Product Scope determines the features and functions of the output of the project

Project Scope determines the work to be done in order to deliver that output

Responsibility Assignment Matrix details the different tasks for the people listed in the matrix chart.
Resource histogram is useful in determining how much time is expected from the various team
members and/or functions. Month Vs Hours chart.

Most Risk Phase of the Project – Execution

Least Risk Phase of the Project – Planning

The tools and techniques used to gather, integrate and disseminate the outputs of the project
management processes are called Project Management Information Systems (PIMS)

SOW – a narrative description of products, services or results to be delivered by the project.

Then Business Case, Contract and then the Project Charter

Project Charter contains project purpose & justification, measurable objectives and success criteria, high
level requirements, high level risks, high level project description, summary milestone schedule,
summary budget and project approval requirements (who and when will they approve), assigned
project manager and authority, and name and authority of the sponsor or other person(s) authorizing
project charter.

Project Scope Statement describes in detail, the project’s deliverables and the work required to create
those deliverables.

Planned Value PV = Budgeted cost of Work Scheduled

Earned Value EV = Budgeted cost of Work Performed

Life Cycle Cost = Project Costs + Ongoing Operations Cost + Maintenance Cost

The fund available to a organization to invest in project = Working Capital

Version control numbers should change – whenever ANY Change occurs

Final Deliverables are defined in the Closing Process Group

A work authorization system is used to coordinate when and in what order the work is performed.

Double Declining Balance is a form of accelerated depreciation

Expected Activity Duration (EAD) = (P+4M+O)/6

Activity Standard Deviation (SD) = (P-O)/6

Activity Variance = [(P-O)/6]2

Range of an activity estimate = EAD +_ SD (ie. EAD – SD to EAD + SD)

To calculate the variance of the whole project, individual activity variance should be found out and then
summed up to get the project variance.

Fast Tracking – Doing critical path activities in parallel that were originally planned in series. Often
results in rework and increases risk and requires more attention to communication.

Crashing – this technique involves making the cost and schedule trade-offs to determine how to
compress the schedule the most for the least incremental cost while maintaining the project scope.
Crashing always results in increased costs.

Eg. To buy a software application to help the team work more efficiently, saving time.

Bar Charts - Weak planning tools, but effective for progress reporting and control. Every activity
planning will be present with dates.

Milestone Charts - Similar to bar charts, but they only show major events. They have NO duration.
They are good tools for reporting to management and the customer.

Cost Baseline is an output of Determine Budget process

Budget forecasts are an output of Control Costs process.

Value Analysis – Involves finding a less costly way to do the same work without loss of performance.

All of the following MUST be present to have a contract

1. Procurement Statement of Work

2. Acceptance (by the buyer)
3. Signoff from both parties (Signatures)

Initiating Process Group - Subdividing the project into phases

Refer the excel attached for the ITTOs for the processes

A WBS

 Is a graphical picture of the hierarchy of the project

 Identifies all the deliverables to be completed – if it is not in WBS, it is not part of project
 Is the foundation upon which the project is built
 Is VERY important
 Should exist for every project
 Forces you to think through all aspects of the project
 Can be reused for other projects
 Does NOT show dependencies
Scope Baseline = Project Scope Statement + WBS + WBS dictionary

Verify Scope - involves frequent, planned-in meetings with the customer or sponsor to gain formal
acceptance of the deliverables during monitoring and control.

Control Scope – is extremely proactive from the project manager. For control scope, first the work has
to be completed and a clear definition of what the scope on the project is (Scope baseline from PM
plan). You also need to be aware of the original requirements recorded in the requirements
documentation and the requirements traceability matrix. Then have to measure the scope performance
against the scope baseline to see the magnitude of any variances (variance analysis) and decide if
corrective action or preventive action is required.

WBS Dictionary – Contains

1. Code of Identifier
2. Description of work
3. Responsible Organization
4. List of schedule milestones
5. Quality requirements
6. Resources required
7. Cost estimates
8. Acceptance criteria

Difference between Verify scope and Quality control

Verify Scope – primarily concerned with the acceptance of the deliverable

Quality Control – primarily concerned with the correctness of the deliverable

Define Activities is the process of identifying the specific actions to be performed to produce the project
deliverables. The Create WBS process identifies the deliverables at the lowest level in the Work
Breakdown Structure, the work package. Project work packages are typically decomposed into smaller
components called activities that represent the work necessary to complete the work package.

Precedence Diagramming Method (Activity on Node) – Activity as nodes and arrow for relationship

Portion of a project schedule network diagram is referred to as “Subnetwork ” or “Fragment network”

Estimate Activity Resources – is the process of estimating the type and quantities of material, people,
equipment and supplies required to perform each activity.

Resource Calendars – the composite resource calendars include the type, availability, capabilities and
skills of human resources.

The resource constrained critical path is called as the Critical Chain Method. The critical chain method
adds duration buffers that are non-work schedule activities to manage uncertainty. One buffer placed
at the end of the critical chain is called as the Project buffer and protects the target finish date from
slippage along the critical chain. Feeding buffer, are placed at each point that a chain of dependant
tasks not on the critical chain feeds into the critical chain.

One basic assumption that needs to be made during estimate cost is whether the estimate will be
limited to Direct costs or Indirect costs.

Human Resources Plan – Role, Responsibilities, Authority + Staffing Management Plan

Staffing Management Plan – When and how the Human resources will be staffed.

Formal Communication – Reports, Memos, Briefings

Informal Communications – Email, Ad-hoc meetings

Common skills between General Management and Project Management – Refer page 276 (Sec4:CCLXXV)
of PMBOK

Stakeholder Register

1. Identification Information – Name, Design etc

2. Assessment Information – Interest level and phase in the life cycle with most interest
3. Stakeholder Classification – Internal/external, Positive/Neutral/Negative

Effective Communication – Providing information in the right format, at the right time and with the
right impact.

Efficient Communication – providing only the information which is needed.

Total number of communication channels = n(n-1)/2, where “n” is the number of stakeholders.

Point of Total Assumption : The point of total assumption is the point at which the seller assumes the
costs. In a firm fixed price contract, this is the point where the costs have gotten so large that the seller
basically runs out of money from the contract and has to start paying the costs.

Order of actions for Closing Process Group

1. Gain formal acceptance

2. Write lessons learned
3. Release team
4. Close the contract

 Any time you hold a seminar, give a talk, write an article or help others learn about project
management, you're contributing to the project management body of knowledge.
 The Staffing Management Plan always includes a Resource Histogram, so that should be your first
clue about which one of these answers is right. The Resource Histogram shows what kind of
resource is needed through each week of your project and how many staff members you need.
Configuration Management – this is the common place where all the approved and updated version of
the documents will be present.

 Plurality is an example of a group decision making technique in which a decision can be made by
the largest block of people in the group, even if they don't have a 50% majority.

Project Selection Methods

Comparative or Benefit Measurement Method – Murder Boards, Benefit-to-Cost ratios and Peer
Review

Mathemetical Models – Complex formulas to determine which project has the most value for money.

Work Authorization System – Part of Enterprise Environmental Factors

Any time that you see a question that asks about breaking a law, your answer should always be the choice
that doesn't break it - no manner how minor the infraction, and how serious the consequences. Any time
that you see a question that asks about breaking a law, your answer should always be the choice that
doesn't break it - no manner how minor the infraction, and how serious the consequences.

In Decision Tree, Circle represents Chance and Dabba represents Decision 

Definitions of NPV and IRR

The duration of a milestone is zero.