;/erage time t-at a 3e/ice 0ill ta(e to reco/er,rom a ,ail"re.Us"all# part o, a contract or -istorical 3ata.MTB& Mean time et0een ,ail"res. ;n important pre3iction in t-e 3e/elopment o,

pro3"cts. Can -elp projects to ,oc"s on t-e 0ea( lin(s in a 3esign or t-e maintenance o,e>"ipment.aiFen Contin"o"s impro/ement 5Oapanese term7 aiFen aims to eliminate 0aste #in/ol/ing all t#pes o, emplo#ees in t-e >"est ,or impro/ment.O"st in Time 5OIT7 %a/ing in/entor# a/ailale j"st in time ,or pro3"ction. OIT relies on asignaling process t-at in3icates 0-en to ma(e?or3er t-e next part.anan T-e signaling process t-at ,acilitates OIT. 5Oapanese term7

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Project Human esource Management

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Project %"man &eso"rce Management incl"3es processes t-at organiFe manage an3lea3 t-e project team. T-e project team is comprise3 o, t-e people 0it- assigne3 rolesan3 responsiilities ,or completing t-e project. T-e t#pe an3 n"mer o, project teammemers can c-ange ,re>"entl# as t-e project progresses. Project team memers ma#also e re,erre3 to as t-e projectNs sta,,. W-ile t-e speci,ic roles an3 responsiilities ,ort-e project team memers are assigne3 t-e in/ol/ement o, all team memers in project

planning an3 3ecision ma(ing can e ene,icial. Earl# in/ol/ement an3 participation o,team memers a33s t-eir expertise 3"ring t-e planning process an3 strengt-ens t-eircommitment to t-e project.

Project %"man &eso"rce Management Processes

De/elop %"man &eso"rce Plan is t-e process o, i3enti,#ing an3 3oc"menting projectroles responsiilities an3 re>"ire3 s(ills reporting relations-ips an3 creating a sta,,management plan.

Inp"ts





• :rganiFational C-arts an3 Position Descriptions

• 1et0or(ing

• :rganiFational T-eor#

:"tp"ts

• %"man &eso"rce Plan

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;c>"ire Project Team is t-e process o, con,irming -"man reso"rce a/ailailit# an3otaining t-e team necessar# to complete t-e project assignments. T-e projectmanagement team ma# or ma# not -a/e 3irect control o/er team memer selectioneca"se o, collecti/e argaining agreements "se o, s"contractor personnel matrixproject en/ironment internal or external reporting relations-ips or ot-er /ario"sreasons.

Inp"ts





• PreA;ssignment

• 1egotiation

• ;c>"isition

• irt"al Teams

:"tp"ts

• Project Sta,, ;ssignments



De/elop Project Team is t-e process o, impro/ing t-e competencies team interactionan3 t-e o/erall team en/ironment to en-ance project per,ormance. Project managerss-o"l3 ac>"ire s(ills to i3enti,# "il3 maintain moti/ate lea3 an3 inspires project

teams to ac-ie/e -ig- team per,ormance an3 to meet t-e projectNs ojecti/es.

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Inp"ts





• Interpersonal S(ills

• Training

• TeamAB"il3ing ;cti/ities

• ro"n3 &"les

• CoA@ocation

• &ecognition an3 &e0ar3s

:"tp"ts

•Team Per,ormance ;ssessments

• Enterprise En/ironmental +actors Up3ates

1ot in t-e PMB:Moti/ational T-eoriesMaslo0Ns %ierarc-# o, 1ee3s 5,rom ottom to top o, p#rami37 P-#siological Sa,et#@o/e?Belonging Esteem Sel,A;ct"aliFationMcregor T-eor# an3 T-reor# Y

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T-eor# Wor(ers in-erentl# 3isli(e an3 a/oi3 0or(.T-eor# Y Wor( is nat"ral an3 can e a ,orm o, satis,action 0-en aime3 at -ig-er or3erps#c-ological nee3s.roomNs Expectanc# T-eor# Emplo#ees 0ill e moti/ate3 0-en t-e# expect t-at p"ttingin more e,,ort 0ill #iel3 etter per,ormance etter per,ormance 0ill lea3 to re0ar3s an3t-e re0ar3s are /al"e3 # t-e emplo#ee.%erFergNsT-eor# o, %#giene T0o ,actor t-eor#

Moti/ators c-allenging 0or( responsiilit# recognition.%#giene ,actors Oo sec"rit# salar# ,ringe ene,its. %#giene ,actors 3onNt necessaril#moti/ate "t lac( o, t-ese ,actors 0ill 3emoti/ate.McClellan3Ls T-eor# o, Excellence People ,all into o, * categories regar3less o,gen3er or et-nicit#. ;c-ie/ement ;,,iliation or In,l"ence.

Term Et-nocentrism T-e ten3enc# to elie/e t-at oneNs o0n race or et-nic gro"p is t-e mostimportant an3 t-at some or all aspects o, its c"lt"re are s"perior to t-ose o, ot-ergro"ps.

Note : Read PMI’s Code of Ethics and Professional Conduct located on pmi.org.

Manage Project Team is t-e process o, trac(ing team memerNs per,ormance pro/i3ing,ee3ac( resol/ing iss"es an3 managing c-anges to optimiFe project per,ormance. T-eproject management team oser/es team e-a/ior manages con,lict resol/es iss"esan3 appraises team memer per,ormance. ;s a res"lt o, managing t-e project teamc-ange re>"ests are s"mitte3 t-e -"man reso"rce plan is "p3ate3 iss"es areresol/e3 inp"t is pro/i3e3 ,or per,ormance appraisals an3 lessons learne3 are a33e3 tot-e organiFationNs 3ataase.

Inp"ts



• Team Per,ormance ;ssessments




• :ser/ation an3 Con/ersation

• Project Per,ormance ;ppraisals

• Con,lict Management• Iss"e @og


:"tp"ts

• Enterprise En/ironmental +actors Up3ates


• C-ange &e>"ests


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Project Communications Management

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Project Comm"nications Management incl"3es t-e processes re>"ire3 to ens"re timel#an3 appropriate generation collection 3istri"tion storage retrie/al an3 "ltimate3isposition o, project in,ormation. Project managers spen3 t-e majorit# o, t-eir timecomm"nicating 0it- team memers an3 ot-er project sta(e-ol3ers 0-et-er t-e# areinternal or external to t-e organiFation. E,,ecti/e comm"nication creates a ri3geet0een 3i/erse sta(e-ol3ers in/ol/e3 in a project connecting /ario"s c"lt"ral an3

organiFation ac(gro"n3s 3i,,erent le/els o, expertise an3 /ario"s perspecti/es an3interests in t-e project exec"tion or o"tcome.

Project Comm"nications Management Processes

I3enti,# Sta(e-ol3ers is t-e process o, i3enti,#ing all people or organiFations impacte3 #t-e project an3 3oc"menting rele/ant in,ormation regar3ing t-eir interests in/ol/ementan3 impact on project s"ccess.

Inp"ts

•

Project C-arter • Proc"rement Doc"ments




• Sta(e-ol3er ;nal#sis

• Expert O"3gment

:"tp"ts


• Sta(e-ol3er Management Strateg#

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Plan Comm"nications is t-e process o, 3etermining t-e project sta(e-ol3er in,ormationnee3s an3 3e,ining a comm"nication approac-. T-e Plan Comm"nications processrespon3s to t-e in,ormation an3 comm"nications nee3s o, t-e sta(e-ol3ers. W-ile allprojects s-are t-e nee3 to comm"nicate project in,ormation t-e in,ormation nee3s an3met-o3s o, 3istri"tion /ar# 0i3el#. I3enti,#ing t-e in,ormation nee3s o, t-e sta(e-ol3ersan3 3etermining a s"itale means o, meeting t-ose nee3s are important ,actors ,or

project s"ccess.

Inp"ts






• Comm"nications &e>"irements ;nal#sis• Comm"nications Tec-nolog#

• Comm"nication Mo3els

• Comm"nication Met-o3s

:"tp"ts

• Comm"nications Management Plan


Distri"te In,ormation is t-e process o, ma(ing rele/ant in,ormation a/ailale to project

sta(e-ol3ers as planne3. It is per,orme3 t-ro"g-o"t t-e entire project li,e c#cle an3 in allmanagement processes.

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Inp"ts





• Comm"nication Met-o3s

• In,ormation Distri"tion Tools

:"tp"ts


Manage Sta(e-ol3er Expectations is t-e process o, comm"nicating an3 0or(ing 0it-sta(e-ol3ers to meet t-eir nee3s an3 a33ressing iss"es as t-e# occ"r. ManageSta(e-ol3er Expectations in/ol/es comm"nication acti/ities 3irecte3 to0ar3 projectsta(e-ol3ers to in,l"ence t-eir expectations a33ress concerns an3 resol/e iss"es.

Inp"ts




• Iss"e @og

• C-ange @og

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• Comm"nications Met-o3s


•

Management S(ills

:"tp"ts


• C-ange &e>"ests



&eport Per,ormance is t-e process o, collecting an3 3istri"ting per,ormancein,ormation incl"3ing stat"s reports process meas"rements an3 ,orecasts. T-e

per,ormance reporting process in/ol/es t-e perio3ic collection an3 anal#sis o, aseline/ers"s act"al 3ata to "n3erstan3 an3 comm"nicate t-e project progress an3per,ormance as 0ell as to ,orecast t-e project res"lts.

Inp"ts




• B"3get +orecasts




• +orecasting Met-o3s

• Comm"nications Met-o3s

• &eporting S#stems

:"tp"ts



• C-ange &e>"ests

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Project is! Management

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Project &is( Management incl"3es t-e processes o, con3"cting ris( managementplanning i3enti,ication anal#sis response planning an3 monitoring an3 control on aproject. T-e ojecti/es o, Project &is( Management are to increase t-e proailit# an3impact o, positi/e e/ents an3 3ecrease t-e proailit# an3 impact o, negati/e e/ents int-e project.

Project &is( Management Processes

Plan &is( Management is t-e process o, 3e,ining -o0 to con3"ct ris( managementacti/ities ,or a project. Care,"l an3 explicit planning en-ances t-e proailit# o, s"ccess,or t-e ,i/e ot-er ris( management processes.

Inp"ts


• Cost Management Plan

• Sc-e3"le Management Plan

• Comm"nications Management Plan

• Enterprise En/ironmental +actors• :rganiFation Process ;ssets


• Planning Meetings an3 ;nal#sis

:"tp"ts

• &is( Management Plan

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I3enti,# &is(s is t-e process o, 3etermining 0-ic- ris(s ma# a,,ect t-e project an33oc"menting t-eir c-aracteristics. Participants in ris( i3enti,ication acti/ities can incl"3et-e ,ollo0ing

• Project manager

• Project team memers

•

&is( management team• C"stomers

• S"ject matter experts ,rom o"tsi3e o, t-e project team

• En3 "sers

• :t-er project managers

• Sta(e-ol3ers

• &is( management experts

Inp"ts


• ;cti/it# Cost Estimates• ;cti/it# D"ration Estimates

• Scope Baseline




• !"alit# Management Plan

• Project Doc"ments


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• Doc"mentation &e/ie0s

• In,ormation at-ering Tec-ni>"es

•

C-ec(list ;nal#sis• ;ss"mption ;nal#sis

• Diagramming Tec-ni>"es

• SW:T ;nal#sis

• Expert O"3gment

:"tp"ts

• &is( &egister

Per,orm !"alitati/e &is( ;nal#sis is t-e process o, prioritiFing ris(s ,or ,"rt-er anal#sis or

action # assessing an3 comining t-eir proailit# o, occ"rrence an3 impact.

Inp"ts

• &is( &egister




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• &is( Proailit# an3 Impact ;ssessment

• Proailit# an3 Impact Matrix

• &is( Data !"alit# ;ssessment

•

&is( CategoriFation• &is( Urgenc# ;ssessment

• Expert O"3gment

:"tp"ts

• &is( &egister Up3ates

Per,orm !"antitati/e &is( ;nal#sis is t-e process o, n"mericall# anal#Fing t-e e,,ect o,i3enti,ie3 ris(s on o/erall project ojecti/es.

Inp"ts

• &is( &egister





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• Data at-ering an3 &epresentation Tec-ni>"es

• !"antitati/e &is( ;nal#sis an3 Mo3eling Tec-ni>"es

• Expert O"3gment

:"tp"ts


Plan &is( &esponses is t-e process o, 3e/eloping options an3 actions to en-anceopport"nities an3 to re3"ce t-reats to project ojecti/es.

Inp"ts

• &is( &egister



• Strategies ,or 1egati/e &is(s or T-reats

• Strategies ,or Positi/e &is(s or :pport"nities

• Contingent &esponse Strategies

• Expert O"3gment

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:"tp"ts


• &is(A&elate3 Contract Decisions



Monitor an3 Control &is(s is t-e process o, implementing ris( response plans trac(ingi3enti,ie3 ris(s monitoring resi3"al ris(s i3enti,#ing ne0 ris(s an3 e/al"ating ris(process e,,ecti/eness t-ro"g- t-e project.

Inp"ts

• &is( &egister





• &is( ;ssessment

• &is( ;"3its

• ariance an3 Tren3 ;nal#sis

• Tec-nical Per,ormance Meas"rement


• Stat"s Meetings

:"tp"ts



• C-ange &e>"ests



Terms to Review :Residual Ris: ! ris that remains after ris responses have "een implemented #econdar$ Ris: ! ris that arises as a direct result of implementing a ris response.

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Project Procurement Management

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Project Proc"rement Management incl"3es t-e processes necessar# to p"rc-ase orac>"ire pro3"cts ser/ices or res"lts nee3e3 ,rom o"tsi3e t-e project team. T-eorganiFation can e eit-er t-e "#er or seller o, t-e pro3"cts ser/ice or res"lts o, aproject.

Project Proc"rement Management Processes

Plan Proc"rements is t-e process o, 3oc"menting project p"rc-asing 3ecisionsspeci,#ing t-e approac- an3 i3enti,#ing potential sellers. It i3enti,ies t-ose project nee3s0-ic- can est e or m"st e met # ac>"iring pro3"cts ser/ices or res"lts o"tsi3e o,t-e project organiFation /ers"s t-ose project nee3s 0-ic- can e accomplis-e3 # t-eproject team.

Inp"ts

• Scope Baseline


• Teaming ;greements

• &is( &egister • &is(A&elate3 Contract Decisions








• Ma(eAorAB"# ;nal#sis

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• Expert O"3gment

• Contract T#pes

:"tp"ts

• Proc"rement Management Plan

•

Proc"rement Statement o, Wor(• Ma(eAorAB"# Decisions

• Proc"rement Doc"ments

• So"rce Selection Criteria

• C-ange &e>"ests

Con3"ct Proc"rements is t-e process o, otaining seller responses selecting a selleran3 a0ar3ing a contract. In t-is process t-e team 0ill recei/e i3s or proposals an3 0illappl# pre/io"sl# 3e,ine3 selection criteria to select one or more sellers 0-o are >"ali,ie3to per,orm t-e 0or( an3 acceptale as a seller.

Inp"ts



• So"rce Selection Criteria

• !"ali,ie3 Seller @ist

• Seller Proposals

• Project Doc"ments

• Ma(eAorAB"# Decisions

• Teaming ;greements

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• Bi33er Con,erences

• Proposal E/al"ation Tec-ni>"es

•

In3epen3ent Estimates• Expert O"3gment

• ;3/ertising

• Internet Searc-

• Proc"rement 1egotiations

:"tp"ts

• Selecte3 Sellers

• Proc"rement Contract ;0ar3


• C-ange &e>"ests• Project Management Plan Up3ates


;3minister Proc"rements is t-e process o, managing proc"rement relations-ipsmonitoring contract per,ormance an3 ma(ing c-anges an3 corrections as nee3e3. Bot-t-e "#er an3 t-e seller 0ill a3minister t-e proc"rement contract ,or similar p"rposes.Eac- m"st ens"re t-at ot- parties meet t-eir contract"al oligations an3 t-at t-eir o0nlegal rig-ts are protecte3.

Inp"ts

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• Contract





• Contract C-ange Control S#stem

• Proc"rement Per,ormance &e/ie0s

• Inspections an3 ;"3its

• Per,ormance &eporting

• Pa#ment S#stems

• Claims ;3ministration

• &ecor3s Management S#stem

:"tp"ts

• Proc"rement Doc"mentation


• C-ange &e>"ests


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Close Proc"rements is t-e process o, completing eac- project proc"rement. It s"pportst-e Close or P-ase process since it in/ol/es /eri,ication t-at all 0or( an3 3eli/erales0ere acceptale.

Inp"ts


• Proc"rement Doc"mentation


• Proc"rement ;"3its

• 1egotiate3 Settlements

• &ecor3s Management S#stem

:"tp"ts

• Close Proc"rements


1ot in t-e PMB:

Single So"rce &eliance on one /en3or. 5can incl"3e sole so"rce7Sole So"rce :nl# one /en3or can ser/e t-e projects nee3s. 5no i3 contract7:ligopol# ; mar(et 3ominate3 # ,e0 sellers 0-ere eac- ,irmNs 3ecision greatl#in,l"ences t-e mar(et. 5;irline in3"str# oil in3"str#7Breac- o, Contract :ne or more parties -a/e not -onore3 t-e contract.Material Breac- o, Contract :ne part#Ns ,ail"re to per,orm t-at enales t-e ot-er part# to

collect 3amages.+"n3amental Breac- o, Contract ; reac- so ,"n3amental t-at t-e ot-er part# canterminate t-e contract an3 potentiall# s"e.Pri/it# o, Contract :nl# parties name3 in t-e contract -a/e rig-ts an3 oligations.

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"ormulas #or Exam

Earne3 al"e 5E7 E R P x G Complete3Cost ariance 5C7 C R E ;CSc-e3"le ariance 5S7 S R E P

Cost Per,ormance In3ex 5CPI7 CPI R E ? ;CSc-e3"le Per,ormance In3ex 5SPI7 SPI R E ? PEstimate To Completion 5ETC7 ETC R E;C ;CEstimate ;t Completion 5E;C7.+"t"re 0or( 0ill e 3one at "3gete3 rate E;C R ;CQB;C A E+"t"re 0or( 0ill contin"e at present CPI E;C R B;C ? c"m"lati/e CPI+"t"re 0or( consi3ering CPI an3 SPI E;C R ;CQ 5B;CAE7 ? 5c"m"lati/e CPI

c"m"lati/e SPI7C"m"lati/e CPI 5CPIc7 S"m o, all E ? S"m o, all ;CC"m"lati/e SPI 5SPIc7 S"m o, all E ? S"m o, all PToAComplete Per,ormance In3ex 5TCPI7.Base3 on original "3get TCPI R 5B;C E7 ? 5B;C ;C7

Base3 on ne0 estimate TCPI R 5B;C E7 ? 5E;C ;C7

Comm"nication C-annels 151A7 ? 2

Expecte3 Monetar# al"e 5EM7 EM R Proailit# Impact

PE&T +orm"la ;lso re,erre3 to as * point estimate or 0eig-te3 3"ration.Simple ,orm"la t-at I "se 5: Q 4M@ Q P7 ? 6C:ST ,orm"la ,rom PMB: CeR 5Co Q 4Cm Q Cp7 ? 6TIME ,orm"la ,rom PMB: Te R 5To Q 4Tm Q Tp7 ?6Stan3ar3 De/iation 5P :7 ? 6

PT; 5Ceiling Price Target Price7 ? B"#ers S-are o, :/err"n Q Target Cost

Extras Sigma or SD R 6).26G2 Sigma or SD R $'.46G* Sigma or SD R $$.8*G6 Sigma or SD R $$.$$$G

Steps to ,ollo0 0-en a sta(e-ol3er re>"ests a c-ange. ;ssess t-e impact o, t-e c-ange 5E/al"ation72. Determine :ptions 5;lternati/es7

*. :tain Sponsor ;ppro/al 5B"#Ain74. :tain C"stomer ;ppro/al

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PMP Class Notes