PMI Exam Study Notes

TABLE OF CONTENTS
Buyer(Give Order )----PO------------ Seller ............................................................................................................................8 Seller ----Invoice------ Buyer (Pay order)................................................................................................................................8 Contract administration also has a financial management com onent. Payment terms should !e defined "ithin the contract and must involve a s ecific lin#age !et"een seller rogress made and seller com ensation aid...........................................8 .....................................................................................................................................................................................................8 P$O%&C' ()*)G&(&*' +*O,-&.G& )$&)S.................................................................................................................../ P$O%&C' -I0& C1C-& 2 P$O%&C' ()*)G&(&*' P$OC&SS G$O3PS ........................................................................45 SCOP&........................................................................................................................................................................................46 73()* $&SO3$C&.................................................................................................................................................................48 CO((3*IC)'IO*S.................................................................................................................................................................49 'I(&...........................................................................................................................................................................................48 COS'...........................................................................................................................................................................................4/ $IS+............................................................................................................................................................................................:4 ;3)-I'1....................................................................................................................................................................................:: P$OC3$&(&*'.......................................................................................................................................................................:5 I*'&G$)'IO*...........................................................................................................................................................................:9 P$O0&SSIO*)- $&SPO*SIBI-I'I&S.....................................................................................................................................:9 POSSIBLE EXAM QUESTIONS..............................................................................................................................................27

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PMI Exam Study Notes Projects

Opera tio n s and project s differ primarily in that oper a tion s are ongoing and repe titive while project s are te m p o r a r y and uniqu e .

Progressive Elaboration
Progressively me a n s proce e di n g in step s; continuing ste a dily by incre m e n t s , while elaborated me a n s worke d out with care and det ail; dev elop e d thorou g hly Project management is the application of knowled g e , skills, tools, and tech niq u e s to project activities to me e t project require m e n t s . Proj e c t Int e g r a t i o n Man a g e m e n t various ele m e n t s of the project are prop e rly coordin a t e d . Proj e c t Sc o p e Man a g e m e n t - include s all the work require d , to comple t e the project succ e s sf ully. Proj e c t Tim e Man a g e m e n t - ens ur e timely comple tio n of the project. Proj e c t Cos t Man a g e m e n t comple t e d within the approv e d budg e t . Proj e c t Qualit y Man a g e m e n t project will satisfy the nee d s for which it was und er t a k e n Proj e c t Hum a n Re s o u r c e Man a g e m e n t to mak e the most effective use of the people involved with the project. Proj e c t Com m u n i c a t i o n s Man a g e m e n t to ens ur e timely and appro pria t e gen e r a tio n, collection, disse mi n a tio n, stor a g e , and ultima t e dispo sition of project inform a tion. Proj e c t Risk Man a g e m e n t identifying, an aly!ing, and respo n din g to project risk. Proj e c t Proc ur e m e n t Man a g e m e n t to acquire goods and service s from outsid e the perfor min g orga ni! a tion. Organi! atio n s perfor min g projects will usu ally divide each project into sev er al project phases to improv e ma n a g e m e n t control "ollectively, the project pha s e s are known as the project life cycle . #ach project pha s e is mark e d by comple tion of one or more deliver a bl e s . $ deliverable is a tan gible, verifiable work product %he conclusion of a project phas e is gen e r ally mark e d by a review of both key deliver a bl e s and project perfor m a n c e to dat e, to a& det er mi n e if the project should continu e into its ne't pha s e and b& det e c t and correc t errors cost effectively. %hes e pha s e end reviews are often called phase exits , stage gates , or kill points . (ractice of overla p pin g pha s e s is often called fast tracking . "ost and staffing levels are low at the start, higher toward the end, and drop rapidly as the project draws to a conclusion. %he prob a bility of succ e s sf ul comple tio n gen er ally gets progr e s siv ely higher as the project continu e s . %he ability of the stak e h old e r s to influenc e the final char a c t e ristics of the project)s product and the final cost of the project is highe s t at the start and gets progr e s siv ely lower as the project continu e s . *ey stak e h old e r s + pm, custo m e r ,buy-u s e &, or g, tea m . spon s or, p a y s & /n gen e r al, differen c e s betw e e n or amo n g stak e h old e r s should be resolve d in favor of the custo m e r . %he classic functional organization is a hierarc h y wher e each employe e has one clear sup e rior.
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PMI Exam Study Notes

0anaging is primarily conc er n e d with consist e n tly produ cing key results e'p ec t e d by stak e h old e r s , 1eading #stablishing direction vision of the futur e and strat e gi e s , $ligning people to vision, 0otivating and inspiring Problem definition require s disting uis hin g betw e e n caus e s and symp t o m s . (roble m s may be intern al ,a key employe e is rea s sig n e d to anot h e r project& or e'ter n al ,a per mit require d to begin work is delaye d &. (roble m s may be tech nic al ,differe nc e s of opinion abou t the best way to design a produc t&, ma n a g e ri al ,a function al group is not producing accordin g to plan&, or interp e r s o n al ,perso n ality or style clash e s &. $ standard is a docu m e n t approv e d by a recog ni!e d body, that provide s, for com m o n and repe a t e d use, rules, guidelin e s, or char a c t e ristics for produc t s , proce s s e s or service s with which co m p l i a n c e is not ma n d a t o r y . $ regulation is a docu m e n t , which lays down produc t, proc e s s or service char a c t e ris tics, including the applicabl e ad ministr a tiv e provisions, with which co m p li a n c e is ma n d a t o r y . $ process is a series of actions bringing abou t a result

PROCESS GROUPS
/nitiating proce s s e s2 a u t h o ri!ing the project or pha s e . (lanning proc e s s e s 2 d efining and refining objective s and selecting the best of the altern a tiv e cours e s of action to attain the objective s #'ecutin g proce s s e s 2c o o r din a tin g people and oth er resourc e s "ontrolling proc e s s e s 2 e n s u rin g that project objective s are met by monitoring and me a s u rin g progr e s s "losing proce s s e s2for m ali!ing acc e p t a n c e of the project or pha s e Core processes - perfor m e d in sa m e order . may be itera t e d sever al time s during any one pha s e facilitating processes- perfor m e d inter mitt e n tly and as ne e d e d during project planning, they are not option al.

3cop e Constraints. $ constr ain t is an applica ble restriction that will affect the perfor m a n c e of the project. 4or e'a m pl e , a pred efin e d budg e t is a constr ain t Assumptions. $ssu m p tio n s are factors that, for plannin g purpo s e s , are consid er e d to be true, real, or cert ain. (( (roject chart e r., 3cop e stat e m e n t , 563,"os t #stima t e , (erf 6aseline, 0ilesto m e s , 3taff, "ost, 7isk 0(,,8 all plans&,iss u e s (roject chart e r is a docu m e n t that formally authori!e s a project. ,busin e s s nee d , produc t description , issue d by a ma n a g e r e't er n al to the pro ject . provide s the project ma n a g e r with the auth ority to apply orga ni! a tion al resourc e s to project& 3cop e stat e m e n t (roject justification , produ ct , (roject deliver a bl e s , (roject objective s& 5.1 Initiation authorizing the project or phase. 5.2 Scope Planning developing a written scope statement as the basis for future

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PMI Exam Study Notes

project decisions. 5.3 Scope Definition subdividing the major project deliverables into smaller, more manageable components. 5. Scope !erification formalizing acceptance of the project scope. 5.5 Scope C"ange Control controlling changes to project scope. Decomposition ( 1 st level Project phases, nd level Deliverables (!rea" down till cost estimates can be done,verif# decomp correctness$ $ lowest level of the 563 may be referr e d to as work

package work not in the 563 is outsid e the scop e of the project.

5ork comp o n e n t description s are often collect e d in a WB dictionary . $ 563 diction ar y will typically include work pack a g e description s, as well as other plannin g inform a tion such as sch e d ul e dat e s , cost budg e t s , and staff assign m e n t s .

/nspectio n s are variously called reviews, produ ct reviews, audits, and walkthrou g h s
TIME

0and a t or y dep e n d e n ci e s ,(hysic al &are also called hard logic . 9iscretion a r y dep e n d e n ci e s ,9efined by (0 %ea m& may also be called preferred logic , preferential logic , or soft logic . finish to start is the mos t com m o nly use d type of logical relation s hip. 3tart to finish relation s hip s are rarely use d,
(90,$O:& ;3 $90 ,$O$&

Project network diagrams. (roject network diagr a m s are sche m a t ic displays of the project)s activities and the logical relation s hip s ,dep e n d e n ci e s & amo n g the m . $nalogo u s esti m a tin g, also called top-down estimating , 3che d ul e develop m e n t me a n s det er mi nin g start and finish dat e s for project activities. %ime constr ain t s /mpos e d dat e s . major milesto n e s %ime + 3che d ul e 9ev Mathematical analysis. %ools Coding structure. activities must have differen t attribu t e s , as respo n sibility, geogr a p hic are a , < =sed for sorting & "ritical (ath 0ethod ,"(0& ,01& 2calculat e s start and finish dat e for eac h activity . float >raphic al #valuation and 7eview %echniq u e ,>#7%&2allows for prob a bilistic tre a t m e n t of both network logic and activity duration estim a t e s (rogr a m #valuation and 7eview %echniq u e ,(#7%& ,O8 ?01 8(- @&2us e s a weight e d aver a g e dura tion esti m a t e to calculat e activity duration s . "ritical chain is a tech niq u e that modifies the project sch e d ul e to accou n t for limited resourc e s .

"ost #.1 Reso$rce Planning determining what resources (people, e&uipment, materials$ and what &uantities of each should be used to perform project activities. #.2 Cost Esti%ating developing an appro'imation (estimate$ of the costs of the

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PMI Exam Study Notes

resources needed to complete project activities. #.3 Cost &$'geting allocating the overall cost estimate to individual wor" activities. #. Cost Control controlling changes to the project budget.

$ chart of accou n t s describ e s the coding struct ur e use d by the perfor min g orga ni! a tion to report financial inform a tion in its gen er al ledg e r. $nalogo u s esti m a tin g, also called top-down estimating , me a n s using the actu al cost of a previous, similar project (ara m e t ric mod eling ma t h e m a t i c al mod el to predict project costs per squ ar e foot of living spac e Bottom- up estimating. ( the cost of individu al activities or work packa g e s Cost baseline. %he cost bas elin e is a time pha s e d budg e t that will be use d to me a s u r e and monitor cost perfor m a n c e on the project.
)*+

Original estim a tin g ass u m p tio n s were funda m e n t a lly flawed, or that they are no long er releva n t to a chan g e in conditions. 4ormulaA #$" B $" 8 #%". "urre nt varianc e s are se e n as atypic al and the project ma n a g e m e n t tea m e'p e c t a tio n s are that similar varianc e s will not occur in the future. 4ormulaA #$" B $" 8 6$" + #;. 5hen curre n t varianc e s are see n as typical of future varianc e s . 4ormulaA #$" B $" 8 ,,6$" + #;&-"(/&

Cuality low grad e ,a limited num b e r of featur e s& low quality ,man y bugs&

quality is plann e d in, not insp ec t e d in. 9esign of e'p eri m e n t s is a statistical met h o d that helps identify which factors might influenc e specific variable s "ost of quality B all work to ens ur e confor m a n c e to require m e n t s 8 nonconfor m a n c e to require m e n t s . Opera tio n al definitions are also called metrics (rev e n tio n ,keeping errors out of the proce s s& and inspe c tion ,keeping errors out of the hand s of the custo m e r &. %olera nc e s ,the result is acc e p t a bl e if it falls within the rang e specified by the tolera n c e & and control limits ,the proce s s is in control if the result falls within the control limits&. /nspectio n s are variously called reviews , product reviews , audits , and walkthroughs ; %he proc e s s may be changed to provide improv e m e n t s , but it should not be adjust e d when it is in control. "ontrol chart + =1,11 (aret o 9ia + Distogr a m , order e d freq of occer e n t , take corrective actin . EF prob-G F caus e s tatistical sampling. 3tatistic al sa m pling involves choosin g part of a popula tion of inter e s t for inspe c tion %rend analysis involves using mat h e m a t i c al tech niq u e s to forec a s t future outco m e s bas e d on historical results.
D7

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PMI Exam Study Notes

(roject /nterfac e s , Org,%ech . /nterp e r o s o n a l &

(roject roles ,who doe s what& and resp o n sibilities ,who decide s what&

"om m u ni c a ti o n Co%%$nications Planning determining the information and communications needs of the sta"eholders, who needs what information, when the# will need it, and how it will be given to them. 1(.2 Infor%ation Distrib$tion ma"ing needed information available to project sta"eholders in a timel# manner. 1(.3 Perfor%ance Reporting collecting and disseminating performance information.%his includes status reporting, progress measurement, and forecasting. 1(. )'%inistr a tiv e Clos$re *Inte rn al+ ,gener a ti n g - gat" e ri n g - an' 'isse %i n a ti n g infor % a ti o n to for% ali.e a p"ase or pro/ect co%ple ti o n . Contra c t Close o $ t ,co%ple ti o n an' settle % e n t of t"e contr a c t - incl$'ing resol$tio n of an0 open ite%s.

,#'tern al & "om m o n forma t s for perfor m a n c e report s includ e bar chart s ,also called >antt charts&, 3 curve s, histogr a m s , and table s.

7isk Ris1 2anage%ent Planning deciding how to approach and plan the ris" management activities for a project. 11.2 Ris1 I'entification determining which ris"s might affect the project and documenting their characteristics. 11.3 3$alitative Ris1 )nal0sis performing a &ualitative anal#sis of ris"s and conditions to prioritize their effects on project objectives. 11. 3$antitative Ris1 )nal0sis measuring the probabilit# and conse&uences of ris"s and estimating their implications for project objectives. 11.5 Ris1 Response Planning developing procedures and techni&ues to enhance opportunities and reduce threats to the project-s objectives. 11.4 Ris1 2onitoring an' Control monitoring residual ris"s, identif#ing new ris"s, e'ecuting ris" reduction plans, and evaluating their effectiveness throughout the project life c#cle.

(roject risk is an uncert ain even t or condition that, if it occurs, has a positive or a neg a tiv e effect on a project objective. $ risk has a caus e and, if it occurs, a cons e q u e n c e . Planning meetings. $ttend e e s project ma n a g e r , the project tea m lead er s, anyo n e in the orga ni! a tion with respo n sibility to ma n a g e the risk planning and e'ec u tion activities, key stak e h old e r s , 7isk identification is an iterative proce s s . ,Hust like core proce s s& !orkaround plans. 5orkaro u n d s are unpla n n e d respo n s e s to em e r gin g risks that were previously unide n tified or acce p t e d . "isk database. $ repository that provid e s for collection, maint e n a n c e , and an alysis of dat a gath e r e d and used in the risk ma n a g e m e n t proce s s e s . =se of this dat a b a s e will assist risk ma n a g e m e n t throug h o u t the orga ni! a tion and, over

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PMI Exam Study Notes

time, form the basis of a risk lesso n s learn e d progr a m .

(rocur e m e n t 12.1 Proc$re%ent Planning determining what to procure and when. *lso procuring produc t s or

service s from outsid e the project orga ni! a tion

12.2 Solicitation Planning documenting product re&uirements and identif#ing potential sources. 12.3 Solicitation obtaining &uotations, bids, offers, or proposals, as appropriate. 12. So$rce Selection choosing from among potential sellers. 12.5 Contract )'%inistration managing the relationship with the seller. 12.4 Contract Closeo$t completion and settlement of the contract, including resolution of an# open items.

5hen the project obtains product s and service s ,project scop e& from outsid e the perfor min g orga ni! a tion, the proce s s e s from solicitation plannin g ,3ection IG.G& throug h contr a c t closeo u t ,3ection IG.@& would be perfor m e d once for eac h produc t or service ite m. 9irect costs are costs incurre d for the e'clusive ben efit of the project ,e.g., salaries of full time project staff&. /ndirect costs, also called overh e a d costs, are costs allocat e d to the project by the perfor min g orga ni! a tion as a cost of doing busin e s s ,e.g., salaries of corpor a t e e'ec u tiv e s&. tatement of !bjectives - for proble m to be solved. Proposal - tech nic al appro a c h bid and "uotation price "om m o n na m e s for differe n t type s of procur e m e n t docu m e n t s includ eA /nvitation for 6id ,/46&, 7equ e s t for (ropos al ,74(&, 7equ e s t for Cuot a tion ,74C&, /nvitation for :egotiation, and "ontr ac t or /nitial 7espo n s e . a contract , an agreement ,a subcontract , a purchase order , or a memorandum of understanding .

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PMI Exam Study Notes

Buyer(Give Order )----PO------------ Seller Seller ----Invoice------ Buyer (Pay order) Contract administration also has a financial management component. Payment terms should e defined !ithin the contract and must involve a specific lin"age et!een seller progress made and seller compensation paid.

"ontra ct closeo u t is similar to ad ministr a tiv e closur e ,describ e d in 3ection IF.?& in that it involves both produ ct verification ,5as all work comple t e d correctly and satisfactorilyJ& $dministr a tiv e closeo u t ,upd a tin g of record s to reflect final results and archiving of such inform a tio n for futur e use&. Contract #ile. $ comple t e set of inde' e d record s should be prep a r e d for inclusion with the final project record s 5hen (7Hs involve significan t procur e m e n t , particular att e n tio n mu st be paid to archiving of financial record s.

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PMI Exam Study Notes

P#O$%C& '()(G%'%)& *)O+,%-G% (#%(S *no!ledge (reas

I)&%G#(&IO)
Project Plan Development

'a.or Processes
Create a consistent co!erent "oc#ment t!at can $e #se" to %#i"e project e&ec#tion an" project control

Primary Inputs
Ot!er plannin% o#tp#ts 'istorical in(ormation Or%ani)ation policies Constraints Ass#mptions Project plan S#pportin% "etail Or%ani)ational policies Preventive action Corrective action

&ools / &echni0ues
Proj plannin% met!o"olo%* Sta+e!ol"er s+ills , +no-le"%e Proj m%t in(o s*stem Earne" .al#e M%t /E.M0 2eneral m%t s+ills Pro"t s+ills , +no-le"%e 3or+ a#t!ori)ation s*st4m Stat#s revie- meetin%s Proj m%t in(o s*stem Or%ani)ational proce"#res C!an%e control s*stem Con(i%#ration m%t Per(ormance meas#res A""itional plannin% Proj m%t in(o s*stem

Primary Outputs
Project plan S#pportin% "etail

Project Plan E&ec#tion

Primar* process (or carr*in% o#t t!e project plan1 Most o( t!e $#"%et -ill $e e&pen"e" on t!is process1 It is t!e process most "irectl* a((ecte" $* t!e project application area1

3or+ res#lts C!an%e re5#ests

Inte%rate" C!an%e Control

It ens#res t!at c!an%es are a%ree" #pon "eterminin% t!at a c!an%e !as occ#rre" an" mana%in% t!e act#al c!an%e1

Project plan Per(ormance reports C!an%e re5#ests

Project plan #p"ates Corrective action Lessons learne"

SCOP%
Initiation

I Pack Dynamite Ve y !a"tio"s#y $ %IPDV!&

Committin% t!e or%ani)ation to $e%in t!e ne&t p!ase T!e process o( pro%ressivel* ela$oratin% an" "oc#mentin% t!e project -or+ t!at pro"#ces t!e pro"#ct o( t!e project1 S#$"ivi"in% t!e major project "elivera$les into smaller more mana%ea$le components Formali)in% acceptance o( t!e scope $* t!e sta+e!ol"ers7 revie-in% pro"#cts (or completion at en" o( project Processes t!at in(l#ence t!e (actors t!at create scope c!an%es "etermine t!at scope c!an%e !as occ#rre" an" mana%in% t!e c!an%es1

Scope Plannin%

Scope De(inition

Scope .eri(ication

Scope C!an%e Control

Pro"#ct "escription Strate%ic plan Project selection criteria 'istorical in(ormation Pro"#ct "escription Project c!arter Constraints Ass#mptions Scope statement Constraints Ass#mptions Ot!er plannin% o#tp#ts 'istorical in(ormation 3or+ res#lts Pro"#ct "oc#mentation 3or+ $rea+"o-n str#ct#re Scope statement Project plan 3or+ $rea+"o-n str#ct#re Per(ormance reports C!an%e re5#ests Scope mana%ement plan

Project selection mt"s E&pert j#"%ment Pro"#ct anal*ses Bene(it6cost anal*sis Alternatives i"enti(ication E&pert j#"%ment 3or+ $rea+"o-n str#ct#re templates Decomposition Inspection

Project c!arter Project M%r assi%ne" Constraints Ass#mptions Scope statement S#pportin% "etail Scope Mana%ement Plan 3or+ Brea+"o-n Str#ct#re Scope statement #p"ates Formal Acceptance

Scope c!an%e control s*stem Per(ormance meas#rement A""itional plannin%

Scope c!an%es Corrective action Lessons learne" A"j#ste" $aseline

&I'%

Activit* De(inition

I"enti(*in% t!e speci(ic activities t!at m#st $e per(orme" to pro"#ce t!e project "elivera$les

D'DD!

Activit* Se5#encin%

I"enti(*in% an" "oc#mentin% interactivit* lo%ical relations!ips

Activit* D#ration Estimatin%

Estimatin% t!e n#m$er o( -or+ perio"s -!ic! -ill $e nee"e"

3or+ $rea+"o-n str#ct#re Scope statement 'istorical in(ormation Constraints Ass#mptions E&pert j#"%ement Activit* list Pro"#ct "escription Man"ator* "epen"encies Discretionar* "epen"encies E&ternal "epen"encies Milestones Activit* list Constraints Ass#mptions 8eso#rce re5#irements 8eso#rce capa$ilities 'istorical in(ormation I"enti(ie" ris+s

Decomposition Templates

Activit* List S#pplemental "etail 3or+ $rea+"o-n str#ct#re #p"ates Project Net-or+ "ia%ram Activit* list #p"ates

PDM ADM Con"itional "ia%rammin% met!o"s Net-or+ templates E&pert j#"%ment Analo%o#s estimatin% 9#antitativel* $ase" "#rations 8eserve time /contin%enc*0

Activit* D#ration estimates Basis o( estimates Activit* list #p"ates

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PMI Exam Study Notes

Sc!e"#le Development Determines t!e start an" (inis! "ates (or project activities Project net-or+ "ia%ram Activit* "#ration estimates 8eso#rce re5#irements 8eso#rce pool "escriptions Calen"ars Corrective actions 3BS Constraints Ass#mptions Lea"s an" la%s 8is+ mana%ement plan Activit* attri$#tes Project sc!e"#le Per(ormance reports C!an%e re5#ests Sc!e"#le mana%ement plan Mat!ematical anal*sis D#ration compression Sim#lation 8eso#rce levelin% !e#ristics Proj m%t so(t-are Co"in% str#ct#re Project sc!e"#le S#pportin% "etail Sc!e"#le Mana%ement Plan 8eso#rce re5#irement #p"ates

Sc!e"#le Control

T!is process in(l#ences (actors t!at create sc!e"#le c!an%es "etermines t!at sc!e"#le c!an%es !ave occ#rre" an" mana%es t!e c!an%es in t!e project sc!e"#le

Sc!e"#le c!an%e control s*stem Per(ormance meas#remt A""itional plannin% Proj m%t so(t-are .ariance anal*sis

Sc!e"#le #p"ates Corrective action Lessons learne"

COS&
8eso#rce Plannin%

)Pepsi %P*+!&)
Determinin% -!at reso#rces an" -!at 5#antities o( eac! s!o#l" $e #se" 3or+ $rea+"o-n str#ct#re 'istorical in(ormation Scope statement 8eso#rce pool "escritions Or%ani)ational policies Activit* "#ration estimates 3or+ $rea+"o-n str#ct#re 8eso#rce re5#irements 8eso#rce rates Activit* "#ration estimates Estimatin% p#$lications 'istorical in(ormation C!art o( acco#nts 8is+ Cost estimates 3or+ $rea+"o-n str#ct#re Project sc!e"#le 8is+ mana%ement plan Cost $aseline Per(ormance reports C!an%e re5#ests Cost mana%ement plan E&pert j#"%ment Alternatives i"enti(ication Proj m%t so(t-are 8eso#rce 8e5#irements /list and #n"erstan"in%0

Cost Estimatin%

Developin% an estimate o( t!e costs o( t!e reso#rces nee"

Analo%o#s estimatin% Parametric mo"elin% Bottom #p estimatin% Comp#teri)e" tools Ot!er cost estimatin% met!o"s Cost $#"%etin% tools an" tec!ni5#es Cost c!an%e control s*stem Per(ormance meas#remt Earne" .al#e M%t /E.M0 A""itional plannin% Comp#teri)e" tools

Cost estimates S#pportin% "etail Cost mana%ement plan

Cost B#"%etin%

Allocatin% t!e overall cost estimate to in"ivi"#al -or+ pac+a%es to esta$lis! a $aseline (or meas#rin% project per(ormance Process (or in(l#encin% (actors t!at create c!an%es to t!e costs $aseline "eterminin% t!at t!e cost $aseline !as c!an%es an" mana%in% t!e c!an%es to t!e project $#"%et

Cost $aseline

Cost Control

8evise" cost estimates Estimate at Completion B#"%et #p"ates Corrective action Project closeo#t Lessons learne"

#IS*
8is+ Mana%ement Plannin%

It,s isky to -a.e an I/ in D!0

Deci"in% !o- to approac! an" plan ris+ mana%ement activities1 Project c!arter Or%ani)ation4s ris+ mana%ement policies De(ine" roles , responsi$ilities Sta+e!ol"er ris+ tolerances Template (or t!e or%ani)ation4s ris+ mana%ement plan 3or+ $rea+"o-n str#ct#re 8is+ mana%ement plan Project plannin% o#tp#ts 8is+ cate%ories 'istorical in(ormation 8is+ mana%ement plan I"enti(ie" ris+s Project stat#s Project t*pe Data precision Scales o( pro$a$ilit* an" impact Ass#mptions Plannin% meetin%s 8is+ mana%ement plan

8is+ I"enti(ication

Determinin% -!ic! ris+s are li+el* to a((ect t!e project , "oc#mentin% t!eir c!aracteristics Assessin% t!e impact an" li+eli!oo" o( i"enti(ie" ris+s1

9#alitative 8is+ Anal*sis

Doc#mentation revie-s In(o:%at!erin% tec!ni5#es C!ec+lists Ass#mptions anal*sis Dia%rammin% tec!ni5#es 8is+ pro$a$ilit* , impact Pro$a$ilit*6impact ris+ ratin% matri& Project ass#mptions testin% Data precision ran+in%

8is+ Tri%%ers Inp#ts to ot!er processes Overall ris+ ran+in% (or t!e project List o( prioriti)e" ris+s List o( ris+s (or a""itional anal*sis an" mana%ement Tren"s in 5#alitative ris+ anal*sis res#lts

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PMI Exam Study Notes

9#antitative 8is+ Anal*sis A process t!at anal*)es n#mericall* t!e pro$a$ilit* o( eac! ris+ an" its conse5#ence on project o$jectives 8is+ mana%ement plan I"enti(ie" ris+s List o( prioriti)e" ris+ List o( ris+ (or a""itional anal*sis , mana%ement 'istorical in(ormation E&pert j#"%ment Ot!er plannin% o#tp#ts 8is+ mana%ement plan List o( prioriti)e" ris+s 8is+ ran+in% o( t!e project Prioriti)e" list o( 5#anti(ie" ris+s Pro$a$ilistic anal*sis o( t!e project List o( potential responses 8is+ t!res!ol"s 8is+ o-ners Common ris+ ca#ses Tren"s in 5#alitative , 5#antitative ris+ anal*sis res#lts 8is+ mana%ement plan 8is+ response plan Project comm#nication A""itional ris+ i"enti(ication , anal*sis Scope c!an%es Intervie-in% Sensitivit* anal*sis Decision tree anal*sis Sim#lation Prioriti)e" list o( 5#anti(ie" ris+s Pro$a$ilistic anal*sis o( t!e project Pro$a$ilit* o( ac!ievin% t!e cost , time o$jectives Tren"s in 5#antitative ris+ anal*sis res#lts 8is+ response plan 8esi"#al ris+s Secon"ar* ris+s Contract#al a%reements Contin%enc* reserve amo#nts nee"e" Inp#ts to ot!er processes Inp#ts to a revise" plan

8is+ 8esponse Plannin%

Developin% options , "eterminin% actions to en!ance opport#nities to re"#ce t!reats to project o$jectives

Avoi"ance Trans(erence Miti%ation Acceptance

8is+ Monitorin% , Control

Trac+in% i"enti(ie" ris+ monitorin% resi"#al ris+s an" i"enti(*in% ne- ris+ ens#rin% t!e e&ec#tion o( ris+ plans an" eval#atin% t!e e((ectiveness in re"#cin% ris+1

Project ris+ response a#"its Perio"ic project ris+ revie-s Earne" val#e anal*sis Tec!nical per(ormance meas#rement A""itional ris+ response plannin%

Corrective Action 3or+aro#n" plans Project c!an%e re5#ests ;p"ates to t!e ris+ response plan 8is+ "ata$ase ;p"ates to ris+ i"enti(ication c!ec+lists

12(,I&3

9#alit* Plannin%

I"enti(*in% -!ic! 5#alit* stan"ar"s are relevant to t!e project an" "eterminin% !oto satis(* t!em1 T!e planne" an" s*stemic activities t!at provi"e con(i"ence t!at t!e project -ill satis(* all relevant 5#alit* stan"ar"s1 Monitorin% speci(ic project res#lts to "etermine i( t!e* compl* -it! relevant 5#alit* stan"ar"s an" i"enti(*in% -a*s to eliminate ca#ses1

3 P2!

9#alit* Ass#rance

9#alit* Control

9#alit* polic* Scope statement Pro"#ct "escription Stan"ar"s , re%#lations Ot!er process o#tp#ts 9#alit* mana%ement plan 8es#lts o( 5#alit* control meas#rements Operational "e(initions 3or+ res#lts 9#alit* mana%ement plan Operational "e(initions C!ec+lists

Bene(it6cost anal*sis Benc!mar+in% Flo-:c!artin% Desi%n o( e&periments Cost o( 5#alit* 9#alit* plannin% tools an" tec!ni5#es 9#alit* a#"its Inspection Control c!arts Pareto "ia%rams Statistical samplin% Flo-:c!artin% Tren" anal*sis

9#alit* mana%ement plan Operational "e(initions C!ec+lists Inp#ts to ot!er processes 9#alit* improvement

8e-or+ Acceptance "ecisions1 Complete" c!ec+lists1 9#alit* improvement Process a"j#stments

42'() #%SO2#C%

Or%ani)ational Plannin%

I"enti(*in% "oc#mentin% an" assi%nin% project r#les responsi$ilities an" reportin% relations!ips

P2D

Projects inter(aces Sta((in% re5#irements Constraints

Templates '#man reso#rce practices Or%ani)ational t!eor* Sta+e!ol"er anal*sis Ne%otiations Preassi%nment Proc#rement Team $#il"in% activities 2en m%t s+ills 8e-ar" , reco%nition s*s Colocation Trainin%

Sta(( Ac5#isition Team Development

2ettin% t!e !#man reso#rces nee"e" assi%ne" to an" -or+in% on t!e project Developin% an" en!ancin% in"ivi"#al an" %ro#p s+ills to en!ance project per(ormance

Sta((in% mana%ement plan Sta((in% pool "escription 8ecr#itment practices Project sta(( Project plan Sta((in% mana%ement plan Per(ormance reports E&ternal (ee"$ac+

8ole an" responsi$ilit* assi%nments1 Sta((in% mana%ement plan1 Or%ani)ational C!art1 S#pportin% "etail Project Sta(( assi%ne"1 Project team "irector*1 Per(ormance Improvements1 Inp#t to per(ormance appraisals

CO''2)IC(&IO)S

Comm#nications Plannin%

Determinin% t!e in(ormation an" comm#nications nee"s o( t!e sta+e!ol"ers

Comm#nication re5#irements Comm#nications tec!nolo%* Constraints Ass#mptions

Sta+e!ol"er anal*sis

Comm#nication m%mt plan

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PMI Exam Study Notes

In(ormation Distri$#tion Ma+in% nee"e" in(ormation availa$le to project sta+e!ol"ers in a timel* manner Collectin% an" "isseminatin% per(ormance in(ormation to ens#re project pro%ress 3or+ res#lts Comm#nication mana%ement plan Project plan Project plan 3or+ res#lts Ot!er project recor"s Comm#nication s+ills In(o retrieval s*stems In(o "istri$#tion met!o"s Per(ormance revie-s .ariance anal*sis Tren" anal*sis Earne" val#e anal*sis In(o "istri$#tion tools , tec!ni5#es Per(ormance reportin% tools , tec!ni5#es Project reports Project presentations Project recor"s Project reports Project presentations Per(ormance reports C!an%e re5#ests

Per(ormance 8eportin%

A"ministrative Clos#re

Doc#mentin% project res#lts to (ormali)e acceptance o( t!e pro"#ct $* t!e sponsor or c#stomer1

Per(ormance meas#rement "oc#mentation Pro"#ct "oc#mentation Ot!er project recor"s

Project arc!ives Formal acceptance Lessons learne"

P#OC2#%'%)&

Proc#rement Plannin%

Determinin% -!at to proc#re an" -!en %make o 3"y&

PP''2!

Solicitation Plannin%

Preparin% t!e "oc#ments nee"e" to s#pport solicitation O$tainin% 5#otations $i"s o((ers or proposals %ans4e 5"estions& Involves t!e receipt o( $i"s or proposals an" t!e application o( eval#ation criteria to select a provi"er Ens#rin% t!at t!e seller4s per(ormance meets contract#al re5#irements Pro"#ct veri(ication an" a"ministration closeo#t %finis-&

Solicitation So#rce Selection

Scope statement Pro"#ct "escription Proc#rement reso#rces Mar+et con"itions Ot!er plannin% inp#ts Constraints Ass#mptions Proc#rement mana%ement plan Statement/s0 o( -or+ Ot!er plannin% inp#ts Proc#rement "oc#ments 9#ali(ie" seller lists Proposals Eval#ation criteria Or%ani)ational policies Contract 3or+s res#lts C!an%e re5#ests Seller invoices Contract "oc#mentation

Ma+e or $#* anal*sis E&pert j#"%ment Contract t*pe selection

Proc#rement m%mt plan Statement/s0 o( 3or+

Stan"ar" (orms E&pert j#"%ment Bi""er con(erences A"vertisin% Contract ne%otiation 3ei%!tin% s*stem Screenin% s*stem In"epen"ent estimates Contract c!an%e control s*stem Per(ormance reportin% Pa*ment s*stem Proc#rement a#"its

Proc#rement "oc#ments Eval#ation criteria Statement o( -or+ #p"ates Proposals Contract

Contract A"ministration

Correspon"ence Contract C!an%es Pa*ment re5#ests Formal acceptance , clos#re Contract (ile

Contract Closeo#t

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PMI Exam Study Notes

P#O$%C& ,I5% C3C,% 6 P#O$%C& '()(G%'%)& P#OC%SS G#O2PS I)I&I(&IO) (Concept)

Select project Determine project o$jectives Determine !i%! level "elivera$les time , cost estimates Determine !i%! level constraints , ass#mptions Determine $#siness nee" Develop pro"#ct "escription De(ine responsi$ilities o( t!e project mana%er Determine !i%!:level reso#rce re5#irements Finali)e project c!arter

P,())I)G (-evelopment)
Create Scope Statement , scope mana%ement plan Determine project team Create 3BS Finali)e t!e team , create reso#rce mana%ement plan Create 3BS "ictionar* Create Net-or+ Dia%ram Estimate time , costs Determine Critical pat! Develop Sc!e"#le , sc!e"#le mana%ement plan Develop B#"%et

%7%C2&IO) (Implementation)
E&ec#te t!e project plan Mana%e project pro%ress Complete -or+ pac+a%es or tas+s Distri$#te in(ormation 9#alit* ass#rance Team "evelopment Pro%ress meetin%s

CO)&#O,
Inte%rate" c!an%e control Project per(ormance reportin% Per(ormance reportin% Scope c!an%e control 9#alit* control 8is+ monitorin% , control Sc!e"#le control Cost control Scope veri(ication Mana%e $* e&ception to t!e project plan Ens#re compliance -it! plans 8eassess plans Ta+e corrective action

C,OS%-O2& (&ermination) (5inishing)

Proc#rement a#"its Pro"#ct veri(ication Formal acceptance Lessons learne" ;p"ate recor"s Arc!ive recor"s 8elease reso#rces

Overall

In(l#encin% t!e or%ani)ation

Create Comm#nications Mana%ement Plan Create 9#alit* Mana%ement Plan 8is+ mana%ement plannin% i"enti(ication 5#ali(ication 5#anti(ication , response plannin% Create proc#rement mana%ement plan Create sta+e!ol"er mana%ement plan Create project control plan Develop (ormal project plan 2ain (ormal project plan approval 'ol" +ic+o(( meetin% Lea"in% Solvin% Ne%otiatin% pro$lems

Comm#nicatin%

'ol"in% meetin%s

Sta+e!ol"er mana%ement

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PMI Exam Study Notes

SCOP%
Pro.ect Scope 'anagement : processes re5#ire" to ens#re t!at t!e project incl#"es onl* t!e -or+ re5#ire" to complete t!e project s#ccess(#ll*1 'anagement y O .ective ('BO) < "eterminin% compan*4s o$jective an" !o- t!e project (its into t!em1 MBO (oc#ses on t!e %oals o( an activit* rat!er t!an t!e activit* itsel( /mana%er is responsi$le (or res#lts rat!er t!an per(ormin% certain activities0 Pro.ect Scope : t!e -or+ t!at m#st $e "one in or"er to "eliver a pro"#ct7 completion is meas#re" a%ainst t!e project p#an0 Product Scope : (eat#res an" (#nctions t!at are to $e incl#"e" in a pro"#ct7 completion is meas#re" a%ainst t!e e5"i ements0 -esign Scope < contain t!e "etaile" project re5#irements /#se" (or FP contract0 Scope -efinition < s#$"ivi"in% major project "elivera$les1 -ecomposing < s#$"ivi"in% project -or+ pac+a%es into smaller more mana%ea$le components /activities6action steps01 T!e !e#ristic /r#le o( t!#m$0 #se" in project "ecomposition is =0 !o#rs1 Scope 'anagement Plan : "escri$es !o- scope -ill $e mana%e" an" !o- c!an%es -ill $e inte%rate" into project7 also incl#"es assessment o( e&pecte" sta$ilit* o( project scope1 /e1%1 project mana%er -o#l" re(er to t!e Scope Mana%ement Plan to ma+e a c!an%e0 Sta"eholder 'anagement < t!e project mana%er m#st i"enti(* t!e sta+e!ol"ers "etermine t!eir nee"s an" e&pectations t!en mana%e an" in(l#ence e&pectations to ens#re project s#ccess1 Configuration 'anagement : a means o( monitorin% an" controllin% emer%in% project scope a%ainst t!e scope $aseline7 its p#rpose is to control c!an%e t!ro#%!o#t t!e project1 It is an* "oc#mente" proce"#res #se" to appl* tec!nical an" a"ministrative "irection an" s#rveillance to a#"it t!e items an" s*stem to veri(* con(ormance re5#irements1 1 It "oc#ments t!e p!*sical c!aracteristics o( (ormal project "oc#ments an" steps re5#ire" to control c!an%es to t!em /e1%1 -o#l" $e #se" $* a c#stomer -!o -is!es to e&pan" t!e project scope a(ter t!e per(ormance meas#rement $aseline !as $een esta$lis!e"01 3!en more t!an one in"ivi"#al !as si%n a Charter *o# !ave to $e concerne" -it! competin% nee"s an" re5#irements impactin% *o#r e((orts on con(i%#ration mana%ement +BS : s#$"ivi"in% project "elivera$les into smaller more mana%ea$le components1 It is a "elivera$le:oriente" %ro#pin% o( project elements t!at or%ani)es an" "e(ines t!e total scope o( t!e project1 It is a comm#nication tool an" it "escri$es -!at nee"s to $e "one an" -!at s+ills are re5#ire"1 An*t!in% missin% in t!e 3BS s!o#l" $e a""e"1 T!e >st level s!o#l" $e t!e p o6ect li(e:c*cle /not p od"ct01 T!e 3BS is create" $* t!e team /!elps to %et $#*:in0 an" it is #se" to ma+e certain t!at all t!e -or+ is covere"1 It provi"es a $asis (or estimatin% t!e project an" !elps to or%ani)e t!e -or+1 Its p#rpose is to incl#"e t!e total project scope o( all t!e -or+ t!at m#st $e "one to complete t!e project1 De(ines t!e project4s scope $aseline1 T!e 3 most common t*pes o( 3BS are s*stem6s#$ s*stems li(e:c*cle p!asin% an" or%ani)ational +BS -ictionary 8 De(ines eac! item in t!e 3BS incl#"in% "escription o( t!e -or+ pac+a%es an" ot!er plannin% in(o s#c! as sc!e"#le "ates cost $#"%ets an" sta(( assi%nments11 Scope Statement : a "oc#mente" "escription o( t!e o$jectives -or+ content "elivera$les an" en" pro"#ct7 it incl#"es a "escription o( project ass#mptions an" constraints1 Provi"es sta+e!ol"ers -it! a common #n"erstan"in% o( t!e scope o( t!e project an" is a so#rce o( re(erence (or ma+in% (#t#re project "ecisions1 Statement of +or" : a narrative "escription o( pro"#cts or services to $e s#pplie" #n"er contract1 Pro.ect Charter : (ormal "oc#ment #se" an" approve" $* senior mana%ement t!at e&plains p#rpose o( t!e project incl#"in% $#siness nee"s a""resse" an" t!e res#ltin% pro"#ct /"elivera$les an" o$jectives01 It "escri$es responsi$ilities an" a#t!orit* o( t!e project mana%er to appl* or%ani)ational reso#rces to project activities1 Clari(ication to t!e Project C!arter m#st $e a""resse" to t!e sponsor/s0 -!o approve" t!e c!arter1 8eso#rces cannot $e committe" -it!o#t t!e C!arter1 T!e C!arter is an inp#t to ALL t!e project mana%ement processes1 Code of (ccounts : an* n#m$erin% s*stem #se" to #ni5#el* i"enti(* eac! element o( t!e 3BS1 Pro.ect Selection 'ethod : +enefit 7eas" ement /comparative approac!0 an" !onst ained 8ptimi9ation /mat!ematical approac!01 +or" Pac"age : "elivera$le at t!e lo-est level o( 3BS1 T!e* are control points in t!e 3BS an" are #se" (or assi%nments to -or+ centers1 T!e* are #se" to pass a %ro#p o( -or+ (or (#rt!er $rea+"o-n in t!e e&ec#tive or%ani)ation1 Scope 9erification < to veri(* t!at t!e -or+ "one satis(ies t!e scope o( t!e project1 It m#st $e "one at t!e en" o( eac! p!ase1 A similar activit* "#rin% clos#re is Product 9erification1 Foc#ses on c#stomer acceptance 6per(ormance meas#rement not c!an%e to project scope1 Scope .eri(ication is normall* "one in parallel -it! 5#alit* control /-!ic! c!ec+s (or pro"#ct correctness01 Occ#r "#rin% t!e control p!ase o( t!e project not at t!e en"1 T!e revie- at t!e en" o( t!e project p!ase is calle" p!ase e&it sta%e %ate or +ill point1 Cost (ccount < one level a$ove t!e 3or+ Pac+a%e1 Cost6Benefit analysis 8 /part o( scope plannin%0 tec!ni5#e #se" to vali"ate t!at t!e project can meet t!e tec!nical6$#siness o$jectives set (ort! $* Sr1 Mana%ement Project s#ccess "epen"s primaril* on customer satisfaction1 (ssumptions < (actors t!at (or plannin% p#rposes are consi"ere" to $e tr#e real or certain T!e principal sources of pro.ect failure are or%ani)ational (actors poorl* i"enti(ie" c#stomer nee"s ina"e5#ate speci(ie" project re5#irements an" poor plannin% an" control1 Constrained optimi:ation < incl#"es anal*tic !ierarc!* process lo%ical (rame-or+ anal*sis an" m#lti:o$jective pro%rammin%1 Most Change #e0uests are t!e res#lt o(? An e&ternal event An error or omission in "e(inin% t!e scope o( t!e pro"#ct An error or omission in "e(inin% t!e scope o( t!e project A val#e:a""in% c!an%e A Change #e0uest is t!e most e((ective -a* o( !an"lin% t!e "isconnect $et-een -!at #sers act#all* -ant an" -!at mana%ement t!in+s t!e* -ant1 T!e project mana%er4s role relate" to project c!an%e is to in(l#ence t!e (actors t!at a((ect c!an%e1 'e s!o#l" as+ (or a c!an%e or"er an" loo+ (or impacts to t!e triple constraint1 Scope Changes on project can $e minimi)e" $* spen"in% more time "evelopin% t!e scope aseline1 I( t!ere is eno#%! reserve to accommo"ate a c!an%e t!e Project Mana%er can approve t!e c!an%e /-e are pai" to mana%e t!e scope completion -it!in o#r $#"%et an" reserves0

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PMI Exam Study Notes

42'() #%SO2#C%
Pro.ect 4uman #esource 'anagement : process re5#ire" to ma+e t!e most e((ective #se o( t!e people involve" -it! t!e project #esponsi ility (ssignment 'atri; (#(') < S!o- -!o "oes -!at /&@person *@p!ase01 T!e most important (eat#re o( t!e 8AM is t!e participator* "evelopment process involvin% all sta+e!ol"ers1 S!o- -!o is participant -!o is acco#nta$le -!o !an"les revie-s -!o provi"es inp#t an" -!o m#st si%n o(( on speci(ic -or+ pac+a%es or project p!ases1 ,inear #esponsi ility Chart (,#C) < i"enti(*in% responsi$ilit* assi%nments $* -or+ pac+a%es an" action re5#ire"1 Also re(erre" to as 8AM1 Organi:ational Brea"do!n Structure (O#S) - A "epiction o( t!e project or%ani)ation arran%e" so as to relate -or+ pac+a%es to or%ani)ation #nits1 #esources 4istogram < o(ten part o( Sta((in% Mana%ement Plan7 s!o-s reso#rce #sa%e /e% sta(( !o#rs0 per time perio" /e% -+ mt!0 o( a speci(ic jo$ (#nction1 #e!ards and #ecognition Systems :: to $e e((ective m#st ma+e t!e lin+ $et-een per(ormance an" re-ar" clear e&plicit an" ac!ieva$le1 &ypes of Po!er Le%itimate /Formal0 Coercive 8e-ar" Derive" (rom (ormal position Pre"icate" on (ear Involves positive rein(orcement an" a$ilit* to a-ar" somet!in% o( val#e Project o(ten nee"s t!eir o-n re-ar"s s*stem to a((ect emplo*ee per(ormance1 ;se" correctl* $rin% t!e team4s %oals an" o$jectives in line -it! eac! ot!er an" -it! t!e project1 E&pert 'el" in esteem $eca#se o( special +no-le"%e or s+ill /re5#ires time0 8e(erent A$ilit* to in(l#ence ot!ers t!ro#%! c!arisma personalit* etc1 T!e $est (orms o( po-er are %enerall* 8e-ar" an" E&pert Conflict 'anagement Pro$lem Solvin% 6 Con(rontation Compromisin% Smoot!in% 3it!"ra-al /I%norin%0 Forcin% Colla$oratin% Sources of Conflict Priorities A"min Proce"#res Sc!e"#les Tec!nical Iss#es Personnel 8eso#rces Personalit* Con(lict

a""ress con(lict "irectl* in pro$lem solvin% mo"e A-in6-inB $ar%ainin% an" searc!in% (or sol#tions7 neit!er part* -ins $#t eac! %ain some satis(action Alose6loseB t!is is ver* rarel* a %oo" -a* to resolve tec!nical iss#es1 "e:emp!asi)e "i((erences an" emp!asi)e commonalities7 (rien"l* $#t avoi"s solvin% root ca#ses7 "ela*in% /e%1 Mana%er sa*s an iss#e is vali" $#t "oesn4t t!in+ it -ill $e a $i% pro$lem later0 retreatin% (rom act#al or potential "isa%reement7 "ela*in% /e1%1 CD#st "oc#ment t!e pro$lemE0 e&ertin% one4s vie-point7 a last resort A-in6loseB /e1%1 CCall t!e c#stomer an" "eman" t!at *o# receive t!e approval to"a*1E Involves incorporatin% m#ltiple i"eas an" vie-points (rom people -it! "i((erent perspectives an" o((ers a %oo" opport#nit* to learn (rom ot!ers /%oo" -!en project is too important to $e compromise"0 P,())I)G > 3 G %7%C2&IO) / CO)&#O, > G 3 C,OS%-O2& > 3 G 'ost tension F F F F

I)I&I(&IO) > G 3

< steps of pro lem solving= >1 Anal*)e t!e sit#ation 6 Doc#ment t!e sit#ation G1 Develop alternatives -it! t!e team 31 2o to mana%ement 'otivational &heory= Content / Process &heories Content? C3!atE ener%i)es "irects $e!avior < >1 Maslo-4s 'ierarc!* o( Nee"s T!eor* /P!*siolo%ical Sa(et* Social6Belon%in% Esteem Sel(:Act#ali)ation0 G1 'ert)$er%4s Motivator6'*%iene T!eories /Motivator? Sel(:Act#ali)ation Esteem 7 '*%iene? Social Sa(et* P!*siolo%ical0 Process? C'o-E personal (actors in(l#ence $e!avior >1 Mc2re%or4s T!eor* H an" T!eor* I /H? Ass#mes people lac+ am$ition "isli+e responsi$ilit* are in!erentl* sel(:centere" an" are not ver* $ri%!t7 motivate $* re-ar" an" p#nis!ment1 I? Ass#mes people $ecome la)* -6o reco%nition -ill accept responsi$ilit* can $ecome sel(: motivate" an" e&ercise sel(:control7 motivate $* removin% o$stacles an" provi"in% sel(:"irecte" environment10 G1 O#c!i4s T!eor* J6Dapanese T!eor* / (oc#s on team compan*7 #s#all* li(etime emplo*ment collective "ecisionma+in% 0 Other 'otivational &heories= Behaviorism < people $e!avior can $e mo"i(ie" t!ro#%! manip#lation o( re-ar"s an" p#nis!ments %;pectancy &heory < Motivation is e&plaine" in terms o( e&pectations t!at people !ave a$o#t />0 t!eir a$ilit* to per(orm e((ectivel* on t!e jo$ /G0 t!e re-ar"s t!e* mi%!t o$tain i( t!e* "o per(orm e((ectivel* an" /30 t!e val#e or "e%ree o( satis(action t!e* anticipate (rom t!ose re-ar"s1

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PMI Exam Study Notes 'BO < More s#pport to team not more po-er /remain to PM0 ,eadership &heories= 'cGregor 8 T!eor* H /emplo*ee lac+ am$ition0 an" T!eor* I /or% str#ct#re are responsi$le (or motivation0 &annena aum-Schmidt model < Contin##m o( lea"ers!ip st*les $et-een t!e a#tocratic an" participative st*les Bla"e and 'outon < re( to mana%erial %ri" /Concern (or People .s Concern (or Pro"#ction0 -!ereas > > is laisse) (aire m%mnt > K is Co#ntr* Cl#$ m%mnt K > is Tas+ oriente" m%mnt L L is Compromise m%mnt an" K K is team m%mnt1 5orms of Organi:ation F#nctional 2ro#ps people $* speciali)ation1 Project mana%er !as no (ormal a#t!orit* o( reso#rces an" m#st rel* on in(ormal po-er str#ct#re an" !is o-n interpersonal s+ills to o$tain reso#rce commitments (rom (#nctional mana%ers1 Project E&pe"itor 8etains (#nctional $#t a""s a Project E&pe"itor -!o serves as a comm#nications lin+ an" coor"inator (or t!e project across (#nctional #nits Project Coor"inator Similar to Project E&pe"itor e&cept t!e Coor"inator reports to a !i%!er level mana%er an" !as some a#t!orit* to assi%n -or+ 3ea+ Matri& .ertical (#nctional lines o( a#t!orit* maintaine" -it! a relativel* permanent !ori)ontal str#ct#re containin% mana%ers (or vario#s projects1 Balance o( po-er leans to-ar" t!e F#nctional Mana%er1 Can ca#se a project to (all $e!in" $eca#se (#nctional mana%ers are p#llin% reso#rces a-a* to per(orm non:project relate" tas+s1 T!e Project Mana%er ma* $e a$le to ma+e reso#rce "ecision on !is o-n $#t not tec!nical "ecision1 Stron% Matri& Same as 3ea+ e&cept t!at t!e $alance o( po-er leans to-ar"s t!e Project Mana%er Projecti)e" A separate vertical str#ct#re is esta$lis!e" (or eac! project1 All t!e project team mem$ers report "irectl* an" solel* to t!e project mana%er1 >>'emori:e P'BO* ?Organi:ational Structure Influence on Pro.ects@ &eam uilding is most "i((ic#lt in a matri& or%ani)ation1 Its main p#rpose is to improve team per(ormance1 &eam development is $ase" on t!e individual development o( eac! mem$er1 ,eadership Styles (utocratic PM ma+es "ecision -it!o#t solicitin% in(ormation (rom team Consultive Intensive in(ormation solicite"7 PM ma+es "ecision Consensus Team ma+es "ecision7 open "isc#ssion an" in(ormation %at!erin% $* team Shareholder Little or no in(ormation e&c!an%e7 team !as #ltimate a#t!orit* (or (inal "ecision #oles of the Pro.ect 'anager Inte%rator Comm#nicator Team Lea"er Decision Ma+er Climate Creator6B#il"er -ocumentation Staffing 'anagement Plan < "escri$es -!en reso#rces -ill $e $ro#%!t into an" ta+en o(( t!e project1 %mployee #ecord 2pdate < as part o( clos#re t!e project mana%er s!o#l" #p"ate emplo*ee4s recor" -it! t!e ne- s+ills ac5#ire"1 #esource calendar 8 i"enti(ies perio" -!en -or+ is allo-e"1 5unctions of the Pro.ect 'anager Plannin% Or%ani)in% Lea"in% Controllin%

CO''2)IC(&IO)S
Pro.ect Communications 'anagement : process re5#ire" to ens#re proper collection an" "issemination o( project in(ormation1 &eam 'eetings < perio"ic team meetin%s is t!e most e((ective -a* to accelerate t!e project inte%ration process1 Performance #evie!s < meetin%s !el" to assess stat#s an"6or pro%ress1 Communications 'odel Comm#nicator T!e ori%inator o( t!e messa%e Messa%e T!o#%!ts (eelin%s or i"eas re"#ce" to Mco"eM t!at is #n"erstoo" $* $ot! sen"er an" receiver Me"i#m T!e ve!icle or met!o" #se" to conve* t!e messa%e 8ecipient T!e person (or -!om t!e messa%e is inten"e"

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PMI Exam Study Notes ASen"erB :: Enco"in% Transmission Deco"in% :: A8eceiverB Fee"$ac+

Communications Channels @ /nG: n06G or n/n:>06G Nt!e (act t!at t-o team mem$ers are -or+in% C"irectl*E to%et!er "oes not re"#ce t!e n#m$er o( comm#nication c!annels1 &ight 'atri; : all team mem$ers allocate" in a sin%le o((ice space A .a iance is consi"ere" to $e significant i( it jeopar"i)es project o$jectives1 T!e p#rpose o( pro.ect plan development is to create a "oc#ment to %#i"e project e&ec#tion an" control1 T!e o#tp#t o( pro.ect plan e;ecution consists o( -or+ res#lts an" c!an%e re5#ests1 &ypes of Communications Formal 3ritten Project C!arter Mana%ement Plan /t!is is t!e $est t*pe o( comm#nication met!o" to #se -!en t!ere are c#lt#ral "i((erences an" "istance $et-een team mem$ers0 In(ormal 3ritten Notes memos Formal .er$al Presentations In(ormal .er$al Conversations :ote; LLO o( comm#nications is non:ver$al /it is t!e most important aspect o( a conversation0 K0O o( Project Mana%erPs time is spent ac5#irin% an" comm#nicatin% in(ormation O .ectives of a *ic"off 'eeting 2et to +no- eac! ot!er Set team %oals an" o$jectives 8evie- project stat#s 8evie- project plans I"enti(* pro$lem areas Esta$lis! responsi$ilities an" acco#nta$ilities O$tain commitments Barriers to Communications (!hich lead to conflict) Lac+ o( clear comm#nication c!annels P!*sical or temporal "istance Di((ic#lties -it! tec!nical lan%#a%e Distractin% environmental (actors Detrimental attit#"es T!e most li+el* res#lts o( comm#nication $loc+er an" miscomm#nication as a -!ole is con(lict1 Building %ffective &eam Communications Be an e((ective comm#nicator Be a comm#nications e&pe"itor Avoi" comm#nication $loc+ers ;se a Mti%!t matri&M /sin%le o((ice space0 Ma+e meetin%s e((ective /meetin% "#rin% e&ec#tion is t!e $est (ormat to comm#nicate0 'anagement Styles A#t!oritarian Com$ative Conciliator* Disr#ptive Et!ical Facilitatin% Intimi"atin% D#"icial Promotional Secretive

Lets in"ivi"#als +no- -!at is e&pecte" o( t!em Ea%er to (i%!t or $e "isa%reea$le over an* sit#ation Frien"l* an" a%reea$le Ten"s to "isr#pt #nit* an" ca#se "isor"er 'onest an" sincere Does not inter(ere -it! "a*:to:"a* tas+s $#t is availa$le (or !elp an" %#i"ance -!en nee"e" 8epriman"s emplo*ees (or t!e sa+e o( a Mto#%! %#*M ima%e Applies so#n" j#"%ment C#ltivates team spirit7 re-ar"s %oo" -or+7 enco#ra%es s#$or"inates to reali)e t!eir (#ll potential Not open or o#t%oin% in speec! activit* or p#rpose

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PMI Exam Study Notes 'anagement S"ills Lea"in% Comm#nicatin% Ne%otiatin% Pro$lem Solvin% In(l#encin% t!e Or%ani)ation Esta$lis!in% "irection ali%nin% people an" motivatin% an" inspirin% T!e e&c!an%e o( in(ormation in a variet* o( "imensions Con(errin% -it! ot!ers in or"er to come to terms or reac! an a%reement A com$ination o( pro$lem "e(inition an" "ecision ma+in% T!e a$ilit* to %et t!in%s "one $ase" on an #n"erstan"in% or t!e (ormal an" in(ormal str#ct#res o( t!e or%ani)ation

-ocumentation Nt!e prevailin% meas#rement o( -!at in(ormation to acc#m#late an" comm#nicate on a project is t!at it contri$#tes to its s#ccess1 Progress #eport : s#mmari)e project stat#s1 Pre(erre" report to 5#ic+l* revie- -!ere a project no- stan"s1 &rend #eport < s!o- per(ormance over time /s!o-s i( it is improvin% or "eterioratin%0 9ariance #eport < compare project res#lts loo+s at speci(ic project items or tas+s 5orecasting #eport < onl* loo+s into t!e (#t#re Status #eport < relatin% a moment in time /static0 Pro.ect Plan Staffing 'anagement Plan Communications 'anagement Plan : s!o#l" cover all p!ases o( t!e project Performance reports 8 provi"e in(o on sc!e"#le per(ormance t!ere$* alertin% t!e team to pro$lems t!at ma* arise in t!e (#t#re1 8eports are a met!o" to "istri$#te in(ormation not j#st to report on pro%ress

&I'%
Pro.ect &ime 'anagement : processes re5#ire" to ens#re timel* completion o( t!e project (ctivity -efinition < "e(ines activities t!at m#st ta+e place to pro"#ce project "elivera$les (ctivity < cons#mes time /e% testing0 %vents < speci(ie" accomplis!ment 6 "oes not cons#me time /e% tested0 P%#& +eighted (verage @ /O F QM F P06R stan"ar" "eviation @ /P : O06R variance @ stan"ar" "eviationG /To a"" stan"ar" "eviations? convert to variance t!en a""7 ta+e t!e s5#are root o( t!e s#m01 Best met!o" -!en *o# !ave no !istorical "ata (or a similar tas+1 8es#lts is t!e L0O point /mean01 'onte Carlo (nalysis : comp#ter sim#lation o( project o#tcomes #sin% PE8T estimates7 res#lt represente" in S c#rve1 Provi"es t!e a$ilit* to comp#te t!e pro$a$ilit* o( completin% a project on a speci(ic "a*1 Can also $e #se" to assess (easi$ilit* o( sc!e"#le #n"er a"verse con"itions /e% -!en a sc!e"#le constraint is i"enti(ie"0 4euristics : r#les o( t!#m$ Critical Path < lon%est pat! /almost al-a*s !ave no (loat0 9ariance : Plan min#s Act#al 5loat 6 Slac" < Time an activit* ma* $e "ela*e" (rom its earl* start -it!o#t "ela*in% t!e project (inis! "ate1 Di((erence $et-een t!e re5#ire" en" "ate an" t!e e&pecte" project completion "ate1 A ne%ative slac+ on t!e critical pat! means t!at t!e project is $e!in" sc!e"#le1 5ree 5loat < Amo#nt o( time a tas+ can $e "ela*e" -it!o#t "ela*in% t!e earl* start o( its s#ccessor &otal 5loat < amo#nt o( time t!at an activit* ma* $e "ela*e" (rom earl* start -it!o#t "ela*in% t!e project (inis! "ate ,ag < -aitin% time $et-een t-o tas+s /ne%ative lea"0 Schedule Baseline : t!e ori%inal approve" project sc!e"#le7 s!o#l" never $e c!an%e" -it!o#t proper revie- an" approval1 An* approve" c!an%e s!o#l" $e "oc#mente" in -ritin%1 S!o#l" $e create" at t!e $e%innin% o( t!e project an" #se" "#rin% t!e project to %a#%e /meas#re0 overall project per(ormance not j#st sc!e"#le1 T!e project Performance 'easurement Baseline s!o#l" %enerall* c!an%e onl* in response to a scope or "elivera$le c!an%e1 T!e project per(ormance meas#rement $aselines s!o#l" %enerall* c!an%e onl* in response to a scope or "elivera$le c!an%e1 Corrective action : in project time mana%ement primaril* concerns e&pe"itin% to ens#re t!at activities remain on sc!e"#le1 Is an*t!in% "one to $rin% e&pecte" (#t#re sc!e"#le per(ormance in line -it! t!e project plan1 #evisions are c!an%es to t!e sc!e"#le" start an" (inis! "ates in t!e approve" project sc!e"#le7 %enerall* revise" onl* in response to scope c!an%es1 #e aselining ma* $e nee"e" to provi"e realistic "ata to meas#re per(ormance1 Sc!e"#lin% an" allocatin% reso#rces to multiple pro.ects ma* a((ect sc!e"#le slippa%e an" in:process inventor*1 T!e most important element necessar* (or project control is clear re5#irements1 -uration Compression 'ethods < occ#rs a(ter activit* "#ration estimatin% an" $e(ore (inali)in% t!e sc!e"#le1 Incl#"e crashingA fast trac" Crashing 8 -!en *o# are -orrie" a$o#t time not so m#c! a$o#t costs1 5ast &rac" 8 reso#rces in parallel involve increase re-or+1 S!o#l" (ast trac+ tas+s on t!e critical pat! /(loat @ 00 in or"er to save time1 #esource ,eveling 8 o(ten res#lts in a project "#ration t!at is lon%er t!an t!e preliminar* sc!e"#le1 #esource reallocation (rom non:critical to critical pat! activities is a common -a* to $rin% t!e sc!e"#le $ac+ or as close as possi$le to t!e ori%inall* inten"e" overall "#ration1 5inish to 5inish : activities m#st (inis! on a speci(ic se5#ence ?Start no earlier than@ / ?5inish no later than@ < 8espectivel* S> an" SG most pop#lar "ate constraint in project mana%ement so(t-are1 #oot Cause (nalysis < #se" to i"enti(* t!e ca#se o( t!e variation

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PMI Exam Study Notes 9ariance analysis < +e* element to time control1 5loat variance is an essential plannin% component (or eval#atin% project time per(ormance1 #evision < cate%or* o( sc!e"#le #p"ate t!at res#lt in c!an%e to t!e project4s sc!e"#le" start or (inis! "ates1 Ne- tar%et sc!e"#le s!o#l" $e t!e #s#al mo"e o( sc!e"#le revision1 Schedule 'anagement Plan < "e(ines !o- sc!e"#le c!an%es -ill $e mana%e"7 ma* $e (ormal or in(ormal1 Schedule Change Control System < "e(ines proce"#res (or c!an%in% t!e project sc!e"#le an" incl#"es t!e "oc#mentation trac+in% s*stems an" approval levels re5#ire" (or a#t!ori)in% sc!e"#le c!an%es1 Pro.ect &ime 'anagement Arro- Dia%rammin% Met!o" /ADM0? PE8T PE8T an" CPM (oc#ses on (loat "#ration to "etermine -!ic! activities !ave t!e least sc!e"#lin% (le&i$ilit*1 Pro%ram Eval#ation an" 8evie- Tec!ni5#e Emp!asis on meetin% sc!e"#les -it! (le&i$ilit* on cost T!ree time estimates per activit*? pessimistic most li+el* an" optimistic T!e pro$a$ilit* o( completin% a project at or later t!an its e&pecte" time is L0O Event oriente"7 #ses "#mm*7 activit* on arro- /AOA0 Finis!:to:Start lo%ical relations!ip Time estimates appear on arroEmp!asis on controllin% cost an" leavin% t!e sc!e"#le (le&i$le One time estimate per activit* Activit* oriente"7 #ses "#mm*7 activit* on arroTime estimates appear on arro8epresents improvement to PE8T an" CPM $* a""in% la% relations!ips to activities AStart to Start7 Start to Finis!7 Finis! to Start7 Finis! to Finis!B 3or+ is "one "#rin% activit*1 Arro- in"icates "epen"anc* Activit* on no"e7 no "#mm* A net-or+ "ia%ram "ra-in% met!o" t!at allo-s loops $et-een tas+s1 It is a met!o" o( se5#encin% /e1%1 a project re5#ires re"esi%n a(ter completion o( testin%0 O(ten involve p!*sical or tec!nolo%ical limitations /$ase" on t!e nat#re o( -or+ $ein% "one0 So(t? "esira$le an" c#stomar* /$ase" on e&perience0 Pre(erential? pre(erre" or man"ate" $* a c#stomer /also nee" o( t!e project sponsor0 Inp#t nee"e" (rom anot!er project or so#rce

Critical Pat! Met!o" /CPM0

Prece"ence Dia%ram Met!o" /PDM0

2E8T -ependencies Man"ator* or 'ar" Discretionar* E&ternal #esource Planning &ools 8esponsi$ilit* Matri& 8eso#rce Sprea"s!eet 8eso#rce 2antt C!art 8eso#rce 'isto%ram /8eso#rce Loa"in% C!art0

I"enti(* -!o "oes -!at at -!at time6p!ase o( t!e project 9#anti(ies !o- m#c! -or+ is nee"e" (rom eac! reso#rce "#rin% eac! time perio" I"enti(* t!e perio"s o( time /e1%1 calen"ar "ate0 -!en a partic#lar reso#rce is -or+in% on a partic#lar tas+ .ertical $ar c!art s!o-in% t!e total n#m$er o( reso#rces nee"e" "#rin% eac! time perio"

Scheduling &ools Net-or+s /PE8T CPM PDM0 Barc!art /2antt0 Milestone C!art

Inter"epen"encies7 !o- relate" E((ective pro%ress reportin% tool7 no lo%ical relations!ips s!o-n $et-een activities Si%ni(icant events7 %oo" (or comm#nicatin% stat#s /#se" to trac+ s#ccess0

COS&
Pro.ect Cost 'anagement Benefit Cost #atio Internal #ate of #eturn Pay ac" Period Processes re5#ire" to ens#re t!at t!e project is complete" -it!in t!e approve" $#"%et1 E&pecte" 8even#es 6 E&pecte" Costs1 Meas#re $ene(its /pa*$ac+0 to costs7 not j#st pro(its1 T!e !i%!er t!e $etter /i( ratin% over > t!e $ene(its are %reater t!an t!e costs0 Interest 8ate -!ic! ma+es t!e P. o( costs e5#al to P. o( $ene(its N#m$er o( time perio"s #p to t!e point -!ere c#m#lative reven#es e&cee"s c#m#lative costs1 3ea+ness in t!is approac! is t!e lac+ o( emp!asis on t!e ma%nit#"e o( t!e pro(ita$ilit*1 Does not acco#nt (or time val#e o( mone* nor consi"er val#e $ene(its a(ter pa*$ac+1 Cost o( c!oosin% one alternative an" t!ere(ore %ivin% #p t!e potential $ene(its o( anot!er alternative? it is t!e val#e o( t!e project not selecte" /lost opport#nit*01 E&pen"e" costs -!ic! s!o#l" $e i%nore" -!en ma+in% "ecisions a$o#t -!et!er to contin#e investin% in a project T!e point $e*on" -!ic! t!e mar%inal a""ition o( reso#rces "oes not provi"e a proportional amo#nt o( #tilit*1 Same amo#nt eac! time perio" /e1%1 >0 < >0 < >00 Separate 5#antit* o( time6mone* (or +no-n #n+no-ns1 Desi%ne" to cover speci(ic ris+ events previo#sl* i"enti(ie" an" meas#re" in t!e 8is+ Mana%ement Process1 Separate 5#antit* o( time6mone* (or #n+no-n #n+no-ns

Opportunity Cost Sun" Cost ,a! of -iminishing #eturns Straight ,ine -epreciation Contingency #eserve 'anagement #eserve

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PMI Exam Study Notes +or"ing Capital 9alue (nalysis 9alue %stimating 9alue %ngineering &ool BC-BC #ule (nalogous %stimating Bottom-up %stimating Parametric %stimating C#rrent Assets : C#rrent Lia$ilities Cost re"#ction tool t!at consi"ers -!et!er (#nction is reall* necessar* an" -!et!er it can $e provi"e" at a lo-er cost -it!o#t "e%ra"in% per(ormance or 5#alit*1 Fin"in% t!e least e&pensive -a* to "o t!e scope o( -or+1 Part o( Cost Control Tool (or anal*)in% a "esi%n "eterminin% its (#nction an" assessin% !o- to provi"e t!ose (#nctions cost e((ectivel*1 At $e%innin% c!ar%e L0O o( its BC3S to t!e acco#nt1 C!ar%e remainin% at completion1 Top "o-n7 $ase" on similar projects1 8epresents a (orm o( e&pert j#"%ment1 2ives project team an #n"erstan"in% o( mana%ement4s e&pectations /part o( cost $#"%etin% an" cost estimatin%0 Detaile" cost estimates o( -or+ pac+a%es are a%%re%ate"1 3o#l" provi"e $est overall 5#alit* o( t!e estimate1 8elies on +no-le"%e o( mat!ematical relations!ips7 meas#re" in T6#nit /scala$le 5#anti(ia$le01 It "oes not ma+e #se o( team estimate1 /part o( cost $#"%etin% an" cost estimatin%01 ;sin% a mat!ematical mo"el to pre"ict t!e "#ration o( a tas+ /e1%1 ta+in% t!e avera%e "#ration o( all past tas+s0 Statistical tec!ni5#e %rap!icall* represente" on scatter "ia%ram Mat!ematicall* mo"els t!e int#itive notion t!at t!e more times -e "o somet!in% t!e (aster -e -ill $e a$le to per(orm Costs rise "irectl* -it! t!e si)e an" scope o( t!e project Costs "o not c!an%e7 non:rec#rrin% /e1%1 project set#p costs0 Inc#rre" "irectl* $* a speci(ic project1 T!e PMI -ant t!e team to participate in t!e cost estimates to %et t!eir $#*: in1 Part o( t!e overall or%ani)ationPs cost o( "oin% $#siness an" are s!are" $* all projects1 ;s#all* comp#te" as a percenta%e o( t!e "irect costs1 8epresent t!e $asic level at -!ic! project per(ormance is meas#re" an" reporte"1 T!e p#rpose o( cost acco#nts is to monitor an" report on project per(ormance1 Incl#"es t!e "oc#mentation trac+in% s*stems an" approval levels nee"e" to a#t!ori)e a c!an%e1 S!o#l" $e t!e ne&t steps a(ter an approve" cost $aseline !as c!an%e" $eca#se o( a major c!an%e on a project1 Amo#nt o( mone* earne"? 8even#e < /"irect F in"irect costs0 Present val#e met!o" "etermines t!e net present val#e o( all cas! (lo- $* "isco#ntin% it $* t!e re5#ire" rate o( ret#rn1 Involves #sin% project c!aracteristics /parameters0 in a mat!ematical mo"el to pre"ict project costs1 Provi"e a pict#re o( t!e total cost (or t!e pro"#ct /project operations an" maintenance01 /o#tp#t to cost control0 Process an" proce"#res "evelope" (or t!e closin% or cancelin% o( projects

#egression (nalysis ,earning Curve 9aria le Costs 5i;ed Costs -irect Costs Indirect Costs Cost accounts Cost Change Control Systems Budget updates Operating profit -iscounted cash-flo! approach Parametric modeling ,ife-Cycle Cost Pro.ect Closeout

5ormulas %;pected 9alue Present 9alue Cost 9ariance Schedule 9ariance Cost Performance Inde; Schedule Performance Inde; %stimate at Completion (%(C) Pro$a$ilit* U Impact F. 6 /> F r0t E. < AC ABC3P < AC3PB .a iance < p#anned $ act"a# E. < P. ABC3P < BC3SB /i( V07 -or+ complete" is less t!an -!at -as planne"0 E.6AC ABC3P 6 AC3PB I am getting ==== o"t of eac- do##a 0 %>1 good? @1 3ad& E.6P. ABC3P 6 BC3SB I am p og essing at ====A of t-e ate o igina##y p#anned BAC 6 CPI ACFETC /-!en ori%inal estimates are consi"ere" (la-e"0 ACFBAC:E. /-!en ever*t!in% is OW an" variance -ill not occ#r in t!e (#t#re0 ACF//BAC:E.06CPI0 /-!en ever*t!in% is OW an" variance -ill occ#r in t!e (#t#re0 EAC : AC or /BAC : E.0 6 CPI BAC < EAC AC6BAC C.6E. S.6P. 'o- m#c! s!o#l" $e "oneX T!is is t!e pe fo mance meas" ement 3ase#ine1 'o- m#c! -or+ is "oneX /Pro%ress0 B#"%ete" cost o( -or+ per(orme"1 .al#e o( t!e -or+ complete" in terms o( -!at *o# $#"%ete" /*o#r $aseline0 'o- m#c! "i" t!e Cis "oneE -or+ costX B#"%et at Completion < 'o- m#c! is $#"%ete" (or t!e total jo$X BAC -o#l" c!an%e ever* time t!ere is a (#n"e" scope c!an%e approve" (or activit* to $e per(orme" in t!e (#t#re1 Base" on project per(ormance an" ris+ 5#anti(ication

%stimate to Completion (%&C) 9ariance at Completion (9(#) D Spent Cost 9ariance in D Schedule 9ariance in D BC+S (P9) BC+P (%9) (C+P ((C) B(C %(C

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PMI Exam Study Notes 5ormulas %&C CPI %9EP9 FBC+PEBC+SG (Slope Estimate to Completion C#m#lative CPI "oes not c!an%e $* more t!an >0O once a project is appro&imatel* G0O complete1 T!e CPI provi"es a 5#ic+ statistical (orecast o( (inal project costs1 E. e5#als P. -!en t!e project is complete"1 3or+ 9#antit*/scope o( t!e activit*0 6 Pro"#ction rate /cras! cost : normal cost0 6 /cras! time : normal time0 7 i( V0 as t!e time re5#ire" (or a project6tas+ "ecrease t!e cost increase

-ocumentation Cost 'anagement Plan < /(rom Cost Estimatin%0 T!e action ta+en $* t!e project mana%er (or all variances are "escri$e" in t!e Cost Mana%ement Plan1

#IS*
Pro.ect #is" 'anagement < processes concerne" -it! i"enti(*in% anal*)in% an" respon"in% to #ncertaint*1 T!e most li+el* ca#se o( poor ris+ mana%ement is lac+ o( prioriti)e" list o( ris+s1 &ypes of #is" Business Normal ris+s t!at o((er %ain an" loss Pure 6 Insura le Onl* loss? propert* "ama%e in"irect conse5#ential loss le%al lia$ilit* personnel1 For ris+ -e can o#tso#rce -e !ave contract1 For p#re ris+s -e o$tain ins#rance1 #is" 5actors 8is+ event 8is+ pro$a$ilit* Amo#nt at Sta+e Statistical Independence -ata Precision #an"ing Secondary #is" Path Convergence Contingency Plan 2ncertainty +or"around %;pected 'onetary 9alue #is" %vent #is" &rigger #is" Portfolio 2tility &heory Sensitivity (nalysis #is" (uditor #is" &olerance Occ#rrence o( one event is not relate" to occ#rrence o( t!e ot!er P#rpose is to test t!e val#e o( "ata /inp#t to 9#alitative Anal*sis0 /part o( 8is+ 8esponse Plannin%0 Ten"enc* o( parallel pat!s o( e5#al "#ration to "ela* t!e completion o( t!e milestone -!ere t!e* meet Planne" action steps to $e ta+en i( an i"enti(ie" ris+ occ#rs1 /e1%1 "evelopin% alternative activit* se5#ences0 An #ncommon state o( nat#re c!aracteri)e" $* t!e a$sence o( an* in(ormation relate" to a "esire" o#tcome1 ;nplanne" response to ne%ative ris+ events /re5#ires to $e impacte" $* t!e ris+ (irst0 @ Pro$a$ilit* U Monetar* Impact /#se" in Decision Tree Anal*sis0 A "iscrete occ#rrence t!at ma* a((ect t!e project (or $etter or -orse1 A(ter a ris+ event t!e project mana%er4s role is to reassess t!e ris+ ran+in%1 T!e ris+ o-ner is responsi$le to ta+e action -!en an i"enti(ie" ris+ occ#rs1 A s*mptom o( ris+7 in"irect mani(estation o( act#al ris+ event7 o#tp#t o( ris+ i"enti(ication7 e&ample is poor morale 8is+ "ata assem$le" (or t!e mana%ement o( t!e project Tec!ni5#e t!at c!aracteri)es an in"ivi"#al4s -illin%ness to ta+e ris+ Places a val#e on t!e impact to t!e project plan $* a"j#stin% a sin%le project varia$le7 simplest (orm o( anal*sis 8ole is to investi%ate t!e e((ectiveness o( t!e ris+ o-ner /-!ic! can ca#se potential con(lict -it! ris+ o-ner0 8is+ Ta+er 8is+ A"verse 8is+ Ne#tral7 i( *o# +no- t!e tolerance o( t!e sta+e!ol"ers *o# can "etermine !o- t!e* mi%!t react to "i((erent sit#ation an" ris+ events1 Io# #se t!is in(ormation to !elp assi%n levels o( ris+ on eac! -or+ pac+a%e1

#esponses to #is" (voidance (elimination6a atement) 'itigation (reduction) &ransfer (cceptance )um ers to *no! Cost %stimates= Or"er o( Ma%nit#"e /$allpar+ estimate0 B#"%et De(initive > si%ma

Eliminatin% ca#se eliminates ris+1 Can $e "one $* c!an%in% t!e Project Plan or protectin% project o$jectives (rom its impact1 8e"#ce t!e E&pecte" Monetar* .al#e1 Float can $e #se to miti%ate potential ris+s De(lect or s!are /e%1 Ins#rance -arranties0 Accept or retain conse5#ences1 G t*pes? 2cti.e Acceptance /"evelop a contin%enc* plan0 or Passi.e Acceptance /no action01

:GLO :>0O :LO R=13O

FYLO FGLO F>0O

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PMI Exam Study Notes G si%ma 3 si%ma R si%ma KL1LO KK1YO KK1KKO

T!e ran%e o( an estimate -it! t!e smallest ran%e is t!e least ris+*1 -ocumentation #is" 'anagement Plan 8 -o#l" most li+el* $e "evelope" "#rin% scope plannin% p!ase o( t!e scope mana%ement process1

12(,I&3
Pro.ect 1uality 'anagement < processes re5#ire" to ens#re t!at t!e project -ill satis(* t!e nee"s (or -!ic! it -as #n"erta+en1 1uality is t!e con(ormance to re5#irements6speci(ications an" to (itness o( #se1 1uality function deployment < provi"e $etter pro"#ct "e(inition an" pro"#ct "evelopment1 Its main (eat#re are to capt#re t!e c#stomer4s re5#irements ens#re cross (#nctional team-or+ an" lin+ t!e main p!ases o( pro"#ct "evelopment1 #e!or" < action ta+en to $rin% a non:con(ormin% item into compliance1 8e-or+ is a (re5#ent ca#se o( project overr#ns1 1uality 9aria le 1uality (ttri ute Benchmar"ing Statistical (nalysis &rend (nalysis 1uality (udit A 5#alit* c!aracteristic t!at is meas#ra$le A 5#alit* c!aracteristic t!at is classi(ie" as eit!er con(ormin% or noncon(ormin% Comparin% practices o( ot!er projects1 Provi"es a stan"ar" to meas#re per(ormance /time cons#min%01 /e1%1 investi%atin% 5#alit* stan"ar"s t!at ot!er companies are #sin%0 Involves "eterminin% t!e pro$a$ilit* o( an occ#rrence ;ses mat!ematical tec!ni5#es to (orecast (#t#re o#tcomes $ase" on !istorical res#lts7 #se" to meas#re tec!nical cost an" sc!e"#le per(ormance Str#ct#re" revie- o( ot!er 5#alit* mana%ement activities per(orme" to i"enti(* lessons learne" /#se" (or process improvement0 Part o( 9#alit* Ass#rance1 Provi"e mana%ement con(i"ence t!at t!e project -ill satis(* relevant 5#alit* stan"ar"s1 Prevent errors (rom reac!in% t!e c#stomer $e(ore "eliver* to t!e c#stomer1 Can $e "one t!ro#%!o#t pro"#ct "evelopment1 A tec!ni5#e to i"enti(* -!ic! varia$les !ave t!e most in(l#ence on overall o#tcomes /part o( 9#alit* Plannin%0 /e1%1 anal*)e t!e color6si)e com$ination t!at -ill contri$#te most to t!e (#nctionalit* o( t!e ne- pro"#ct01 Can $e applie" to cost an" sc!e"#le tra"eo((s1 'elp anal*)e !o- pro$lems occ#rs Meas#res -!et!er or not t!e es"#ts con(orms to speci(ications Are c!aracteristic *o# -ant to meas#re /si)e s!ape -ei%!t etcN01 An attri$#te is -!at *o# are meas#rin%1 T!e res#lt is rate" on a contin#o#s scale t!at meas#res t!e "e%ree o( con(ormit*1 Data point on a control c!art t!at re5#ires investi%ation S!o-s c#stomer4s e&pectations (or 5#alit* /on a control c!art0 N!elp ne-l* assi%ne" project mana%er "etermine -!et!er t!e project is o#t o( control /in or"er to veri(* 5#alit* level01 Can $e #se" to monitor project mana%ement processes s#c! as coscar" sc!e"#le variance vol#me an" (re5#enc* o( scope c!an%es an" errors in project "oc#ments1 Are #se" to monitor process variations overtime1 'elp people #n"erstan" an" control t!eir process -or+1 Non:ran"om points t!at are still -it!in t!e #pper an" lo-er control limit Accepta$le ran%e o( variation o( a process1 AB-ese #imits a e set 3ased on t-e companyCs 5"a#ity standa ds0 B-e cont o# #imits a e dete mined f om data o3tained f om t-e p ocess itse#f0D Fi&e" $* t!e c#stomer ;se" to s!o- !o- res#lts -ere %enerate" $* t*pe or cate%or* o( i"enti(ie" ca#se Ma"e pop#lar Pareto C!art Ca#se:an":E((ect Dia%ram an" Control C!art Is #se" to estimate t!e loss associate" -it! controllin% or (ailin% to control process varia$ilit*1 I( *o# select %oo" "esi%n parameters *o# can pro"#ce pro"#cts t!at are more (or%ivin% an" tolerant1 T!e tool !elps "etermine t!e val#e or $rea+: even point o( improvin% a process to re"#ce varia$ilit*1 Provi"es a $asic set o( re5#irements (or a 5#alit* s*stem -it!o#t speci(*in% t!e partic#lars (or implementation1 ;se" to veri(* t!at a set o( re5#ire" steps !as $een per(orme" in 5#alit* control process Determine i( pro$lems are relate" $e(ore plannin% -!at to "o a$o#t t!em I( t-o events cannot $ot! occ#r in a sin%le trial /X0 ;n#s#al event Normal process variation />0 /G0 /30 Creative -a* to loo+ at act#al ca#ses an" potential ca#ses o( a pro$lem Process o( constr#ctin% !elps stim#late t!in+in% a$o#t an iss#e7 !elps to or%ani)e t!o#%!ts7 %enerates "isc#ssion ;se" to e&plore a -i"e variet* o( topics

Inspection -esign of %;periments 5lo! chart (ttri ute Sampling 9aria le Sampling (ssigna le Causes Specification ,imit Control Chart

Statistical Control Chart ?Out of Control@ 2pper and ,o!er Control ,imit on a Control Chart Specification ,imit Pareto -iagram Ishi"a!a &aguchi 'ethod

ISO HCCC Chec"lists ?Statistically Independent@ 'utually %;clusive Special Cause #andom Cause

Cause and %ffect -iagram (5ish one)

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PMI Exam Study Notes /Q0 Also +no-n as Is!i+a-a or Fis!$one "ia%ram

1uality Planning 1uality Control 1uality (ssurance

8e(ers to potential pro$lems1 Alt!o#%! it #s#all* occ#r "#rin% plannin% p!ase it can occ#r "#rin% e&ec#tion i( t!ere is a c!an%e1 8e(ers to speci(ic per(ormance o( a tas+ /meas#rin% 5#alit* an" comparin% res#lts to t!e 5#alit* plan0 8e(ers to overall 5#alit* re5#irements /stan"ar"s0 /e1%1 eval#atin% o.e a## project per(ormance re%#larl*0

Cost of 1uality Conformance Plannin% Trainin% Process Control Desi%n an" process vali"ation Test an" eval#ation 9#alit* a#"its Maintenance an" cali$ration Inspection Fiel" testin% Impact of Poor 1uality Increase" cost Decrease" pro"#ctivit* Increase" ris+ an" #ncertaint* Increase" costs in monitorin%

)on-Conformance /most acc#rate0 Scrap 8e-or+ an" repair A""itional Material 8epairs an" service Complaints Lia$ilit* Pro"#ct recalls Fiel" service E&pe"itin%

2oal o( t!e cost o( 0uality program s!o#l" $e < - BD o( total val#e1 Cost o( non-0uality is estimate" to $e IJ - JCD o( sales1 Cost of 1uality Incl#"es Prevention Costs /trainin%0 Appraisals Costs /inspection6testin%0 an" Internal /scrap re-or+06E&ternal /-arrant*0 Fail#re costs Mana%ement is KBD responsi$le (or 5#alit*1 T!e team mem$er is "#timate#y responsi$le (or 5#alit* mana%ement1 T!e project mana%er is p ima i#y responsi$le (or 5#alit* mana%ement1 T-o components o( product availa ility are e#ia3i#ity an" maintaina3i#ity0 To e((ectivel* #se statistical 0uality control t!e project team s!o#l" +no- t!e "i((erences $et-een specia# ca"ses an" andom ca"ses1 'amp#ing an" p o3a3i#ity are t!e most important topics to #n"erstan" in statistical process control1 Top mana%ement s!o#l" "irect continuous improvement1 1uality control measurement are recor"s o( 5#alit* control testin% an" meas#rement in a (ormat (or comparison an" anal*sis /inp#t to 5#alit* ass#rance01 -ocumentation 9#alit* Mana%ement Plan < "escri$es met!o" (or implementin% 5#alit* polic* project 5#alit* s*stem an" or%ani)ational str#ct#res responsi$ilities proce"#res processes an" reso#rces nee"e" to implement project 5#alit* mana%ement1

P#OC2#%'%)&
Pro.ect Procurement 'anagement : t!e processes re5#ire" to ac5#ire %oo"s an" services (rom o#tsi"e t!e per(ormin% or%ani)ation1 'a"e or Buy -ecision < it is %enerall* $etter to "o t!e -or+ *o#rsel( i( #sin% an o#tsi"e compan* means *o# !ave to t#rn over !i%!l* con(i"ential proprietar* "ata to ot!er compan*1 Contract &ypes and #is" Cost Plus Percentage of Cost (CPPC) Cost Plus 5i;ed 5ee (CP55) Cost Plus Incentive 5ee CPI5)

No vali" (or (e"eral contracts ;se" (or researc! an" "evelopment contracts /-!ic! %enerall* !ave lo- level o( "etail in t!e scope07 (i&e" (ee can c!an%e i( t!ere is a c!an%e to t!e contract /#s#all* t!ro#%! c!an%e or"ers01 T!e ris+ rests -it! t!e $#*er1 B#*er an" seller s!are in savin%s $ase" on pre"etermine" Os7 lon% per(ormance perio"s an" s#$stantial "evelopment an" test re5#irements /incentive to t!e ven"or to per(orm on or a!ea" o( time0 In !ost p#"s cont actE t-e on#y fi m fig" e is t-e fee 'i%!:val#e projects involvin% lon% per(ormance perio"s 8easona$l* "e(inite speci(ications /e1%1 SO301 S!i(t ris+ to seller1 2oo" -!en "elivera$le is not a core competenc*1

5i;ed Price Plus Incentive 5ee (5PI) 5irm 5i;ed Price (55P)

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PMI Exam Study Notes &ime / 'aterial (&/') 5i;ed Price (!ard 5ee Purchase Order Contract type 9s #is" 2oo" i( t!e $#*er -ants to $e in (#ll control an"6or t!e scope is #nclear6not "etaile" or -or+ !as to start 5#ic+l*1 Pro(it (actor into t!e !o#rl* rate1 C$on#sE to t!e seller $ase" on per(ormance /e1%1 >00W F >0W (or ever* "esi%nate" incremental 5#alit* level reac!e"1 A (orm o( contract t!at is normall* #nilateral an" #se" (or simple commo"it* p#rc!ases1 FFP < FPI < CPIF < CPFF < CPPC Fi&e" Price < Cost 8eim$#rsa$le < T,M B#*er4s ris+ (rom lo- to !i%! Seller4s ris+ (rom !i%! to lo-

%lements of a Contract O((er Acceptance Consi"eration Le%al Capacit* Le%al P#rpose

Assent to certain terms $* $ot! parties A%reement -ritten or spo+en Somet!in% o( val#e A$le to contract No violation o( p#$lic polic*

Stages of Contract )egotiation Protocol Intro"#ctions Pro$in% I"enti(* concerns stren%t!s -ea+nesses Scratc! $ar%ainin% Act#al $ar%ainin% Clos#re Positions s#mme" #p A%reement Doc#mentin% Specification : precise "escription o( a p!*sical item proce"#re or service1 T!e SO3 s#pplements t!e speci(ication in "escri$in% -!at m#st $e "one to complete t!e project1 Privity : le%al relations!ip t!at e&ists $et-een an* contractin% parties /e1%1 i( compan* CAE !ires CBE an" CBE s#$contract to CCE CCE is not le%all* $o#n" $* an*t!in% CAE can sa*7 t!e p i.ity is -it! CBE0 +aiver : a part* can relin5#is! ri%!ts t!at it ot!er-ise !as #n"er t!e contract1 Fore$earance can mat#re into -aiver1 #etainage < -it!!ol"in% o( (#n"s #n"er contract1 +arranty : ass#rance o( t!e level o( 5#alit* to $e provi"e" A contract ends $*? S#ccess(#l per(ormance M#t#al a%reement Last t-o are Be mination Breac! o( contract &erms and Conditions < t!e project mana%er m#st #p!ol" t!e Terms an" Con"itions o( t!e contract even i( it meets t!e nee"s o( t!e project it !as to also meet t!e re5#irement o( t!e contract1 ,i0uidated damages : Contract Control System vs Pro.ect Control System < t!e* $ot! incl#"e proce"#res1 T!e contract control s*stem re5#ires more "oc#mentation an" more si%no((1 +or" (uthori:ation Systems < can $e #se" to coor"inate6control -!at time an" se5#ence -or+ is "one1 It !elps -it! inte%ratin% tas+s into a -!ole1 Performance Scope of +or" < "escri$es t!e per(ormance < not t!e (#nctionalit*:: re5#ire" $* t!e c#stomer Independent %stimate < most concern -it! costs comparin% cost estimates -it! in:!o#se estimates or -it! o#tsi"e assistance /part o( So#rce Selection0 Procurement (udit < str#ct#re" revie- t!at (l#s! o#t iss#es an" set:#p lessons learne"1 'elps ens#re pro$lems are resolve" (or (#t#re projects1 I"enti(* s#ccesses an" (ail#res t!at -arrant trans(er to ot!er proc#rements1 Beneficial %fficiency < -!en t!e -or+ is $ein% #se" (or t!e inten"e" p#rpose an" !as $een certi(ie" Terminatin% contract (or Convenience < i( a project is terminate" $e(ore it is complete t!e level o( e&tent o( completion s!o#l" $e esta$lis!e" an" "oc#mente"1 Contracting Centrali:ed L More economical L Easier to Control L 'i%!er "e%ree o( speciali)ation /e&perti)e0 L Or"ers can $e consoli"ate" - Ma* $ecome a $ottlenec+ - Less attention to special nee"s

-ecentrali:ed L Project Mana%er !as more control L Contractin% personnel are more (amiliar -it! project L More (le&i$le an" a"apta$le to project nee"s - D#plication o( contractin% e((orts - 'i%!er costs - No stan"ar" policies

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PMI Exam Study Notes

)egotiating &actics Dea"line S#rprise Limite" A#t!orit* Missin% Man Fair an" 8easona$le

Strate%ic Dela* 8easonin% To%et!er 3it!"ra-al ;nreasona$le S#%%estin% Ar$itration Fait Accompli

-ocumentation Statement of +or" < "escri$es t!e proc#rement item in s#((icient "etail to allo- prospective sellers to "etermine i( t!e* are capa$le o( provi"in% t!e item1 /Scope Statement $et-een Client an" PM 6 SO3 $et-een PM an" Seller0

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PMI Exam Study Notes

I)&%G#(&IO)
Pro.ect Baseline < s!o#l" $e c!an%e" (or all implemente" c!an%es1 Sometimes certain classi(ication o( c!an%es %et a#tomatic approval on a project an" "o not nee" C!an%e Control Boar" approval1 Changes : i( t!e (#nctional mana%er -ants to ma+e a c!an%e to time associate" to a tas+ /c!an%e in %oals an" o$jectives o( t!e C!arter0 an" t!ere is not eno#%! reserve senior mana%ement /not t!e Project Mana%er0 s!o#l" a#t!ori)e t!e c!an%e1 T!e $est met!o" to cont o# c!an%es on t!e project is to loo+ (or so#rces o( c!an%e1 T!e $est met!o" to dea# -it! c!an%es is to "irect t!e c!an%es to t!e Change Control Board1 Change Control System < m#st also incl#"e proce"#res to !an"le c!an%es t!at ma* $e approve" -it!o#t prior revie- /e1%1 res#lt o( an emer%enc*0 Schedule Change Control System < can incl#"e t!e paper s*stems an" approvals (or a#t!ori)in% c!an%es1 T!e project mana%er is normall* not t!e approval a#t!orit* an" not all t!e c!an%es approve" Pro.ect Plan < as an inp#t to team "evelopment t!e project plan "escri$es t!e tec!nical conte&t -it!in -!ic! t!e team operates1

P#O5%SSIO)(, #%SPO)SIBI,I&I%S
#outine Government 5ee (&ransfer 5ee) < onl* %overnment o((icial can collect ro#tine %overnment (ees /t!is is not a $ri$e0 Company Policies : It is t!e project mana%er4s pro(essional responsi$ilit* to ens#re t!at compan* policies are (ollo-e" "#rin% t!e project1 Copyright la!s < "o not violate %mployee mista"e : -!en a team mem$er ma+es a mista+es allo- !im to save (ace an" to (i& t!e pro$lem1 Tr* to -or+o#t an iss#e $e(ore escalatin%1 E&ception? i( it is not consi"ere" a project relate" iss#e /e1%1 !arassment0 it s!o#l" $e reporte" "irectl* to t!e emplo*ee4s mana%er1 Do not ma+e ille%al pa*ments report t!e(ts Company and CustomerMs Interest : pro(essional responsi$ilit* re5#ires t!e investi%ation o( an* instances -!ere t!e le%itimate interests o( t!e c#stomer ma* $e compromise"1 I( s#c! compromise is (o#n" action m#st $e ta+en1 Protect *o#r compan*4s interests Budget tampering : presentin% an*t!in% $esi"es *o#r ori%inal estimate to allocate more to t!e $#"%et is inacc#rate an" calls into 5#estion *o#r competence an" inte%rit* as project mana%er /e1%1 i( a c#stomer as+ to estimate Cpessimisticall*E *o# s!o#l" a"" as a l#mp s#m contin%enc* (#n" to !an"le project ris+s0 #ights : "o not "o $#siness -it! a co#ntr* -!ere t!ere is a clear violation o( t!e (#n"amental ri%!ts /e1%1 non:"iscriminatin% treatment01

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PMI Exam Study Notes

POSSIB,% %7(' 12%S&IO)S Scope Questions 3!* is a care(#l an" acc#rate nee"s anal*sis importantX 'o- is a c!an%e control $oar" #se"X Can t!ere $e more t!an oneX 3!at is t!e p#rpose o( t!e project c!arterX 'o- "oes it $ene(it t!e project mana%erX 3!at is t!e Delp!i Tec!ni5#eX 3!at is t!e p#rpose o( t!e scope mana%ement planX 3!at is t!e p#rpose o( t!e 3BS "ictionar*X

To ma+e s#re c#stomer or sta+e!ol"er e&pectations can $e i"enti(ie" an" satis(ie"1 To approve or reject c!an%e re5#ests accor"in% to responsi$ilities "e(ine" an" a%ree" #pon $* +e* sta+e!ol"ers1 M#ltiple CCBs ma* $e #se" on lar%e projects1 To (ormall* "oc#ment t!e e&istence o( t!e project incl#"in% t!e $#siness nee" t!at t!e project -as #n"erta+en to a""ress an" t!e pro"#ct "escription1 It provi"es t!e project mana%er -it! t!e a#t!orit* to appl* or%ani)ational reso#rces to project activities1 A (orecastin% tec!ni5#e #se" to %at!er in(ormation7 it relies on %at!erin% e&pert opinions1 ;s#all* %oes t!ree ro#n"s1 O$j1? 2ain consens#s o( e&pert opinions1 To "escri$e !o- project scope -ill $e mana%e" an" !o- scope c!an%e -ill $e inte%rate" into t!e project1 To provi"e intereste" parties -it! -or+ pac+a%e "escriptions an" ot!er plannin% in(ormation s#c! as sc!e"#le "ate cost $#"%ets an" sta(( assi%nments (or eac! 3BS element1 Eac! tas+ s!o#l" $e $ro+en "o-n into -or+ pac+a%es t!at re5#ire no more t!an =0 !o#rs to complete1 Scope veri(ication is primaril* concerne" -it! acceptance o( t!e -or+ res#lts7 5#alit* control is primaril* concerne" -it! t!e correctness o( t!e -or+ res#lts1 />0 Esta$lis! #nam$i%#o#s an" realistic o$jectives /G0 Perio"icall* eval#ate -!et!er project o$jectives are $ein% ac!ieve" /30 Act on t!e res#lts o( t!e eval#ation1 At t!e en" o( t!e project1

3!at is t!e =0 !o#r r#leX 3!at is t!e "i((erence $et-een scope veri(ication an" 5#alit* controlX 3!at are t!e t!ree steps involve" in MBOX

3!en s!o#l" scope veri(ication occ#rX HR Questions 3!ic! are t!e (ive met!o"s o( mana%in% con(lict is recommen"e"X 3!*X 3!at are t!e t!ree t*pes o( project inter(aces t!at serve as inp#ts to t!e or%ani)ational plannin% process1 3!en can t!e* occ#rX 3!at is Mc2re%or4s T!eor* HX 3!at is mana%ement4s role in t!is approac!X 3!at is Mc2re%or4s t!eor* IX 3!at is mana%ement4s role in t!is approac!X 3!at is an or%ani)ational $rea+"o-n str#ct#re /OBS0X 3!at is t!e p#rpose o( a reso#rce 2antt c!artX Does t!e matri& (orm o( project or%ani)ation (acilitate or complicate project team "evelopmentX Name t!ree major (orms o( project or%ani)ational str#ct#re1 3!at is t!e e&pectanc* t!eor*X 3!at is pro$lem solvin%6con(rontationX

Pro$lem Solvin%6con(rontation $eca#se $ot! parties can $e (#ll* satis(ie" i( t!e -or+ to%et!er to (in" a sol#tion t!at satis(ies $ot! t!eir nee"s1 />0 Or%ani)ational inter(aces /G0 Tec!nical inter(aces /30 Interpersonal inter(aces T!e* can occ#r sim#ltaneo#sl*1 Tra"itional approac!? -or+ers are sel(:centere" la)* lac+in% am$ition1 Mana%ers or%ani)e t!e elements o( t!e pro"#ctive enterprise in t!e interest o( economic ends1 3or+ers are not $* nat#re resistant to or%ani)ational nee"s7 t!e* are -illin% an" ea%er to accept responsi$ilities an" are concerne" -it! sel(:%ro-t! an" (#l(illment1 Mana%ers s!o#l" tr* to create an environment -!ere -or+ers can ac!ieve t!eir o-n %oals1 A speci(ic t*pe o( or%ani)ational c!art t!at s!o-s -!ic! #nits are responsi$le (or -!ic! -or+ items It i"enti(ies -!en a partic#lar reso#rce is or -ill $e -or+in% on a partic#lar tas+ It complicates team "evelopment $eca#se team mem$ers are acco#nta$le to $ot! a (#nctional mana%er an" a project mana%er1 F#nctional Matri& an" Projecti)e" It !ol"s t!at people ten" to $e !i%!l* pro"#ctive an" motivate" i( t!e* $elieve t!eir e((orts -ill lea" to s#ccess(#l res#lts an" t!e* -ill $e re-ar"e" (or t!eir s#ccess1 A""ressin% con(lict "irectl* $* %ettin% t!e parties to -or+ to%et!er to "e(ine t!e pro$lem collect in(ormation "evelop an" anal*)e alternatives an" select t!e most appropriate alternative1 Pa* attit#"e o( s#pervisor an" -or+in% con"itions1 Poor !*%iene ma* "estro* motivation $#t improvin% !*%iene (actors in not li+el* to increase motivation1 Motivators are an opport#nit* to ac!ieve an" e&perience sel(: act#ali)ation1 Senior an" (#nctional mana%ement 3ea+ matrices are similar to (#nctional or%ani)ations1 Stron% matrices are similar to projecti)e" or%ani)ations /-it! $alance o( po-er tippe" to-ar" t!e project mana%er0

2ive t!ree e&amples o( !*%iene (actors in 'er)$er%4s t!eor* o( motivation1 'o- "o t!e* a((ect motivation1

3!o is responsi$le (or a""ressin% in"ivi"#al per(ormance pro$lemsX Descri$e t!e "i((erence $et-een a -ea+ matri& an" a stron% matri&1

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PMI Exam Study Notes

3!at is a projecti)e" or%ani)ationX

One in -!ic! a separate (#nctional or%ani)ation is esta$lis!e" (or eac! project1 Personnel are assi%ne" on a (#ll:time $asis1 Project mana%er4s concern is t!at t!e team ma* not $e (oc#se" on completin% t!e project /team loo+s (or ne- man"ate or tries to e&ten" t!e len%t! o( t!e project01 Accor"in% to PMI t!e $i%%est pro$lem in A"ministrative Clos#re is retainin% team mem$ers #ntil clos#re o( t!e project1

Communications Questions 3!at is a project M-ar roomMX 3!at is its primar* $ene(itX Descri$e t!e si& parts o( a Comm#nications Mana%ement Plan1

3!at is variance anal*sisX 3!at are si& actions project mana%ers s!o#l" ta+e to ens#re e((ective project team comm#nicationsX

3!at is active listenin%X 3!at is major ca#se o( con(lict -it! (#nctional mana%ersX 3!at is most "i((ic#lt con(lict to "eal -it!X 3!at is earne" val#e anal*sisX 'o- is it #se" in per(ormance reportin%X 3!at is t!e tool (or #se" (or comm#nication plannin%X 3!at is t!e most important c!aracteristic (or a project mana%erX 3!at (actor !as t!e %reatest e((ect on t!e projectPs comm#nication re5#irementsX 3!at is t!e primar* con"ition lea"in% to con(lict in $ot! t!e -ea+ an" stron% matri& or%ani)ationsX 3!en is a project consi"ere" close"X

A sin%le location (or t!e team to %et to%et!er (or an* p#rpose1 It provi"es a repositor* (or project arti(acts recor"s an" #p:to:"ate sc!e"#les an" stat#s reports1 It %ives an i"entit* to t!e project team1 />0 3!at in(ormation -ill $e collecte" /G0 'o- t!e in(ormation -ill $e collecte" /30 'o- an" to -!om t!e in(ormation -ill $e "istri$#te" /Q0 3!en t!e in(ormation -ill $e comm#nicate" /L0 'o- to o$tain in(ormation $et-een re%#lar comm#nications /R0 'o- t!e Comm#nications Plan -ill $e #p"ate" t!ro#%! t!e project Comparin% act#al project res#lts to planne" or e&pecte" res#lts in terms o( cost sc!e"#le scope 5#alit* an" ris+1 />0 Be an e((ective comm#nicator /G0 Be a comm#nications e&pe"itor /30 Avoi" comm#nications $loc+ers /Q0 ;se a ti%!t matri& /L0 'ave a project -ar room /R0 Ma+e meetin%s e((ective Listenin% in -!ic! t!e recipient is attentive an" as+s (or clari(ication o( am$i%#o#s messa%es Sc!e"#les Personalit* con(licts An anal*sis t!at inte%rates cost an" sc!e"#le meas#res1 It is #se" to !elp t!e project mana%ement team assess project per(ormance1 Sta+e!ol"er anal*sis A$ilit* to -or+ -ell -it! ot!ers T!e projectPs or%ani)ational str#ct#re Am$i%#o#s j#ris"ictions1 T!e* e&ist -!en t-o or more parties !ave relate" responsi$ilities $#t t!eir -or+ $o#n"aries an" role "e(initions are #nclear1 3!en t!e arc!ive is complete"1 All project "ocs %oes into t!e arc!ives7 t!is is t!e last t!in% to create $e(ore releasin% t!e team1

Time Questions 3!at is t!e critical pat!X 3!at is cras!in%X 3!at is (ast trac+in%X 'o- "oes reso#rce levelin% -or+X 3!at is activit* "#ration estimatin%X 3!at is a "#mm* activit*X 3!at is slac+ or (loatX Free (loatX 3!at is la%X

T!e lon%est pat! t!ro#%! t!e net-or+ -!ic! represents t!e s!ortest amo#nt o( time in -!ic! t!e project can $e complete"1 Ta+in% action to "etermine !o- to o$tain t!e %reatest amo#nt o( "#ration compression (or t!e least incremental cost7 %enerall* increases cost1 Compressin% t!e sc!e"#le $* overlappin% activities t!at -o#l" normall* $e "one in se5#ence7 ma* res#lt in re-or+ an" increase" ris+7 lo%ical relations!ips are mo"i(ie" B* #sin% positive (loat availa$le on non:critical pat!s sc!e"#le $* smoot!in% or levelin% pea+s an" valle*s o( reso#rce #tili)ation Assessin% t!e n#m$er o( -or+ perio"s li+el* to $e nee"e" to complete eac! activit* One t!at cons#mes no time or reso#rces7 it s!o-s onl* "epen"enc* Amo#nt o( time t!at an activit* can $e "ela*e" -it!o#t "ela*in% project1 Free (loat is t!e amo#nt o( time an activit* can $e "ela*e" -it!o#t "ela*in% t!e earl* start o( t!e ne&t activit* 8e5#ire" -aitin% time $et-een activities

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PMI Exam Study Notes

Cost Questions 3!at is li(e c*cle costin%X 3!ic! o( t!e (ollo-in% incl#"es an a#"it7 A"ministrative Clos#re or Contract Clos#reX 3!at is Mc!art o( acco#ntsMX 3!at are cost acco#ntsX Risk Questions 2enerall* spea+in% in -!at project p!ase are ris+ an" opport#nit* %reater t!an t!e amo#nt at sta+e $* t!e -i"est mar%inX Descri$e t!e "i((erence $et-een an internal ris+ an" an e&ternal ris+1 3!at is p#rpose o( a ris+ mana%ement planX 3!at s!o#l" it incl#"eX 3!at is a reserveX 3!at are t!e t-o most common t*pes o( mana%ement reservesX 'o- are t!e* #se"X 3!en is t!e !i%!est ris+ impact %enerall* occ#rX 3!o is #ltimatel* responsi$le (or i"enti(*in% an" mana%in% ris+X Io# are (in"in% it "i((ic#lt to eval#ate t!e e&act cost conse5#ences o( ris+s1 Io# s!o#l"? In -!at circ#mstance -o#l" *o# !ave to #p"ate t!e 8is+ 8esponse PlanX 3!at s!o#l" $e "one a(ter competin%6#p"atin% t!e 8is+ 8esponse PlanX 'o- "o *o# a""ress #n+no-n ris+sX 3!at is a +no-n:#n+no-n ris+X

Concept o( incl#"in% ac5#isition operatin% maintenance an" "isposal costs7 total cost o( o-ners!ip Contract Clos#re incl#"es an a#"it1 Co"in% str#ct#re #se" to report (inancial in(ormation in %eneral le"%er1 Co"e o( acco#nts is n#m$erin% o( 3BS elements T!e* represent t!e $asic level at -!ic! project per(ormance is meas#re" an" reporte"1

Initiation

An internal ris+ is #n"er t!e control or in(l#ence o( t!e project team7 e&ternal is $e*on" control or in(l#ence1 To "oc#ment t!e proce"#res t!at s!o#l" $e #se" to mana%e ris+ t!ro#%!o#t t!e project1 It s!o#l" incl#"e t!e ris+ i"enti(ication an" ris+ 5#anti(ication7 !o- contin%enc* plans -ill $e implemente"7 !o- reserves -ill $e allocate"1 A provision in t!e project plan to miti%ate cost an"6or sc!e"#le ris+1 Mana%ement reserves are (or C#n+no-n #n+no-nsE an" contin%enc* reserves are (or C+no-n #n+no-nsE1 Cost an" Sc!e"#le #se" to re"#ce t!e c!ance o( overr#ns in eit!er area D#rin% Implementation an" Close:o#t : t!e Amo#nt at Sta+e is !i%! t!o#%! ris+ !as "ecrease"1 8is+ is !i%!est "#rin% Initiation an" Plannin%1 Project mana%er Eval#ate t!em on a 5#alitative $asis1 I( a ris+ occ#rs an" !as a %reater impact on t!e project t!an -!at -as anticipate"1 /part o( 8is+ Monitorin% an" Control0 A"" tas+s to t!e 3BS B* appl*in% a %eneral contin%enc* $ase" on past e&perience 8is+ t!at can $e i"enti(ie" as possi$l* !appenin% /e1%1 Floo" i( a $#siness is locate" in a (loo" )one0

Quality Questions 3!at are control limits as #se" in control c!artsX De(ine M+ai)enMX 3!at is %ol":platin%X 3!at is t!e e((ect o( sample si)e on t!e stan"ar" "eviationX 3!at is t!e 8#le o( SevenX 3!at is D#st:In:TimeX 3!at is meant $* t!e cost o( 5#alit*X 'o- are ca#se an" e((ect "ia%rams #se"X 3!at is t!e principal p#rpose o( t!e 9#alit* Mana%ement PlanX 3!at is a Pareto Dia%ramX 3!at is t!e #n"erl*in% concept o( a Pareto Dia%ramX

Control limits "escri$e t!e nat#ral variation o( a process1 2ssigna3#e ca"se is a point o#tsi"e t!e control limits Contin#o#s improvement 2ivin% t!e c#stomer more t!an -!at -as re5#ire"1 It !as no val#e1 3!enever sample si)e increases t!e stan"ar" "eviation "ecreases1 I( seven or more o$servations in a ro- occ#r on t!e same si"e o( t!e mean even t!o#%! -it!in control limits t!e* s!o#l" $e investi%ate" as an assi%na$le ca#se1 An inventor* control approac! t!at attempts to re"#ce -or+ :in:process inventor*7 t!ere is no e&tra stoc+ +ept in reserve Cost o( confo mance an" cost o( nonconfo mance T!e* s!o- !o- vario#s ca#ses an" s#$ca#ses relate to create potential pro$lems1 A(ter t!ese are i"enti(ie" corrective action can $e ta+en1 To "escri$e !o- t!e project mana%ement team -ill implement its 5#alit* polic* A $ar c!art in -!ic! "ata are arran%e" in "escen"in% or"er o( importance1 It p#ts iss#es into an easil* #n"erstoo" (rame-or+1 A relativel* small n#m$er /G0O0 o( ca#ses -ill t*picall* pro"#ce a lar%e majorit* /=0O0 o( t!e pro$lems or "e(ects1

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PMI Exam Study Notes

3!o is #ltimatel* responsi$le (or 5#alit*X Procurement Questions 3!at is ma+e or $#* anal*sisX 3!at are contract incentivesX

T!e in"ivi"#al1 T!e project mana%er !as o.e a## responsi$ilit*1

3!at is a $i""erPs con(erenceX 3!at is part o( t!e contract "oc#mentX

3!at "o *o# "o i( a seller "oes not per(orm accor"in% to t!e contractX Integration Questions Lessons learne" are complete" $*X 3!at are t!e major constraints on a projectX 3!en man* c!an%es are ma"e to a project -!at s!o#l" a project mana%er "oX 3!at is t!e p#rpose o( a Project PlanX

A tec!ni5#e #se" to "etermine -!et!er a pro"#ct can $e pro"#ce" cost e((ectivel* $* t!e or%ani)ation1 In"#cements provi"e" $* t!e $#*er to t!e contractor in an attempt to rin% t!e o$jectives an" interests o( t!e contractor in line -it! t!ose o( t!e $#*er7 positive an" ne%ative1 ;s#all* cost e((ective Meetin%s -it! prospective sellers to ens#re t!at t!e* !ave a clear common #n"erstan"in% o( t!e proc#rement7 !el" $e(ore sellers prepare t!eir proposals1 Proposal Scope o( 3or+ Terms an" Con"itions /-!ic! s!o#l" $e t!e res#lt o( a ris+ anal*sis0 %eneral provision special provisions /-!ic! ta+es prece"ence over %eneral provisions0 Ta+e action1 />0 Contact seller an" as+ -!at4s %oin% on1 /G0 let seller +no- !e is in "e(a#lt /e1%1 "e(a#lt letter01

Io# are a ne- project mana%er1 It is $est to rel* on XX to improve *o#r c!ances o( s#ccessX STRATEGY F R !ARI "S TYPES F Q"ESTI #S$

Project team 8e(ers to t!e &riple Constraints? Cost Time 9#alit* alon% -it! c#stomer satis(action an" scope o( -or+1 Ma+e c!an%e as nee"e" $#t maintain a sc!e"#le $aseline /$aseline is t!ere to "etermine !o- t!e project is pro%ressin%0 >1 2#i"e t!e project e&ec#tion G1 Doc#ment project plannin% ass#mption 31 Doc#ment project plannin% "ecisions re%ar"in% alternatives c!osen Q1 Facilitate comm#nications amon% sta+e!ol"ers L1 De(ine +e* mana%ement revieR1 Provi"e a $aseline (or pro%ress meas#rement an" project control 'istorical in(ormation

NI= ?+hat has the pro.ect manager 5O#GO&&%) to doO@ a0 "etermine -!at process t!e* are re(errin% to $0 "etermine i( ans-er c!oices are6s!o#l" $e inp#t6o#tp#t6tools /activities0 c0 "etermine -!ic! inp#t6o#tp#t6tool t!e 5#estion is loo+in% (or "0 select t!e one missin% NJ= ?+hat is the B%S& thing to doO@ T!e correct ans-er s!o#l" resolve t!e #n"erl*in% pro$lem1 N< ?&he pro.ect manager must e 'OS& careful to 6 +hich is the 'OS& importantO@ T!e easiest -a* to "eal -it! t!ese 5#estions is to loo+ (or t!e c!oice t!at -ill !ave t!e !i%!est impact on t!e project1 NP &ip= 4o!ever accurate ans!er choice areA pic" the one that ans!er the 0uestion. NB &ip= *no! pro lem solving processes /e1%1 (or a c!an%e? />0 Eval#ate impact o( t!e c!an%e -it! t!e team /G0 "etermine option an" /30 %o to mana%ement or c#stomer10

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