7. notes on pmp by imaduddin khalid

PROJECT MANAGEMENT IMPORTANT NOTES (2014)

BY SYED IMADUDDIN KHALID (B-TECH, PMP, ITIL, MCITP)

[email protected] sa.linkedin.com/in/SyedImaduddinKhalid/

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“He (Allah) grants wisdom to whom He pleases; and he to whom wisdom is granted receives indeed a benefit overflowing; but none will receive admonition but men of understanding.” (2:269)

Prophet Mohammed PBUH said:

"Acquire knowledge and impart it to the people." - Al-Tirmidhi, Hadith 107

Here you go...

1) Reserve analysis compares the amount of contingency reserves remaining to the amount of risk remaining at

any time in the project, in order to determine if the remaining reserve is adequate.

2) Cost of conformance – money spend on the project to avoid failures – prevention cost (training, document

process, equipment, do it right) and appraisal cost (testing, inspection, testing loss)

Cost of nonconformance – money spend during and after the failures – internal cost of failure (found by project)

(rework, scrap) and external cost of failure ( found by customer)(warranty, lost of business)

3) Let the people involved in the conflict work it out first

4) Who does each activity is managed with the responsibility assignment matrix.

When each activity is done is managed with the project schedule.

5) A work authorization system is used to coordinate when and in what order the work is performed so that

work and people may properly interface with other work and other people.

6) Communications requirements and quality standards are needed before risks (especially risks relating to

communications and quality) can be determined. Iterations cannot begin until the risks are identified, qualified,

and quantified, and responses are developed

7) 7%-words

38% vocal pitch

55%body language

8) The PERT estimate can only be calculated for the critical path of the project.

9) NPV assumes reinvestment at the cost of capital

IRR is a discount rate when NPV is equal to zero

10) A network analysis technique that allows for conditional and probabilistic treatment of logical relationships

is known as: GERT

11) Critical chain is a technique that modifies the project schedule to account for limited resources

12) Unresolved issues can be a major source of conflict and project delays.

mailto:[email protected]

http://sa.linkedin.com/in/syedimaduddinkhalid/




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13) The project scope statement is the description of the project scope, major deliverables, assumptions, and

constraints...project scope among project stakeholders

14) The organizational breakdown structure (OBS) is arranged according to an organization`s existing

departments, units, or teams with the project activities or work packages listed under each department. An

operational department such as information technology or purchasing can see all of its project responsibilities

by looking at its portion of the OBS

15) SV% = (EV-PV)/PV

16) Stakeholder register is the main output of the Identify Stakeholders process.

This contains all details related to the identified stakeholders including, but not limited to:

Identification information: Name, organizational position, location, role in the project, contact information;

Assessment information: Major requirements, main expectations, potential influence in the project, phase in the

life cycle with the most interest; and

Stakeholder classification: Internal/external, supporter/neutral/resistor, etc

17) Resource leveling is necessary when the resource is over allotted … means when the resource is a

Assigned 2 task at the same time.

18) Planning phase is LEAST Risky

19) The risk management plan includes the following:

Methodology, Roles and Responsibilities, Budgeting, Timing, and Risk categories.

20) Internal (within the project) and external (customer, vendors, organizations, the public);

• Formal (reports, minutes, briefings) and informal (emails, memos, ad-hoc discussions);

• Vertical (up and down the organization) and horizontal (with peers);

• Official (newsletters, annual reports) and unofficial (off the record communications); and

• Written and oral, and verbal (voice inflections) and nonverbal (body language).

21) Force majeure is a powerful and unexpected event, such as a hurricane or other disaster 22) Make payment to seller is done in the Control Procurements

23) Fixed price incentive fee – used when work needs to be done quickly or fast

Fixed price – no audit and scope clear and more work in writing Procurement of work

Cost reimbursement – need audit and scope not clear and less work in writing POW (Eg: RFP)

T&M - work needs to start immediately and T&M will have not to exceed clause.

24) Request for proposal (RFP) - Detailed on how to, who will, company experience and price

Invitation for bid – just price to do all the work.

Request for quotation – quote per item, per hour, per meter






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25) Project document: Are not part of project mngt plan but part of the project.

EG: Project charter, Project statement of work, Procurement statement, Agreements /contract

Stakeholder register, Requirement documentation, Quality metric, Risk register, Activity list, the issue log, the

change log, Resource Calendar, RBS,

26) Requirement traceable matrix: can also give information from where the requirement has come, it has the

name of the stakeholder, who owns the requirement and status of the requirement.

27) Resource Breakdown Structure shows various resources, both human and mechanical needed for project.

28) Historical information is the best input for the initiation phase

29) Acquisition: When the performing organization lacks the in house staff needed to complete the project, the

required services can be acquired from outside sources.

30) The best use of "collect project records" is to recall what happened on the project, good or bad.

31) Control Management System tracks the changes (not configuration management)

32) Templates and forms which are available in the organization are reusable components. Any resource that

can be reused as a useful tool is part of the total methodology of project planning

33) Management styles – Autocratic, Democratic, Supportive

34) Comparing proposals received from sellers done in the Conduct Procurements.

35) Engineering is primarily responsible for creating design and test specifications.

36) Control charts are graphic display of the results over a time of a process. They are used to determine if the

process is "in control".

37) Pareto chart: Focus on critical issues to improve quality

38) Fishbone diagram: Determines how various factors linked to potential problems or effects, Root cause

39) Control chart: Determines whether or not process is stable and within set limits.

40) Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or

category of identified cause.

41) Planning meetings are used to create the Risk Management plan.

42) HR Mngt Plans- we get Organization chart, Roles and responsibly and Staffing mngt plan

43) Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times

in order to calculate a distribution of likely results

44) Project team, led by the project manager, must write the quality policy for each project and executes the

Plan and Project mngt team emphasize more on the planning

45) For an immediate work, a letter contract may be sufficient

46) Performance Measures are done in contract Administration






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47) Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE

48) Individual development is the Foundation of Team development

49) Procurement Audit is the only tool and Technique of contract closeout process

50) Procurement Audit is used to identify successes to transfer the success to other procurements

51) Symbols are always used in the communications

52) Independent estimates are prepared to compare the cost to an estimate created with and is also known as

SHOULD COST ESTIMATE

53) Team development with WEAK Matrix is very difficult

54). Product of the Project is actually created in EXECUTION Phase /Group

55) Any change in the Project Charter needs to be approved by the SENIOR MANAGEMENT

56) REFERRENT power= PM’s PERSONALITY POWER

57) Work Authorization system ensures that work is done at RIGHT TIME and in proper sequence

58) Solicitation is the process of obtaining quotations, bids, offer,

59) The cost expanded at the completion of phase is known as SINK costs

60) Conflicting priorities in resource assignments – is an issue in the Matrix structure

61) Monte Carlo simulation provides PROBABILITY OF ANY TASK BEING AT THE CRITICAL PATH

62) Scope verification should be done – WHEN A PROJECT IS TERMINATED to determine the extent of the

completion

63) Jurans Quality Trilogy = PLANNING IMPROVEMENT CONTROL

64) UCL : Upper control limit : Is derived from Random variation

65) UTL : Upper tolerance limit is the higher of two tolerance limits

66) When original estimates are flawed then EAC = AC + ETC

67) Functional – FM has more power

68) Projectized – PM has more power

69) Balanced – PM and FM has equal power

70) WEAK – FM has more power

71) Strong – MATRIX – PM has more power

72) BUYER provides the Statement of work.

73) MAKE or BUY is used for PLAN Procurement

74) Residual risks are REMINING RISKS

75) Crashing is applying more resources to shorten the duration ( More Cost)

76) Risk mitigation is to DECREASE THE PROBABILITY OF RISK






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77) ELAPSED TIME is the time inclusive of NON working days

78) Outsourcing IS RISK TRANSFERENCE

79) Networks (diagram) identify the Activity dependencies and path convergence risks

80) If IRR is given the DO THE PROJECT SELECTION ONLY BASED ON THAT

81) Sensitivity chart displays sensitivities in DESENDING ORDER

82) Payment bonds are specifically designed to ensure that the prime contractor provides payment of

Subcontractors, laborers, and sellers of material

83) Quality is the process of completing the scope to meet stated or implied needs.

84). FAST TRACK =MORE RISK

85) Monte Carlo analysis gives you: An indication of the risk involved in the project

86). A process goes out of control when there are special causes of variation

89) Worker needs to be involved in Management Practice = OUCHI’s THEORY Z

90) Definite cost are most accurate

91) Sensitivity Analysis are part of Quantitative Analysis

92) Milestone Duration is ZERO

93) PERT Is also a NETWORK DIAGRAM

94) A statistical method that helps identify which factors may influence specific variables of a product or

process under development or in production is DESIGN OF EXPERIMENTS

94) Complex project will best fit in MATRIX org structure

95) Pert is Superior to CPM

96) BRUCE TRUKMAN Model is related to TEAM MANAGEMENT

97) SCOPE CREEP = UNMANAGED changes to the Project SCOPE

98) Beta Distribution and Triangular distribution are probability distributions

used in Risk Analysis

99) The project management team should have a working knowledge of statistical quality control, especially

sampling and probability, to help evaluate quality control outputs.

100) The area consisting of typically three standard deviations on either side of a mean value of a control chart

to plot measured values found in statistical quality control – THIS IS DEFINITION FOR CONTROL CHARTS

101) Large number of simultaneously performed projects utilize the same groups of human and other resources

– is called RESOURCE POOLING

102) The inherent discount rate or investment yield rate produced by the project over a pre-defined period of

time. = IRR






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103) PMBOK Guide process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle

104) Code of Ethics of PMI = RRFH Responsibility, Respect, Fairness, honesty

105) A group of related scheduled activities – shown as single aggregate activity for the reporting purpose is

known as HAMMOCK Activity

106) Cost baseline does not include management reserve

107) Cost Budget = Cost baseline (Cost estimate + Contingency reserve) + Management reserves

108) Stake holder model – SALIANCE GRID

109) As per HERZBERG base Salary is a HYGINE FACTOR

110) RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP

111) Arbitration and mediation are Negotiation Techniques

112) Standards are OPTIONAL, Regulations are REQUIRED

113) what is the name and ethical code for adhering PMP = PMI code of ethics and professional conduct

114) Single source seller - there is only one seller the company wants to do business with

115) Cost Performance baseline is represented as S curve

116) Inspections are NOT called as Assessments

117) Inspections are called as reviews, Audits and walkthroughs

118) First time feedback to a team member = Informal verbal (Face 2 Face), second time FORMAL written

119) CPI is considered most critical EVM Metric

120) Contract closure occurs before Administrative closure

121) Resource leveling results in INCREASED PROJECT DURATION

122) Administrative closure should be done at the completion of each phase of the project

123) Measuring Quality of the product against standard is called Benchmarking

124) Fait accompli – Done deal/ non-negotiable

125) The nodes on the AOA diagrams represent completion of the activities and have ZERO time usage

126) Straight line depreciation formula= (Initial cost-scrap value)/life

127) Preparing the Financial plan requires both project Management and Industry specific Skills

128) Statistical sampling for Inspection is used to reduce the cost of Quality control

129) One method to determine how well the project is getting executed is using – CPI (Cost performance Index)

130) Seller completes the work as specified, but the buyer is not happy – then the contract is said to be

COMPLETE (not closed though)

131) TCPI is the projection of the cost performance that must be achieved on the remaining work

132) The objective of lesson learned document is continuous Improvement






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133) Training for the team members is not a prerequisite – it can happen during the project also

134) Over allotted – then do resource leveling

135) Withdrawal – has cooling off period – but the problem is not solved

136) Smoothing – When problem is taken to be small but eventually turned out to be big

137) The most important criteria for project selection is REALISM

138) INFLATION – is an EXTERNAL UN Predictable RISK

139) RDU = Remaining Duration

140) The Pillars of the quality are DOING It RIGHT – first time and ZERO Defects

141) Project risk is categorized by 3 factors a) Risk event, b) risk probability) amount at stake

142) Probing, scratching and small bites – are the behaviors of the contract negotiations

143) The project scope management plan – will not have the project constraints and assumptions (RD, Scope

statement and scope BSL – will)

144) If you have to look/refer any plan – to respond regarding improving customer satisfaction – you need to

look at QUALITY PLAN

145) Lag means – make sure one tasks waits before it gets started

146) Lead means you let the task get started before its predecessor is done

147) Output for Conduct Procurement is contract

148) Participative leadership is most preferred leadership style

149) Gert is a System Dynamics model

150) Trigger is a warning sign

151) People exhibit slowest rate of change

152) Sponsor does not create project charter

153) Philip Crosby – said QUALITY IS FREE

154) An Expressed Warranty is a statement of characteristics of the product

155) Which questions the functional manager is most likely to ask: WHO WILL DO THE TASK

156) An activity that consumes no time or resources and shows only a dependency = DUMMY Activity

157) The practice of ceasing mass inspections and ending awards based on price is credited to DEMING

158) Four formal types of project endings exist that you might need to know for the exam:

Addition - Projects that evolve into ongoing operations are considered projects that end

Starvation - When resources are cut off from the project or are no longer provided to the project,

Integration - Integration occurs when the resources of the project—people, equipment, property, and

supplies—are distributed to other areas in the organization or are assigned to other projects.






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Extinction - This is the best kind of project end because extinction means the project has been completed and

accepted by the stakeholders. As such, it no longer exists because it had a definite ending date, the goals of the

project were achieved, and the project was closed out.

159) Making a GIANT leap followed by a period of Maturity = INNOVATION

160). 12 to 20% of the sales is estimated to be the cost of NON QUALITY

161) To assimilate through the mind or senses is the process of UNDERSTANDING

162) RISK response of eliminating a threat = RISK AVOIDANCE

163) The stage of the negotiation meeting – when he points of concession is identified = scratch bargaining

164) Completion of PROJECT scope is measured against the plan (not PRODUCT SCOPE)

165) Performance specifications are measureable

166) Quality control measurements are used to reevaluate and analyze the quality standards and processes and

are fed back through: Quality ASSURANCE

167) The final cost of the project is HIGH at the start and gets progressively LOW as the project continues

168) If the results fall under customer tolerance then the results are acceptable to client

169) Benchmarking is a Technique used in QUALITY PLANNING

170 Lessons learned are professional obligation of the project Manager

171) The project manager's ability to influence others whose cooperation and support are crucial to the project

is called: DE FACTO AUTHORITY

172) Taguci loss function states that - VARIATION from Target Value Increases, the Loss also INCREASES

173) Contract is LEGAL relationship and project is not

174) Withdrawal is the LEAST preferred method by PM’s

175) Risk audit documents the effectiveness of the risk responses

176) Triangular distribution = PERT – Relies on Optimistic, Pessimistic and Most likely estimates

177) Brain storming and Lateral Thinking are used in scope definition for ALTERNATIVES IDENTIFICATION

178) Progressive Elaboration is what happens in rolling wave planning process

179) Avoid, Mitigate, Transfer, Accept – are applicable for Negative Risks also

180) Communications are COMPLEX in Matrix organization

181) EVM does not play a major role in QUALITY MANAGEMENT PG

182) FIRM FIXED PRICE = Seller carries COST RISK, Buyer carries SCOPE RISK

183) Releasing the resources from the project is what done as LAST ACTIVITY

184) Procurement documents ensure the receipt of complete proposals






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185) Project Performance appraisal focus on How individual team member is performing in the team

186) Baseline is established during the PLANNING

187) Checklist shows up as an input, an output, and a tool and technique. Quality checklists are an output of the

Plan Quality process and an input to the Perform Quality Control process, and checklist analysis is a tool and

technique of the Identify Risk process.

188) Stakeholder salience is decided by the assessment of their power, legitimacy and urgency in the

organization.

189) Meetings are always classified as INFORMAL VERBAL

190) BCR 1.8 means that revenue from the project is 1.8 times the cost

191) Training the team member in GENERAL Skills is the function of the FUNCTIONAL MANAGER

192) High Standard Deviation is High Risk.

193) CPM - FLOAT usage; CCM - Buffer usage.

194) Costs and staffing levels are lowest early in the life cycle, peak while the project work is underway, and

then drop off as the project nears completion.

195) Risk is highest early in the project since uncertainty is high about the project’s deliverables, resource

needs, and work required.

196) Stakeholder Influence in the project and its deliverables is highest early in the life cycle but diminishes as

the project proceeds...

197) Controlling unexpected project cost is to engage stakeholders early to prevent unnecessary and costly

changes later in the project.

198) The payback period tells us how long it will take to recoup the expense of the project, so a shorter payback

period is better

199) STRONG MATRIX: Project managers have more authority than functional managers, but the team still

reports to both managers.

200) Portfolio: A portfolio is a group of projects or programs that are linked together by a business goal.

201) Program: A program is a group of projects that are closely linked, to the point where managing them

together provides some benefit

202) Project: A project is any work that produces a specific result and is temporary. Projects always have a

beginning and an end. But they are never ongoing

203) Portfolios are organized around business goals and Programs are organized around a shared benefit in

managing them together."

204) ROI = (Benefit – Cost)/Cost






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205) IRR is the discount rate when NPV equals zero.

206) IRR assumes that cash inflows are reinvested at the IRR value.

207) IRR: You should choose projects with the highest IRR value.

208) Mathematical models is that they use linear, dynamic, integer, nonlinear, and/or multi-objective

programming in the form of algorithms—or in other words, a specific set of steps to solve a particular problem.

209) Mathematical models are also known as Constrained optimization methods

210) Benefit Measurement Methods: employ various forms of analysis and comparative approaches to make

project decisions. These methods include comparative approaches such as cost-benefit analysis, scoring models,

and benefit contribution methods that include various cash flow techniques and economic models.

211) NET PRESENT VALUE - NPV: When you get a positive value for NPV, it means that the project will earn a

return at least equal to or greater than the cost of capital.

212) The primary difference between focus groups and facilitated workshops are that focus groups are

gatherings of prequalified subject matter experts and stakeholders and facilitated workshops consist of cross-

functional stakeholders who can define cross-functional requirements.

213) Completion of Project Scope is measured against the Project Management Plan.

214) Completion of Product scope is measured against Product Requirements.

215) PMI advocates Project Objectives that follow the SMART guideline. S - Specific; M - Measurable; A -

Assignable; R - Realistic; T - Timely.

216) Control Account may include one or more Work Packages, each Work Package represents only one Control

Account.

216) The WBS doesn’t show the order of the work packages or any dependencies between them.

217) Scope verification is primarily concerned with ACCEPTANCE of deliverables. Quality control is done before

scope verification.

218) Product scope: means the features and functions of the product or service that you and your team are

building.

219) Project scope: is all of the work that needs to be done to make the product.

220) The work package is the LOWEST level on a WBS;

221) Verify Scope: The process of formalizing acceptance of the completed project deliverables. Usually

performed after Perform Quality Control.

222) Verify Scope happens at the end of each phase and the project and upon delivery of

Product/Service/Result.

223) Verify Scope is concerned with completeness and acceptance, and Perform Quality Control is concerned






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with correctness.

224) If the project is cancelled/terminated before completion, Verify Scope is performed to show where the

Project was in relation to the Scope when it ended.

225) If we don't receive a final sign off from our customer; we have to escalate the issue to our Management.

226) Defining activities is an iterative process performed together by the project manager and the project team

member by further decomposing the WBS work packages

227). ADM’s drawback is that it can only show finish-to-start (FS) relationships

228) In order to show relationships between tasks on different node branches, ADM diagrams use dummy

activities

229) The Arrow Diagramming Method (ADM) creates diagrams known as activity-on-arrow (AOA).

230) The Precedence Diagramming Method (PDM) creates diagrams known as activity-on-node (AON).

231) Rough order of Estimate = +-50%

232) Resource Calendars specify WHEN and HOW LONG identified project resource will be available during the

project.

233) Analogous is TOP DOWN and quick

234) Parametric is More Accurate

235) Bottoms up is Accurate (When Parametric was not given)

236) Duration is the amount of time that an activity takes, while effort is the total number of person-hours that

are expended.

237) Resource leveling can cause the original critical path to change.

238) Variable cost: fluctuate and can't be predicted with absolute certainty. For example, travel or

transportation costs that can change depending upon the cost of fuel or certain commodities and types of raw

materials.

239) Fixed cost: are static throughout the project or have only a small likelihood of fluctuation. Fixed costs are

usually for items such as rents, leases, licenses, salaries, and fixed fees

240) Life Cycle Costing includes Acquisition, Operation, Maintenance, and Disposal Costs

241) The Scope Statement provides the Product Description, Acceptance Criteria, Key Deliverables, Project

Boundaries, Assumptions, and Constraints about the Project.

242) QUALITY: is defined as degree to which your project fulfills requirements. Customer satisfaction, Fitness

for use, Conformance to requirements

243) Cost benefit: Looking at how much your quality activities will cost.

244) Benchmarking: means using the results of quality planning on other projects to set goals for your own.






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245) Design of experiments: is the list of all the kinds of tests you are going to run on your product.

246) Attribute Sampling: is binary, it either conforms to quality or it doesn’t (YES or NO).

247) Variable Sampling: Measures how well something conforms to quality (RANGES).

248) Special Causes: considered unusual and preventable by process improvement.

249) Common Causes are generally acceptable.

250) Tolerances deal with the limits your project has set for product acceptance.

251) Control Limits are set at three standard deviations above and below the mean. As long as your results fall

within the control limits, your process is considered to be in control.

252) Tolerances focus on whether the product is acceptable, while Control Limits focus on whether the process

itself is acceptable. (Control limit is for PROCESS)

253) Control Charts: The upper and lower control limits are set at THREE STANDARD DEVIATIONS ABOVE and

BELOW MEAN.

254) Rule of Seven: If seven or more consecutive data points fall on one side of the mean, they should be

investigated. This is true even if the seven data points are within control limits.

255) Just In Time (JIT): To reduce expensive cost of holding inventory, many companies decrease inventory

close to zero. A company using JIT must have high quality practices.

256) Cost of Quality = Prevention cost + Appraisal cost + control cost

257) Low grade is OK, but Low Quality is NOT OK

258) Quality assurance is focused on the processes and not the quality of the deliverables.

259) This is important for us to remember: quality assurance is concerned with quality processes while quality

control is concerned with quality deliverables.

260) Flow Chart: Shows HOW PROCESSES INTERRELATE.

261) Histogram (Column Chart): It shows HOW OFTEN something occurs, or its FREQUENCY (no Ranking).

262) Pareto Charts (80-20 rule): This is a Histogram showing defects RANKED from GREATEST to LEAST. This

rule states that 80% of the problems come from 20% of the causes. It is used to help determine the FEW ROOT

CAUSES behind the MAJORITY OF THE PROBLEMS on a project.

263) Run Chart: tell about TRENDS in the project. Shows the HISTORY and PATTERN.

264) Scatter Diagram: It is powerful tool for SPOTTING TRENDS in Data.

Scatter Diagrams are made using two variables (a dependent variable and an independent variable).

265) W. Edwards Deming = Plan DO- check- Act + He also developed 14 activities for implementing quality

266) Philip Crosby = ZEro Defects,

267) Dr. Genichi Taguchi developed the concept of 'Loss Function'.






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268) KAIZEN = process Improvement

269) special causes are considered preventable. For example, a backup generator failed to start up during a

power failure. The failure of the backup generator can be prevented in the future through regular mechanical

maintenance and operational tests.

270) Common causes are thus generally considered as non-preventable and accepted as part of the process.

271) Inspection keeps errors in the product from reaching the customer. Prevention keeps errors from

occurring in the process.

272) FORMAL, REWARD, PENALTY are powers derived from project managers position in the company.

273) Theory X - Autoritarion leadership style

274) Theory Y - Autoritarion Democratic/ Laissez- faire leadership style

275) Theory Z - Autoritarion Democratic leadership style

276) Laissez-faire: The leader turns nearly all control over to the group and is generally absent.

277) In a matrixed organization, the project manager doesn’t have legitimate power, because the team doesn’t

directly report to the project manager.

278) Conflict can come from seven main sources, of which the first three account for 50% . They are 1)

Schedules, 2) Priorities, 3) Manpower/human resource availability, 4) Technical opinions, 5) Procedural or

project administration, 6) Costs,7) Personalities (SP is first 2 and CP is last 2)

279) Generally, only one person is assigned Accountability for a work package, but more than one person may

be responsible for performing the work on a work package

280) Confronting: It’s a Win-Win situation

281) Compromising: Lose-Lose method

282) Withdrawal: Lose-Leave method

283) Smoothing: Lose-Yield method

284) Forcing: Win-Lose method (Worst way).

285) Salience Model - describing classes of stakeholders based on their Power, Urgency and Legitimacy.

286) SENDER'S responsibility to make the message clear, complete, and understood

287) Nonverbal communication means your gestures, facial expressions, and physical appearance while you are

communicating your message.

288) Paralingual communication is the tone and pitch of your voice when you’re talking to people. If you sound

anxious or upset, that will have an impact on the way people take the news you are giving

289) Distribute Information is concerned with general project information, such as meeting minutes, issues, and

correspondence.






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290) Report Performance focuses on performance reporting against baselines, such as scope, schedule, cost, or

quality. Report Performance uses time, cost, and related work performance information.

291) According to Kerzner - "90% of the Project Manager's time is spent communicating"

292) Management Skills = Presentations skills, negotiation skills, writing and public speaking skills.

293) Risk Breakdown Structure (RBS): It is not breaking down the actual risks, instead, we are breaking down

the CATEGORIES of risks that we will evaluate.

294) The amount of tolerance a person or organization has for risks is referred to risk utility,

295) Watch list: Low priority risks should be regularly monitored so make sure they are not occurring and that

their probability, impact, or priority hasn't changed.

296) Risk Score: The probability and impact score for the risk. This is obtained from a formula (usually

probability x impact) defined in the risk management plan and generated from the probability and impact

matrix.

297) The management reserve is for unknown-unknowns—things that you haven’t planned for but could

impact your project.

298) The contingency reserve is for known - unknowns, or risks that you know about and explicitly planned for

and put in your risk register.

299) Transfer: Transference assigns all or part of risk to a third party through outsourcing, contracts, insurance,

warranties, guarantees, or performance clauses.

300) Risk response- fails> then contingency plan...If contingency plan fails then > Fall back plan, i.e in other

words=> It can be looked at as a contingency plan for the contingency plan

301) CPFF - More risk for BUYER (some say T&M)

302) FFP - More risk for SELLER

303) UNILATERAL: this is a special class of contract in which the seller doesn't have to explicitly accept the offer

in order for a contract to be established. This is a unilateral contract, and the best example is a purchase order

(PO).

304) Procurement closure needs to happen before Project Closure. All procurements MUST be CLOSED before

the project is closed.

305) Administrative closure is COMPLETE PROJECT Closure - so it can be done only once for project (or) Phase

306) Claims are usually addressed through the contract change control system

307) The payment system is how your company pays its sellers.

308) 100% rule comes in WBS

309) Force Majeure Risks, such as Earthquakes, Floods, Acts of Terrorism, Etc., should be covered under






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Disaster Recovery Procedures instead of Risk Management.

310) Journey to Abilene= Committee decisions can have the paradox outcome, that a jointly made or approved

decision is not desired by any individual group member.(nobody likes the outcome)

311) What is a constructive change? = consideration of undocumented change = A direction by the buyer or an

action taken by the seller that the other party considers an undocumented change to the contract.

312) Getting collective action from a group of people who may have quite different interests is 'Politics'.

313) Arbitration is a form of negotiation. Technically, it is a form of assisted negotiation.

314) Primary Responsibility of the Project Manager is 'Interact with others in a Professional Manner while

completing the project'.

315) GERT, Graphical Evaluation and Review Technique, allows for conditional advancement. GERT allows for

branching and loopbacks.

316) Subnets are often included in network templates to summarize common activities in a project.

317) Parkinson's Law states that work will expand to fulfill the time allotted to it

318) Soft logic allows the project manager to make decisions based on conditions outside of the project, best

practices, or guidelines.

319) Milestone Schedule can also be called as Master Schedule.

320) The arrow diagramming method does not support finish-to-finish of relationships.

321) GERT is the only diagramming technique that allows loops.

322) The primary purpose of a network diagram is to show logical relationships.

323) Value analysis is a way of finding the least expensive way to do the work.

324) Fringe benefits are included in overhead and are part of indirect costs.

325) QA is typically management process

326) Q: Optimal quality is reached at what point? A: When revenue from improvement equals the incremental

costs to achieve the quality. Marginal analysis provides that optimal quality is reached when the cost of the

improvements equals the incremental costs to achieve the quality.

327) Design of experiments uses experiments and 'what-if' scenarios to determine what variables are affecting

quality.

328) Having an allowable defect rate is an example of the cost of non-quality. Any system or process that will

accept defects adds cost to the product or service.

329) Staffing Management Plan: WHEN and HOW resource will be ADDED and TAKEN OFF the team.

330) A corner office is a "perk" whereas health benefits are a fringe benefit.

331) Mentoring: is the work that a project manager may be frequently called on to perform.






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332) Performance issues are senior and functional management's responsibility - usually the manager who

supervises the resource.

333) Conflict is not a filter of communication—it is a communication hindrance.

334) Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal

communication is of major importance.

335) The utility function describes a person's willingness to tolerate risk.

336) For immediate work, a letter contract may suffice. The intent of the letter contract is to allow the vendor to

get to work immediately to solve the project problem.

337) When you must begin work immediately without a procurement statement of work, the most appropriate

choice is time and material.

338) Outputs of all 47 Processes will be stored in PMIS amd PMIS in EEA

339) Cause & Effect/Ishikawa/Fishbone Diagram or 5 WHY Technique.

340) The BIG Four: 1) Ishikawa; 2) Deming; 3) Juran; and 4) Crosby.

341) Leads and lags are APPLIED as part of the Develop Schedule process, but then they are ADJUSTED in the

process of Control Schedule.

342) Zero Schedule Varience (SV) means the task is completed.

343) The To-Complete-Performance-Index (TCPI) is: The cost performance index (CPI) required in the

remainder of a project to meet financial goals.

344) The S curve is the cost performance baseline. The cost performance baseline is used to track cost

performance based on the original plan plus approved changes.

345) Requirement Traceability Matrix helps preventing gold plating

346) Parametric Estimates may not scale

347) For cost plus contract RFP is suitable

348) NPV will help u to build most precise business case

349) Standard deviation in a chart measures PRECISION

350) Changing Management Approach based on the team members experience = SITUATIONAL CONTINUUM

351) PMIS resides in EEF (enterprise environmental factors)

352) ARMA is a econometric method (Auto regressive moving average)

353) LOI is not a legal document

354) PM cannot be a lead negotiator

355) Work Authorization systems helps in preventing scope creep

356) The project cost management plan is established using the WBS and it’s associated






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Control accounts...

357) The control account is what’s used in the Project Cost Management Knowledge Area to monitor and

control project costs

358) Path Convergence: The merging or joining parallel schedule network paths into the same node in a project

schedule network diagram. Path convergence is characterized by a schedule activity with more than one

predecessor activity

359) Path divergence is characterized by a schedule activity with more than one successor activity.

360) Sunk Costs: costs incurred that cannot be reversed irrespective to future events

361) Value Engineering/ Analysis: finding less costly way to do the same work. E.g. outsourcing

362) Marginal analysis: Spend time on improvement if it improves revenues or productivity.

363) Direct cost: include dedicated labor, material, supplies, equipment, licenses, fees, training, travel, or

professional service fees - [Applied directly to THIS project]

364) Indirect cost: Example, if a color printer is shared by several project teams, it’s difficult to definitively

determine what percentage of costs each should share. [Expenses not for ONE

365) Funding requirement: they detail the funding requirement needed on the project by time period (weekly,

monthly)

366) Project Needs and demand

• market demand

• technological advance

• business need/ strategic opportunity

• Social need

• ecological impact

• customer need

• legal requirement

367 . What does project charter contain -

• Purpose or justification for the project

• Project objectives that are measurable

• High- level list of requirements

• High-level description of the project

• High-level list of risks

• Summary milestone schedule

• Summary budget






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• Criteria for project approval

• Name of the project manager and their authority levels

• Name of the sponsor (or authorizer of the project) and their authority levels

368 . What does stakeholder management contain

• Name of key stakeholders who could have a significant i impact on the project

• Stakeholders’ anticipated level of participation

• Stakeholder groups

• Assessment of impact

• Potential strategies for gaining support

370) Payback period is the least precise of the cash flow analysis techniques because it does

not consider the time value of money.

370) I talked about tailoring—determining which processes within each process group are appropriate for the

project on which you’re working. Tailoring is used in the Develop Project Management Plan process because it’s

here you’ll determine what processes to use to best manage the project.

371) The project management plan should include or discuss the following elements:

Processes you’ll use to perform each phase of the project

The life cycle you’ll use for the project and for each phase of the project

The tailoring results the project team defines

Methods for executing the work of the project to fulfill the objectives

Change management plan describing methods for monitoring and controlling

Configuration management

Methods for determining and maintaining the validity of performance

Communication needs of the stakeholders and techniques to fulfill

Management reviews of content, issues, and pending decisions

374) The requirements traceability matrix helps assure that business value is realized when the project is

complete because each requirement is linked to a business and project objective.

375) The Verify Scope process occurs in project monitoring and controlling. Product verification is done in the

Close Project or Phase process.

376) Quality Benefits must outweigh the Cost.

377) According to the PMBOK® Guide, the project scope statement should include all of the

following:

• Product scope description






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• Product acceptance criteria

• Project deliverables

• Project exclusions

• Project constraints

• Project assumptions

378) You’ll use the project management plan as your measurement of project scope completion, and product

scope completion will be measured against product requirements.

379: Close Procurement:

2 inputs (Project Mngt Plan and Procurement Mngt Plan)

3 T&T (Procurement negotiation, Record Mngt system, Procurement Audit)

2 outputs (closed Procurement, OPA update)

381) Dependencies-

Mandatory – hard logic

Discretionary dependencies- soft logic preferred logic - Defined by project team usually process, best practice

technique based on past experience

External dependencies- depend on external source

382) For the exam, remember that the PDM uses only one time estimate to determine duration.

383) For the exam, know that finish-to-start is the most commonly used dependency in the

PDM method and that start-to-finish is rarely used.

384) ADM allows for more than one time estimate to determine duration and Uses only the finish-to-start

dependency.

385) GERT- Condition, loop, branches

386) Summary-level activities are a collection of related activities also known as hammocks. Think of

hammocks as a group of related activities rolled up into a summary heading that describes the activities likely to

be contained in that grouping.

387) Resource calendars is an output of the Acquire Project Team and Conduct

Procurements processes.

389) Analogous technique is typically less time consuming and less costly than other estimating techniques, but

it’s also less accurate.

390) Reserve time—also called buffers, time reserves, or contingency reserve in the PMBOK®

Guide —means a portion of time that is added to the activity to account for schedule risk






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or uncertainty.

391) Resource leveling can cause the original critical path to change.

392) For the exam, remember that Monte Carlo is a simulation technique that shows the probability of all the

possible project completion dates.

393)

• Work will finish within plus or minus three standard deviations 99.73 percent of the time.

• Work will finish within plus or minus two standard deviations 95.44 percent of the time.

• Work will finish within plus or minus one standard deviation 68.26 percent of the time.

387) Risk Categories are part of Risk management plan and consist of

Technical, quality, performance risk

Project management risk

External risk

Organizational risk

392) There are 3 types of diagramming technique in identify risk.

Cause and effect diagram

Influence diagram

Process flowchart

394) Monte Carlo analysis and decision tree analysis are used in quantitative risk.

396) Simulation techniques are recommended for predicting schedule or cost risks because

They’re more powerful than EMV and less likely to be misused. For the exam, remember

That simulation technique is used to predict schedule or cost risks.

397) Responses to risks are documented in the risk register as part of the Plan Risk Responses process.

398) The probability and impact matrix are predetermined thresholds that use the risk’s

probability multiplied by the impact of the risk event to determine an overall risk score.

400) fixed-price plus incentive contracts to consider is that some of the risk is borne by the buyer, unlike the

firm fixed-price contract where most of the risk is borne by the seller. The buyer takes some risk,

401) Fixed-price contracts can be disastrous for both the buyer and the seller if the scope of the project is not

well defined or the scope changes dramatically. It’s important to have accurate, well-defined deliverables when

you’re using this type of contract.

402) Cost-reimbursable contracts are used most often when the project scope contains a lot of uncertainty, such

as for cutting-edge projects and research and development. They are also used for projects that have large






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investments early in the project life. We’ll look at four Cost plus fixed fee (CPFF) contracts charge back all

allowable project costs to the seller and include a fixed fee upon completion of the contract. This is how the

seller makes money on the deal; the fixed fee portion is the seller’s profit.

Types of cost-reimbursable contracts:

Cost Plus Fixed Fee (CPFF) Contract value = Actual costs + fixed fee

Cost Plus Incentive Fee (CPIF) Contract value = actual costs ± percentage of difference + incentive fee

Cost Plus Award Fee (CPAF) Contract value = actual costs + buyer-defined performance fee

403) A procurement statement of work (SOW) contains the details of the procurement item in

Clear, concise terms. It includes the following elements:

• The project objectives

• A description of the work of the project and any post project operational support needed

• Concise specifications of the product or services required

• The project schedule, time period of services, and work location

404) The cost of quality (COQ) is the total cost to produce the product or service of the project according to the

quality standards. Understand each of these theories on the cost of quality for the exam. Here’s a key to help you

remember:

• Crosby = Zero defects and prevention or rework results.

• Juran = Fitness for use, conformance. Quality by design.

• Deming = Quality is a management problem.

• Feigenbaum = Founder of TQM.

• Shewhart = Plan-Do-Check-Act cycle.

• TQM = Quality must be managed in and must be a continuous process.

• Six Sigma = Six Sigma is a measurement-based strategy; no more than 3.4 defect million opportunities.

• Kaizen = Continuous improvement; improve quality of people first.

• Continuous improvement = Watch continuously for ways to improve quality.

405) Quality MNT plan – output 3 Qs

406) Audits was T&T for Perform QA, control risk, control procurement and close procurement.

407) You should understand the difference between a validated defect repair and a defect repair for the exam. A

validated defect repair is the result of a re-inspection of the original defect repair. In other words, you found a






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problem with the product during the Quality processes, you corrected the problem (defect repair), and now

you’re re-inspecting that repair (validated defect repair) to make certain the fix is accurate, correct, and fixed

the problem.

408) Reserve analysis are T&T at estimate duration, estimate cost, budget, control risk.

409) issue log are input and output for stakeholder expectation and T&T at manage PT

410) Effective teams are typically very energetic teams. They often are characterized as high performance

teams and are motivated by results and the successful completion of tasks. Their

Enthusiasm is contagious, and it feeds on itself.

411) The resource histogram shows the number of resources used in each time period. In its pure form, a bar

chart shows only activity and calendar date. The organizational chart shows who reports to whom. The

responsibility assignment matrix shows who will do the work.

412) Make certain you understand the theories of motivation and their premises for the exam.

Here’s a summary to help you memorize them.

Maslow’s hierarchy of needs Abraham Maslow. Needs must be satisfied in a hierarchical order.

Hygiene Theory Frederick Herzberg. Work environment (pay, benefits, and working

Conditions) prevents dissatisfaction.

Expectancy Theory Victor Vroom. Expectation of positive outcomes drives motivation.

Achievement Theory David McClelland. People are motivated by achievement, power,

And affiliation.

413) Watchlist and trends are from qualitative risk

414) Team performance assessments evaluate the project team's effectiveness as a whole. Project performance

appraisals deal with how each team member is performing on the project.

415 workaround is obtained from control risk

416) The contract life cycle consists of four stages:

• Requirement

• Requisition

• Solicitation

• Award

416) Ongoing project planning is also known as rolling wave planning

417) The solicitation phase is where bids and proposals are prepared. The award phase of the

Contract life cycle is where bids and proposals are received and evaluation criteria used to

Determine a winner.






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418) The process analysis technique in the Perform Quality Assurance process includes root

Cause analysis to analyze a problem and solution and to create preventive actions.

419) Independent estimates, also called should cost estimates, are a way to check proposed

Pricing.

420) Corrective actions bring the work of the project into alignment with expected future performance.

Preventive actions are implemented to help reduce the probability of negative project risks. Defect repairs

either correct or replace components that are substandard or malfunctioning.

421) Control Procurement has

T&T.

• Contract change control system

• Procurement performance reviews

• Inspections and audits

• Performance Reporting

• Payment systems

• Claims administration

• Records management system

Output

• Procurement documentation

• Organizational process asset updates

• Change requests

• Project management plan updates

422) Work performance information is an output of the Direct and Manage Project Execution

Process. The results you gather in the conduct Procurements process are actually

Collected as part of the Direct and Manage Project Execution work result output.

423) According to the PMBOK® Guide, when the parties cannot reach an agreement themselves, they should

use an alternative dispute resolution (ADR) process, like arbitration.

Also note that the preferred method of settling disputes is negotiation.

424) A records management system involves not just documentation, but policies,

Control functions, and automated tools. These can all be considered part of the project management information

system you use to manage project documents and should include your contract documents. Records

management systems typically index documents for easy filing and retrieval.

425) Procurement Documentation






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Here’s your favorite topic again. This output includes (but isn’t limited to) all of the following:

Contract

Performance information

Warranties

Financial information (such as invoices and payment records)

Inspection and audit results

Supporting schedules

Approved and unapproved changes

The records management

426) A summary activity in a network logic diagram is often referred to as a Hammock.

427) According to the PMBOK® Guide, status meetings are a form of push communication.

428) Network Diagram

Forward pass EF= ES + duration - 1)

ES= duration + 1

Backward Pass = LS = EF – Duration + 1

LF = Duration – 1

429) Changes to product scope should be reflected in the project scope.

430) A review of management processes and the associated documentation is commonly called Audit.

431) Control charts measure the results of processes over time and display the results in graph

Form. Control charts are a way to measure variances to determine whether process variances

Are in control or out of control.

432) Trend analysis in the Perform Quality Control process is a mathematical technique that uses historical

results to predict future outcomes.

433) Scatter diagrams display the relationship between these two elements as points on a graph. This

relationship is typically analyzed to prove or disprove cause-and-effect relationships. The important point to

remember about scatter diagrams is that they plot the dependent and independent variables, and the closer the

points resemble a diagonal line.

434) Don’t confuse inspection with prevention; they’re two different tools. Inspection keeps

Errors in the product from reaching the customer. Prevention keeps errors from occurring

In the process. It always costs less to prevent problems in the first place than it does to

Fix problems built into the product after the fact. Rework, labor costs, material costs, and

Potential losses of customers are all factors to consider when weighing prevention costs






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Versus the cost of rework.

435) Philip Crosby developed the theory of Zero Defects, which deals With prevention costs. Loosely translated,

Zero Defects means doing it right the first time.

436) Negotiated settlements occur when using an alternative dispute resolution (ADR) technique due to

disagreements about deliverables, payments, performance, and so on. Reaching a negotiated settlement through

the aid of ADR techniques is the most favorable way to resolve the dispute.

437) Network templates which contain only portions of a network are often referred to as Subprojects

438) In making an investment in a project, investors require compensation for which of the following? Sacrifice

of immediate use of cash for consumption or other investments, possibility of inflation and risk.

439) A Feasibility study looks at determining if the project idea is a realistic project.

440) Which of the following should not be reason for “rebase lining” in a project? Cost variance

441) Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?

Working conditions and interpersonal relations.

442) What are "Global Literacies" - The ability to succeed in a cross cultural environment.

443) What is active risk acceptance? Creating contingency reserves in money and time.

444) What is a quality audit? A structured review of quality management activities.

445) Two events occurring in the same trial are true events. Statistical independence refers to two events not

being linked. Just-in-time refers to inventory levels. By definition, two events that are mutually exclusive cannot

happen on the same trial.

446) Cost of conformance should be lower than cost of non-conformance

Rework, scrap, inventory cost, and warrant cost, lost business are all cost of non-conformance

Training, studies, surveys are all cost of conformance.

447) Sponsor – Project Champion.

448) Special cause are ususual and preventable

449) Common cause are usual and unpreventable and accepted by the process.

450) Cost of quality look at all the cost to archive quality.

451) 7 basic quality tools

Cause and effect – identify the root cause.

Flowchart show carious component relate in the system can be used to predict where quality problem

may happen

Checksheets- store total quality related incidents and facts






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Pareto diagram is a histogram show defect ranked from higher to lower

Focus on the problem

Based on 80/20

Histogram – column chart that allow stakeholder to visualized the dat

452) Quality assurance – T&T

Affinity Diagram

Process decision program Chart (PDPC)

Tree Diagram – WBS is a tree diagram – which means breaking down smaller to understand problem

Activity network Diagram – shows order in which it should take place

Matrix diagram

Quality Audit

Process Analysis

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7. notes on pmp by imaduddin khalid