Pmp Part 2 Flashcards
(140 cards)
1
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Scope management plan
A
A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled and validated
2
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Sensitivity analysis
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An analysis method to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes by correlating variations in project outcomes with variations in elements of a quantitative risk analysis model
Can help you determine how changes in one variable will affect a system‘s output. It involves changing one input while keeping others constant to observe the impact on the results.
In project management, sensitivity analysis can help assess how changes in project variables (costs, timelines, or resources) will affect the project objectives. You will alter one variable while keeping others constant to determine which factors will most significantly affect the project or it’s outcome. Used to help identify risks and uncertainties and develop their response plans.
3
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A
4
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Tools for missed deadlines, work, overload, unclear task, dependencies, frequent scope, adjustments, inaccurate time estimates
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5
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Risk categories
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6
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Critical path method (CPM)
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A method used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule module.
Also a tool for solving the problem of overlapping activities
7
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Risk categories
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Technical, commercial, management, external
8
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Simulation
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An analytical method that models the combined affect of uncertainty to evaluate their potential impact on objectives
9
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Single point estimating
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An estimating method that involves using data to collect a single value, which reflects a best guess estimate.
A single point estimate is opposed to a range estimate, which includes the best and worst case scenario.
10
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Sponsor
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A person or group who provides resources and support for the project, and is accountable for enabling success
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A
12
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Stakeholder engagement plan
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A component of the project management plan that identifies the strategies and actions required to promote productive involvement of stakeholders in project or program decision-making and execution
13
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Steering committee
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An advisory body of senior stakeholders who provide direction and support for the project team and make decisions outside the project teams authority
14
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Story map
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A visual model of all the features and functionality desired for a given product, created to give the team a holistic view of what they are building and why
15
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A
16
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Statement of work
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A narrative description of products, services, or results to be delivered by the project
17
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Tailoring
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The deliberate adaptation of approach, governance, and processes to make them more suitable for the given environment and the work at Hand
18
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Team charter
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A document that records, the team values, agreements, and operating guidelines as well as establishes clear expectations regarding acceptable behavior by project team members
19
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Team performance domain
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The performance domain that addresses activities and functions associated with the people who are responsible for producing project deliverables that realize business outcomes
20
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Throughput
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The number of items passing through a process
21
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Throughput chart
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A diagram that shows the accepted deliverables overtime
22
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Time and materials contract (T & M)
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A type of contract that is a hybrid, contractual arrangement containing aspects of both cost reimbursement and fixed price contracts
23
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Tolerance
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The quantified description of acceptable variation for a quality requirement
24
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Trend analysis
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An analytical method that uses mathematical models to forecast future outcomes based on historical results
25
Uncertainty performance domain
The performance domain that addresses activities and functions associated with risk and uncertainty
26
Value
The worth, importance, or usefulness of something
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Value delivery office (VDO)
A project delivery support structure that focuses on coaching teams. Also building agile skills and capabilities throughout the organization and mentoring sponsors and product owners to be more effective in those roles.
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Value stream map
A display of critical steps in a process, and the time taken in each step used to identify waste. Value stream mapping is a lien enterprise method used to document, analyze, and improve the flow of information or materials required to produce a product or service for a customer
29
Vanity metric
A measure that appears to show some result, but does not provide useful information for making decisions
30
Variance
A quantifiable deviation, departure, or divert away from a known baseline or expected value
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Variance analysis
A method for determining the cause and degree of difference between the baseline and actual performance
32
Velocity chart
A chart that attracts the rate at which the deliverables are produced, validated, and accepted with a predefined interval
33
Velocity
A measure of a team’s productivity rate at which the deliverables are produced, validated, and accepted with an a predefined interval
34
Examples of information flow
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What is the output of most monitoring and controlling processes?
Work performance information
37
Components (areas) of emotional intelligence
Self awareness, self management (self regulation), social awareness, (empathy and understanding others feelings, reading, nonverbal cues, and body language), social skill (managing groups of people, such as project teams, building social networks, finding common ground)
Some models consider a fifth component of emotional intelligence – motivation (knowing what drives others)
38
Checking outcomes in the team performance domain
Shared ownership, high-performing team, leadership, and interpersonal skills demonstrated by all team members
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Self protection
Team members inflate time estimates to safeguard against unforeseen delays.
41
Triple bottom line
In addition to considering financial impacts when performing initial planning, it is becoming more common to consider social and environmental impacts. These and combination are known as the triple bottom line.
42
Experiments
A well designed series of experiments can help identify cause-and-effect relationship, relationships, or at least can reduce the amount of ambiguity
43
In the planning process group, what are the processes specific to scope?
Plan scope management, collect requirements, define scope, create work breakdown structure
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In the planning process group, what are the processes specific to schedule/time?
Plan schedule management, define activities, sequence activities, estimate, activity duration, develop schedule
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In the planning process group, what are the processes specific to cost?
Plan cost management, estimate cost, determined budget
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In the planning process group, what is the process specific to quality?
Plan quality management
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In the planning process group, what are the processes specific to resources?
Plan resource management, estimate activity resources
48
In the planning process group, what is the process specific to communication communications?
Plan communication, communications management
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In the planning process group, what are the processes related to risk?
Plan, risk management, identify risks, perform qualitative risk analysis, perform quantitative risk analysis, plan risk response
50
In the planning process group, what are the processes specific to procurement and stakeholders?
Plan procurement management and plan stakeholder management
51
What are the processes in the execution process group?
Direct and manage project work (integration)
Manage project knowledge (integration)
Implement risk response.
Manage quality.
Acquire resources, develop team, manage team (human resource)
Manage communication communications.
Manage procurement.
Manage stakeholder engagement (stakeholder)
52
What are the processes in the monitor and control process group?
Monitor and control project work (integration)
Control scope
Control schedule.
Control cost
Control quality
Control resources
Monitor communications.
Monitor risks.
Control procurement.
Monitor stakeholder engagement
53
What are the outputs of each integration process?
Project charter (develop project charter)
Project management plan (develop project management plan)
Deliverables (direct and manage work).

54
Major outputs for the planning process group?
Management plans (scoop, schedule, budget, quality, resources, communications, risk, procurement, stakeholder, change, configuration, requirements.)
Baselines (scope, schedule, cost, performance measurement)
Project lifecycle description.
Development approach
Scope statement
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Major outputs of initiating process group
Project charter, assumption, log, stakeholder register
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Major outputs of executing process group
Work performance data, change request, team performance assessments, selected seller agreements, issue log, lessons learned register
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Major outputs of the monitoring and controlling process group
Accepted deliverables, work performance information, work performance reports, approved change requests
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Major outputs of the closing process group
Final product, service, or result, transition final report
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Cycle time chart
 diagram shows the average cycle time of the work items completed overtime. A cycle time chart may be shown as a scatter diagram of our.
60
Request for information
Bid documents can include request for information, request for proposal, and request for quote
A request for information is used to gather more information from the market prior to sending out bid documents to a set of selected vendors
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Request for quote
Bid documents can include request for information, request for proposal, and request for quote.
Request for quote is a bid document used when price is the main deciding factor and the proposed solution is readily available 
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Vendor conferences
Once been documents are distributed, the buyer generally has a bitter conference to respond to bit questions and provide clarifying information. Then the bitters develop their responses and deliver them to the buyer by the date specified on the bid document documents.
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Principles of project management guide behavior that impact what?
Project performance domains
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Stakeholder engagement
Identify, understand, analyze, prioritize, engage, monitor. Continue this process in a loop.
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What are the desired outcomes for the stakeholder performance domain?
1. A productive working relationship with stakeholders throughout the project.
2. Stakeholder agreement with project objectives.
3. Stakeholders who are project beneficiaries are supportive and satisfied. Stakeholders who may oppose the project do not negatively impact project results.
66
Common aspects of team development
Vision and objectives – everyone is aware, these are constantly communicated throughout the project.
Roles and responsibilities – make clear, can include identifying, acknowledge gaps and filling
Project team operations – facilitating communication, problem-solving, project, team, charter, and setting team guidelines and norms
Guidance
Growth – what’s working well and areas for improvement.
67
Motivation
Two aspects: understanding what motivates team members to perform, and secondly, working with team members to keep them committed to the project and outcomes.
Motivation can be intrinsic or extrinsic. Intrinsic comes from inside the individual, such as finding pleasure in the work itself rather than rewards. Examples include: achievement, challenge, belief in work, making a difference, responsibility, personal growth.
Extrinsic motivation is performing work because of an external reward like a bonus.
People are not motivated by one thing, but they do have a dominant motivator. Identifying this can help with motivation.
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Conflict management
Conflict arises on every project. Not all conflict is negative. Addressing conflict before it escalates beyond useful debate leads to better outcomes. Keep communication, communications open and respectful, focus on issues, not the people, focus on the present and future, not the past, search for alternatives together
69
Leadership tailoring
Leadership styles should be tailored to meet the needs of the project, the environment, and the stakeholders. Variables influencing leadership style include:
Experience with the type of project – a team with more experience with a particular project needs less oversight and less directive leadership style
Maturity of project team members – more experienced team members need less oversight and direction
Organizational governance structures
Distributed project teams – use technology to collaborate and engage, build in time to no remote team members, meet face-to-face at least once
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Desired outcomes for team performance domain
Shared ownership, a high performing team, applicable leadership and other interpersonal skills are demonstrated by all project team members
71
Development approach in life cycle performance domain
Addresses activities and functions associated with the development approach, cadence, and lifecycle phases of the project
72
What are the desired outcomes for the development approach and lifecycle performance domain?
Development approaches that are consistent with project deliverables
A project lifecycle, consisting of phases that connect the delivery of business and stakeholder value from the beginning to the end of the project
A project lifecycle, consisting of phases that facilitate the delivery cadence and development approach required to produce the project deliverables
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Project phase
A collection of logically related project activities that culminates in the completion of one or more deliverables
74
Project life cycle
The series of phases that a project passes through from its start to its completion
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Delivery cadence
Refers to the timing and frequency of project deliverables. Projects can have a single delivery, multiple deliveries, or periodic deliveries.
Multiple deliveries – a project may have different components or phases, such as creating a new drug where you have pre-clinical submissions, phase one, phase 2, phase 3, trial results, registration, then launch.
Periodic deliveries – like multiple deliveries, but they are on a fixed delivery schedule such as monthly or buy monthly. Software is a good example.
76
What product/service considerations influence selection of development approach
Three buckets: product/service/result, project, and organization. Below variables are associated with product/service/result.
Degree of innovation – high degree of innovation, more suited for adaptive.
Requirements certainty
Scope stability
Ease of change
Delivery options – can it be delivered in components or increments? Then use adaptive.
Risk – high risk may require significant upfront planning, but also some products can have risk reduced through in criminal releases.
Safety requirements – rigorous safety requirements often use predictive
Regulations – high regulatory oversight means predictive approach
77
What project considerations influence the selection of a development approach?
Stakeholders – projects using adaptive methods requires significant stakeholder involvement throughout the process
Schedule constraints – if there is a need to deliver something early, even if not finished, an initiative or adaptive approach is beneficial
Funding availability – projects that work in an environment of funding uncertainty can benefit from adaptive approach. MVP can be released with less investment. Further investments can be made based on market response.
78
What organization considerations influence the selection of a development approach?
Organizational structure – one that has many levels, Rigid reporting structure, substantial bureaucracy, should use predictive approach. Adaptive methods tend to have flat structure.
Culture – predictive fits better in an organization with culture of managing and directing.
Organizational capability – switching from predictive to agile is a huge commitment and must be driven by executive leadership, change may be too difficult for some organizations
Project team size and location – adaptive work better with teams size 7+ or -2. Also favor co-location in the same space. Large team spread apart, usually fit within predictive.
79
Planning performance domain
Addresses activities and functions associated with the initial, ongoing, and evolving organization and coordination, necessary for delivering project, deliverables, and outcomes
80
Effective execution of planning performance domain results in what outcomes?
Project progresses in an organized, coordinated, and deliberate manner
There is a holistic approach to delivering the project outcomes
Evolving information is elaborated to produce the deliverables and outcomes for which the project was undertaken
Time spent planning is appropriate for the situation
Planning information is sufficient to manage stakeholder expectations
There is a process for adaptation of plans throughout the project based on emerging and changing needs or conditions
81
Can high-level planning begin prior to project authorization?
Yes, the project team can elaborate on initial project documents, such as a vision statement, project charter, business case or similar documents to identify or define a coordinated path to achieve the desired outcomes
82
Planning variables
Variables that influence how project planning is conducted include:
Development approach
Project deliverables – construction project versus soft ware application
Organizational requirements, governance, policies, procedures, processes, and culture may require PMs to produce specific planning artifacts
Market conditions – highly competitive industries require more speed and less upfront planning
Legal or regulatory restrictions – may require specific planning documents before granting authorization to proceed
83
When planning, the project phase and the life cycle impact 4 aspects associated with estimating
Range – estimates tend to have a broad range at the start of the project when information is limited about scope, stakeholders, requirements, risks, and other information.
Accuracy – refers to correctness of an estimate. Accuracy is less accurate at start.
Precision – degree of exactness associated with an estimate. For example, an estimate of two days is more precise than sometime next week.
Confidence – increases with experience, evolving technology means confidence in estimates is low 
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Types of estimating
Deterministic and probabilistic
Absolute and relative
Flow based estimating
Adjusting tests for uncertainty –
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Flow based estimating
Estimates are developed by determining the cycle time and throughput. Cycle time is the total elapsed time. It takes one unit to get through a process. Throughput is the number of items that can complete a process in a given amount of time. These two numbers can provide an estimate to complete a specified quantity of work.
86
Absolute and relative estimating
Absolute estimation is used when the need for detailed, accurate estimates is crucial. Absolute estimates are specific information and use actual numbers. An absolute estimate for effort might be shown as 120 hours of work. One person working full-time could accomplish the work in 15 work days assuming eight hours of productivity per workday.
Relative estimation is often preferred in Agile environments where tasks are complex or uncertain, as it focuses on the relative complexity of work rather than precise time estimations.
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Adjusting estimates for uncertainty
Estimates are inherently, uncertain. Uncertainty by definition is associated with risk key deliverable dates or budget estimates may be adjusted or contingency time or funds may be added, based on outcomes of a simulation conducted to establish the range of uncertainty for these parameters. 
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Deterministic and probabilistic estimating
Deterministic estimates, also known as point estimate, present a single number or amount, such as 36 months. Probabilistic estimates include a range of estimates, along with the associated probabilities within the range. They can be developed manually by developing a weighted average based on multiple likely outcomes, or running a simulation to develop a probability analysis of a particular outcome, usually in terms of cost or schedule.
89
Predictive approaches use the following steps when schedule planning
Decompose the project scope into specific activities
Sequence related activities
Estimate the effort, duration, people and physical resources required to complete the activities
Allocate people and resources to the activities based on availability
Adjust the sequence, estimates, and resources until an agreed-upon schedule is achieved
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Four types of dependencies between activities
Dependencies are important to identify when developing a schedule, especially when compressing the schedule, as some activities cannot be fast tracked due to nature of work, and others can.
Four types of dependencies are:
Mandatory – a relationship that is contractually required or inherent in the nature of the work. This type of dependency usually cannot be modified. For example, laying the house foundation before framing.
Discretionary – a relationship that is based on best practices or project preferences. This type of dependency may be modifiable.
External – relationship between project activities, and non-project activities. Usually cannot be modified.
Internal – a relationship between one or more project activities. May be modifiable. 
91
Planning communication for the project entails, considering the following
Who needs information?
What information does each stakeholder need?
Why should information be shared stakeholders?
When and how often is information needed?
What is the best way to provide information?
Who has the information needed?
92
What do you need to take into account when planning for physical resources?
Lead time for delivery, movement, storage, disposition of materials, a means to track material inventory from arrival on site to delivery of an integrated product.
Project teams, whose projects require significant physical materials, think and plan strategically about the timing from order to delivery to usage. This can include evaluation of bulk ordering versus cost of storage, global logistics, sustainability, and integrating management of physical assets with the rest of the project
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Make or buy analysis
Part of procurement component of the planning process. Once the high-level scope is known, project team conducts a maker by analysis. This includes identifying the deliverables and services that will be developed in house and those that will be purchased from external sources.
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Project work performance domain
Addresses activities and functions associated with establishing project processes, managing physical resources, and fostering a learning environment
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Effective execution of the work performance domain results in the following outcomes
Efficient and effective project performance
Project processes are appropriate for the project and the environment
Appropriate communication with stakeholders
Effective management of physical resource resources
Effective management of procurement
Improved team capability due to continuous learning and process improvement
96
Ways to optimize processes of project teams
Lean production methods – techniques such as value stream mapping to measure the ratio of value, adding activities, and non-value adding activities. Used for identifying and removing waste from production systems.
Retrospective or lessons learned – provide opportunity for project team to review how it works, and suggest improvements in process and efficiency
Where is the next best funding spent? – Asking this question can help project teams determine if they should continue with current task or move onto the next activity to optimize value delivery
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Non-value added work
A PO wants to track the type of work project team members are doing. They ask the project team to record a type of work. They are doing in specific categories on their timesheets. The time taken to categorize and record their time can be viewed as non-value added work
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Managing physical resources
Some projects require materials and supplies from third parties. Planning ordering transporting storing tracking and controlling these physical resources can take lots of time and effort. Objectives include: reduce or eliminate material handling and storage on site, eliminate wait times for materials, minimize scrap and waste, and facilitate a safe work environment.
99
Working with procurements
Procurement can cover everything from material, capital equipment, and supplies to solutions, labor, and services. In most organizations, project managers do not have contracting authority. Rather, they work with contracting officers or other people with expertise and contracts, laws, and regulations.
Prior to conducting a procurement, the project manager and technically qualified project team members work with contracting professionals to develop the request for proposals (RFP) statement of work (SOW), terms and conditions, and other necessary documents to go out to bid
100
Bid process
Includes developing and publicizing bid documents (request for information, request for proposal, request for quote), bidder conferences, and selecting a bidder.
In short, request for information is simply gathering more information from the market prior to sending out bid documents. Request for proposal is asking vendors to submit proposals for complex projects that will not be selected based solely on price. Request for quote is when price is the main deciding factor
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Checking outcomes for project work performance domain
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Effective execution of the delivery performance domain results in the following desired outcomes
Project contribute to business objectives and advancement of strategy
Projects realize the outcomes they were intended to deliver
Project benefits are realized in the timeframe in which they were planned
The project team has a clear understanding of requirements
Stakeholders except or satisfied with project deliverables
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Requirement
A condition or capability that is necessary to be present in a product, service, or result to satisfy a business need
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Deliverables
Refers to the interim or final product, service, or result from a project. The deliverables enable the outcomes that the project was undertaken to create. Deliverables reflect the stakeholder requirements, scope, and quality, along with the long-term impacts to profit, people, and the planet.
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Requirements
A requirement is a condition or capability that is necessary to be present in a product, service, or result to satisfy a business need. They can be very high-level, such as those found in a business case, or can be very detailed such as those found and acceptance criteria.
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Well, documented requirements meet the following criteria
Clear – there is only one way to interpret the requirement
Concise – requirement is stated in as few words as possible
Verifiable – there is a way to verify that the requirement has been meant
Consistent – there are no contradictory requirements.
Complete – the set of requirements represents the entirety of the current project or product needs
Traceable – each requirement can be recognized by a unique identifier
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Evolving and discovering require requirements
On projects that do not have clearly defined requirements upfront, prototypes, demonstrations, storyboards, and mock ups can be used to evolve the requirements. In these situations, stakeholders are more likely to take and “I’ll know it when I see it“ approach to developing requirements
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WBS Dictionary
An extension of the WBS that elaborates the information for each deliverable (work package) in the WBS. Technical specifications may be added to the WBS dictionary. These technical specifications help determine when deliverables are complete by ensuring the specifications are met.
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Methods that help define completion of deliverables
Acceptance, criteria, technical performance measures (technical specifications) and definition of done.
110
Done drift
A term that is derived from the “definition of done“ concept and describes a project that has an initial timeline with capabilities and features, but as the project evolves and competitors launch products with newer features, the timeline grows to account for adding the same new functionality. So, a 12 iteration project might grow to 16 iterations, and the difference between 16 and 12 is the done drift.
111
4 categories of costs associated with quality
Prevention (keep defects out of a product)
Appraisal (cast for measuring and monitoring activities related to quality)
Internal failure (finding/correcting defects before customer receives product)
External failure (cost for defects found after customer has product,)
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Prevention
One of the four categories of costs associated with quality. Incurred to keep defects and failures out of a product. Help avoid quality problems. Examples include product or service requirements, quality planning, quality, assurance, training.
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Appraisal
One of the four categories of costs associated with quality. Incurred to determine the degree of performance to quality requirements. Are associated with measuring and monitoring activities related to quality. Cost may be associated with evaluation of purchased materials, processes, products, and services to ensure they conform to specifications. They may include: verification, quality, audits, supplier rating (approval of suppliers of products and services)
114
Internal failure
One of the four categories of costs associated with quality. These costs are associated with finding and correcting defects before customer receives the product. Costs are incurred when the results of work fail to reach design quality standards. Examples include: waste, scrap, rework, or rectification, failure analysis
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External failure
One of the four categories of cost associated with quality. Cost associated with defects found after the customer has the product and with remediation. Examples include repairs and servicing, warranty, claims, complaints, returns, reputation.
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Checking outcomes for delivery performance domain
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Measurement performance domain
Addresses activities and functions associated with assessing project performance and taking appropriate actions to maintain acceptable performance
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Effective execution of the measurement performance domain results in the following desired outcomes
A reliable understanding of the status of the project
Actionable data to facilitate decision-making
Timely and appropriate actions to keep project performance on track
Achieving targets and generating business value by making informed and timely decisions based on reliable forecasts and evaluations
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Common categories of metrics to measure
Deliverable metrics, delivery, baseline performance, resources, business value, stakeholders, and forecasts
A balanced set of metrics helps to provide a holistic picture of the project, it’s performance, and it’s outcomes.
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Ways to measure delivery
Work in progress (helps limit WIP)
Lead time – amount of elapsed time from a story entering the backlog to the end of the iteration or release. Lower leadtime indicates a more effective process and more productive project team.
Cycle time – amount of time it takes the project team to complete a task. Consistent time helps predict the possible rate of work in future.
Qtrue size
Batch size – measures the estimated amount of work (LOE, story points) expected to be completed in an iteration
Process efficiency – ratio used in lean systems to optimize flow of work. ratio between value, adding time and non-value adding activities.
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Baseline performance– schedule
Most common base lines are cost and schedule. Schedule measures track actual performance to plan performance related to:
Start and finish dates – late start and late finish dates indicate the project is not performing to plan
Effort and duration – actual effort and duration, compared to planned effort and duration indicates whether estimates for the amount of work and the time the work takes are valid
Schedule variance
Schedule performance index – how efficiently the schedule work is being performed
Feature completion rates
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Business value measurements
Used to ensure the project deliverable stays aligned to the business case and the benefits, realization plans. Business value has many aspects, both financial and non-financial. Metrics that measure financial business value include:
Cost benefit ratio, planned benefits, delivery compared to actual benefits delivery, return on investment, net present value
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Cost benefit ratio
A measure of the expected present value of an investment with the initial cost. The cost benefit ratio is used to determine if the cost of a project outweigh its benefits.
Cost benefit ratio = benefits/costs
If greater than one, then project is favorable
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Return on investment
A measure of the amount of financial return compared to the cost, ROI is generally developed as an input to the decision to undertake a project. It should be measured throughout the project to determine if it makes sense to continue the investment of organizational resources.
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Net present value (NPV)
The difference between the present value of inflows of capital and the present value of outflows of capital over a period of time, NPV is generally developed when deciding to undertake a project. Should be measured throughout the project to determine if it makes sense to continue the investment of organizational resources
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Stakeholder satisfaction
Can be measured with surveys or using net promoter score or mood chart.
Net promoter score (NPS) – measures the degree to which a stakeholder usually the customer is willing to recommend a product or service to others. In measures a range from -100 to + 100. It measures brand satisfaction and customer loyalty.
Mood chart – can track the mood or reactions of a group of important stakeholders, the project team. Team members can indicate their frame of mind at the end of each day. Can use emojis like smile, frown, neutral face. Can help identify potential issues in area for improvement.
Turnover – high rates of unplanned turnover may indicate low morale
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Throughput analysis
This analytical method assesses the number of items being completed in a fixed timeframe. Project teams that use adaptive practices use throughput metrics such as feature complete verse feature remaining, velocity, and story points to evaluate their progress and estimate likely completion dates, using duration, estimates and burn rates of stable project teams can help verify and update cost estimates.
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Quantitative forecasting methods
Estimate to complete (ETC), estimate at completion (EAC), variance at completion (VAC), to-complete performance index (TCPI), regression analysis, throughput analysis
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Measurement pitfalls
Hawthorne effect – the very act of measuring something influence his behavior. For example, measuring only a project teams output of deliverables can encourage the project team to focus on creating a large volume of deliverables rather than focusing on deliverables that would provide higher customer satisfaction.
Vanity metric – a measure that shows data but does not provide useful information for making decisions. Measuring page views of a website is not as useful as measuring the number of new viewers.
Demoralization – creating unattainable measures, and goals will lead to low morale
Misusing metrics (fun with statistics)
Correlation versus causation
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Intrinsic versus extrinsic motivation (pink)
Daniel pink stated while extrinsic rewards such as salary are motivators, once a person is paid fairly, the motivational power of extrinsic rewards ceases to exist. Complicated and challenging work (i.e. projects) intrinsic motivators are more effective and longer lasting. Pink identifies three types of intrinsic motivators:
autonomy – direct ones own life and decide how/where/when to accomplish work
mastery - the ability to improve and excel. The desire to do excellent work, learn, achieve goals.
purpose – the need to make a difference, knowing project vision, and your contribution of work to achieve vision
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Theory of needs
David Mcclellan’s model states all people are driven by needs of achievement, power, and affiliation.
Achievement – people who are motivated by achievement, such as reaching a goal are motivated by activities and work that is challenging but reasonable
Power – people for motivated by power like to organize, motivate, and lead to others. They are motivated by increased responsibility.
Affiliation – people who are motivated by affiliation, seek acceptance and belonging. They are motivated by being part of a team.
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Business justification analysis methods
Payback. – The time needed to recover an investment usually in months or years.
Internal rate of return (IRR) – the projected annual yield of a project investment, incorporating both initial and ongoing costs into an estimated percentage growth rate a given project is expected to have
Return on investment (ROI), net present value, cost benefit analysis
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Data gathering and analysis tools/methods
Alternative analysis, assumption, and constraint analysis, benchmarking, business justification, analysis, methods, check sheet, cost of quality, decision tree analysis, earned value analysis, expected, monetary value, forecast, influence diagram, lifecycle assessment, make, or buy analysis, probability, and impact, matrix, Process analysis, regression analysis, reserve analysis, root cause analysis, sensitivity, analysis, simulations, stakeholder analysis, SWOT analysis, trend analysis, value, stream mapping, variance analysis, what if scenario analysis
134
Wideband Delphi
A variation of the Delphi estimating method where SMEs complete multiple rounds of producing estimates individually, with a project team discussion after each round, until a consensus is achieved. For wideband Delphi, those who created the highest and lowest estimates explain the rationale, following which everyone reestimate. The process repeats until convergence is achieved. Planning poker is a variation of Wideband Delphi.
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Project brief
An artifact that’s part of strategy. This is a high-level overview of the goals, deliverables, and processes for the project.
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EAC formulas
When performance is steady and has not deviated too sharply from the original estimate, use the following formula: EAC = BAC/CPI(Estimate at Completion equals Budget at Completion divided by Cost Performance Index).
When there were some performance issues or one time obstacles in the project, but the rest of the original budget is expected to remain accurate use the following formula:EAC = AC + (BAC - EV)(
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Delete
An influence diagram helps PMPs visualize and understand how different factors, risks, and decisions interact within a project. It's a graphical representation that shows causal relationships, making it a valuable tool for risk analysis, decision-making, and overall project managemen
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Decision tree calculation
New model
60%*(120-80) + 40%*(70-80) =20
Enhance existing model
60%*(80-40) + 40%*(50-40) =28
Company should choose to enhance existing model
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Fixed price contract with contingency
For fixed price contract, once you total up all your activities, then add the contingency reserve, and the management reserve, you also must include your percent profit and add that to the total proposed contract.
For a cost plus contract, you leave out the profit margin percentage, and the contract will just include contingency, reserve, and management reserve
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Positive risk
Escalate, exploit (realize opportunity), share, enhance, accept.
