PMP Exam - Study Notes

Passed Exam in August 2011

project life cycle - basic framework for managing the project project phases - divisions within a project project mgmt - application of knowledge, skills, tools and techniques to project activities to meet requirements project objectives - quantifiable criteria to measure project performance. include cost, schedule, and quality project charter - high level resource requirements OPM3 - project mgmt maturity model, assess and develop capabilities in Portfolio Mgmt, Program Mgmt, PM critical path = shortest time

define activities - identify specific actiosn to be performed, to produce project deliverables - scope baseline ==> activity list, attributes, milestone list sequence activities - id-doc relationships among project activities - activity list, attributes, milestone, project scope statement (PDM, dependency determination, leads/lags, schedule network templates) ==> project schedule network diagrams organization types matrix organization - functional manager performs ADMIN for their staff

INTEGRATION does PM have enough info? need to gather more info? power? ask for power? Sponsor = internal client, ultimate say on scope/changes, initiate or kill a project more sponsors - more competing interests, configuration mgmt Project Charter -- can be created by sponsor and PM project objectives in project charter, sponsor issues charter PM = right-hand man, project boss, reports to sponsor, dotted line to customer PM is INTEGRATOR, investigator, research, know, show impact PM is assigned DURING project initiation, not after project charter PM can guide creation of project charter... PM Plan - created by team, approved by sponsor

----------------------------------------------------------------------------------------------------------------------------------------------------------5) SCOPE - defines expectations, drives performance measurements scope statement includes project charter PLANNING process collect requirements - define, PRIORITIZE and document stakeholder needs to meet project objectives - interviews, focus grp, facilitated workshops, brainstorm, nominal/voting, delphi, affinity diagrams (grouping)]

- requirements include quality ==> requirements mgmt plan, requirements traceability matrix (who asked for what?) resolve competing requirements -- . business case, project charter, project scope statement, project constraints define scope - what's it? what's out? detailed description of project and product, make vs buy?? - input: product analysis (analyze objectives, tangible deliverables) ==> create project scope statement - stakeholders - not happy with deliverable b/c didn't clearly define scope create WBS - subdividing project deliverables/work into smaller, more manageable components - WBS nothing slips thru cracks, team buy-in, reduces risk, dictionary M&C process verify scope - formalize acceptance of completed project deliverables - input: validated deliverables from QC, approved scope + requirements => change requests, accepted deliverables control scope - monitor status of project and product scope, manage changes to scope baseline - perform integrated change control with other control processes WBS - organizes/defines TOTAL scope. use WBS to PLAN and CONTROL scope, perform integrated change control - used for estimating activities, costs and resources - ALL deliverables > control accounts (cost level) > work pkgs > activities (no dependencies) - drives activity list, network diagram, estimating, project control, risk/quality mgmt, budget, schedule WBS dictionary - all details of WBS, initial estimates, billing info, controls scope creep activity list - all project activities with descriptions project scope statement - created by team, stakeholders, needs to be PRECISE scope baseline - project scope statement, WBS and dictionary. created by team, input from sponsor input product analysis to create project scope statement - disputes - resolve in favor of customer, then sponsor - brainstorming and lateral thinking - alternatives identification - product analysis - product breakdown, systems analysis, systems engineering, value engineering, value analysis, functional analysit

---------------------------------------------------------------------------------------------------------------------------------------6) TIME define activities inputs: scope baselines, EEF OPA - forward pass is Early Finish - backward pass is Late Finish float = standard deviation x 2

---------------------------------------------------------------------------------------------------------------------------------------7) COST - measure at control account level for work pkgs cost mgmt plan - ties to WBS, earned value estimates + contingency = baseline = funding requirements baseline + mgmt = budget

planning estimate costs - for control accounts/WBS, separate costs not yet combined into PHASED spending - analogous (top-down, expert, historical), parametric (statistical), bottom-up, three-point - reserve analysis - part of project funding requirements ==> all estimates + basis determine budget - aggregate cost estimates by work pkgs, add reserve analysis (contingencies), funding limit reconciliation - activity costs estimates, basis, project schedule==> authorized spend = cost performance baseline, project funding requirements (excludes mgmt reserves) M&C control costs - bring cost overruns into acceptable limits project funding requirements, work perf info > apply EVM, forecasting, TCPI, perf reviews, variance analysis ==> work performance measurements (CV, SV, CPI, SPI), budget forecasts (EAC), change requests (corrective action, preventive action) earned value mgmt (3 EVM dimensions) - earned value, planned value, actual cost work is planned and PV/EV is computed at WORK PACKAGE LEVEL SV = EV - PV (negative until project is completed) CV = EV - AC (negative CV is not recoverable) EAC = BAC/CPI EAC - forecast at completion, if different than BAC EAC = AC + ETC (bottom-up estimate work remaining = BAC - EV using ETC at budgeted rate... EAC = AC + working remaining (BAC - EV) or ETC a present CPI (no variance) .... EAC = BAC/cumulative CPI or ETC using both SPI and CPI... EAC = AC + work remaining (BAC - EV)/CPI*SPI TCPI index "to complete" and stay within budget = working remaining (BAC-EV)/funds remaining (EAC-AC) VAC (variance at completion) = BAC - EAC life cycle costing - includes operations and maintenance costs types of costs - one-time: fixed accuracy of estimates definitive +/- 10% planning -- budget -10 to 25% initiating -- rough order of magnitude +/- 50% PV = FV/(1+i)^n .... future value / (1+interest rate)^payments 95% confidence level = add/subtract 2 SD to EV/mean 99% confidence level = add/subtract 3 SD to EV/mean ---------------------------------------------------------------------------------------------------------------------------------------8) QUALITY - planned, designed and built-in - not inspected in plan quality - what is quality? how will we ensure it? standards, requirements, HOW measure, QM plan perform QA - are we following processes? perform continuous improvement, compliance, good practices SPI = EV/PV behind planned progress if <1 CPI = earned value/actual cost overrun if <1

perform QC - are we meeting standards? measure quality, validate deliverables, checklists, lessons learned Cost of Quality - Quality Assurance tool, prevention, appraisal, failure planning plan quality - identify quality requirements and standards, document compliance - cost-benefit analysis, COQ (conformance-prevention, appraisal; failure), set up control charts, benchmarking (other projects), DOE (statistically determine what variables will improve quality), statistical sampling, flowcharting (to find potential quality problems), matrix diagrams, etc ==> QM plan (QA, QC, continuous process improvement), quality metrics, checklists, process improvement plan executing perform QA - audit quality (compliance, look for new lessons learned, good practices) - input PM plan, quality metrics, work performance info, quality control measurements - use QC measurements, quality audits, process analysis (continuous improvement) ==> change requests M&C perform QC - monitor+record QA/QC results to assess performance, identifies causes, recommend changes QC is performed throughout the project 7 tools of quality: 1) cause and effect diagrams 2) control charts 3) flowcharting 4) histogram 5) pareto chart 6) run chart - history and pattern of variation, trends 7) scatter diagram - two variables 8) statistical sampling 9) inspection - statistical quality control to evaluate QC outputs - prevention (process) vs inspection (product/customer) - attribute sampling (conform, yes or no), variables sampling (degree of conformity, on a continuous scale) - tolerances - range of acceptable results, control limits (thresholds, process is out of control) ==> QC measurements, validated changes, validated deliverables, change requests conformance to requirements (Crosby - Cost of Poor Quality, prevention over inspection, zero defects) fitness for use - satisfy REAL needs (Juran - 80/20) continuous improvement - plan-do-check-act cycle (Shewhart, Deming) planning DOE - statistical method for identifying which factors may influence specific variables; optimization; reduce sensitivity of product performance to sources of variation "which combination of X and Y are best" statistical sampling - for inspection flowcharting - show decision points, order of processing work performance - status of deliverables, implementation status, % of work physically completed, achieved value of technical performance measures, start and finish dates of schedule activities. collected in EXECUTING - add two variances (SD^2), then take SD inspection - reviews, walkthrough, audits Juran - fitness for use, conformance and quality by design Deming - quality is a MGMT problem

Crosby - conformance to requirements, zero defects Ishikowa ---------------------------------------------------------------------------------------------------------------9) HR - some planning, mostly executing planning develop HR plan - id-doc project roles, responsibilities, required skills, reporting relationships ==> staffing mgmt plan executing acquire team - confirm availability ==> project staff assignments (project team directory, memos, org charts), resource calendars project team directory - list of team members, project roles, communication info develop talent - improve competencies, team interaction and overall environment - input project staff assignment, PM plan, resource calendars - use ground rules manage team - tracking performance, feedback, resolve issues, manage changes to optimize performance issue logs - input project staff assignment, team performance info, performance reports Responsibility Assignment Matrix - shows team members, reporting relationships, work packages. not a schedule RACI (responsibility, accountability, conform, inform) - not WHEN (not a schedule) OBS - organizational breakdown RBS - resource breakdown resource calendar resource historram PM powers - formal (legitimate), reward, penalty staffing mgmt plan -- staff acquisition, resource calendars, staff release plan, training needs, recognition and rewards, compliance and safety ---------------------------------------------------------------------------------------------------------------10) COMMUNICATIONS - communication methods - information distribution leadership styles - consensus - PM shares problems with team members and formulates solutions as a group confrontation, compromise, smoothing, forcing, withdrawal formal - reports, briefings informal - memos, ad hoc conversations meetings - always informal verbal - status meetings - attendees should be in communication plan - always send meeting minutes records mgmt - system used by PM to manage contract and procurement docs and records ----------------------------------------------------------------------------------------------------------------

11) RISK risk audit (outside party) vs risk review (project team) plan risk management - create Risk Breakdown Structure risk register - identified risks, potential responses, root causes, updated risk categories

---------------------------------------------------------------------------------------------------------------12) PROCUREMENTS planning plan procurements - document purchasing decisions, specify approach, identify potential sellers ==> procurement mgmt plan, SOW (performance, functional, design), make-buy decisions, procurement docs, source selection criteria, change requests executing conduct procurements - bidder's conference, select seller, award contracts. update procurement docs ==> selected sellers, contract award, resource calendars, change requests, administer procurements - ensure seller's performance meets contract requirements, manage procurement relationships, performance reporting, changes ==> change requests close procurements - complete each project procurement at END of each phase - procurement audit - a structured review of preceeding processes (plan, conduct, adminster procurements) - input procurement mgmt plan, procurement docs contract closure

procurement mgmt plan - bid: used when seller/source selection based on price - proposal: when technical skills are more important contract types - fixed price - well-defined specs/scope, controls cost.... risky for seller if insufficient info, low-ball - cost reimbursable - risky for buyer, audit seller's invoice, total price unknown - time & material - HYBRID point of total assumption = (ceiling price-target price/buyer's share) + target cost administrative closure -- completed when??? source selection - independent estimate - check proposed pricing by procuring organization - single source seller - only one seller the company wants to do business with procurement audit - if contract does not specify corrective action, continue to make payments proposal evaluation technique - screening system - weighing system independent review....?

procurement docs - buyer's IFB,

---------------------------------------------------------------------------------------------------------------CLOSING

close project/phase - input PM Plan, accepted deliverables, OPA ==> final product administrative closure - at completion of each phase integration

procurement terminated before all deliverables are completed - PM should initiate closure: final performance reporting, lessons learned, update records, project archives (team) ---CLOSED-- and then release resources seller completes work, buyer not satisfied - COMPLETE but not closed

statistical sampling

attribute sampling 19 PMIS -------------------GERT - allows for looping, branching, multiple project end results

types of estimates definitive -5% to +10% budgetary -15% to +25% order of magniture -50% to +50% -------------------responsibilites assignment matrix - WHO does activities project schedule - WHEN WAS - coordinates WHEN and SEQUENCE, determines work authorization and done by identified organization WBS - <80 hrs, logically subdivided, confidently estimated - does not show dates, responsibility, project team creates, so gets team buy-in can show WBS to customer! ----------------

business case project selection - benefit measurement (comparative approach) - murder board - peer review - scoring models - economic models - constrained optimization (mathematical approach) - linear programming - interger programming - dynamic programming - multi-objective programming

completed work = in closing process

RACI Work authorization system - formally documented procedures that define how work will be authorized (committed) to ensure that the work is done, at the right TIME, in the proper SEQUENCE. Includes steps, documents, tracking system, defined approval levels needed to issue work authorizations. Configuration mgmt system - applies technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service or component, control any changes to such characteristiics, record and report each change and its implementation status, support the audit of the products, results, components to verify conformance to requirements. Includes documentations, tracking systems, and defined approval levels necessary for authorizing and controlling changes. 8) EVA - profit from internal project

requirements doc - quality requirements work performance information - review work planned, measure work progress, analyze cost/schedule variance analysis of project spending vs budget, weak matrix - very little authority, project coordination

functional bid (source selection will be based on price) vs proposal maslow (self-actualization, taylor, juran, herzberg herzberg - base salary = hygiene factor trend dependencies - discretionary = preferential logic

hard logic - inherent to work being done and often involve physical limitations quality assurance - application of planned, systematic quality activities to ensure that the project will employ all processes needed to meet requirements control chart - how process behaves over time, monitor any type of output variable, determine whether or not a process is stable or has predictable performance CPFF - seller receives fixed fee payment calculated as a % of estimated project costs parametric cost estimating - statistical relationship b/w historical data and other variables to calculate a cost estimate procurement authority - authorized to contractually bind the organization create WBS - after scope statement (review order again) project coordinator - projectized negotiate issues log - documents disputes, disagreements that keep team from meeting project goals PMIS honorarium perf review - assess project status or progress

before/after a process input vs output