PMP Definitions Flashcards
(152 cards)
1
Q
Project
A
A temporary endeavor undertaken to create a unique product, service, or result.
2
Q
Program
A
A group of related projects that are coordinated allowing for more control.
3
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Portfolio
A
A collection of projects and programs that are aligned to achieve strategic business objectives.
4
Q
Phases
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A group of related project activities that allows for more control and often completes a major deliverable.
5
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Project Life Cycle
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A group of project phases defined by an organization into a framework allowing for more control.
6
Q
Baseline
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The original approved plan plus/minus all approved changes; the current approved version of the plan.
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Q
System
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A set of formal policies, procedures, rules, or processes that defines how things are done.
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Q
Progressive Elaboration
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An iterative approach to planning; plans are created in multiple passes rather than all at once.
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Historical Information
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Documents or data from previous projects which are used to assist in future project decisions.
10
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Enterprise Environmental Factors (EEF)
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The environment you work in that can impact your project; corporate culture, industry standards, infrastructure, political climate, market conditions, etc.
11
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Organizational Process Assets (OPA)
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Any documented processes and procedures; corporate knowledge base (e.g. project archives).
12
Q
Functional Organization Structure
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A departmentalized structure where employees work for only one manager; the project manager has little to no power.
13
Q
Matrix Organization Structure
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Employees report to both a functional manager and a project manager (power is shared). Weak Matrix: The PM has little power Balance Matrix: The PM has moderate power Strong Matrix: The PM has nearly full power and authority
14
Q
Projectized Organization Structure
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Employees work directly for and report only to the project manager; The project manager. has full power and authority
15
Q
Stakeholder
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A person or organization who is actively involved in the project, or whose interests may be positively or negatively impacted by the project, or who might exert influence over the project.
A stakeholder grid show interest level versus power level.
16
Q
Business Case (reason s to do a project)
A
market demand, business need or strategic opportunity, customer request, technological advance, legal requirement, ecological impact, social need.
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Q
Project Expeditor
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Staff assistant to the executive who has responsibility for the project. - can make few if any decisions - primary responsibility lies in assuring the timely arrival of resources
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Project Coordinator
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Reports to a higher level in the hierarchy. - has authority to assign work to individuals - lacks full authority of a project manager
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Project Manager
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Tasked with achieving the project objectives. - lead person responsible for communicating with all stakeholders including sponsor - may report to a functional manager or program or portfolio manager
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Project Charter
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Formally authorized the project to exist, establishes the project manager’s authority, and documents high-level requirements, milestones, budge, risks, and success criteria.
21
Q
Project Management Plan
A
A formal, approved document that defines how the project is executed, monitored & controlled. Project Management Plan Components: - Change Management Plan - Configuration Management Plan - Scope Management Plan - Schedule Management Plan - Cost Management Plan, - Quality Management Plan - Process Improvement Plan - Human Resources Plan - Communications Management Plan, - Risk Management Plan - Stakeholder Manan Plan - Procurement Management Plan - Requirements Management Plan - Scope Baseline - Schedule Baseline - Cost Performance Baseline
22
Q
Lessons Learned
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Things learned on the current or previous project that can be used to improve current or future project performance.
23
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Work Authorization Systems
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Defines how project work will be authorized to ensure that work is done by the right organization, at the right time, and in the right order.
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Change Request
A
A formal request for a change to the project; can be a change to scope, cost/budget, schedule, policies, procedures, processes, or to any of the project plans.
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Issue
A point to matter in question, in dispute, or over which there are disagreements.
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Preventive Actions
Take actions to reduce the probability of negative impacts associated with project risks (prevent/minimize impact of potential problems).
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Correctie Actions
Take actions to align expected future project outcomes to the project management plan (correct the problem).
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Value Engineering
An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more efficiently; see Product Analysis Tool & Technique.
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Group Creativity Techniques
- Brainstorming - Nominal Group Technique (voting and ranking ideas) - Delphi Technique (Blind/anonymous) - Idea and MinMapping - Affinity Diagrams (grouping into categories)
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Group Decision Making Techniques
- Unanimity (all agree) - Majority (over 50% agree) - Plurality (Larges block agrees) - Dictatorship (one person decides) - Consensus (all agree to go along, even if it's not their first choice)
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Project Scope Statement
Describes in detail the project's deliverables and the work required to create those deliverables; it contains explicit project inclusions and exclusions, acceptance criteria, assumptions, and constraints
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Project vs. Product Scope
Project scope is measured against the project management plan. Product scope is measured against product requirements.
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Decomposition
The process of continually breaking down project deliverables into all parts to the loin where activity cots and drains ca b reliably estimate and managed.
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WBS Work Breakdown Structure
A deliverable-oriented hierarchy decomposition of the work to be completed on a project. Each lower level representats an i increasingly detailed definition of the work; lowest level is the work package; each node has a unique identifier; WBS Dictionary - provides a detailed descriptions of each WBS component.
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Scope Baseline
Includes the WBS, WBS Dictionary, and Project Statement.
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Project Schedule Network Diagram
A graphical depiction of dependencies among project activities. A visual representation of the project schedule.
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Precedence Diagramming Method (PDM)
A network diagramming method that uses rectangles (notes) to represent activities and arrows to show logical relationships between the activities; also known as Activity-On-Node (AON).
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Types of Dependencies
Mandatory (hard logic) Discretionary (preferred, arbitrary, soft logic) External Internal
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Logical Relationships
Dependencies between two activities where one activity must be started or finished before the other can be started or finished. Four Types: Finish-to-Start (FS) Finish-to-Finish (FF) Start-to-Start (SS) Start-to-Finish (SF)
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Lead
Starting an activity prior to the completion of the preceding activity, getting a head-start on an activity.
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Lag
Delaying the start of an activity after the completion of a preceding activity, delaying an activity.
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Bottom-Up Estimating
Breaking a project or activity down into smaller components that are easier to estimate, then aggregating (rolling-up) those costs or durations. This is the most accurate and expensive estimating technique.
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Analogous Estimating
Using a previous project (historical information) as a starting point to estimate activity costs or activity durations; also known as top-down estimating. This is the least accurate, but quickest method.
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Parametric Estimating
Using a statistical relationship to calculate cost or duration; typically involves multiplying the number of units by a cost or duration per unit. Time example: 4 hours per server x 20 server = duration of 80 hours Cost example: $100 cost per square foot x 2,000 square feet = $200,000 construction cost.
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Three-Point Estimating
A weighted average method used to increase estimation accuracy; uses Optimistic, Pessimistic, and Most Likely estimates to calculate the estimated activity cost or duration. Triangle Distribution Formula: (O + M + P)/3 Beta Distribution Formula (PERT): (O + 4xM + P)/6
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Reserve Analysis
Contingency reserves buffers) used to account for schedule or cost uncertainty (risks).
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Critical Path
The path of activities alone which any delays will cause the project to be delayed; the longest duration path through the schedule network diagram; the chain of tasks which all have 0 float.
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Total Float (Slack)
The amount of time an activity can be delayed without delaying the project completion date.
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Free Float
The amount of time an activity can be delayed without delaying the following (successor) activity.
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Critical Path Method
A schedule analysis method that calculates the critical path for the project, float for each activity, and possible start and finish dates for each activity.
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Critical Chain Method
Takes the Critical Path Method and factors in resource constraints and schedule buffers.
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Schedule Compression
Used to shorten the project schedule. Two Methods: Crashing - Adds extra resources, results in higher costs. Fast-Tracking - Doing activities in parallel, which increases risk.
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Resource Leveling
Used to adjust the resource schedule when resources have been over-allocated; ;often lets the schedule slip in order to smooth out resource utilization. A histogram (bar chart) is the tool used to do this.
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What-if Analysis
A statistical analysis method used to predict the schedule based on various possible scenarios. Examples include: Monte Carlo Analysis which is a computer software that attempts thousands of random scenarios to predict likely possible outcomes.
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Milestone Schedule
A summary schedule which only shows key points in the project.
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Grantt Chart
A type of bar chart used to display the project schedule with bar lengths representing activity durations.
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Schedule Baseline
The accepted and approved version of the project schedule.
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Funding Limit Reconciliation
Adjustments made to project expenditures to account for funding limits (e.g. quarterly budgets).
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Cost Baseline
Authorized, time-phased, total project Budget used to measure, monitor and control cost performance of the project; appears as an S-curve on a graph.
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Variance Analysis
Measuring the difference between planned and actual (used for both costs and durations).
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Earned Value Management (EVM)
An objective mathematical approach to measure cost and schedule performance.
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Contingency Reserves
Amounts set aside by the PM to cover known risks (known-unknowns) and is included in the Cost Baseline.
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Management Reserves
Amounts management sets aside to cover unknown risks (unknown-unknowns) and is NOT included in the Cost Baseline.
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Net Present Value (NPV)
Present value of a future income stream, offset against the initial investment amount. NPV = Sum of [Future Cash Flows / (1 + i)^N] - Initial Costs NPV = Sum of [PV for Each year] - Initial Costs PV = FV / (1 + i)^N
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Benefit Cost Ratio
Compares financial yield to the cost of doing the project.
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Payback Period
The amount of time needed to recoup the project's investment.
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Customer Satisfaction
Keep customer happy by conformance to requirements (ensure the project produces what it's supposed to) and fitness for use (the product must satisfy real needs).
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Prevention over Inspection
It's usually less expensive to prevent mistakes than it is to fix them.
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Precision
The values of repeated measurements are clustered and have little scatter.
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Accuracy
The measured value is very close to the true value.
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Quality Assurance
Looking to see if we are using the quality procedures as planned; Auditing the Process. QA = Audit
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Control Quality
Testing the quality of the product or deliverable. CQ = Inspection
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Cost-Benefit Analysis
High quality results in less rework, higher productivity, lower costs, and increased stakeholder satisfaction.
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Cost of Quality (COQ)
Includes all costs over the life of the project. Includes two categories: Conformance & Nonconformance. Cost of Conformance: - Prevention Costs: - Training - Time to do it right - Document processes - Equipment (state of the art) - Appraisal Costs: - Testing - Destructive testing loss - Inspections Cost of Non-Conformance: - Internal Failure Costs: - Rework - Scrap - External Failure Costs: - Liabilities - Warranty work - Lost business
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Cost of Conformance
Money spent during the project to avoid failures. Two categories: Prevention and Appraisal. Cost of Conformance: - Prevention Costs (Build a quality product) - Training - Allow enough time to do it right - Document processes - Maintaining equipment - Appraisal Costs (Assess the quality) - Testing - Destructive testing loss - Inspections
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Cost of Non-Conformance
Money spent during and after the project because of failures. Cost of Non-Conformance: - Internal Failure Costs (Failures found by the project) - Rework - Scrap - External Failure Costs (Failures found by the customer) - Liabilities - Warranty work - Lost business
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Design of Experiments (DOE)
A statistical technique that analyzes several variations (product bundles or feature combinations) at once.
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Kaizen
Japanese word for "continuous improvement" A type of Plan Do Check Act (PDCA) cycle
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W. Edwards Deming
Developed the 14 points of Total Quality Management (TQM), & said quality is a management problem 85% of the time.
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Joseph Juran
Defined quality as "Fitness for Use" & promoted conformance and quality by design.
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Philip Crosby
Believed in conformance to requirements and Zero Defects.
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ISO 9000
A quality management certification that requires documenting and following processes.
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Quality vs. Grade
Low Grade is OK - Grade has to do with amount of features Low Quality is ALWAYS BAD - Quality has to do with the product itself
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Standard Deviation
Also known as sigma; represents variation (dispersion) from the average (mean). SD = (Pessimistic - Optimistic) / 6 1 Sigma = 68.26 % (317,500 defects per million) 2 Sigma = 95.46% (45,000 defects per million) 3 Sigma = 99.73% (2,700 defects per million) 4 Sigma = 99.999% (3.4 defects per million)
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Probability Distributions
Graphical representation of probabilities. 1σ = 68.26 % (317,500 defects per million) 2σ = 95.46% (45,000 defects per million) 3σ = 99.73% (2,700 defects per million) 4σ = 99.999% (3.4 defects per million)
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Normal Probability Distribution (Bell Curve)
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Mutually Exclusive
Two events can't occur at the same time (if one event occurs, then the other event cannot).
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Statistical Independence
The occurrence of one event makes it neither more note less probable that the other occurs; past coin flips of heads do not change the probability of the next coin flip being heads.
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Statistical Sampling
Choosing small random sample, and the sample's properties should represent the entire group.
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Rule of 7
Seven consecutive data points on a control chart on one side of the mean signifies that the process is headed out of control.
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Benchmarking
Comparing your project or process to a known standard.
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Flowcharting
Visual depiction of a process.
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Types of Variances
Special Cause - Also known as Assignable Cause, is not inherent in the system, not predictable, and is intermittent. Includes non-random data points or points outside the control limits. Common Cause - Also known as Random Cause, is inherent in the system and predictable, normal or not unusual, includes random patterns within the control limits.
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Pareto Chart
A type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line. 80/20 rule says 80% of problems are from 20% of the causes, and dictates you should focus most of your attention on those top few causes.
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Scatter Diagram
Plots data points to show the relationship between 2 variables (X,Y)
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Cause and Effect (Ishikawa or Fishbone) Diagram
Shows how various factors might be linked to potential problems or effects.
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Maslow's Hierarchy of Needs (triangle)
People can only ascend to a higher level after fulfilling each of the lower levels. Physiological - Food, water, shelter Safety - security, stability, freedom from harm Social - friends, family, love Esteem - respect, appreciation Self-Actualization optimal performance, growth, learning.
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Herzberg's Motivation-Hygiene Theory
Certain factors in the workplace cause job satisfaction, while a separate set of a factors cause dissatisfaction. Hygiene factors including status, job security, salary, and fringe benefits do NOT cause satisfaction, but if they are missing they cause Dissatisfaction.
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McGregor's Theory-X
People dislike work, and thus employees must be watched closely.
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McGregor's Theory-Y
People are self-motivated, and thus can be trusted to work hard on their own.
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Fiedler's Contingency Theory
Effectiveness of a leader's management style (task-orients vs. relationship-oriented) is dependent on the situation.
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McClelland's Theory of Needs
People are motivated by either (1) achievement, (2) affiliation, or (3) power, and need to be managed accordingly.
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Expectancy Theory
Employees are motivated by the expectation of realistic positive outcomes and related rewards.
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Responsibility Assignment Matrix (RAM)
A grid that shows the relationship between work packages (rows) and team members (columns).
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RACI Chart
A RACI Chart is a type of RAM that shows who is responsible for the work, accountable for the work, who needs to be consulted, and who needs to be kept informed. Responsible - does the work Accountable - ensures the work is done Consult - input required from SME Inform - updated on status
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Staffing Management Plan
Includes information on staff acquisition & release, resource calendars, recognition & rewards, compliance (unions, regulation, legal, etc), and safety (training, policies, and procedures).
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Constructive Team Roles
Clarifiers, Encouragers, Information Givers, Information Seekers, Initiators, Gate Keepers, Harmonizers, and Summarizers.
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Destructive Team Roles
Aggressors, Blockers, Dominators, Devil's Advocate, Recognition Seekers, Topic Jumpers, Withdrawers.
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Forms of Power
Formal/Legitimate - power based on position or title Expert - BEST; power based on knowledge or expertise such as a SME Reward - You reward desirable behavior with incentives, aka the carrot method. Referent - power based on respect or adornment Punishment/Penalty - WORST; threats of punishment, aka the stick method
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Methods of Conflict Resolution
Collaborating - examine various perspectives, cooperate Compromising - both parties give something up Forcing - pushing one's viewpoint at the expense of others (win-lose) Smoothing/Accommodating - emphasis on areas of agreement, but ignore the true problem (lose-lose) Withdraw/Avoiding - retreating from conflict (lose-lose)
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Team Development (Tuckman's Ladder)
Forming - team is shy Storming - not seeing eye-to-eye Norming - begin to work together Performing - well-organized Adjourning - team disbands
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Interpersonal Skills
Aka soft skills. Leading Influencing Effective Decision-Making
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Primary Sources of Conflict
Schedule, Resources, and Priorities account for 50% of project conflicts.
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Communications Management Plan
Documents: - who sends info - who receives info - what info is sent - how info is sent - when and how often info is sent
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Number of Communication Channels
n(n-1) / 2
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Communication Methods
Interactive - multi-direction (meetings) Push - one-way outbound (email) Pull - one-way inbound (share point)
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Communication Types
Formal Written - complex problems, project management plans, memos, contracts Formal Verbal - presentations, speeches Informal Written - email, handwritten notes Informal Verbal - meetings, conversations
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NonVerbal Communications
body language, posture, facial expressions, hand motions, etc.
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Para-lingual
Pitch and tone of your voice to convey emphasis and importance.
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Risk
Uncertainty, an unknown future event. Positive risks are opportunities. Negative risks are threats.
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Residual Risk
Any risk that remains after the risk response strategy has been implemented; left-over risk.
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Secondary Risk
Risks that occur as a result of implementing a risk response strategy.
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Qualitative Risk Analysis
A quick and easy risk assessment method that combines the probability and impact to assign a risk score.
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Quantitative Risk Analysis
A more rigorous risk assessment which numerically analyzes the effect of identified risks on overall project objectives.
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Probability and Impact Matrix
A matrix used during qualitative risk analysis that multiplies the risk probability (high, medium, or low) by the impact to come up with a risk score, which is then used to create a prioritized list of risks.
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Expected Monetary Value (EMV)
EMV = Probability x Impact
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Sensitivity Analysis
Graphically shows which variable have the greatest impact on the project. - Tornado Diagram
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Threat Strategies
ATM-A - Avoid - change something so that the threat no longer exists - Transfer - shift the risk to a third party, perhaps via a contract - Mitigate - reduce the probability or impact, an alternate plan - Accept - live with it
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Opportunity Strategies
SEE-A - Share - share with a third party, perhaps via a joint venture - Exploit - change something to ensure the opportunity occurs - Enhance - increase the probability or impact, an alternate plan - Accept - live with it
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Workarounds
Used only when an unidentified (unknown-unknown) risk event occurs.
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Reserves
Money or time set aside in case a risk occurs; contingency reserves are for identified risks, management reserves are for unidentified risks.
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Procurement Documents
RFP = Request for Proposal RFB = Request for Bid RFQ = Request for Quote RFI = Request for Information IFB = Invitation for Bid
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Point of Total Assumption (PTA)
The point where the seller has to pay of any further cost overruns. PTA = Target Cost + ((Ceiling Price - Target Price) / Buyer's Share Ratio) PTA = TC + ((CP-TP)/BSR)
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Teaming Agreements
A standardized contract between two parties to simplify procurements; aka master service agreements.
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Type of Contracts
Fixed Price (seller bears all risk): FFP = Firm Fixed Price - most common, seller covers any cost increases. FPIF = Fixed Price Plus Incentive Fee - includes an extra performance bonus. FP-EPA = Fixed Price with Economic Price Adjustment - used on long-term projects, buyer covers inflation costs. Cost Plus (Buyer assumes some risk) CPPC = Cost Plus Percentage of Cost - seller reimbursed for costs, plus a % commission. CPFF = Cost Plus Fixed Fee - seller reimbursed for costs, plus a fixed $ commission. CPIF = Cost Plus Incentive Fee - seller reimbursed for costs, plus an objective bonus. CPAF = Cost Plus Award Fee - seller reimbursed for costs, plus a subjective bonus. T&M = Time & Materials - hybrid, moderate risk to buyer, often used for staff augmentation and consultants.
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Stakeholder Register
Lists stakeholders and relevant details for each.
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Stakeholder Management Plan
Outline strategies for managing various stakeholders' expectations/involvement.
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Issue Log
Tracks disagreements and/or unresolved matters and outlines plan for resolving.
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Change Log
Shows all changes made during a project along with their impact on various constraints.
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Analytical Techniques
Ways of predicting/assessing potential outcomes in light of various project variables.
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Planned Value (PV)
Budgeted value of work planned to be done.
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Earned Value (EV)
Budgeted value of work completed.
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Actual Cost (total) (AC)
Actual cost of work completed.
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Budget at Completion (BAC)
Cost Baseline
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Estimate at Completion (EAC)
Expected total cost (forecast). EAC = AC + Bottom-Up ETC - (most accurate) EAC = AC + (BAC - EV) - (ATYPICAL - AC plus work remaining, use budget rate) EAC = BAC / CPI - (TYPICAL - Assumes same rate of spending will continue) EAC = AC + [(BAC-EV)/(CPI\*SPI)] - (Assumes poor cost performance & schedule performance will continue)
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Estimate to Complete (ETC)
Expected remaining cost (from now until end), the Value of work remaining. ETC = EAC - AC
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Variance at Completion (VAC)
Expected variance over/under budget. VAC = BAC - EAC Negative is bad, Positive is good.
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Cost Variance (CV)
CV = EV - AC Negative is bad, Positive is good.
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Schedule Variance (SV)
SV = EV - PV Negative is bad, Positive is good.
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Cost Performance Index (CPI)
CPI = EV / AC Under 1 is bad, Over 1 is good.
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Schedule Performance Index (SPI)
SPI = EV / PV Under 1 is bad, Over 1 is good.
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To Complete Performance Index (TCPI)
TCPI = [(BAC-EV)/(BAC-AC)] - (Optimal rate to complete within budget) TCPI = [(BAC-EV)/(EAC-AC)] - (Assumes original budget cannot be achieved)
