COMMUNICATION, GAP ANALYSIS,PARETO CHART, TREND ANALYSIS, FISHBONE,

80/20 PRINCIPLE, COMPOSITE/TIGHT/WEAK & STRONG MATRIX ORGANISATION,

HEURISTIC, HALLO EFFECT, RUN CHART/GANT CHART/FLOW CHART ETC
Life cycle cost deal with cost of entire product during its life cycle including that
of project.

PROJECT TIME MANAGEMNET

GANTT CHART: DISPLAYS START AND END DATES OF PROJECT AND SHOWS
PROJECT ACTIVITIES INTERDEPENDENCIES.
RELATIONSSHIPS:

Start to finish
Finish to finish
Start to start
Finish to start

Gantt chart dependencies:

Mandatory dependencies
Discretionary dependencies
External dependencies
Internal dependencies

NETWORK DIAGRAN:
1. PRECEDENCE DIAGRAMMING MODEL (ACTIVITY ON NODE-AON):
Boxes represent activity
Arrow indicate dependencies
Hammock activity used to show comprehensive summary uses AON
2. ARROW DIAGRAMMING METHOD (ACTIVITY ON ARROW AOA)
Arrow represent activity
Direction of arrow shows relationship and sequence
Only finish to start relationship can be shown
Dummy activity can be required to show dependencies
KEY TERMS
1. LEADS
2. LAGS
3. ROLLING WAVE PLANNING: Iterative planning technique in which near work
is planned in detail and future is planned at higher level
4. ANALOGOUS ESTIMATING: Based on previous project data, need expert, is
also called Top down process
5. PARAMETRIC ESTIMATING: Uses mathematical model to calculate projected
time based on historical records.
6. 3 POINT ESTIMATING: Three estimates are used instead of one (PERT)

SCHEDULE NETWORK ANALYSIS

1. Critical Path method: Determines critical path on a project schedule.
Longest duration path through a network diagram which determines
the shortest time to complete the project.
2. Critical chain method: is determined by logical resources and other
kind of dependencies b/w the activities.
3. What if scenario
4. Resource optimization technique
PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT): Uses 3 point estimate
Pessimistic estimate P
Optimistic estimate O
Most likely estimate M
Expected duration of activity = (P + 4xM + O)/6
Standard deviation of an activity = (P-O)/6
Variance of an activity = 2
Critical path method: Longest duration path through a network diagram which
determines the shortest time to complete the project.
i)
ii)
iii)

Total float (Slack) Time delayed from early start date without
hampering project end date.
Free float (slack) Amount of time an activity can be delayed without
hampering early start date of any successor activity.
Independent float (Slack) Amount of time an activity can be delayed if
immediate predecessor activity finish at their latest finish date and
immediate successor activity start at their early start date.

* - Slack of activity on critical path is zero as activities on critical path cannot

be zero.
Calculation of Float:
i) Identify critical path
ii) Follow forward pass to find early start date and early finish date
iv)

Follow backward pass to find late finish date and late start date.

Total float = Early finish date Early start date OR Late finish date Late start
date
SCHEDULE COMPRESSION:
1. Fast tracking : Carrying out parallel work
2. Crashing : Adding resources
OTHER SCHEDULING TECHNIQUES:

1.
2.
3.
4.

What if scenario
Monte carlo analysis
Resource optimization technique
Critical chain method

COST MANAGEMENT
ROUGH ORDER MAGNITUDE Done in initial stage -25% to 75%
BUDGET ESTIMATE - -10% to +25%
DEFINITE ESTIMATE - -5% to +10%
EARNED VALUE MANAGEMENT Method to measure project performance
against project baselines.

Planned value (PV) Authorised budget

Earned Value (EV) Work performed in terms of budget alloted
Actual Cost - Actual cost incurred
Budget at completion Budget for total work
Estimate at completion Variance at completion Projected budget surplus or deficit at the end
of project

EARNED VALUE FORMULAE

1.
2.
3.
4.
5.

Cost variance CV
= EV - AC
Schedule variance
= EV - PV
Cost performance index = EV /AC
Schedule performance index
= EV/PV
Estimate at completion = BAC/CPI If work performed at current CPI
= AC + (BAC EV) If rest of project at budgeted rate
= AC + [(BAC EV)/ (CPI x SPI)] Factoring both SPI and
CPI
= AC + ETC Revaluated based on forecast value of
ETC

6. Estimate to completion
= EAC - AC
7. Variance at completion
= EV - EAC
8. To complete performance index = (BAC EV)/ (BAC-AC) For managing to
budget
= (BAC EV)/ (EAC AC) For managing to specified
value (EAC)
QUALITY MANAGEMENT
QP vs QA vs QC :
Kaizen: Small and continuous process improvement

Deming cycle Plan do check act

Kanban based on principle of JIT
COST OF QUALITY
1. Cost of conformance
i)
Prevention cost
ii)
Appraisal cost
2. Cost of non conformance
i)
Internal failure cost
ii)
External failure cost
Seven Basic Quality tools:
1.
2.
3.
4.
5.
6.
7.

Control charts
Cause and effect diagrams (Fish bone diagram)/ Ishikawa diagram
Flow charting
Histogram
Pareto charts
Check sheets
Scatter diagram

TYPES OF ORGANISZATION

Benefit realization is a set of process defined to ensure project deliverables are in alignment with organizational strategies and
creating value. Business acumen is the ability of quickness and enthusiasm of a person to understand the business situation
and make decisions accordingly. Interpersonal skill is the ability to establish and maintain relationships with other people.
These techniques are newly added in the examination content outline.

Answer (c) Resource Histogram. A resource histogram can be used to show the usage of resources individually or by groups
over time. Option (a) Gantt or Bar Chart illustrates a project schedule by capturing start and finish dates, as well as the
expected duration of a project. Option (b) Responsibility Assignment Matrix maps specific resources against work packages
from the WBS and would not indicate timelines. Option (d) Resource Breakdown Structure (RBS) is a standardized list of
personnel resources related by function and arranged in a hierarchical structure and would not be helpful.
Answer (b) Pull Communication. This is an example of a pull communication method which is used for large volumes of
information or for large audiences that require recipients to access the communication content at their own discretion. In order
to make it easier to remember, think of pull communication as the receiver pulling information at his discretion.

Answer (b) Lag. There is a lag of 15 days between the activities. When the first activity is running and second activity starts, it
is called Lead. When first activity completes, if there is then a delay or wait period before the second activity starts, it is called
a lag
Get an approval from the Change Control Board. Since the project affects the milestone deliverable, it is best to gain approval
from the change control board. The board will have the responsibility to review change requests to determine if additional
analysis is warranted. They can also approve or reject project changes. The change control board can include the project
sponsor, customer, experts, and others besides the Project Manager.
A secondary risk can be defined as a risk created by the response to another risk. In other words, the secondary risk is a
consequence of dealing with the original risk. In the current scenario the risk in the delay of the final deliverable by an external
vendor is a response to the existing risk of inadequate in-house expertise for board fabrication. It is important to understand
the difference between option (a) secondary risk and option (b) residual risk. Secondary risks are those which are caused by
the treatment or response to the risk, whereas residual risk is the risk which remains even after you have treated or responded
to the risk.
Answer (c) Critical Chain Method. The critical chain method is a schedule network analysis technique that modifies the project
schedule to account for limited resources. In the critical chain method, initially the project schedule network diagram is built
using duration estimates and dependencies. Since the resources are a constraint, the resource availability is entered next and
the resource limited schedule result is determined. Hence, the critical chain method is a network analysis technique used
when project resources are constrained.
Answer (a) Schedule. The top-ranking sources of conflict are schedules. Scheduling is probably one of the toughest
obligations of most Project Managers. Next on the list are project priorities. Project Managers need to attend to the projects of
the organization. Sometimes conflict arises some projects are given more attention and importance than others. Third on the
list is a manpower resource. Lack of individuals to work on a certain project may cause pressure. When people start to feel the
intensity of pressure, they also start cramming and become less motivated to work on it. Technical conflict and administrative
procedures come next on the list. Finally, cost objectives and personality conflicts complete the list of the seven sources of
conflict.