Planning Flashcards

Question

**Benchmarking**

Answer 1

**Benchmarking -** Used in **Plan Quality Management** in the **Planning** Process. **Comparing** actual or **planned** project practices to those of **best projects**: * Generate **ideas** for **improvement**. * Provide basis to **measure performance**.

Answer 2

**Cost-Benefit Analysis -** Used in **Plan Quality Management** in the **Planning** Process. Analyzing **benefits gained vs. money spent** to achieve **level of quality**. * Less rework * Higher productivity * Lower costs * Stakeholder satisfaction

Answer 3

**Design of Experiments -** Used in the **Plan Quality Management** in **Planning** Process. **Statistical method** that helps identify which **factors** might influence specific **variables** of a product or process under development or in production. Should be used during Plan Quality Management process to determine the number and type of tests and their impact on cost of quality.

Answer 4

**Risk Register -** **Output** of **Identify Risks**. * List of **identified risks**, **triggers**, **effects** * Potential **responses** identified at this stage * **Outcomes** of **other** risk management processes * Contains: * Identified **risks** * Potential responses * **Root causes** and updated risk categories * **Low priority** risks as **watch list** (from Perform Qualatative Risk Analysis)

Answer 5

**Perform Qualitative Risk Analysis -** Purpose is to **get the right focus on the right risks**! Each risk in analyzed for **probability and impact** using the **Probability Impact Matrix** so that each can be **prioritized and ranked** according to their effect on **project objectives**. It is normal for risks to change their status as the project progresses - hence the need to perform analysis more than once. Is the probability getting more likely or less likely?

Answer 6

**Risk Probability and Impact Matrix -** **Evaluate** the **risks** and determine their **severity**. Used in the **Perform Qualitative Risk Analysis** in the **Planning** Process. Prioritized **ranking of risks** based on **priority \* impact**

Answer 7

**Quality Checklists -** Output of the **Plan Quality Management** process. Documents whether all the **quality steps were indeed performed** and carried out in **proper sequence**.

Answer 8

**Quality Metrics -** Used in **Plan Quality Management** in **Planning** process. Spells out **how quality will be measured**. Each quality **metric** should be **quantified** in some way. These metrics are used as **acceptance** criteria. Example: if product is an office **printer**, it should say precisely how many **pages per minute** will be printed out.

Answer 9

**Process Improvement Plan -** Output of **Plan Quality Management** in the **Planning** process and during the **Control Quality** process Processes used are **improved and optimized** whenever possible. **Streamline quality activities**.

Answer 10

**7 Basic Quality Tools (&QC) -** 1. Pareto chart 2. Flow charts 3. Cause and effect diagram 4. Control chart 5. Check sheet 6. Histogram 7. Scatter diagram

Answer 11

**Summary Risk Profile -** Used for **reporting** and **monitoring** risks. Place **symbol** with the **risk number** for each risk based on **probability and impact score**. Can show escalation line and trends. Uses probablity and impact, similar to Probability and Impact Matrix.

Answer 12

**Risk Data Quality Assessment -** Technique use in **Perform Qualitative Risk Analysis** in the **Planning** process. Technique to evaluate the degree of usefulness of data. Data must be **accurate**, **reliable**, **unbiased**, **high quality**, and **credible**. Looking at raw data. Looking at where you got the data a (ie: to say there is a 20% chance of snow), and evaluate objectively to determine whether the source and content of data is accurate and sufficient quality.

Answer 13

**Risk Urgency Assessment (Risk Proximity) -** Part of **Perform Qualitative Risk Analysis** in the **Planning** process. Evaluates when the risk may occur so that attention can be focused on the more immediate ones. Time sensitive or other factors may require near-term responses and alter the final risk severity ratings of risks.

Answer 14

**Risk Categorization -** Used in **Perform Qualitative Risk Analysis** in the **Planning** process. Uses the **Risk Breakdown Structure**! **Ranking** risks to determine which risks need **further analysis**, and later, **create risk response plans**. * Risk ranking by **priority** * Risks grouped by **category** * Risks that need **near-term responses** * Risks needing **further analysis and response** * **Watch-list of low-priority items** * **Trends** in Qualitative Risk Analysis results

Answer 15

**Perform Quantitive Risk Analysis -** Used in **Planning.** Evaluates risks prioritized in **Perform Qualitative Risk Analysis** and **quantifies** project risk exposure by **assigning numeric probibilities** to each **risk and their impact**.

Answer 16

Sensitivity Analysis (Tornado Diagram) - **Modeling technique** used in **Quantative Risk Analysis** in **Planning** process. Quantative method to help determine risks with greatest potential impact on project. Each bar displays the high and low values for that factor. The example shows sensitivity to cost against the risks associated with using leading-edge technology.

Answer 17

**Expected Monetary Value -** Modeling technique used in **Perform Quantitive Risk Analysis** in Planning process. Commonly used with **Decision Tree Analysis**! Calculation: **Initial Cost + (Risk x Probability)** Calculates **average outcome** when the future includes **scenarios that may or may not happen**. Opportunities are positive values; threats are negative values. Example: whether to test parts or not before installing at customer sites.

Answer 18

Monte Carlo Analysis - Used in **_Estimating_** (view the time management video) **Modeling** technique used in **Perform Quantitative Risk Analysis** in **Planning** process. **Probability** of **completing** project on particular **day** or specific **budget**. **Probability** of activity being on **critical path**. The **overall project risk**. Computer used to generate **random numbers**.

Answer 19

**Risk Register Updates -** Risk Register is updated with the **probability** of **each risk** and probability of meeting the project's costs and schedule forecasts. You will have a **prioritized** list of **quantified risks** by financial impact. **Multiply probability by impact**, and **rank by size**. Use **total amount** as value to be used in **contingency fund** for all risks within the project.

Answer 20

**Plan Risk Responses -** Process for **developing options** and **determining actions** to **enhance opportunities** and **reduce threats** to project deliverables. Part of **Planning** process. * Includes **avoid**, **transfer**, **mitigate**, exploit, share, and enhance. * **Actions** to take should risk occur.

Answer 21

**Strategies for Negative Risks or Threats -** * **Avoidance** - eliminate the cause of the risk or change project management plan to eliminate risk (ie: change schedule, scope, or close project). * **Transference or deflection** - shift the impact, ownership to 3rd party (ie: insurance, bonds, warranties, contracts). * **Mitigation** - reduce probability and/or impact (ie: safety airbags, prototyping). * **Acceptance** - No change in project management plan; passive or active acceptance (ex: set aside contingeny reserve).

Answer 22

**Strategies for Positive Risks or Opportunities -** * **Share** - Allocate ownership to 3rd party to capture opportunity (ie: joint ventures; alliances; partnerships). * **Exploit** - Ensure that opportunity definitely occurs (ie: assign smart resources, use upgraded technology). * **Enhance** - Increase probability and/or positive impacts (ex: add resources to activities to finish early). * **Acceptance** - Let the opportunity go.

Answer 23

**Contingent Response Strategies -** Response used **only if** identified **risk event occurs**. Ex: **milestones** are **missed** or an opportunity occurs to **acquire** more experienced **team member**.

Answer 24

**Watch List -** Low priority risks

Answer 25

**Fallback Plan -** **Backup strategies** when primary strategies are inadequate or the risk has high impact.

Answer 26

**Residual Risks -** * Risks expected to **remain** after planned responses * Generally accepted.

Answer 27

**Control Risks -** * **Reassess** risks and **make changes** where needed. * Identify and respond to **new risks**.

Answer 28

Control Chart - Set up in Plan Quality Management to define quality on the project: the mean, spec limits, and control limits. Used in Control Quality to help determine if the results of a process are within acceptable limits.

Answer 29

Bottom-Up Estimating Most accurate way of estimating. But takes more time and money. Work decomposed to more detail.

Answer 30

**Analogous Estimating -** Top-down. Estimating by experience. Using actual duration of previous similar activity. A type of expert judgment. Used for rough order of magnitidue (ROM) Less accurate. Takes less time and money.

Answer 31

**Parametric Estimating -** Uses algorithm to calculate, based on historical data. Linear extrapolation! Example: time to lay floor tiles = time to lay a tile x number of tiles

Answer 32

**Three-Point Estimate -** **PERT** (Program Evaluation and Review Technique) - weighted average duration Activity duration estimate. Estimate uncertainity and risk through a standard average based on: Optimistic **(O)** - best case scenario Pessimistic **(P)** - worst case scenario Most Likely **(M)** - normal case scenario **Beta Distribution Formula:** (O + 4M + P) / 6 **Triangular Distribution Formula:** (O + M + P) / 3

Answer 33

**Beta Activity Standard Deviation -** Formula: **σ = (Pessimistic - Optimistic) / 6** Important: the higher the number above, the less certaintity. So lower is better!

Answer 34

**Expected Activity Duration (Beta Distribution) -** Used to estimate **time** or **cost**. Formula: **(P + 4M + O) / 6** P = pessimistic, M = most likely, O = optimistic Gives stronger consideration to the **most likely estimate**. Derived from the **Program Evaluation and Review Technique** (PERT).

Answer 35

**Triangular Distribution (Simple Average) -** Used to estimate time or cost. Formula: **(P + O + M) / 3** P = pessimistic, M = most likely, O = optimistic A simple average of the three-point estimate. Gives equal weight to each of the three-point estimates.

Answer 36

**Name the 3 contract types:** 1. Firm Fixed or Fixed Price 2. Time and Material (hybrid of fixed price and cost reimbursable) 3. Cost Reimbursable

Answer 37

**Firm Fixed / Fixed Price Contract Types -** **Firm Fixed Price or Lump-Sum:** * Buyer pays fixed total. * Highest risk for seller. * Highest profit potential for seller. **Fixed-Price Plus Incentive Fee:** * Fixed price contract + incentive to meet buyer's objectives * Buyer and seller share risks. * Share ratio * Good when seller has incentive to control costs **Fixed Price with Economic Price Adjustment** * Fixed price + annual adjustments * Good for multi-year contracts **Fixed Price with Redetermination** * Fixed price for initial period with periodic redetermination * Useful when initial pricing can be established *

Answer 38

**Time and Materials Contract Type -** * Hybrid of Firm Fixed and Cost Reimbursable. * Also called Unit Price Contract * For staff augmentation, outside expertise

Answer 39

**Cost Reimbursable Contract Type -** **Cost Reimbursable or Cost Plus Fixed Fee** * Buyer reimburses seller for actual costs plus a fee as seller's profit * Buyer has more risk than seller * Useful when scope of work not well defined **Cost Plus Incentive Fee** * Buyer pays costs. Fee then paid upon satisfactory performance criteria. * Useful when incentives cannot be devised easily. * Limitation is that the award is based on subjective data. **Cost Plus Percentage of Cost / Cost Plus Fee** * Buyer pays cost + percentage of costs as profit. * Highest risk for buyer. * Now allowed for US government contracts.

Planning Flashcards

(64 cards)