PMP Notes from Andy Crowes Book

Integration Management

Producing a project plan may BEST be described as creating a document that guides project plan execution. The project plan is a single approved plan that drives execution, monitoring and control, and closure. Project Management plan updates are NOT an output of Develop Project Plan. Project Management plan is created in Develop Project Plan. Project Management plan contains the methods for processing changes to the project. The project charter is developed after the project statement of work and before the project management plan. The PMIS is a scheduling tool, an information distribution system and a system for collecting information from project team members. It is not a system for identifying stakeholders. Direct and Manage Project Execution is the process where defects are repaired. Project Management plan is a single document to guide project execution, monitoring & control and closure. Change Control meetings are held as part of Perform Integrated Change Control process. Change Requests flow out of Monitor and Control Project Work into Perform Integrated Change Control, where they are evaluated in meetings. The project charter does not specify anything about contracts. A contract with your customer would have been an input into the Develop Project Charter process, and any contracts you may use during procurement wont be identified until later in the project. The project manager must be pro-active and influence the factors that cause change. That is one of the key tenets of monitoring and controlling processes in general and Perform Integrated Change Control in particular.

The project management plan is made up of the other planning outputs, for example; risk, cost, time, quality, HR. Approved changes that are made to the project get factored back into the baseline. When changes are approved and made to the project, they should be incorporated into the project baseline. Work Performance Information is used provide information on resource utilization, which activities have started and what costs have been incurred on the project. It does not help in identifying defects. Prioritizing the changes is the job of the PM during project execution. You do not want to distract the team at this point. If previous projects in the organization were completed in half the time that your project has taken, then the BEST thing to do is look for historical information on the previous projects to understand them better. As a PM, always evaluate things thoroughly before making any changes. You need to know how your project is going to be affected before taking any action. Change Control Board meets to evaluate change requests. They do this during the process of Integrated Change Control. If the company policy states that all changes that increase the projects budget must be signed off by the project office, then you should direct all the changes to the project office regardless of the circumstances. The person or group responsible for evaluating change on a project is the Change Control Board. The deliverables are the key outputs of Direct and Manage Project Execution.

Scope Management

Disagreements over project scope should be resolved in favour of the customer. Activity sequencing is not tackled as part of the work breakdown structure. The WBS has no particular sequence to it and it is not decomposed down to activity level.

 The lowest level of WBS would also be the smallest representation of work. If the WBS was not created for a project, then PM should stop project work until it has been created.

The project manager is responsible for verifying the product with the key stakeholders, the sponsor and the customer. The project scope statement is created as part of the Define Scope process. Project Scope Statement is a planning output. The Project Scope Statement needs to include a detailed description of the scope. The preliminary scope statement contains a high level description of the scope, but the project scope statement is detailed. The most important part of Verify Scope is gaining formal acceptance of the project deliverables from the customer. Organizational process assets include things like templates, financial control procedures and standardization guidelines. Project Management Information system is classified as an enterprise environmental factor since it is part of your environment. The requirements documentation is NOT part of the scope baseline. Project Scope statement, the WBS and WBS dictionary are all part of the scope baseline. Requirements management plan contains a plan for how the changes will be handled. If too many changes are pouring in, it is likely that the requirements management plan was not very well defined. It is the sponsors job to pay for the project and to accept the product. If a work package were changed, that would most likely alter the scope baseline, and information on how to go about this would be found in the scope management plan, NOT the WBS dictionary.

 The WBS dictionary contains attributes about each work package such as an explanation of the work package, who is responsible for it and a cost account code. Customer should not bypass the PM to authorize changes directly. It is the PMs job to authorize changes on the project. The customer accepts the scope of the product in Verify Scope.

The Nominal Group Technique is a method used to promote creativity in Collect Requirements process, and the two outputs that match the process are the requirements documentation and requirements management plan. If you identify two key areas where changing the scope of the product would deliver significantly higher value for the customer. You should discuss the changes with the customer. The requirements documentation is typically created quite early on the project. It would be created well before the work breakdown structure and the scope baseline. The final product of the project should include all the functionality and only the functionality documented in the scope baseline. The Project Manager needs to be pro-active and influence the root causes of change. A change may deliver high value, but also introduce too much risk or cost, or it can delay the project unacceptably.

Time Management

Activity lists from previous projects make an excellent tool to help you ensure that you are considering all activities. Any historical information is thought of as an organizational process asset. The Schedule Management plan is part of the project plan. It is the best source of information on how changes to the schedule are handled.

 If you are creating duration estimates for a schedule activity, the following tools or techniques are appropriate to use; Expert Judgement, Reserve Analysis and Three-point estimating. Milestone charts show the high-level status, which would be appropriate for presentation to senior management. Early Finish is typically depicted in a nodes upper right quadrant, while the Late Finish is in the lower right. The slack or float is the amount of time an activity may be delayed without affecting the critical path. Crashing adds more resources to an activity. This usually increases cost due to the law of diminishing returns which predicts that 10 people usually cannot complete an activity in half the time that 5 people can. The savings from crashing are rarely linear. Analogous estimates use actual costs from previous projects to produce estimates for a similar project. The sponsor has accepted a revised due date from the project manager bud did not allow any increase in spending. The BEST thing for the PM is to Fast Track the schedule. Fast tracking does not directly add cost to the project.

The critical chain method uses buffers, which are non-working times, to help prevent the activities themselves from slipping. The project network diagram shows duration and dependencies, which would help you calculate the critical path. The critical path is determined in three steps. The first step is to draw out the project network diagram. The next step is to list out all of the paths through the network and the last step is to add up all of the values associated with each. The float or slack of an activity is the amount of time it can slip without moving the critical path. The formula for Three-Point estimate is called PERT, it is (Pessimistic + 4xRealistic + Optimisitic)/6.

 What-If Analysis can take on many forms, but the form you are most likely to see on the exam is Monte Carlo Analysis. It throws a large number of scenarios at the schedule to see what would happen if one or more bad scenarios occurred. The activity attributes simply expand on the information for each activity in the activity list. The critical path is the series of activities, which if delayed, will delay the project. One of the important tools used in Estimate Activity Durations is parametric estimates. WBS nodes are decomposed into work packages first. The schedule activities are decomposed from work packages.

Cost Management

Planned value is calculated by multiplying the Budgeted At Completion by planned % compelte. If the CPI is 0.1, this indicates that the project is performing extremely poorly on cost. Determine Budget takes the activity cost estimates and uses them (along with other inputs) to create a budget. With Benefit Cost Ratios, the bigger the better.

 The difference between Present Value and Net Present Value is that PV tells the expected value of the project in todays dollars and NPV tell todays value of the project but subtracts the cost after calculating the present value. Order of Magnitude estimates are -50% to +100%.

The sequence of processes is; Create WBS, then Estimate Costs and then Determine Budget. If your project team member has made a change with your approval, he is engaged in Control Costs process. In case of Net Present Values, the cost is already factored in. The bigger the NPV, the better.

Parametric modeling is common in some industries, where you can describe the project in detail and the modeling tool will help provide estimates based on historical information, industry standards. If you discover that your construction project is going to have serious cost overruns, the FIRST course of action is to evaluate the cause and size of the overrun. You need to verify the information yourself before you take any actions. Schedule Variance is calculated by subtracting EV from PV. SV= EV- PV. Estimate to complete indicates the projected remaining amount that will be spent, based on past performance. If a project has a CPI of 0.95 and an SPI of 1.01, it means the project is progressing faster than planned and costing more than planned.

Opportunity cost is simply how much benefit you are passing up.

The Cost Baseline is used to track cost performance based on the original plan plus approved changes. Earned value is defined as the value of all work completed to this point.

 The Estimate at Complete is what we expect to have spent at the end of the project. It is calculated by taking budgeted at complete and dividing it by cost performance index.

Quality Management

Audits are a tool of Perform Quality Assurance.

If you were using a fish- bone diagram to determine the root causes of problems, you would be in Perform Quality Control. Acceptance is an output of Perform Quality Control.

Plan Quality includes all of the following outputs; Quality Management Plan, Operational definitions and Checklists. The mean represents the average of all of the data points shown on the chart, calculated simply by adding the values together and dividing by the number of values. Audits are a tool of Perform Quality Assurance that checks to see if the process is being followed. Inspection is a tool of Perform Quality Control.

If two events have no bearing on each other they are statistically independent. The BEST tool to use to look for results that are out of control is a Control Chart. It depicts whether a process is in or out of control. A Pareto Chart ranks defects from greatest to least, showing you what should get the most attention. Physical inspection of a work result happens during the Perform Quality Control process.

 Benchmarking takes results from previous projects and uses them to help measure quality on your project. Benchmarks give you something against which you can measure. Total Quality Management stresses, amongst other things that everyone contributes to the quality of the product and the process. Six Sigma represents 99.99966% of all work results that will be of acceptable quality in the manufacturing process. Plan Quality should always happen first, Perform Quality Assurance and Perform Quality Control would come after the quality management plan is in place. If no organizational quality policy exists, you should develop one for the current project. The quality specification is the customers quality requirements.

Audits, part of the Perform Quality Assurance process, review the process and make sure that the process is being followed. An organization that practises just in time (JIT) does not keep spare inventory on hand. Instead, inventory is ordered so that the parts arrive only slightly before they are needed. Re-work and increase cost and risk are likely outcomes of low quality. Statistical sampling (also known as random sampling) is normally used on sample of product out of possibly millions that are produced to perform quality control. Human Resource Management

Smoothing occurs when the person trying to resolve the conflict asks everyone to focus on what they agree upon and diminishes the items on which there is disagreement. The functional manager has resource responsibilities in a matrix organization. The PM must work with functional manager to secure resources for the project.

 Punishment is the LEAST desirable form of problem-solving technique. It is not a form of power. Theory X managers believe that people cannot be trusted and must be watched and managed constantly. The human resource plan is created during the Human Resource Planning process. Problem-solving (also referred to as confrontation) is getting to the root cause of the problem and is the best way to produce a lasting result and a real solution. The project sponsor provides the funds for the project.

The four processes of HR Management are Plan Human Resources, Acquire Project Team, Develop Project Team and Manage Project Team. Roles and Responsibilities assignment is NOT an input into Develop Human Resource Plan. Information seeker is a positive/constructive project team role.

Maslows Hierarchy of Needs theory states that psychological needs for growth and fulfillment can be met only when lower-level physical or security needs have been fulfilled. Successful team building begins early in project development, but it is a continuous process throughout the life of the project. Team Building must be carried out under the direction of a strong leader. The PM has the only project role that allows for regular, direct interaction with the team.

Co-location is the practice of locating all team members in a central location. Report Team Performance is not a real process.

A project coordinator has some authority and some decision making power, but less than a project manager. Encouragement is NOT a tool used in Develop Project Team.

 In a matrix organization, team members report to both the project manager and the functional manager. This sometimes causes confusion and leads to conflict. In a functional organization, the PM has low authority over resources. Ground rule may be unique to the project and they certainly dont have to be the same across all projects in an organization.

Communications Management

Plan Communication is the process for determining how the overall communication process will be carried out. It is the general plan for communications. In the communication model, it is the sender that encodes and the receiver decodes the message. Meetings are classified as informal verbal.

Distribute Information is an executing process, it may involve unexpected requests from stakeholders and it carries out the communication plan. Communication on schedule slippage, cost overruns and other major project statuses should be formal and in writing. Each issue on a project should be assigned to a single owner and be assigned a target completion date. Most of a persons communication takes place non-verbally. It is body language that carries much of the message. Face-to-Face communication is the most effective means of resolving conflict. Your communication skills are used as a tool in Distribute Information.

The expected response you will receive is not part of the communications management plan. The communications management plan focuses on how you will communicate stakeholders and not how they will communicate to you.

Earned Value Analysis is a communication tool, and its all about how the project is done against the plan. A project manager should always communicate good information and should always report the truth. Good communication skills are the most important skill a project manager can have. PMs spend more time communicating than anything else. Noise is anything that interferes with the transmission and understanding of a message. The stakeholders communication needs are all contained in the communications management plan. Report Performance uses the tool of forecasting and produces the performance reports. These performance reports often contain the estimate at complete and estimate to complete, as well as the cost and schedule performance indexes. Lessons Learned focuses on variances from the plan what would be done differently in the future in order to avoid those variances. Earned Value Analysis is a tool of Report Performance, since earned value analysis factors in the difference between what was planned and the work that was actually accomplished. This information can then be distributed out to appropriate stakeholders. Risk Management

If you are building a structure where there is a significant risk of earth quakes and you end up utilising a type of foundation that is earthquake resistant. This is an example of Risk Mitigation.

The probability impact matrix (PIM) derives a risk score by multiplying the probability of the risk by its impact (both numbers are

estimated). The resulting score may be used to help prioritize the risk register. If there is risk that costs could overrun on a component. Then the BEST strategy is to outsource the development of the component to deal with the risk. Planning meetings and analysis is a tool of the process of Plan Risk Management.

Quantifying the risks by seeking to assign a dollar or time estimate to them is an example of Perform Quantitative Risk Analysis. Recommended corrective action is the result of monitoring and controlling processes. Historical Records from similar projects would provide you with the best source of information on potential risks. One of the things Monte Carlo Analysis would show you is where schedule risk exists on the project. A risk management plan will outline how all risk planning activities and decisions will be approached. Methods of identification, qualification, response planning and control will all follow the development of risk management plan.

Plan Risk Management is not planning for actual risks; it is the process of deciding how all risk planning activities and decisions will be approached. It is the plan for how to plan.

The risk register is the only output of Identify Risks, and it is updated in Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses and Monitor & Control Risks. There are three identified strategies for dealing with negative risk. They are to mitigate risk, transfer risk and avoid risk. The tool of risk probability and impact assessment is a tool of Perform Qualitative Risk Analysis. The process of identifying, analyzing and responding to risk is the definition of risk management.

 Monte Carlo Analysis might be useful in revealing schedule risks, it would not be useful for gaining expert opinion. The risk management plan does not contain identified risks. The identified risks will be listed in risk register, produced after the plan risk management process.

Risks events are, by definition, uncertainties. These could either be positive or negative. Creating a workaround for the risk is NOT a valid way to reduce risk. The workaround is what you do if the risk occurs, it does not reduce the risk. Insuring against the risk or selecting a certain contract type are all ways to reduce the risk.

Procurement Management

Fixed price is the highest risk to the seller and the seller must bear the risk of any cost overruns. Expert judgement is the favoured technique in project management and it is used in the process of Conduct Procurements.

 Make or Buy Analysis is a tool used during the Plan Procurements process where you are deciding which deliverables should be procured and which should be created internally. Plan Procurements, Conduct Procurements, Administer Procurements and Close Procurements is the correct sequence. If the scope of work is not completely defined, it would be best to use Time and Material contract. If a component which is protected by a patent is only available through a single supplier, then it should be purchased from the sole supplier without holding a bidders conference. If you need to significantly lower the quantities on a contract due to change in project scope. You should send a formal, written notice that the contract has been changed to the supplier. If a project has been terminated immediately due to a cancellation by the customer. The FIRST action to take is to start the process of Close Procurements.

Proposals are evaluated from prospective sellers in Conduct Procurements. Proposals are brought into this process, screened, weighted, rated and evaluated against the criteria. If you are involved in formal procurement, you should make every effort to keep sellers on equal footing. In contract negotiations, the most important point is to create a deal that everyone feels good about. One of the activities in Administer Procurements is to pay seller invoices or generate invoices if you are the seller. In a Time & Material contract, the buyer has to pay the seller for all time and materials, and often it involves an incomplete scope definition. Therefore, the buyer is the one most at risk. Procurement documents should be rigid enough to get responses to the same scope of work and flexible enough to allow sellers to interject their own good ideas and creativity.

 Procurements statements of work should be as complete and concise as possible. At a minimum, they should contain enough information for the seller to determine if they are qualified to do the work. If the scope of work is not defined completely and buyer wants you to begin work, in this case, the project is at higher risk and a time & materials contract shifts much of that risk back to the buyer. The actual work packages are completed during the Executing process group. Procurement performance reviews are a tool of Administer Procurements, where the buyer arranges a meeting with the seller to review the sellers performance against the plan. If the scope of the contract is complete, no other terms were breached and no claims against the contract have been filed, then the contract is complete.