My Notes on PMP

Note: My new PMBOK V4 are shared under My Notes for PMBOK V4

My Condensed Notes on PMP Preparation

1. According to the Project Management Body of Knowledge (PMBOK), a “project” is a temporary endeavor undertaken to create a unique product or service.”
2. Triple constraint- project scope, time and cost
3. A portfolio is a collection of projects or programs and other work that are grouped
   together to facilitate effective management of that work to meet strategic business
   objectives. The projects or programs in the portfolio may not necessarily be
   interdependent or directly related
4. Project Portfolio Management is a management process to select the projects that
   should be invested in. Specifically, it is the selection process based on the need,
   profitability, and affordability of the proposed projects.
5. A project management office (PMO) is an organizational unit to centralize and
   coordinate the management of projects under its domain. A PMO can also be referred
   to as a "program management office," "project office," or "program office." A PMO
   oversees the management of projects, programs, or a combination of both
6. Project management is a set of tools and techniques that are used to organize the
   work of the project to help bring about a successful project.
7. The contract between the organization and the vendor super cedes all other workrelated
   documents
8. Customers, internal or external, are the most important stakeholders in a project
9. Scope verification must take place at the end of each phase
10. Money already spent on a project is called sunk cost and should not be taken into
    consideration when determining if a project should continue. Instead, the cost of the
    work to complete is one of the elements that should be taken into consideration when
    considering to kill a project
11. Phase end reviews are also called phase exits, phase gates, or kill points.
12. The project life cycle goes through a series of phases to create the product
13. Project managers manage things, but lead people. What's the difference?
    Management is the process of getting the results that are expected by project
    stakeholders.
    Leadership is the ability to motivate and inspire individuals to work towards those
    expected results.
14. Project
1. Projects don't last forever. They are temporary and unique
2. Projects pass through logical phases to reach their completion
3. Purpose of Project is to attain its objective and then terminate
   
15. Operations
1. Operations, however, do go on and on. They are ongoing and repetitive
2. Operations may be influenced, or even created, by the outcome of a project
3. Objective of an ongoing operation is to sustain business
   
16. Organization Structure
1. Functional
2. Matrix
1. Weak
2. Balanced
3. Strong
   
3. Projectized
   
17. Organization Structure And Project Characteristics
    
1. Functional
1. PM's Authority [Little or none]
   
2. Resource Availability [Little or none]
   
3. Who controls Project Budget [Functional Manager]
   
4. PM's Role [Part - Time]
   
5. PM Admin Staff [Part - Time]
2. Weak Matrix
1. PM's Authority [Limited]
   
2. Resource Availability [Limited]
3. Who controls Project Budget [Functional Manager]
4. PM's Role [Part - Time]
5. PM Admin Staff [Part - Time]
3. Balanced Matrix
1. PM's Authority [Low to moderate]
2. Resource Availability [Low to moderate]
3. Who controls Project Budget [Mixed]
4. PM's Role [Full - Time]
5. PM Admin Staff [Part - Time]
4. Strong Matrix
1. PM's Authority [Moderate to high]
2. Resource Availability [Moderate to high]
3. Who controls Project Budget [Project Manager]
   
4. PM's Role [Full - Time]
5. PM Admin Staff [Full - Time]
5. Projectized
1. PM's Authority [High to almost total]
   
2. Resource Availability [High to almost total]
3. Who controls Project Budget [Project Manager]
   
4. PM's Role [Full - Time]
5. PM Admin Staff [Full - Time]
18. The WBS is a decomposition of all the deliverables the project will create
19. Inspections may also be known as:
    a. Reviews
    b. Product reviews
    c. Audits
    d. Walk-throughs
20. Graphical evaluation and review technique (GERT) models allow for loops and
    conditional branching
21. Crashing adds more resources to activities to decrease their duration, which typically
    adds cost
22. Project calendar This calendar shows when work is allowed on the project. For
    example, a project may require the project team to work nights and weekends so as
    not to disturb the ongoing operations of the organization during working hours. In
    addition, the project calendar accounts for holidays, working hours, and work shifts
    that the project will cover
23. Resource calendar The resource calendar controls when resources, such as project
    team members, consultants, and SMEs are available to work on the project. It takes
    into account vacations, other commitments within the organization, or restrictions on
    contracted work, overtime issues, and so on
24. Program Evaluation and Review Technique (PERT) uses a weighted average
    formula to predict the length of activities and the project. Specifically, PERT uses a
    'pessimistic,' 'optimistic,' and 'most likely' estimate to predict when the project will be
    completed
25. The critical path is the longest path to completion in the network diagram.
26. Activities on the critical path have no float or slack.
27. Free float is the amount of time an activity can be delayed without affecting the next
    activity's scheduled start date.
28. Total float is the amount of time an activity can be delayed without affecting the
    project end date.
29. Heuristic is simply a rule of thumb
30. Crashing involves adding resources, which typically increases cost.
31. Fast tracking adds risk as tasks are allowed to overlap
32. Each resource in the project must be accounted for and assigned to a cost category.
    Categories include the following:
    a. Labor costs
    b. Material costs
    c. Travel costs
    d. Supplies
    e. Hardware costs
    f. Software costs
    g. Special categories (inflation, cost reserve, and so on)
33. There are three generally accepted categories of estimating accuracy:
    a. Rough order of magnitude This estimate is “rough” and is used during the
    Initiating processes and in top-down estimates. The range of variance for the
    estimate can be –25 percent to +75 percent.
    b. Budget estimate This estimate is also somewhat broad and is used early in
    the planning processes and also in top-down estimates. The range of variance
    for the estimate can be –10 percent to +25 percent.
    c. Definitive estimates This estimate type is one of the most accurate. It is used
    late in the planning processes and is associated with bottom-up estimating. The
    range of variance for the estimate can be –5 percent to +10 percent.
34. The opportunity cost is the amount of the project that was not chosen
35. Quality is the sum of the characteristics of a product that allow it to meet the demands
    or expectations of the project
36. Grade, according to the PMBOK, “is a category or rank given to entities having the
    same functional use but different technical characteristics.”
    For example, there are different grades of paint, different grades of metal, and even
    different grades of travel.
37. The design of experiments (DOE) approach relies on statistical what-if scenarios to determine what variables within a project will result in the best outcome.
    
38. Design of experiments is an analytical technique that identifies the elements or
    variables that will have the greatest effect on overall project outcomes
    
39. There are five types of powers the project manager yields: (R F C E R)
    a. Reward
    b. Formal
    c. Coercive (penalty) d. Expert
    e. Referent
40. Among the above powers Reward, Formal & Coercive (penalty) come with the "Position"
    
41. Expert & Reward are considered the best types of powers and Coercive (penalty) is "Least" for obvious reasons
    
42. Seven reasons for conflict, in order of most common to least common:
    a. Schedules
    b. Priorities
    c. Resources
    d. Technical beliefs
    e. Administrative policies and procedures
    f. Costs
    g. Personalities
43. Five different approaches to conflict resolution
    a. Problem solving (win - win) [BEST]
    b. Forcing (win - lose)
    c. Compromising (lose - lose)
    d. Smoothing
    e. Withdrawal
    NOTE: Forcing (win - lose) and Problem Solving (win - win) are the ONLY two
    modes that result in a RESOLUTION to the conflict.
44. The halo effect is the promoting the person to manage projects since he/she is good at a technology
    
45. Confronting (Problem Solving) is the best problem-solving technique since it meets the problem directly
46. In a Weak Matrix structure, functional management will have more authority than the
    project manager
47. Within communicating there are five characteristics that affect the message:
    a. Paralingual: pitch, tone, and voice inflections
    b. Feedback: sender confirmation of the message by asking questions, for a
    response, or other confirmation signals
    c. Active listening: receiver confirms message receipt
    d. Effective listening: receiver offers confirmation of the message, such as nodding
    their head, asking questions, or other interactions.
    e. Nonverbal: facial expressions, hand gestures, and body language
48. One of the first inputs to risk management is the project charter
49. Historical information is always an excellent source of information for risk identification
50. Brainstorming is likely the most common approach to risk identification
51. Force majeure is a powerful and unexpected event, such as a hurricane or other
    disaster
52. Contracts are known by many names:
    a. Agreement
    b. Subcontract
    c. Purchase order
    d. Memorandum of understanding
53. All contracts in the United States are backed by the US court systems
54. According to the Guide to the PMBOK, the project charter should be published by a
    manager external to the project but with sufficient power and authority to carry it off.
55. When a project is performed under contract, the contract can serve as the project
    charter
56. Cost reimbursable contracts are used when the degree of uncertainty is high and when
    the project requires a large investment prior to completion of the project
57. The scope statement contains an exhaustive list of the project deliverables, their
    requirements, and measurable criteria used to determine project completion
58. The scope statement is an output to the Scope Definition process and is used to create
    the WBS
59. Cause-and-effect diagrams, also called Ishikawa or fishbone diagrams, show the
    relationship between the effects of quality problems and their causes
60. The primary function of the Closing process is to formalize project completion and
    disseminate this information to the project participants
61. According to the Guide to the PMBOK, the project manager is identified and assigned
    as an output of the Initiation process. In practice, project managers are very often
    assigned at the beginning of this process.
62. The work package level is the lowest level in the WBS. Time and cost estimation is
    easily determined at this level as are resource assignments. Quality control
    measurements can be determined at this level as well.
63. The code of accounts is assigned to the elements in the WBS
64. Each element in the WBS is assigned a unique identifier. These are collectively known
    as the code of accounts
65. The Responsibility Assignment Matrix (RAM) links project roles and responsibilities with
    project activities
66. The WBS is the deliverables-oriented hierarchy of project work.
67. The staffing management plan details how and when human resources will be added to
    and taken off the project. It is an output of Organizational Planning
68. Analogous estimating is not a qualitatively based technique. It is a top-down
    estimating technique that considers previous similar activities when calculating
    estimates
69. Mandatory dependency, also known as hard logic. Mandatory dependencies are
    inherent in the nature of the work
70. Discretionary dependencies, also called preferred logic, preferential logic, and soft
    logic, are defined by the project management team
71. "Best Practice” often refers to a specific sequence of work, described in terms of “Soft
    Logic”. Sometimes "Experience" is also attributes to Soft Logic
72. Finish to start is the most commonly used logical relationship in PDM and most project
    management software packages
73. There are three major documents and each has a specific purpose:
    a. Project Charter. Formally authorizes the project.
    b. Project Scope Statement. States what work is to be accomplished and what
    deliverables need to be produced.
    c. Project Management Plan. States how the work will be performed
    
74. Philip Crosby devised the zero defects theory, meaning do it right the first time. Proper
    Quality Planning leads to less rework and higher productivity
75. According to Bruce Tuckmann, “Forming, Storming, Norming and Performing ” are the
    stages of team development
    
76. The performing stage is similar to Maslow’s self-actualization
    
77. Myers Brigg’s theory states that “Sensing” and “Intuition” personality types are related
    to “Information” preference in other words ‘Hard Data verses what might be’
    
78. Juran = Fitness for use, conformance. Quality by design.
79. Joseph M. Juran is noted for his fitness for use premise. Simply put, this means the
    stakeholders’ and customers’ expectations are met or exceeded.
80. W. Edwards Deming suggested that as much as 85 percent of the cost of quality is a
    management problem
81. Shewhart = Plan-Do-Check-Act cycle.
82. TQM = Quality must be managed in and must be a continuous process
83. Six Sigma = Six Sigma is a measurement-based strategy; no more than 3.4 defects
    per million.
84. Kaizen = Continuous improvement; improve quality of people first.
85. Continuous improvement = Watch continuously for ways to improve quality.
    
86. Statement of work (SOW) comprises of
    
1. Business Need
2. Product Scope Description and
3. Strategic Plan
   
87. Conflict should be addressed early and usually in private, using a direct, collaborative
    approach
88. Organization, Environmental & external assumptions should be addressed by the
    Project Charter
89. WBS Dictionary” is a document which describes the details for each component in the
    WBS. It includes a breif description of the of the “Scope” or “Statement of the work” ,
    defined deliverables, a list of associated activities, and a list of milestones
90. Project Manager must consider “cultural differences” while deciding upon
    recongnization and rewards during team development.
91. Technical inability and poor risk management by the contractor is mostly the reason
    for the project not to meet the customer expectations
    
92. Critical Chain Project Management” is typically the “Management of Buffers”
93. Critical Chain is another schedule network analysis technique that modifies the project
    schedule to account for limited resources
    
94. The Critical Chain method adds duration buffers that are non-work schedule activities
    to maintain focus on the planned activity durations
    
95. Cost Of Quality (COQ) are the cost types in modern quality management
1. “Prevention Costs”,
   
2. “appraisal costs” &
   
3. “failure costs”
96. The key components of the communication model include:
    a. Encode.
    b. Message.
    c. Medium.
    d. Noise.
    e. Decode.
    
97. Common formats for performance reports include
    
1. Bar charts,
   
2. S curves,
   
3. Histograms, and
4. Tables.
   
98. Face-to-face meetings are the most effective means for communicating and resolving
    issues with stakeholders.
99. Order of Magnitude estimates are also knows as conceptual, ballpark or preliminary
    estimates
100. “Tight Matrix” is putting all project personnel together. Also referred as “collocated”
101. Strategies for “Negative Risks or threats” (Avoid Transfer Mitigate)
102. Strategies for “Postive Risks or Opportunities” (Share Exploit Enhance)
103. Common Strategy for both threats and opportunities is “Acceptance”
104. There are 3 stages of “reaction to stress” (Alarm, Resistance & Exhaustion)
105. Some of the traits/qualities exhibited by effective leaders are
1. Flexibility,
   
2. Ambition,
   
3. Intelligence,
   
4. Decisiveness,
   
5. Creativity,
   
6. Persistence and
7. Energy
106. Detailed Tasks are detailed in “Project Schedule”, which is part of Project Plan
     and note its NOT WBS. WBS is a “deliverable oriented document”
107. An abnormal trend is formed when seven or more consecutive data points reflect a
     steadily increasing or decreasing pattern over time
108. Scope Verification is concerned with the acceptance of deliverables
109. Quality control is concerned with making sure the deliverables meet quality
     requirements. Quality Control is done first; both are Monitoring and Controlling
     processes.
110. Quality Assurance (Executing) is focused on process: process analysis, quality audits,
     etc.
111. Quality Control (Monitoring and Controlling) is focused on sampling results to see if
     they meet quality standards
112. Code of Accounts identifies WBS items; Chart of Accounts monitors project costs by
     category
113. In decision tree, a circle is a chance
114. In Precedence Diagramming Method (PDM) or Activity on Node (AON) network
     diagrams, nodes are activities and arrows are dependencies
115. In Arrow Diagramming Method (ADM) or Activity on Arrow (AOA) network diagrams,
     arrows are activities and nodes are dependencies
116. Dummies are only used on ADM
117. ADM tasks can only have FS relationships
118. PDM uses one time estimate to determine duration, while ADM can use more than one time estimate.
119. Scope Verification is done during Project monitoring and controlling BUT Product
     verification is done during the Project Closing
120. Audits:
     o Quality Audit in Perform QA,
     o Risk Audit in Risk Monitoring and Control,
     o Inspections and Audits in Contract Administration,
     o Procurement Audits in Close Contracts
121. The outputs of process groups are:
     o initiating: charter and preliminary scope statement;
     o planning: project management plan;
     o executing: work results;
     o monitoring: corrective actions;
     o closing: project product.
122. Reporting formats:
     o Forecast Report (what is expected to happen on a project),
     o Progress Report (what happened since the last report),
     o Status Report (state of the project at the current time),
     o Earned Value Report (focuses on Earned Value Management),
     o Variance Report (what happened vs. what should have happened).
123. Performance Reporting is a Controlling process. It creates Performance Reports, which
     are comparisons of performance to the performance baselines. These are typically
     done in tabular or graphical format.
     
124. Information Distribution is an Executing process. It creates Organizational Process
     Assets such as project presentations, stakeholder notifications and status reports.
125. Develop Project Team is an Executing Process. It creates a Team Performance
     Assessment, and helps you determine what additional training would be beneficial.
126. Manage Project Team is a Controlling Process. It creates input to performance
     appraisals as well as recommended changes, corrective actions and preventative
     actions.
127. Scope Baseline includes
     
1. Project Scope Statement,
   
2. WBS, &
   
3. WBS Dictionary
128. A large portion of the PM’s time while the work is being done is spent measuring and
     implementing corrective actions
129. Project Close Process includes creation of two procedures
     o Administrative closure procedure and
     o Contract closure procedure
     The difference between the two is focus, formality and frequency. Administrative
     closure focuses on closing the project or project phase whereas Contract closure
     focuses on closing a contract that is part of the project
130. Contingency Reserve (Known Unknowns) is for the risks remaining after the Risk Response Planning
     Management Reserve (Unknown Unknows is any extra amount reserved t cover “unforeseen risks”
     Cost Baseline will include the Contingency Reserve
     Cost Budget will include the Management Reserve
131. Quality is defined as the degree to which the project fulfills requirement
132. Quality MUST BE PLANNED IN AND NOT INSPECTED IN
133. The Project Manager ultimately has the responsibility for the Product of the Project and
134. Senior Management is responsible for the Quality of entire Organization
135. Cost of Nonconformance is greater than the cost of conformance
136. Most projects will fit one of the six needs and demands
     o Market demand
     o Business need
     o Customer request
     o Technological advance
     o Legal requirement
     o Social need
137. The project charter (which is an output of the Develop the Project Charter process) is the
     written acknowledgment that the project exists. The project charter names the project
     manager and gives that person the authority to assign organizational resources to the
     project
138. Net present value (NPV) assumes reinvestment is made at the cost of capital
139. IRR assumes reinvestment at the IRR rate and is the discount rate when NPV is equal to
     zero
140. Payback period does not consider the time value of money and is therefore the least
     precise of all the cash flow analysis techniques
141. Preliminary project scope statement describes the objectives of the project and the high level requirements needed to satisfy stakeholder expectations
142. The PMIS in the Develop Project Management Plan process includes a subsystem called the
     configuration management system
143. Change control system, which is a subsystem of the configuration management system
144. Stakeholder analysis is a tool and technique of Scope Definition used to determine and
     document the needs, wants, and expectations of stakeholders and prioritize and quantify
     those needs into project requirements
145. The purpose of the project scope statement is to document the project objectives,
     deliverables, and requirements so that they can be used to direct the project team’s work
     and as a basis for future project decisions
146. The scope statement further elaborates the project objectives, deliverables, requirements,
     and constraints and assumptions defined in the preliminary scope statement. It serves as a basis for future project decisions
147. Alternatives identification is a tool and technique of the Scope Definition process that
     includes brainstorming and lateral thinking techniques
148. Poor scope definition might lead to cost increases, rework, schedule delays, and poor
     morale
149. According to the PMBOK Guide, functionality and specific conditions that must be met in
     order to satisfy the project, contract, standard, or specification describe the criteria for
     requirements, not objectives
150. Product analysis (TT Scope Definition) includes techniques such as value engineering, value analysis, systems analysis, systems engineering, product breakdown, and functional
     analysis
151. The product scope description can be used as an input to the Scope Definition process
     when the project charter and/or preliminary project scope statement are missing
152. The lowest level of any WBS is called the work package level
153. For the exam, remember that the key to DOE is that it equips you with a statistical
     framework that allows you to change the variables that have the greatest effect on overall
     project outcomes at once instead of changing one variable at a time.
154. Quality checklists are an output of the Quality Planning process, and checklist analysis is a
     tool and technique of the Risk Identification process
155. Cost-benefit analysis considers trade-offs in the Quality Planning process
156. Benchmarking compares previous similar activities to the current project activities to
     provide a standard to measure performance against.
157. Failure costs; is also known as the cost of poor quality. Failure costs include both internal and external costs.
     Internal failure costs are costs associated with not meeting the customer’s expectations
     while you still had control over the product. This results in rework, scrapping, and
     downtime.
158. The process improvement plan is a subsidiary plan of the project management plan and
     targets inefficiencies in a process or activity. The quality baseline is used to document the
     quality objectives of the project and is used as a basis for future Quality processes
159. The WBS dictionary should be documented with the code of account identifier, an SOW, the responsible organization, and a milestone schedule for the WBS components
160. Design of experiments is a tool and technique of the Quality Planning process that provides statistical analysis for changing key product or process elements all at once (not one at a time) to optimize the process
161. According to the PMBOK Guide, the risk management plan should include the following
     elements:
     o Methodology
     o Roles and responsibilities
     o Budgeting
     o Timing
     o Risk categories
     o Definitions of risk probability and impact
     o Probability and impact matrix
     o Revised stakeholder tolerances
     o Reporting formats
     o Tracking
162. The output of the Risk Identification process is the risk register. The risk register contains
     the following elements:
     o List of identified risks
     o List of potential responses
     o Root causes of risks
     o Updated risk categories
163. Risk urgency assessment is a tool and technique of Qualitative Risk Analysis process
164. Qualitative Risk Analysis is a fast and easy method of determining probability and impact
165. The risk management plan details how risk management processes will be implemented,
     monitored, and controlled throughout the life of the project.
166. The risk management plan does not include responses to risks or triggers. Responses to
     risks are documented in the risk register as part of the Risk Response Planning process
167. The information-gathering techniques in the Risk Identification process are
     o brainstorming,
     o the Delphi technique,
     o interviewing,
     o root cause identification, and
     o SWOT analysis.
168. Quantitative Risk Analysis analyzes the probability of risks and their consequences using a
     numerical rating
169. Monte Carlo analysis is a simulation technique & not a Modeling technique
170. When the question describes sensitivity analysis, which is a tool and technique of the
     Quantitative Risk Analysis process. Tornado diagrams are often used to display sensitivity
     analysis data
171. The simplest form of “Risk Analysis” is “Sensitivity Analysis”
172. Following options are diagramming techniques of the Risk Identification process
     o Ishikawa diagram
     o Process flowchart
     o Influence diagram
173. Passive acceptance is when the team has decided to take no action and make no plans for
     the risk. This is a strategy that can be used for either positive or negative risks.
174. The PMBOK Guide divides contracts into three categories:
     o Fixed price or lump sum (biggest risk is borne by the seller & good when
     original scope is well defined)
     o Cost reimbursable (biggest risk is borne by the buyer)
     o Time and materials (T&M)
175. The three outputs of the Plan Contracting process are
     o procurement documents (request for proposal (RFP), request for information
     (RFI), invitation for bid (IFB), request for quotation (RFQ)),
     o evaluation criteria,and
     o contract statement of work updates.
176. Understand the difference between bid and/or quotation and proposal for the exam. Bids or quotations are used when price is the only deciding factor among bidders. Proposals are
     used when there are considerations other than price
177. A contract statement of work (SOW) contains the details of the procurement item in clear,
     concise terms. It includes the following elements:
     o The project objectives
     o A description of the work of the project and any post project operational
     support needed
     o Concise specifications of the product or services required
     o The project schedule, time period of services, and work location
178. According to the PMBOK Guide, using templates and checklists is one way to ensure that
     you don’t miss any key responsibilities when planning the project and will help reduce the
     amount of time spent on project planning
179. According to the PMBOK Guide, the RAM (Responsibility Assignment Matrix) relates the
     OBS to the WBS to assure that every component of the work of the project is assigned to
     an individual.
180. The letters in the acronym RACI (sample portion of a type of RAM) are the designations are
     o R = Responsible for performing the work
     o A = Accountable, the one who is responsible for producing the deliverable or
     work package and approves or signs off on the work
     o C = Consult, someone who has input to the work or decisions
     o I = Inform, someone who must be informed of the decisions or results
181. The RAM and RACI charts are tools and techniques of Human Resource Planning process
182. Standard forms are a tool and technique of the Plan Contracting process. Standard forms
     can be nondisclosure agreements, standardized contracts, and so on.
183. Plan Purchases and Acquisitions can directly influence the project schedule, and the project schedule can directly influence this process
184. Resource availability is an output of the Acquire Project Team and Select Seller processes
185. For the exam, remember that resource availability isn’t determined until the Executing
     stage and becomes an input to the Activity Resource Estimating process
186. Remember that you cannot perform Schedule Development until you have completed all
     the following processes of project Planning: Scope Planning, Scope Definition, Create WBS,
     Risk Identification, Risk Response Planning, Plan Purchases and Acquisitions, Activity
     Resource Estimating, Activity Definition, Activity Sequencing, and Activity Duration
     Estimating
187. Schedule Development has 10 tools and techniques:
     o Schedule network analysis (produces the project schedule)
     o Critical path method ()
     o Schedule compression
     o What-if scenario analysis
     o Resource leveling
     o Critical chain method
     o Project management software
     o Applying calendars
     o Adjusting leads and lags
     o Schedule model
188. The higher the standard deviation is for an activity, the higher the risk. Since standard
     deviation measures the difference between the pessimistic and the optimistic times, a
     greater spread between the two, which results in a higher number, indicates a greater risk.
     Conversely, a low standard deviation means less risk
189. Monte Carlo is a simulation technique that shows the probability of all the possible project
     completion dates
190. Monte Carlo analysis can be used in the Schedule Development process to determine
     multiple, probable project durations
     
191. Resource leveling can cause the original critical path to change.
192. CPM manages the total float of schedule networks paths, whereas critical chain manages
     buffer activity durations and resources
193. Cost aggregation (TT of Cost Budgeting) is the process of tallying the schedule activity cost estimates at the work package level and then totaling the work package levels to higher level WBS component levels
194. Funding limit reconciliation (TT of Cost Budgeting) involves reconciling the amount of funds spent with the amount of funds budgeted for the project
195. Cost baselines are displayed as an S curve.
196. The primary output of Cost Estimating is activity cost estimates
197. Parametric estimating multiplies a known element—such as the quantity of materials
     needed—by the time it takes to install or complete one unit of materials. The result is a
     total estimate for the activity
198. The project schedule determines the start and ending dates of activities, determines float
     times, generally shows resource assignments, and details the activity sequences and
     durations.
199. Motivation can be extrinsic or intrinsic.
     o Extrinsic motivators are material rewards and might include bonuses, the use
     of a company car, stock options, gift certificates, training opportunities, extra
     time off, and so on
     o Intrinsic motivators are specific to the individual. Some people are just
     naturally driven to achieve—it’s part of their nature
200. The introduction of a new team member will start the formation and development of the
     team all over again with the forming stage
201. Teams in the norming stage of Develop Project Team exhibit affection and familiarity with
     one another and make joint decisions
202. Request Seller Responses obtains bids and proposals from vendors.
203. Select Sellers is the receipt of bids and proposals and the selection of a vendor
204. Independent estimates (TT of Select Sellers), also called should cost estimates, are a way
     to check proposed pricing
205. Fait accompli is a tactic used during contract negotiations where one party convinces the
     other that the particular issue is no longer relevant or cannot be changed
206. The process analysis technique (TT of Perform Quality Assurance process) includes root
     cause analysis to analyze a problem and solution and to create preventive actions
207. You are preparing project performance appraisals and have decided you’d like each team
     member to get feedback regarding their performance from several sources, including
     peers, superiors, and subordinates. This is called 360-degree feedback and is part of the
     project performance appraisals tool and technique of the Manage Project Team process.
208. Understand for the exam that configuration management involves
     o identifying the physical characteristics of the product, service, or result of the
     project (or its individual components);
     o controlling changes to those characteristics; and
     o Documenting changes to verify that requirements are met.
     o It also includes the change management system and
     o documents the process for requesting, tracking, and determining whether
     change requests should be approved or denied.
209. Activities associated with configuration change management in the Integrated Change
     Control process
     o Configuration identification
     o Configuration status accounting and
     o Configuration verification and auditing
210. Integrated Change Control, Schedule Control, and Cost Control are all concerned with
     three issues:
     o influencing the things that cause change,
     o determining that change is needed or has happened,
     o and managing the change
211. Change control systems are documented procedures that describe
     o How to submit change requests.
     o They track the status of the change requests,
     o document the management impacts of change,
     o track the change approval status, and
     o define the level of authority needed to approve changes.
212. Change control systems do not approve or deny the changes—that’s the responsibility of the configuration control board (CCB)
213. The configuration control board (CCB) has the authority to approve or deny change
     requests. Their authority is defined and outlined by the organization
     
214. “Recommended” corrective action is an output of several of the change control processes,
     including Scope Change Control, Schedule Control, Cost Control, Risk Monitoring and
     Control, and Perform Quality Control.
215. “Approved” corrective action is an output of the Integrated Change Control process.
     Remember that Integrated Change Control is where all change requests are processed and
     either approved or denied.
216. Also note that corrective action is an output of the Monitoring and Controlling processes
     and an input to the Executing processes
217. Cost variances (both positive and negative) are calculated using a performance
     measurement analysis tool (specifically earned value techniques)
218. EVT (earned value techniques) compares what you’ve received or produced to what you’ve
     spent.
219. Workarounds are unplanned responses. Workarounds deal with negative risk events as
     they occur.
220. Schedule variances will sometimes—but not always—impact the schedule. Changes to
     noncritical path tasks will not likely impact the schedule, but changes to critical path tasks
     will always impact the schedule
221. Budget updates might require cost rebaselining
222. You can remember the difference between Scope Verification and Perform Quality Control this way:
     o Scope Verification = accepting work results
     o Perform Quality Control = checking for correct work results (assuring that the
     quality requirements are met)
223. Projects come to an end for several reasons:
     o They’re completed successfully.
     o They’re canceled or killed prior to completion.
     o They evolve into ongoing operations and no longer exist as projects.
224. Four formal types of project endings exist that you might need to know for the exam:
     o Addition
     o Starvation
     o Integration
     o Extinction
225. For the exam, remember that product verification performed during the Closing processes
     determines whether all of the work of the project was completed correctly according to the
     contract terms and satisfactorily according to stakeholder expectations, whereas product
     documentation is verified and accepted during the Scope Verification process. One more
     note: when projects end prematurely, the Scope Verification process is where the level of
     detail concerning the amount of work completed gets documented.
226. Contract documentation is an input to both the Close Project and Contract Closure processes
227. Note PMI defines “Scope Statement” as the basis for making future project decisions and for confirming or developing common understanding of project scope among project
     stakeholders.
228. Scope Verification
     o Verified work results
229. Perform Quality Control
     o Assured quality requirements were met
230. Close Project
     o Product verification (work was correct and satisfactory)
     o Collecting project documents
     o Disseminating final acceptance notice
     o Documenting lessons learned
     o Archiving project records
231. Contract Closure
     o Product verification (work was correct and satisfactory)
     o Formal acceptance and closure
232. WBS element changes are scope changes. Schedule revisions are often required as a result of scope changes.
233. Close Project and Contract Closure are the processes in the Closing process group and are
     performed in that order
234. The work performance information is reviewed to determine the status of project activities
     and make certain the project goals and objectives are met. This is an input to the Close
     Project process
235. According to the PMBOK Guide, the procurement audit examines the procurement process
     from Procurement Planning through Contract Administration
236. Integrity means adhering to an ethical standard
237. Hammocks are summary-level activities or aggregate activities shown as a summary activity on a project schedule network diagram.
238. Contract Negotiation has “5’ Sequential steps (Note Agreement is AFTER Closure)
     o Protocol
     o Probing
     o Scratch Bargaining
     o Closure and
     o Agreement
239. The Primary Objective of establishing a Quality Assurance Process is “For Quality
     Improvement”
240. “Quality Function Deployment Process” identifies what the customer’s needs are
     (Spoken/unspoken words) and translates those needs into technical requirements. Appropriate for each stage of the product development life cycle
241. Decision Tree is a diagram that describes a decision under consideration and the implications of choosing one of the alternatives
242. The Project Charter provides the
     o high level requirements,
     o constraints,
     o assumptions,
     o stakeholders and
     o the measures of success.
243. Based on this information, or the lack of it, the Charter is an excellent source to start to
     identify the Project Risks
244. 9 ‘bilities’ (A MAP FOR US)
     Maintainability: The ability of a unit to be restored within a specified time to its
     performance capability under the environmental operating conditions within a
     specified, average period of time
     Usability: is the ability of a product to perform its intended function for the specified
     user under the prescribed conditions
     Reliability: is the degree to which a unit of equipment performs its intended function
     under specific conditions for specified period of time
     Availability: is the probability of the product being capable of performing a required
     function when called upon
     
245. Activity Resource Estimating involves determining what physical resources (People,
     Equipment, etc) and what quantities should be used and when they would be needed to
     perform project activities
246. Physical limitations are an attribute of “Mandatory Dependencies”
     
247. A Project Phase is “Marked by the completion of one or more deliverables”
248. A “Product Description” should define the relationship between the product that is being
     created and the business need
249. Contingency Plans can be best described as “Planned responses to Risk Events”
250. Staff assignments and resource availability are the outputs of “Acquire the Project Team”
     Process
251. Complex and large projects would be more effectively managed in “Strong” and ‘Projectized” Structure
252. If Changes are well defined, its Fixed Price Contract but if they are not then its T & M
253. Contract Management Plan is an OUTPUT to “Select Seller Process”
254. Punitive Damages are the damages intended to punish the wrong doer
255. “Utility Theory” considers the pains or tolerance level a stakeholder has to risk
256. There are three key components to a Risk
     o Risk Event (The Event)
     o Probability of the Event
     o Impact or Effects of the Event (Amount at Stake)
257. Delhi technique is a “Consensus Technique”
258. Residual Risk are those that “Remain” after Risk Responses have been taken
259. Inputs to Performance Reporting are
     o Work Performance Information
     o Performance Measurements
     o Forecasted Completion
     o QC Measurement
     o Project Plan
     o Approved Change Requests and
     o Deliverables
260. Interpersonal communication takes three forms
     o Verbal
     o Non-verbal and
     o Written
261. When distributing information, the total message impact from the sender is
1. 7% words ,
2. 38% vocal tones and
3. 55% body language
262. A ‘Planning Package” is a WBS component below the control account but above the work
     package. It is used for planning unknown work content that does not have detailed schedule activities
263. There are two types of “Decision Models” that can be used for Project Selection during the initiation Process
     o Comparative (Benefit measurement Rating) Models
     o Constrained (Mathematical Decision Models)
264. Comparative (Benefit measurement Rating) Models
     o Decision Tree
     o Criteria Profiling
     o Weighted Factor
     o Q-Sorting
     o Delphi Technique
265. Constrained (Mathematical Decision Models)
     o Logical Framework Analysis
     o Linear Program Programming
266. The “Control Points” in the WBS used for isolated assignment to work centers are referred to as the “Control Account Plan”
267. Control account Plan (CAP) is a management control point where the integration of scope,
     budget and schedule take place and where the measurement of performance takes place.
     These CAPS are placed at the selected management points in the WBS.
268. Cost Estimates include All Resources to be charged to the Project
269. A Control Account is a management control point that can be placed at selected management points of the WBS above the Work Package Level
270. To convey information between two or more parties, the communication process must have a medium. The three most common media are
     o Visual
     o Auditory and
     o Tactile
271. Four steps of performing RCA (Root Cause Analysis) are
     o Data Collection
     o Casual Factor Charting
     o Root Cause Identification
     o Recommendation Generating and Implementation
272. Scatter Diagrams are used to investigate the possible relationship between two variables that both relate to the same “EVENT”
273. BCR (Benefit Cost Ratio) compares the benefits to the costs of the project where the Benefits are the same as Revenues or often referred to as the “Payback period”
274. Project performance is impacted by Four Basic Cultures
     o World
     o National
     o Business and
     o Leadership
275. When one considers their Culture to be superior, they are called “Ethnocentric”
276. Use of personal space during social interaction is known as “Proxemics”
277. Risk is the notion of dealing with “Uncertainty”
     o Knows at the extreme end of the Uncertainty Spectrum will definitely affect you,
     although you have no control over them
     o Knows-Unknowns are items that will affect you although you are not able to predict
     how or how much they will effect you
     o Unknown – Unknowns are items or situations whose existence we cannot imagine
     (Who knows?)
278. A Records Management Systems is a specific set of processes, related control functions and automation tools used by the PM to manage contract documentation and records. Its the TT of Contract Administration Process
279. Parametric (Top – Down) uses historical data and statistical relationships to determine costs
280. Constructive team roles include Initiators, Information seekers, Information givers,
     Encouragers, Clarifiers, Harmonizers, Summarizers and Gate Keepers
281. Destructive team roles include Aggressor, Withdrawer, Blocker, Devil’s advocate, Recognizer, Topic Jumper and Dominator
282. “To Complete Performance Indicator” (TCPI) determines the cost performance efficiency
     required to complete the project within the original budget (BAC) or revised budget (EAC);
283. TCPI > 1 is NOT good; To calculate TCPI, take the value of the work remaining over the value of funds remaining
284. “Eustress” is a stress that will motivate and contribute to an increase in performance
285. Quantitative based durations (Parametric technique) multiply a known element, like lines of code required by the time it takes to develop one line of code. The result is the total estimate for the activity
286. Quality Metrics are the Outputs of Quality Planning. It is an operation definition that describes “what” something is and “how” it will be measured in very specific terms
287. Straight-line depreciation is the simplest method of depreciating an asset and is frequently utilized on a project to determine its economic feasibility. Straight-line depreciation is a method that divides an asset’s cost and its expected salvage value by its expected utilization period
288. Performance Reporting is an INPUT to all “Control” Process (Except Quality Control)
289. Decision Trees are considered Quantitative while Influence diagram are considered
     Qualitative.
290. Influence diagram shows the dependencies among the variables more clearly than the
     decision tree
291. A “Bill of Material” (BOM) describes the product in terms of its assemblies, sub-assemblies
     and basic parts
292. Allowing “Automatic Approval” of changes is a function of the Change Control System and
     NOT Configuration Management
293. Contingency Plan document outlines the actions to be taken if an identified risk event should occur
294. Variable and attribute sampling are forms of acceptance sampling.
     Variable sampling evaluates a characteristic measured on a numerical scale
     Attribute sampling tests for defective or non defective
295. Parametric Modeling applies to only Project with Similar characteristics
296. The point of total assumption (PTA) is a price determined by a fixed price plus incentive fee contract (FPIF) above which the seller bears all the loss of a cost overrun. It is also known as the "most pessimistic cost
297. Variance analysis involves comparing actual project results to planned or expected results
298. Trend analysis involves examining project results over time to determine if performance is
     improving