1.

The following are common tools and techniques for all the processes in the Project Integration Management knowledge area:

Project Management Methodology Expert Judgment (except Direct and Manage Project Execution) PMIS

2. After the Project management plan is developed, it is an input for all successive processes in the Project Integration Management knowledge area. 3. Activity Attributes Updates is a common output for all the processes in the Project Time Management knowledge area except the first process where activity attributes are created. 4. Requested Changes is a common output for all the processes in the Project Cost, Time, Quality & Scope Management knowledge area except the Activity Duration Estimating Process , Quality Planning and Scope Planning 5. Tools and techniques used in Risk Identification: 5. a. BIRDS (Information Gathering techniques) b. CSI (Diagramming techniques) B I R D S:

Brainstorming Interviewing Root cause identification Delphi technique SWOT Analysis

C S I:

Cause and Effect Analysis System or Process Flow charts Influence Diagrams

6. Tools and techniques used in Quantitative Risk Analysis: 6. a. PIE (Data gathering and representation techniques) b. MEDS (Quantitative risk analysis and modeling) P I E: Probability Distributions Interviewing Expert Judgement MEDS: Modeling and Simulation (Eg Monte Carlo Analysis) EMV Analysis Decision tree analysis Sensitivity Analysis (Eg. Tornardo Diagram) 7. Tools and techniques used in Risk Response Planning: a. Strategies for Negative Risks / Threats: ATM:

Avoid Transfer Mitigate

b. Strategies for Positive Risks / Threats: SEE

Share Enhance Exploit

8. Tools and techniques used in Scope Definition: APES

Alternatives Identification Product Analysis Expert Judgement Stakeholder Analysis

9. There is only one Tool & Technique for Risk Management Planning: Planning meetings and analysis. 10. When the seller selection is based on PRICE, its often called a tender / Bid / Quotation. When the seller selection is based on technical skills / approach, its called a proposal. 11. Recommended Preventive action is used to bring the project into compliance with the project plan. Recommended corrective action is anything that needs to be done to bring the seller in compliance with the terms of the contract. 12. Prevention is keeping errors out of the process. Inspection is keeping errors out of the hands of the customer. 13. Attribute sampling is whether the result conforms or not. In Variables sampling, the result is rated on a continuous scale that measures the degree of conformity. 14. Common causes (a.k.a random causes) are normal process variations. Special causes are unusual events. 15. The result is acceptable if it falls within the range specified by the tolerance control limits. The process is in control if it falls within the control limits. 16. Seven basic tools of quality: CCFRHPS Take a Cat Cat-Fish Runs on Horse Pony Stallion Cause and Effect Diagrams. Control Charts. Flow charting Run Chart Histogram Pareto Chart Scatter Diagram 17. Constraints for human resource planning: CEO

Collective bargaining agreements Economic conditions

Organizational Structure

18. Project Statement of Work describes: BPS

Business Needed Product Scope Description Strategic Plan (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic (P - O) / 6 [(P - O)/6 ]squared LS-ES and LF-EF EV - AC EV - PV EV / AC EV / PV BAC / CPI, AC + ETC -- Initial Estimates are flawed AC + BAC - EV -- Future variance are Atypical AC + (BAC - EV) / CPI -- Future Variance would be typical EAC - AC EV/ BAC BAC - EAC Values for the TCPI index of less then 1.0 is good because it indicates the efficiency to complete is less than planned. How efficient must the project team be to complete the remaining work with the remaining money? ( BAC - EV ) / ( BAC - AC ) Bigger is better (NPV) FV / (1 + r)^n Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback VS. cost)

1. PERT 2. Standard Deviation 3. Variance 4. Float or Slack 5. Cost Variance 6. Schedule Variance 7. Cost Perf. Index 8. Sched. Perf. Index 9. Est. At Completion (EAC)

10. Est. To Complete Percentage complete 11. Var. At Completion 12. To Complete Performance Index TCPI

13. Net Present Value 14. Present Value PV 15. Internal Rate of Return 16. Benefit Cost Ratio

17. Payback Period

Or PV or Revenue / PV of Cost Less is better Net Investment / Avg. Annual cash flow. PV EV AC -25% - +75% (-50 to +100% PMBOK) -10% - +25% -5% - +10% N(N -1)/2 Probability * Impact ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost 1 = 68.27% 2 = 95.45% 3 = 99.73% 6 = 99.99985% Net Income Before Taxes (NEBT) / Total Sales OR Net Income After Taxes ( NEAT ) / Total Sales NEBT / Total Assets OR NEAT / Total Assets NEBT / Total Investment OR

18. BCWS 19. BCWP 20. ACWP 21. Order of Magnitude Estimate 22. Budget Estimate 23. Definitive Estimate 24. Comm. Channels 25. Expected Monetary Value 26. Point of Total Assumption (PTA) Sigma

Return on Sales ( ROS )

Return on Assets( ROA )

Return on Investment ( ROI ) Working Capital Discounted Cash Flow NEAT / Total Investment Current Assets - Current Liabilities Cash Flow X Discount Factor Savings = Target Cost Actual Cost Bonus = Savings x Percentage Contract related formulas Contract Cost = Bonus + Fees Total Cost = Actual Cost + Contract Cost Critical Path formulas Forward Pass: (Add 1 day to Early Start) Backward Pass: (Minus 1 day to Late Finish) LS = (LF - Duration + 1) EF = (ES + Duration - 1)

ES = Early Start; EF = Early Finish; LS = Late Start; LF = Late Finish

EVA = Net Operating Profit After Tax - Cost of Capital (Revenue - Op. Exp - Taxes) (Investment Capital X % Cost of Capital) EVA - Economic Value Add Benefit Measurement Bigger is better

Source Selection = (Weightage X Price) + (Weightage X Quality)

ing Terminologies.

Analogous vs parametric Estimating

Analogous Estimating use Expert Judgement (as in the actual experience from a person) to compare a similar project and provides rough estimates. E,g, There's a tall building in front of your house and someone tells you that the building's construction cost was 100 million. Now you are asked to calculate the cost of a similar building, which is half the height of the first building. How much do you think it would cost? Parametric use historical data unrelated to type of project (eg. required labor hours to lay a carpet in a room of xx sqare foot) in addition to current cost of resource (labor hours and carpet cost..). E.g. It costs $10 psf to install floor tiles. Your house has an area of 1000 sq. ft. How much would it cost to install the flooring in your entire house?

* Configuration Control is the activity of managing the product (or project's deliverables) and related documents, throughout the lifecycle of the product. * An effective Configuration Control system ensures that: * The latest approved version of the product and its components are used at all times. * No change is made to the product baselines without authorization. * A clear audit trail of all proposed, approved or implemented changes exists. * Change Control is the process of identifying, documenting, approving or rejecting, and controlling changes to the project baselines (including scope baselines, schedule baselines, cost baselines, etc.). In other words, it is used to control changes to all aspects of an approved project plan. An effective Change Control system ensures that: * Proposed changes are reviewed and their impact is analyzed, Configuration Control vs prior to approving or rejecting them. Change Control * All requests and changes are properly documented to provide a clear audit trail. * Configuration Control and Change Control are distinct in the following ways: * Configuration Control addresses the management of the product (or project's deliverables), whereas Change Control addresses the management of the project. * Configuration Control manages changes to the product baseline, whereas Change Control manages changes to the project baseline. * Configuration Control is applied throughout the lifecycle of the product (concept->design->develop/manufacture->service>dispose), whereas Change Control is applied during the lifecycle of the project subsequent to establishing the project baselines.

Schedule Baseline is an "approved" version of the Project Schedule * Project Schedule is a "living" document, whereas Schedule Baseline is "frozen" * Project Schedule is the "actual", whereas Schedule Baseline is the "plan". * Project Schedule is a Project Document, whereas Schedule Baseline is a part of the Project Management Plan. * Project Schedule is updated as the project is being executed, whereas Schedule Baseline is revised only as a result of an approved change. * Schedule performance is measured by comparing the actual (Project Schedule) vs the baseline (Schedule Baseline). * At the beginning of project execution, the Project Schedule is the same as the Schedule Baseline. * As work is done on the project, the actual progress is updated on the project schedule. * At any given date, the latest version of the actual (project) schedule is referred to as the "Project Schedule". Few more concepts * You don't touch the Schedule Baseline except for approved changes. * Schedule Data includes schedule milestones, schedule activities, activity attributes, resource requirements, assumptions & constraints etc. * Schedule Network Diagram is a schematic display of logical relationship between project schedule activities.

Project Schedule vs Schedule Baseline

Enhance vs Exploit

Enhancing is about increasing the probability of the occurrence of the event. Here, though the measures will be taken to increase the chance of happening of the event, but no surety to realize it. In Enhance Response Strategy, opportunity may or may not be realized. Exploiting is about doing everything to make the event happen; i.e. to make sure that opportunity is realized. Exploit Risk Response strategy takes the opportunity very seriously and develops an approach to increase the chance of happening to 100% to realize it. Enhance - try to realized the opportunity, Exploit - ensure to realize the opportunity. Enhance - try to increase the probability. Exploit - probability increased to 100%. Enhance - it can be assumed as opposite of the Mitigation.

 Exploit - it can be assumed as opposite to the Avoid.

Close Procurement "Close Procurement is the process of completing each project procurement. It supports the Close Project or Phase Process" Close Procurement is also known as Contract Closure. A procurement is said to be closed when contract reaches to its deadline and it ends. A project can have a multiple procurement contracts, or single contract. If the project is having multiple contracts then Close Procurement Process will be performed multiple times with each procurement contract, and if the project has no contract then there will be no Close Procurement Process. Close Project "Close Project or Phase is the process of finalizing all activities across all of the project management process groups to formally complete the project or phase." Close Project or Phase Process is performed when project or phase is finally completed and deliverables are accepted. To complete the close project or phase, close procurement process must has been finished otherwise project closure cannot happen; however, this is not the case for Close Procurement where Project Closure is not required in order to complete the Close Procurement. Key Points * Close Procurement must happen before Close Project or Phase. * Close Procurement can occur many times in life-cycle of the project, but the Project Closure will be performed once; i.e. at the end. * Deliverables are accepted in Close Project. * Every project must be gone through the Close Project process even it is terminated.

Close Project/Phase vs Close Procurements

Quality Assurance * Quality Assurance is a method which makes sure that any process developed to generate product is such that the product that comes out from the process must be fit, and conforms to all stated requirements. To develop the process, Quality Assurance takes input from the Quality Control Process. * Quality Assurance is a proactive process, and starts at the very beginning of the project to understands the stated requirements, not stated requirements, expectation, and creates a plan to meet those requirements and expectations. * Quality Audit is an example of Quality Assurance. Other examples are training, process definition, and selection of tools etc. The primary purpose of Quality Assurance is to prevent defects in deliverables at the planning process stage itself to avoid rework. Quality Control * Quality Control is a product based approach and is concerned with the operational activities and techniques those are used to fulfill the requirements of quality. * The Quality Control functions starts once the projects work has begun. It is a reactive approach and helps to find defects in deliverables. Site inspection and testing etc. are examples of the Quality Control Process. * Main purpose of the Quality Control Process is to see if the deliverables are defect free, acceptable as per quality requirements and standards set in the Quality Assurance process. If deliverables are not as per requirements, suitable corrective action will be taken. * Quality Assurance, and Quality Control processes are dependent on each other. The Quality Control receives the input from the Quality Assurance, and in turns gives feedback to the Quality Assurance so that Quality Assurance could validate the process. * For example, if the project team finds any defects while executing the project, it will correct the error by work around and this feedback is sent to Quality Assurance for further investigation to take corrective actions in the process so that this error should never happen again in future. In the same way the Quality Control people will follow the process defined by Quality Assurance so that these defects do not recur.

Quality Assurance vs Quality Control

1. Historical information is the best input for the initiation phase 2. Operations: are ongoing and repetitive 3. Getting coffee from Wife is a Project, Getting Coffee from Vending Machine is OPERATION (There are no surprises!..Thanks ARI) 4. The Resource Breakdown Structure shows various resources, both human and

mechanical needed for project. 5. Acquisition: When the performing organization lacks the in house staff needed to complete the project, the required services can be acquired from outside sources. 6. Let the people involved in the conflict work it out first 7. The best use of "collect project records" is to recall what happened on the project, good or bad. 8. Planning phase is LEAST Risky 9. Control Management System tracks the changes(not configuration management) 10. Templates and forms which are available in the organization are reusable components. Any resource that can be reused as a useful tool is part of the total methodology of project planning 11. Comparing proposals received from sellers done in the Conduct Procurements. 12. Make payment to seller is done in the Administer Procurements 13. Engineering is primarily responsible for creating design and test specifications. 14. Control charts are graphic display of the results over a time of a process. They are used to determine if the process is "in control". 15. Pareto chart: Focus on critical issues to improve quality 16. Fishbone diagram/Ishikawa: Determines how various factors linked to potential problems or effects, root cause 17. Control chart: Determines whether or not process is stable and within set limits . 18. Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause. 19. Planning meetings are used to create the Risk Management plan. 20. Approximating number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process. Activity List ,Activity resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK Page no 177 21. Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results 22. If the performing organization lacks the formal quality policy, or if project involves multiple performing organizations, The project management team, will develop the quality policy for each project. 23. For an immediate work, a letter contract may be sufficient 24. Performance Measures are done in contract Administration 25. Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE 26. Last step in Administrative closure is Release resources or Measure customer
certification at the end of the project by capturing customer feedback, in order to assist in project evaluation and enhance customer relationships.

27. Employee records should be updated by PM when he completes the tasks assigned to him 28. Individual development is the Foundation of Team development 29. T&M has the characteristics of both Fixed and Cost reimbursement 30. Procurement Audit, Negotiated settlements and record management system are tool and Techniques of contract closeout process

31. Procurement Audit, is used to identify successes to transfer the success to other procurements 32. Symbols are always used in the communications 33. Independent estimates are prepared to compare the cost to an estimate created with 34. Communication Management plan defines the contents of the performance reports 35. Team development with WEAK Matrix is very difficult 36. Product of the Project is Actually created in EXECUTION Phase /Group 37. Any change in the Project Charter needs to be approved by sponsor or person who has authorized the charter 38. REFERRENT power= PMs PERSONALITY POWER 39. Work Authorization system Ensures that work is done at RIGH T TIME and in proper sequence 40. Solicitation is the process of obtaining quotations , bids , offer, 41. The cost expanded at the completion of phase is known as SUNK costs 42. Conflicting priorities in resource assignments is an issue in the Matrix structure 43. Monte carlo simulation provides PROBABILITY OF ANY TASK BEING AT THE CRITICAL PATH 44. Scope verification should be done WHEN A PROJECT IS TERMINATED to determine the extent of the completion 45. Jurans Quality Triology = Quality PLANNING Quality IMPROVEMENT Quality CONTROL 46. UCL : Upper control limit : Is derived from Random variation 47. UTL : Upper tolerance limit is the higher of two tolerance limits 48. When original estimates are flawed then EAC = AC + ETC 49. Functional FM has more power 50. Projectized PM has more power 51. Balanced PM and FM has equal power 52. WEAK FM has more power 53. Strong MATRIX PM has more power 54. The procurement SOW might be prepared by either the buyer or the seller. Buyer might prepare the SOW and give it to the seller, who in turn rewrite it so that they can price the work properly. If the buyer does not know how to prepare a SOW or the seller would be better at creating the SOW because of their expertise about the product or service, the seller might prepare it and then give the buyer to review. 55. MAKE or BUY is used for PLAN Purchases and Acquisitions 56. Residual risks are REMINING RISKS after risk responses have been implemented 57. Crashing is applying more resources to shorten the duration 58. Risk mitigation is to DECREASE THE PROBABILITY OF RISK 59. ELAPSED TIME is the time inclusive of NON working days 60. Outsourcing IS RISK TRANSFERENCE 61. Networks (diagram) identify the Activity dependencies and path convergence risks 62.

If IRR and payback period Is given then DO THE PROJECT SELECTION ONLY BASED ON higher IRR . An investment with a higher IRR is not necessarily better than an investment with a lower IRR. If two projects are mutually exclusive, once should choose the project with the higher NPV at the appropriate discount rate even though the IRR many be lower. 63. Sensitivity chart displays sensitivities in DESENDING ORDER 64. Payment bonds are specifically designed to ensure that the prime contractor provides payment of Subcontractors, laborers, and sellers of material 65. Quality is the process of completing the scope to meet stated or implied needs. 66. CRASHING =MORE COST 67. FAST TRACK =MORE RISK 68. Monte Carlo analysis gives you:An indication of the risk involved in the project 69. 85% cost of quality = DEMING 70. A process goes out of control when there are special causes of variation 71. Worker needs to be involved in Management Practice = OUCHIs THEORY Z 72. Definite cost are most accurate 73. Sensitivity Analysis are part of Quantitative Analysis 74. Milestone Duration is ZERO 75. PERT Is also a NETWORK DIAGRAM 76. A statistical method that helps identify which factors may influence specific variables of a product or process under development or in production is DESIGN OF EXPERIMENTS 77. Complex project will best fit in MATRIX org structure 78. Pert is Superior to CPM 79. BRUCE TRUKMAN Model is related to TEAMMANAGEMENT 80. Payback period ended means Cumulative Revenue and cumulative cost from Starnet became equal 81. Beta Distribution and Triangular distribution are probability distributions used in Risk Analysis 82. The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs. 83. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control THIS IS DEFINITION FOR CONTROL CHARTS 84. large number of simultaneously performed projects utilize the same groups of human and other resources is called RESOURCE POOLING 85. The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. = IRR 86. PMBOK Guide process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle

87. The critical chain Method modifies the SCHEDULE to account for LIMITED RESOURCES 88. SCOPE CREEP = UNMANAGED changes to the Project SCOPE 89. Code of Ethics of PMI = RRFH Responsibility, respect, Fairness, honesty 90. A group of related scheduled activities shown as single aggregate activity for the reporting purpose is known as HAMMOCK Activity 91. Cost base line does not include management reserve 92. Stake holder model SALIANCE GRID 93. As per HERZBERG base Salary is a HYGINE FACTOR 94. RANK THE IDEAS in BRAINSTOMING NOMINAL GROUP 95. Arbitration and mediation are Negotiation Techniques 96. Standards are OPTIONAL , Regulations are REQUIRED 97. What is the name and ethical code for adhering PMP = PMI code of ethics and professional conduct 98. Single source seller means there is only one seller the company wants to do business with 99. Cost Performance baseline is represented as S curve 100. Inspections are NOT called as Assessments 101. Inspections are called as reviews, Audits and walkthroughs 102. First time feedback to a team member = Informal verbal (Face 2 Face), second time FORMAL written 103. Non verbal communication is about 55% 104. Last stage of project closure Measure customer certification at the end of the project by capturing customer feedback. 105. CPI is considered most critical EVM Metric 106. Contract closure occurs before Administrative closure 107. Resource leveling results in INCREASED PROJECT DURATION 108. Administrative closure should be carried out at the completion of each phase of the project 109. Measuring Quality of the product against standard is called Benchmarking 110. Fait accompli done deal/ non negotiable 111. The nodes on the AOA diagrams represent completion of the activities and have ZERO time usage 112. Straight line depreciation formula= (Initial cost-scrap value)/life 113. Preparing the Financial plan requires both project Management and Industry specific Skills 114. Statistical sampling for Inspection is used to reduce the cost of Quality control 115. One method to determine how well the project is getting executed is using CPI (Cost performance Index) 116. Seller completes the work as specified, but the buyer is not happy then the

contract is said to be COMPLETE (not closed though) 117. TCPI is the projection of the cost performance that must be achieved on the remaining work 118. The objective of lesions learned document is continuous Improvement 119. Training for the team members is not a prerequisite it can happen during the project also 120. Over allotted then do resource leveling 121. Withdrawal has cooling off period but the problem is not solved 122. The most Important criteria for project selection is REALISM 123. INFLATION is a EXTERNAL UN Predictable RISK 124. Team building is difficult in Matrix Org structure 125. RDU = Remaining Duration 126. The Pillars of the quality are DOING It RIGHT first time and ZERO Defects 127. Project risk is categorized by 3 factors a) Risk event, b) risk probability) amount at stake 128. Probing, scratching and small bites are the behaviors of the contract negotiations 129. The project scope management plan will not have the project constraints and assumptions (RD, Scope statement and scope BSL will) 130. If you have to look/refer any plan to respond regarding improving customer satisfaction you need to look at QUALITY PLAN 131. Lag means make sure one tasks waits before it gets started 132. Lead means you let the task get started before its predecessor is done 133. Output for source selection is contract 134. Participative leadership is most preferred leadership style 135. Gert is a System Dynamics model 136. Trigger is a warning sign 137. People exhibit slowest rate of change (Bruce willis -16 BLOCKS) 138. Sponsor or Initiator can create project charter or delegate it to PM 139. Philip corsby said QUALITY IS FREE 140. An Expressed Warranty is a statement of characteristics of the product 141. Which questions the functional manager is most likely to ask : WHO WILL DO THE TASK 142. An activity that consumes no time or resources and shows only a dependency = DUMMY Activity 143. The practice of ceasing mass inspections and ending awards based on price is credited to DEMING 144. Making a GIANT leap followed by a period of Maturity = INNOVATION 145. 12 to 20% of the sales is estimated to be the cost of NON QUALITY 146. To assimilate through the mind or senses is the process of UNDERSTANDING

147. RISK response of eliminating a threat = RISK AVOIDANCE 148. The stage of the negotiation meeting when he points of concession is identified = scratch bargaining 149. Completion of PROJECT scope is measured against the PM plan (not PRODUCT SCOPE) 150. Performance specifications are measureable 151. Quality control measurements are used to reevaluate and analyze the quality standards and processes and are fed back through: Quality ASSURANCE 152. The final cost of the project is HIGH at the start and gets progressively LOW as the project continues 153. On large or mega projects the integration is the responsibility of the project office 154. If the results fall under customer tolerance then the results are acceptable to client 155. Benchmarking is a Technique used in QUALITY PLANNING 156. Lessons learned are professional obligation of the project Manager 157. The project manager's ability to influence others whose cooperation and support are crucial to the project is called: DE FACTO AUTHORITY 158. Taguci loss function states that - VARIATION from Target Value Increases, the Loss also INCREASES 159. Contract is LEGAL relationship and project is not 160. Withdrawal is the LEAST preferred method by PMs 161. Risk audit documents the effectiveness of the risk responses 162. Triangular distribution = PERT Relies on Optimistic, Pessimistic and Most likely estimates(in Risk rating) 163. Brain storming and Lateral Thinking are used in scope definition for ALTERNATIVES IDENTIFICATION 164. Progressive Elaboration is what happens in rolling wave planning process 165. Avoid, Mitigate, Transfer, Accept are applicable for Negative Risks also 166. Communications are COMPLEX in Matrix organization 167. EVM does not play a major role in QUALITY MANAGEMENT PG 168. Successor Activity LS- Duration of current activity= LS of Current Activity 169. FIRM FIXED PRICE = Seller carries COST RISK, Buyer carries SCOPE RISK 170. Releasing the resources from the project is what done as LAST ACTIVITY 171. Procurement documents ensure the receipt of complete proposals 172. Project Performance appraisal focus on How individual team member is performing in the team 173. Baseline is established during the PLANNING 174. Meetings are always classified as INFORMAL VERBAL 175. BCR 1.8 means that revenue from the project is 1.8 times the cost

176. Training the team member in GENERAL Skills is the function of the FUNCTIONAL MANAGER 177. High Standard Deviation is High Risk. 178. CPM - FLOAT usage; CCM - Buffer usage. 179. Costs and staffing levels are lowest early in the life cycle, peak while the project work is underway, and then drop off as the project nears completion. 180. Risk is highest early in the project since uncertainty is high about the projects deliverables, resource needs, and work required. 181. Stakeholder Influence in the project and its deliverables is highest early in the life cycle but diminishes as the project proceeds... 182. Controlling unexpected project cost is to engage stakeholders early to prevent unnecessary and costly changes later in the project. 183. The payback period tells us how long it will take to recoup the expense of the project, so a shorter payback period is better. 184. BALANCED MATRIX: Folks who work in a balanced matrix organization report to a PM AND a functional manager equally. 185. STRONG MATRIX: Project managers have more authority than functional managers, but the team still reports to both managers. 186. Portfolio: A portfolio is a group of projects or programs that are linked together by a business goal. 187. Program: A program is a group of projects that are closely linked, to the point where managing them together provides some benefit 188. Project: A project is any work that produces a specific result and is temporary. Projects always have a beginning and an end. But they are never ongoing 189. Portfolios are organized around business goals and Programs are organized around a shared benefit in managing them together." 190. ROI = (Benefit Cost)/Cost 191. IRR is the discount rate when NPV equals zero. 192. IRR assumes that cash inflows are reinvested at the IRR value. 193. IRR: You should choose projects with the highest IRR value. 194. Mathematical models is that they use linear, dynamic, integer, nonlinear, and/or multi-objective programming in the form of algorithmsor in other words, a specific set of steps to solve a particular problem. Mathematical models are also known as Constrained optimization methods 195. Benefit Measurement Methods: employ various forms of analysis and comparative approaches to make project decisions. These methods include comparative approaches such as cost-benefit analysis, scoring models, and benefit contribution methods that include various cash flow techniques and economic models. 196. NET PRESENT VALUE - NPV: When you get a positive value for NPV, it means that the project will earn a return at least equal to or greater than the cost of

capital. 197. INTERNAL RATE OF RETURN - IRR: is the discount rate when the present value of the cash inflows EQUALS the original investment 198. The primary difference between focus groups and facilitated workshops are that focus groups are gatherings of prequalified subject matter experts and stakeholders and facilitated workshops consist of cross-functional stakeholders who can define cross-functional requirements. 199. Completion of Project Scope is measured against the Project Management Plan. 200. Completion of Product scope is measured against Product Requirements. 201. PMI advocates Project Objectives that follow the SMART guideline. S - Specific; M - Measurable; A - Assignable; R - Realistic; T - Timely. 202. Control Account may include one or more Work Packages, each Work Package represents only one Control Account. 203. The WBS doesnt show the order of the work packages or any dependencies between them. 204. Scope verification is primarily concerned with ACCEPTANCE of deliverables. Quality control is done before scope verification. 205. Product scope: means the features and functions of the product or service that you and your team are building. 206. Project scope: is all of the work that needs to be done to make the product. 207. The work package is the LOWEST level on a WBS; 208. The WBS doesnt show the order of the work packages or any dependencies between them 209. Verify Scope: The process of formalizing acceptance of the completed project deliverables. Usually performed after Perform Quality Control. 210. Verify Scope happens at the end of each phase and the project and upon delivery of Product/Service/Result. 211. Verify Scope is concerned with completeness and acceptance, and Perform Quality Control is concerned with correctness. 212. If the project is cancelled/terminated before completion, Verify Scope is performed to show where the Project was in relation to the Scope when it ended. 213. If we don't receive a final sign off from our customer; we have to escalate the issue to our Management. 214. Defining activities is an iterative process performed together by the project manager and the project team member by further decomposing the WBS work packages 215. ADMs drawback is that it can only show finish-to-start (FS) relationships 216. In order to show relationships between tasks on different node branches, ADM diagrams use dummy activities 217. The Arrow Diagramming Method (ADM) creates diagrams known as activity-on-

arrow (AOA). 218. The Precedence Diagramming Method (PDM) creates diagrams known as activity-on-node (AON). 219. Lead time causes the successor task to begin before its predecessor task concludes...for example FS-2 would schedule the successor task to start before the predecessor task finish. 220. Lag time causes the successor task to begin some time after its predecessor task concludes...for example, FS+1 would delay the start of the successor by 1 day. 221. Rough order of Estimate = +-50% 222. Resource Calendars specify WHEN and HOW LONG identified project resource will be available during the project. 223. Analogous is TOP DOWN 224. Parametric is More Accurate 225. Bottoms up is Accurate (When Parametric was not given) 226. Duration is the amount of time that an activity takes, while effort is the total number of person-hours that are expended. 227. Resource leveling can cause the original critical path to change. 228. Path Convergence: The merging or joining parallel schedule network paths into the same node in a project schedule network diagram. 229. Path convergence is characterized by a schedule activity with more than one predecessor activity. 230. Path Divergence: Extending or generating parallel schedule network paths from the same node in a project schedule network diagram. 231. Path divergence is characterized by a schedule activity with more than one successor activity. 232. Sunk Costs: costs incurred that cannot be reversed irrespective to future events 233. Value Engineering/ Analysis: finding less costly way to do the same work. E.g. outsourcing 234. Marginal analysis: Spend time on improvement if it improves revenues or productivity. 235. Order of Magnitude Estimate: Rough Order of Magnitude (ROM): -50% to +50% (at Initiation) as the project moves, estimates should become more accurate, 236. Direct cost: include dedicated labor, material, supplies, equipment, licenses, fees, training, travel, or professional service fees - [Applied directly to THIS project] 237. Indirect cost: Example, if a color printer is shared by several project teams, its difficult to definitively determine what percentage of costs each should share. [Expenses not for ONE project - these are Shared Expenses] 238. Variable cost: fluctuate and can't be predicted with absolute certainty. For example, travel or transportation costs that can change depending upon the cost of fuel or certain commodities and types of raw materials.

239. Fixed cost: are static throughout the project or have only a small likelihood of fluctuation. Fixed costs are usually for items such as rents, leases, licenses, salaries, and fixed fees 240. Life Cycle Costing includes Acquisition, Operation, Maintenance, and Disposal Costs 241. The Scope Statement provides the Product Description, Acceptance Criteria, Key Deliverables, Project Boundaries, Assumptions, and Constraints about the Project. 242. QUALITY: is defined as degree to which your project fulfills requirements. Customer satisfaction, Fitness for use, Conformance to requirements 243. Cost benefit: Looking at how much your quality activities will cost. 244. Benchmarking: means using the results of quality planning on other projects to set goals for your own. 245. Design of experiments: is the list of all the kinds of tests you are going to run on your product. 246. Attribute Sampling: is binary, it either conforms to quality or it doesnt (YE S or NO). 247. Variable Sampling: Measures how well something conforms to quality (RANGES). 248. Special Causes: considered unusual and preventable by process improvement. 249. Common Causes are generally acceptable. 250. Tolerances deal with the limits your project has set for product acceptance. 251. Control Limits are set at three standard deviations above and below the mean. As long as your results fall within the control limits, your process is considered to be in control. 252. Tolerances focus on whether the product is acceptable, while Control Limits focus on whether the process itself is acceptable. (Control limit is for PROCESS) 253. Control Charts: The upper and lower control limits are set at THREE STANDARD DEVIATIONS ABOVE and BELOW MEAN. 254. Rule of Seven: If seven or more consecutive data points fall on one side of the mean, they should be investigated. This is true even if the seven data points are within control limits. 255. Just In Time (JIT): To reduce expensive cost of holding inventory, many companies decrease inventory close to zero. A company using JIT must have high quality practices. 256. Cost of Quality = Prevention cost + Appraisal cost + control cost 257. Low grade is OK, but Low Quality is NOT OK 258. Quality assurance is focused on the processes and not the quality of the deliverables. 259. This is important for us to remember: quality assurance is concerned with quality processes while quality control is concerned with quality deliverables.

260. Flow Chart: Shows HOW PROCESSES INTERRELATE. 261. Histogram (Column Chart): It shows HOW OFTEN something occurs, or its FREQUENCY (no Ranking). 262. Pareto Charts (80-20 rule): This is a Histogram showing defects RANKED from GREATEST to LEAST. This rule states that 80% of the problems come from 20% of the causes. It is used to help determine the FEW ROOT CAUSES behind the MAJORITY OF THE PROBLEMS on a project. 263. Run Chart: tell about TRENDS in the project. Shows the HISTORY and PATTERN. 264. Scatter Diagram: It is powerful tool for SPOTTING TRENDS in Data. Scatter Diagrams are made using two variables (a dependent variable and an independent variable). 265. W. Edwards Deming = Plan DO- check- Act + He also developed 14 activities for implementing quality 266. Philip Crosby = ZEro Defects, 267. Dr. Genichi Taguchi developed the concept of 'Loss Function'. 268. KAIZEN = process Improvement 269. special causes are considered preventable. For example, a backup generator failed to start up during a power failure. The failure of the backup generator can be prevented in the future through regular mechanical maintenance and operational tests. 270. Common causes are thus generally considered as non-preventable and accepted as part of the process. 271. Inspection keeps errors in the product from reaching the customer. Prevention keeps errors from occurring in the process. 272. FORMAL, REWARD, PENALTY are powers derived from project managers position in the company. 273. Theory X - Autoritarion leadership style 274. Theory Y - Autoritarion Democratic/ Laissez- faire leadership style 275. Theory Z - Autoritarion Democratic leadership style 276. Laissez-faire: The leader turns nearly all control over to the group and is generally absent. 277. In a matrixed organization, the project manager doesnt have legitimate power, because the team doesnt directly report to the project manager. 278. Conflict can come from seven main sources, of which the first three account for 50% . They are 1. Schedules, 2. Priorities, 3. Manpower/human resource availability, 4. Technical opinions, 5. Procedural or project administration, 6. Costs,7. Personalities (SP is first 2 and CP is last 2) 279. Generally, only one person is assigned Accountability for a work package, but more than one person may be responsible for performing the work on a work package 280. Confronting: Its a Win-Win situation

281. Compromising: Lose-Lose method 282. Withdrawal: Lose-Leave method 283. Smoothing: Lose-Yield method 284. Forcing: Win-Lose method (Worst way). 285. Salience Model - describing classes of stakeholders based on their Power, Urgency and Legitimacy. 286. SENDER'S responsibility to make the message clear, complete, and understood 287. Nonverbal communication means your gestures, facial expressions, and physical appearance while you are communicating your message. 288. Paralingual communication is the tone and pitch of your voice when youre talking to people. If you sound anxious or upset, that will have an impact on the way people take the news you are giving 289. Distribute Information is concerned with general project information, such as meeting minutes, issues, and correspondence. 290. Report Performance focuses on performance reporting against baselines, such as scope, schedule, cost, or quality. Report Performance uses time, cost, and related work performance information. 291. According to Kerzner - "90% of the Project Manager's time is spent communicating" 292. Management Skills = Presentations skills, negotiation skills, writing and public speaking skills. 293. Risk Breakdown Structure (RBS): It is not breaking down the actial risks, instead, we are breaking down the CATEGORIES of risks that we will evaluate. 294. The amount of tolerance a person or organization has for risks is referred to as its risk utility, 295. Watchlist: Low priority risks should be regularly monitored so make sure they are not occurring and that their probability, impact, or priority hasn't changed. 296. Risk Score: The probability and impact score for the risk. This is obtained from a formula (usually probability x impact) defined in the risk management plan and generated from the probability and impact matrix. 297. The management reserve is for unknown-unknownsthings that you havent planned for but could impact your project. 298. The contingency reserve is for known - unknowns, or risks that you know about and explicitly planned for and put in your risk register. 299. Transfer: Transference assigns all or part of risk to a third party through outsourcing, contracts, insurance, warranties, guarantees, or performance clauses. 300. Risk response- fails> then contingency plan...If contingency plan fails then > Fall back plan, i.e in other words=> It can be looked at as a contingency plan for the contingency plan 301. CPFF - More risk for BUYER (some say T&M)

302. FFP - More risk for SELLER 303. UNILATERAL: this is a special class of contract in which the seller doesn't have to explicitly accept the offer in order for a contract to be established. This is a unilateral contract, and the best example is a purchase order (PO). 304. Procurement closure needs to happen before Project Closure. All procurements MUST be CLOSED before the project is closed. 305. Administrative closure is COMPLETE PROJECT Closure - so it can be done only once for project (or) Phase 306. Claims are usually addressed through the contract change control system 307. The payment system is how your company pays its sellers. 308. 100% rule comes in WBS 309. Force Majeure Risks, such as Earthquakes, Floods, Acts of Terrorism, Etc., should be covered under Disaster Recovery Procedures instead of Risk Management. 310. Journey to Abilene= Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member.(nobody likes the outcome) 311. What is a constructive change? = consideration of undocumented change = A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. 312. Getting collective action from a group of people who may have quite different interests is 'Politics'. 313. Arbitration is a form of negotiation. Technically, it is a form of assisted negotiation. 314. Primary Responsibility of the Project Manager is 'Interact with others in a Professional Manner while completing the project'. 315. GERT, Graphical Evaluation and Review Technique, allows for conditional advancement. GERT allows for branching and loopbacks. 316. Subnets are often included in network templates to summarize common activities in a project. 317. Parkinson's Law states that work will expand to fulfill the time allotted to it. (SUPER!- Thats what we do in real life right) 318. Soft logic allows the project manager to make decisions based on conditions outside of the project, best practices, or guidelines. 319. Milestone Schedule can also be called as Master Schedule. 320. The arrow diagramming method does not support finish-to-finish of relationships. 321. GERT is the only diagramming technique that allows loops. 322. The primary purpose of a network diagram is to show logical relationships. 323. Value analysis is a way of finding the least expensive way to do the work. 324. Fringe benefits are included in overhead and are part of indirect costs.

325. QA is typically management process 326. Q: Optimal quality is reached at what point? A: When revenue from improvement equals the incremental costs to achieve the quality. Marginal analysis provides that optimal quality is reached when the cost of the improvements equals the incremental costs to achieve the quality. 327. Design of experiments uses experiments and 'what-if' scenarios to determine what variables are affecting quality. 328. Having an allowable defect rate is an example of the cost of non-quality. Any system or process that will accept defects adds cost to the product or service. 329. Staffing Management Plan: WHEN and HOW resource will be ADDED and TAKEN OFF the team. 330. A corner office is a "perk" whereas health benefits are a fringe benefit. 331. Mentoring: is the work that a project manager may be frequently called on to perform. 332. Performance issues are senior and functional management's responsibility usually the manager who supervises the resource. 333. Conflict is not a filter of communicationit is a communication hindrance. 334. Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance. 335. The utility function describes a person's willingness to tolerate risk. 336. For immediate work, a letter contract may suffice. The intent of the letter contract is to allow the vendor to get to work immediately to solve the project problem. 337. When you must begin work immediately without a procurement statement of work, the most appropriate choice is time and material. 338. Outputs of all 42 Processes will be stored in PMIS. 339. Cause & Effect/Ishikawa/Fishbone Diagram or 5 WHY Technique. 340. The BIG Four: 1. Ishikawa; 2. Deming; 3. Juran; and 4. Crosby. 341. Leads and lags are APPLIED as part of the Develop Schedule process, but then they are ADJUSTED in the process of Control Schedule. 342. Zero Schedule Varience (SV) means the task is completed. 343. The To-Complete-Performance-Index (TCPI) is: The cost performance index (CPI) required in the remainder of a project to meet financial goals. 344. The S curve is the cost performance baseline. The cost performance baseline is used to track cost performance based on the original plan plus approved changes. 345. Requirement Traceability Matrix helps preventing gold plating 346. Parametric Estimates may not scale 347. For cost plus contract RFP is suitable 348. NPV will help u to build most precise business case 349. Standard deviation in a chart measures PRECISION

350. Changing Management Approach based on the team members experience = SITUATIONAL CONTINUUM 351. PMIS resides in EEF (enterprise environmental factors) 352. ARMA is a econometric method (Auto regressive moving average) 353. LOI is not a legal document 354. PM can not be a lead negotiator 355. Work Authorization systems helps in preventing scope creep

Tuckman's theory, teams go through five stages of development - Forming, Storming, Norming, Performing, Adjourning.