An Introduction to PMBOK Guide 5th Edition: Knowledge Areas, Processes and

Process Groups
2

Terminologies
1. Organizational Process Assets (OPA), which contains
historical information of all projects of your organization and
project management policies / templates, are readily
available. PMI advocates constant improvement and
continuous learning from project to project.
2. Enterprise Environment Factors (EEF), which represents
all the factors not in the immediate control of the project, is
something a Project Manager has to live with.
3. Change Requests include Corrective Action, Preventive
Action, Rework and changes that would affect the project
configurations / baselines / plans.
4. Lessons Learned are important outputs.
5. Expert Judgment is the single most important tool and
technique which refers to knowledge gained through
experience and/or studies. If it appears as one of the choices
for an PMP question, it is often the correct answer.
The Project Manager
1. The Project Manager has the responsibility to ensure the
project is completed on time and within budget.
2. The Project Manager should collaborate with stakeholders
throughout the project lifecycle. Plans should be developed in
collaboration with appropriate stakeholders and subject
matter experts.
3. The Project Manager should be proactive in identifying
problems, solving conflicts and looking for changes for the
better. Conflicts should be addressed directly.
4. The Project Manager needs to tailor the PMBOK Guide
Processes to suit the scope and characteristics of individual
projects.
5. The Project Manager must carry out impact analysis should
something unusual happens before asking for changes.
6. The Project Manager may take up a stretch assignment but
should first let management know that they lack the
experience/expertise.
7. The Project Manager should consult sponsors/senior
management when they have to make decisions that are
believed to be out of their assigned authority. However, the
Project Manager to exercise his/her authority to manage
the project as far as he/she can without escalating the
matter to senior management.
8. The Project Manager should not accept request to trim down
the budget (or time) while the scope and time (or budget)
cannot be changed.
Project Management
1. Emphasis is placed on the planning rather than putting out
the fire day in day out. Work should begin after the proper
planning is finished.
2. The Project Management Plan is approved by all designated
stakeholders and is believe to be achievable.
3. All activities, issues and risks should be assigned to
designated project members for handling.
4. Competing constraints are time, cost, scope, quality, risk
and resources. Change in one constrain will affect at least one
other constraints non-linearly, e.g. a reduction in 10% of cost
may affect 90% of the quality.
5. Risk Management is a almost a must for all projects,
project schedule and budget must take risks into
consideration.
6. Always follow the plan-do-check-act cycle.
7. All changes must be handled through the Integrated
Change Control Process, proper approvals must be sought and
changes documented before work begins (except in the case
of implementing workarounds during emergency in which
approval may be sought after the change has been carried
out).
8. Quality is an important consideration which needs constant
improvement (through the control quality / process
improvement).
Others
1. Meetings are used for idea generation, discussion, problem
solving or decision making, not status reporting.
2. Gold-plating is derogatory to PMI.
 3. The Project Management Office (PMO) is assumed in most
case.
4. Work performed by resources (including overtime work) must
be compensated. It is NOT recommended to ask resources to
work overtime by sacrificing work-life balance.
5. The goal of negotiation is to create a win-win result
(problem-solving).
6. Sunk cost is not to be considered when deciding when to
terminate a project.
7. Never tolerate sexual discrimination, even if it is customary
in other cultures.
3

PMP Certification Study Notes 1 Terms and Concepts

Introduction: Essential terms from the PMBOK Guide 5th Edition are
highlighted here. PMP aspirants need to learn these well in order to
successful pass the PMP exam. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

Important Terms and Concepts

Process a package of inputs, tools and outputs, there are
47 processes defined by PMI
Phases a group of related activities in a logical manner,
produces one or more deliverables at the end of the phase
(maybe with exit gate/kill point [probably in a sequential
relationship])
Phase-to-Phase relationship: sequential -> finish-to-
start; overlapping -> for schedule compression (fast
tracking); parallel
Project a temporary endeavor to create
a unique product, service or result (or enhancement of
existing services/products (e.g v.2 development is a
project) ) as opposed to operation, may hand over the product
to operation teams
Operation manages process in transforming resources into
output
 projects have more risks and uncertainties than operations
and require more planning
Program a group of coordinated projects, taking
operations into account, maybe with common goals,
achieving benefits not realized by running projects
individually, if only the client/technologies/resource are the
same, then the projects should be managed individually
instead of a program
Portfolio group of programs/projects to achieve
organizational strategic goals within the
organization/operation management, all investments of the
organization, maximize the value by examining the
components of the portfolio and exclude non-optimal
components
Why projects: market demand, organizational need,
customer request, technological advance, legal requirements,
to support organization strategic plan -> projects bring values
Business Value is the total values (tangible and intangible)
of the organization
Organization Strategy may be expressed through mission
and vision
Use of portfolio/program/project management to bridge the
gap between organization strategy and business value
realization
Progressive Elaboration (rolling wave planning is one
of the methods used in activity planning) analysis and
estimation can be more accurate and elaborated as the
project goes (usually in phased projects) such that detailed
planning can be made at that point
Project Management
Project Management the application of (all appropriate)
knowledge, skills, tools & techniques and whatsoever to
manage project activities with a view to meet the
project requirements and achieve customer satisfactions
The most important task is to align stakeholder
expectations with the project requirements, around 90% of
the PMs work is related to communication with stakeholders
PMBOK Guide is a framework/standard
but not methodology (agile, scrum, PRINCE3, etc.)
 should be aligned with organization governance (through
EEF and OPA)
Competing constraints: time, cost, scope, quality, risk,
resources
Project Management Office (PMO) standardizes
governance, provides training, shares tools, templates,
resources, etc. across all projects/programs/portfolios
3 forms: supportive, controlling and directing (lead the
project as PM)
functions: training, resource coordination, methodology,
document repository, project management oversight,
standards, career management of PMs
may function as a stakeholder / key decision maker (e.g. to
terminate the projects)
align portfolios/programs/projects with business objectives
and measurement systems
control shared resources / interdependence across projects
at the enterprise level
play a decisive role in project governance
Organizational Project Management (OPM)
strategy execution framework utilizing portfolios,
programs and projects and organizational enabling
practices (technology, culture, etc.) for achieving
organizational objectives
linking management principles with strategy, advance
capabilities
Management by Objectives (MBO) : define objectives
for an organization so that management and employees can
agree to the objectives and understand what they need to do
in the organization in order to achieve them.
Organizational Project Management Maturity
Model (OPM3) : givess a methodological approach for
organizations to understand their Organizational Project
Management processes and measure their capabilities for
planning for improvement.
Project Manager
Project Manager: knowledge, performance, personal
general (organization, planning, meeting, control)
 management, interpersonal (communication, leadership,
motivation, influence, negotiation, trust building, political and
cultural awareness) skills
leader of the project irrespective of the authority
should consider every processes to determine if they are
needed for individual projects
may report to the functional manager, program manager,
PMO manager, operation manager, senior management, etc.,
maybe part-time or devoted
identifies and documents conflicts of project objectives with
organization strategy as early as possible
skills: leadership, team building, motivation, influencing,
coaching, trust building, communication, political awareness,
cultural awareness, decision making, conflict management,
negotiation
PM must balance the constraints and tradeoffs, effectively
communicate the info (including bad news) to the sponsor for
informed decisions
PM need to involve project team members in the planning
process
Project Team includes PM, project management staff, project
staff, PMO, SME (subject matter experts can be outsourced),
customer representative (with authority), sellers, business
partners, etc., maybe virtual or collocated
Senior management must be consulted for changes to
high-level constraints
Organization Types
Organization Types: Projectized (project manager has the
ultimate authority over the project, team members are often
collocated), Matrix (Strong, Balanced, Week), Functional
Composite a combination of different types, depending on
the actual need
Tight Matrix = co-location, nothing to do with the
organization type (not necessarily a matrix org.)
Functional organizations => the project manager has little
authority, often called project expeditor (no authority) or
coordinator (little authority), project coordination among
functional managers
 Matrix organization => multiple bosses and more complex
Project Based Organization (PBO) conduct the majority
of activities in the form of projects and/or privilege project
over functional approaches, they can include: departments
with functional organizations; matrix organizations; projectized
organizations and other forms of organizations that privilege a
project approach for conducting their activities, success is
measured by the final results rather than position/politics
Project Lifecycle vs Project Management Lifecycle vs Product
Lifecycle
Project Lifecycle: includes: initiating, planning and
organizing, carrying out/executing work, closing the project
Predictive [plan driven/waterfall] scope, time and cost
determined early in the lifecycle, may also employ rolling
wave planning
Iterative [incremental] repeat the phases as
understanding of the project increases until the exit criteria
are met, similar to the rolling wave planning, high-level
objectives, either sequential / overlapping phases,
scope/time/resources for each phase may be different
Adaptive [change driven/agile] for projects with high
levels of change, risk and/or uncertainty, each iterative
is very short (2-4 weeks), work is decomposed into product
backlog, each with a production-level product, scrum is one of
the most effective agile methods, stakeholders are involved
throughout the process, time and resources are fixed,
allow low change cost/keep stakeholder influence high
each project phase within the product lifecycle may include
all the five project management process groups
product lifecycle: development > production > adoption &
growth > maturity > decline > end of life
Other Terms
Organization Process Assets is a major input in all
planning process, which may be kept at PMO, directly
related to project management, including Processess
and Procedures (including templates (e.g. WBS, schedule
network diagrams, etc.), procedures for issuing work
authorizations, guidelines, performance measurements) and
Corporate Knowledge Base
 The Configuration Management Knowledge
Bases contain baselines of all organization standards
Lessons Learned focus on the deviances from plan
(baseline) to actual results
Enterprise Environment Factors (often are constraints)
are influences not under control of the project team that will
affect the project, either intra-organization and extra-
organization, e.g. organizational culture, organization
structure (functional/matrix/projectized structure), existing
human resources, work authorization system, PMIS
The work authorization system (WAS) is a system used
during project integration management to make sure that the
right work gets done at the right time
EEF are inputs for all initiating, most planning process, not
much in the executing/controlling process, none in closing
process
Organization culture: process-oriented/results-oriented, job-
oriented/employee-oriented, professional-oriented/parochial-
oriented, open system/closed system, tight control/loose
control, pragmatic/normative
Project Governance for the whole project lifecycle, fits in
the organizations governance model, define responsibilities
and accountabilities, controlling the project and making
decisions for success, alignment of project with stakeholders
needs/objectives, provides a framework for PM and sponsors
to make decisions to satisfy both parties, should be described
in the PM plan
Analytical Techniques: used to find the root cause or
to forecast
PMIS includes configuration system and change control
system
Never accept a change request to trim down one element of
the triple constraint without changing the rest.
Sponsor provides resources/support to project, lead the
process through initiation (charter/scope statement) through
formally authorized, later involved in authorizing scope/budget
change/review
 Customer NOT necessarily provide the financial resources,
maybe external to the organization, final acceptance of the
product
Business Partners certification body, training, support,
etc.
Organizational Groups internal stakeholders
Business Case : background, analysis of the business
situation, costs and benefits (cost-benefit analysis), to help in
selection of project created by the initiator
Project Statement of Work (SOW) : describes the
business need, high level scope of deliverables and strategic
plan of the organization, created by the sponsor/initiator/buyer
Project Charter : formally authorizes the project, includes
all those from above plus approval criteria, preliminary
budget, primary stakeholders, the name of PM, assumptions
and decisions etc., usually created by PM (in develop project
charter process) and signed by the sponsor, remains fairly the
same during project lifecycle, except big changes like sponsor
has resigned [the current sponsor should initiate the change
to the charter before he leaves]
Project Charter is not a contract
Project Management Plan: how the project will be
performed and managed documents assumptions &
decisions, helps communication between stakeholders, goals,
costs & time scheduling (milestones), project management
system and subsidiary management plans and documents
Project Management Plan is NOT a project schedule
Project Management System: includes a list of project
management processes, level of implementation (what actions
to take in the management processes), description of tools
and techniques, resources, procedures, change control
system [forms with tracking systems, approval levels]
Requirement Traceability Matrix (RTM) a matrix
connecting deliverables to requirements and
their sources (for managing scope)
Work Breakdown Structure (WBS) a hierarchal chart of
decomposing deliverables into work packages
 Activity List a full list of all activities with indication of
relationship to the work packages
Activity Attributes further information (duration, start
date, end date, etc.) of all the activities in the list
(for scheduling)
Roles and Responsibilities (RAR) a document listing all
the roles and description of their responsibilities in the project
(often by category)
Responsibility Assignment Matrix (RAM) a matrix
connecting people to work packages/activities, e.g. the RACI
matrix (responsible, accountable, consult, inform), usually
only one person is accountable for each activity
Resources Breakdown Structure (RBS) a hierarchical
chart listing all the resources by categories, e.g. marketing,
design, etc.
Risk Breakdown Structure (RBS) a hierarchical chart listing
all risks by categories
Project Information
Work Performance Data raw data collected
Work Performance Info analyzed in context and
integrated data, e.g. some forecasts
Work Performance Reports work performance
information compiled in report format
Sunk costs money already spent, not to be
considered whether to terminate a project, similar to
committed cost (often through contracts)
Direct costs, indirect (shared) costs, Fixed costs, Variable
costs
Law of diminishing returns beyond a point, the more
input, the less return
Working capital assets minus liability, what the company
has to invest in the projects
Payback period a time to earn back capital investment
Benefit-cost ratio (BCR) an indicator, used in the formal
discipline of cost-benefit analysis, that attempts to summarize
the overall value for money of a project
 Depreciation straight-line depreciation vs accelerated
depreciation (the amount of depreciation taken each year is
higher during the earlier years of an assets life)
Under double declining balance, the asset is depreciated
twice as fast as under straight line. Using the example above,
10% of the cost is depreciated each year using straight line.
Doubling the rate would mean that 20% would be depreciated
each year, so the asset would be fully depreciated in 5 years,
rather than 10.
Under sum-of-the-years-digits, the asset is depreciated
faster than straight line but not as fast as declining balance.
As an example of how this method works, lets say an assets
useful life is 5 years. Adding up the digits would be
5+4+3+2+1 or a total of 15. The first year, 5/15 is expensed;
the next year 4/15 is expensed, and so on. So if the assets
cost is $1000, 5/15, or $333.34 would be expensed the first
year, $266.67 the second year, and so on.
Economic value added the value of the project brought
minus the cost of project (including opportunity costs) e.g. for
a project cost of $100, the estimated return for 1st year is $5,
assuming the same money can be invested to gain 8% per
year, then the EVA is $5 $100 * 8% = -$3
Net present value (NPV) the sum of the present values
(PVs) of the individual cash flows of the same entity
Present value (PV) or called present discounted value, is a
future amount of money that has been discounted to reflect
its current value, as if it existed today (i.e. with inflation, etc.)
Future value (FV) is the value of an asset at a specific date
Internal Rate of Return (IRR) The inherent discount rate
or investment yield rate produced by the projects deliverables
over a pre-defined period of time.
Forecast (future) vs Status Report (current status)
vs Progress Report (what have been done/delivered)
Journey to Abilene (Abilenes Paradox) committee
decisions can have a paradox outcome, the joint decision is
not welcome by either party (because of fear of raising
objections)
 when something unusual happens, always refer to the PM
Plan/Charter for instruction on how to proceed; if not
found, ask for direction from the management
unresolved issues will lead to conflicts
4

PMP Certification Study Notes 2/3 Project Management Processes and Knowledge
Areas

Introduction: This part of PMP exam study notes is based on the 2nd
and 3rd chapter of the PMBOK Guide 5th Edition. It gives an overview of
the 47 processes of project management in the PMBOK
Guide and the process groups. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

The Project Management Process Groups (IPECC)

1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Planning and Executing are iterative. Monitoring and
Controlling is exercised over Planning and Executing.
A phase is not a process group. The 5 processes can
happen in 1 phase.
The process groups is not in sequence
The PM should tailor the choices of processes to fit in
individual processes (tailoring)
deliverables are often incremental in nature
Initiating
align project purposes with stakeholders
expectations
assign a project manager
identify stakeholders and develop project charter
document business case (created by initiator, maybe well
before the initiating process group) and cost-benfit analysis,
identify high-level risks, identify project selection criteria
 early in the process, the staffing, costs and chance of
success are low, risk and stakeholder influence are high
may be performed at portfolio/program level (i.e. outside the
projects level of control)
Planning
create Project Management Plan [why the project? what
to deliver? who do what? when accepted? how
executed?], subsidiary documents (schedule baseline, cos
t baseline, performance
management baseline, scope baseline (scope statement,
WBS, WBS dictionary) and subsidiary management
plans (scope, schedule, budget, quality, human resources
[roles & responsibility, organization chart and
staffing management plan include the staff need, rewards,
safety and training need] , stakeholder, requirements, process
improvement, communication, change, risk and procurement)
all are not finalized until a thorough risk management has
been performed, need to be approved before work begins
all plan and documents can be formal or informal,
generalized or detailed, depending on needs
Project Management Plan maybe continually
updated during the project with rolling wave planning /
progressive elaboration
obtain approval of plan from designated stakeholders,
changes to the project management plan and subsidiary
documents/plans need formal procedures described in the
change control system
hold kick-off meeting
planning process group is MOST important, with over 1/2 of
all the 47 process in this group
may need re-planning when significant changes to the
baseline is observed in the executing/monitoring processes
Executing
to satisfy project specifications
coordinating human/infrastructure resources in accordance
with the project management plan
updates and re-baselining the project management plan and
subsidiary management plans
 normal execution, manage contracts, acquire, develop &
manager project team, perform quality assurance and
manage stakeholder expectation/communication
direct and manage project work
continuous improvement process (quality assurance)
use up the largest share of resources
Monitoring and Controlling
measure performance, address change requests,
recommend corrective/preventive measures and rectify
defects
usually performed at regular intervals
control the quality, inspection and reporting, problem
solving, identify new risks
reassess control process
should there be any internal deviance from the stated plan,
the PM should make correction (use contingency reserve if
necessary)
monitor and control project work and integrate change
control
make sure only approved changes (through integrated
change control) are incorporated
Closing
either project finished or cancelled
final product verification, contract closure, produce final
report (closeout documentation), obtain formal
acceptance, archive, release resources, close project
feedback, review and lessons learned (about the process),
transition of deliverables to operation
procurement closure and administrative closure
Product-oriented Processes
initiating
planning and organizing
executing
closing
PMI Knowledge Areas
1. Project Integration Management assemble and combine
all parts into a coherent whole
2. Project Scope Management
 3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management

47 processes of Project Management

The 47 processes of project management belongs to one of the process

groups and one of the knowledge areas and will be discussed in more
details in the upcoming study notes.

PMP Certification Study Notes 4 Project Integration Management

Introduction: This part of the PMP exam study notes is based on

chapter 4 of PMBOK Guide 5th Edition. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

integration management is needed when

processes interacts
to identify,combine, unify and coordinate various
processes/activities and manage the interdependencies
communication is most important
a PM Plan not meeting requirements is a defect
Develop Project Charter
formally authorize the project and allow the PM to apply
organizational resources
well-defined project start and project boundaries
project charter is a several page document including high
level information of the project: project background, business
case, goals (S.M.A.R.T. specific, measurable, attainable,
realistic, time-bound), who is and the authority of the project
 manager, budget, risk, stakeholders, deliverables, approval
criteria, etc.
can link the project to other works in the organization
through portfolio/program management
signed off by the sponsor (the one who supply the
money/resources)
agreements: either a contract (for external parties), letter of
intent, service level agreement, etc. (can be legally binding or
NOT)
a charter is NOT a contract because there is no
consideration
PMO may provide the expert judgement
Facilitation techniques includes brainstorming, conflict
resolution, problem solving, meeting, etc.
Develop Project Management Plan
the project management plan is a formal written
document on how the project is executed, monitored and
closed, including all subsidiary management plans
(scope, requirements, change, configuration, schedule,
cost, quality, process improvement, human resource,
communication, risk, procurement) and documents (cost
baseline, schedule baseline, scope baseline, performance
measurement baseline, cost estimate, schedule,
responsibility for each deliverable, staff requirements) and
some additional documents/plans (selected PM processes and
level of implementation)
the contents to be tailored by the PM (tailoring) to suit each
project
created by PM, signed off by destined KEY
stakeholders (e.g. project sponsor, project team, project
manager)
may be progressively elaborated in iterative phases (outputs
from other processes), this must be the final process/iteration
to consolidate the PM Plan
when the project management plan is baselined (i.e.
validated and then signed of by key stakeholders), it is
subject to formal change control and is used as a basis for
comparison to the actual plan
 after baselining, the senior management must be
consulted if these high level constraints are to be altered
(whether to use the management reserves)
can be re-baselined if significant changes are seen (scope
change, internal changes/variances (for the project execution),
external factors) <- needed to be approved by
sponsors/stakeholders/senior management, must understand
the underlying reasons first (built-in costs is not usually a
legitimate reason)
cost baseline (specific time-phased
budget), schedule baseline (-> knows when to spend
money), scope baseline (includes scope statement, WBS,
WBS dictionary): whether preventive/corrective/defect repair
actions are needed
the performance measurement baseline (PMB) is
an approved scope-schedule-cost plan for the project work
(to use in earned value management), it includes
contingency reserve but excludes management reserves
configuration management (works with change control
management plan), document all change versions of
project deliverables and completed project components, PMIS
includes: Configuration Management System (contains the
updated deliverable/project specifications and processes)
and Change Control System (contains formal documents for
tracking changes)
configuration management system contains the most
updated version of project documents
other project documents NOT included in the project
management plan:
Kick-of Meeting: at beginning of the project/phase,
participants including project team+stakeholders, element
including project review, responsibility assignment matrix,
participation of stakeholders, escalation path, frequency of
meetings
Direct and Manage Project Work
create project deliverables, acquire/assign/train staff,
manage vendors, collect data for reports, document lessons
learned
 implement approved process improvement plans and
changes, change requests
include corrective actions, preventive actions, defect
repair and updates (all considered to be change requests)
if the PM discovers a defect, he/she should instruct the team
to make defect repair during this process (need change
request but may be approved by the PM only (if stipulated in
PM Plan for minor change))
approved change requests approved in the perform
integrated change control, may include preventive, corrective
and defect repair actions
change requests may arise as a result
of implementing approved change requests
PM should be of service to the team, not a boss
a work authorization system (part of EEF) defines approval
levels needed to issue work authorization (to allocate the
work) and is used to prevent scope creep as formal approval
must be sought before work begins
Stakeholder risk tolerance is part of EEF
Face-to-face meeting is considered to be most effective
The PM Plan can be considered as a deliverable
most of the time of project spends here
Monitor and Control Project Work

validated changes actions taken as a result of the

approved change requests are validated against the original
change requests, to ensure correct implementation
corrective and preventive actions usually dont affect the
baseline, only affect the performance against the baseline
defect repair: considered as rework, deliverable not
accepted, either rework or scrap, strongly advise defect
prevention to defect repair
the work performance info is fed from all
other control processes (e.g. control schedule, control
stakeholder engagement, control communications, control
costs, control quality, etc.)
variance analysis is NOT a forecast method
Perform Integrated Change Control
the PM should influence the factors that cause project
change
changes arises as a result of: missed requirements, views of
stakeholders, poorly designed WBS, misunderstanding,
inadequate risk assessment
all the process is documented in the change log
tracked using a change management system, also
affect configuration management system
configuration control: changes to deliverables and processes
change control: identify/document/approve changes
configuration management activities: configuration
identification, configuration status accounting, configuration
verification / audit to ensure the latest configuration is
adopted and delivered
for a change request: 1) identify need, 2) assess the
impact, response and alternatives, 3) create CR, 4) Meet with
stakeholders, 5) obtain approval from CCB (change control
board) or PM as defined in roles and responsibility
document/PM Plan, 6) request more funding if needed
customers/sponsors may need to approve certain
decisions by CCB (if they are not part of CCB)
communicate the resolutions (approve or reject) to change
requests to stakeholders
Burnup chart vs Burndown chart
Close Project or Phase
ensure all procurements are closed (in the Close
Procurements Process) before formal closure of the
project/phase
create the project closure documents
formal sign off by designated stakeholders/customer
obtain formal approval to close out the project/phase
(administrative closure)
obtain approval and deliver the deliverables (maybe with
training)
finish and archive documentations, lessons learnt and
update to organizational process asset
 if the contract comes with a warranty, make sure that
changes during the project are evaluated against the origin
clauses, ensure alignment of the warranty and changes
to close a project as neatly and permanently possible
for multi-phase projects, this process will be performed once
for every phase end and once for the whole project (5 times
for project with 4 phases)
litigation can be further pursued after the closure
6

PMP Certification Study Notes 5 Project Scope Management

Introduction: This part of the PMP exam study notes is based on

chapter 5 of PMBOK Guide 5th Edition. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

ensure the inclusion of all and only the work required to

complete the project successfully
Product Scope requirements needed to be fulfilled to
create the product, assessed against the product
requirements and WBS
Project Scope activities and processes needed to be
performed to deliver the product scope, assessed against the
scope baseline (scope statement, WBS and WBS dictionary),
e.g. including testing & quality assurance, assessed against
the PM plan
scope management to prevent scope creep (additional
requirements added without any proper control)
The completion of project scope is measured against the
project management plan whereas the completion of product
scope is measured against the product requirements/WBS
gold plating additional requirements initiated by the team
members to exceed expectation, considered a subset of scope
creep
Scope Baseline: scope statement + WBS + WBS dictionary
 WBS includes only the deliverables/outcomes/results (not
actions)
Plan Scope Management
Scope Management Plan: how the scope will be defined,
validated and controlled
including how to prevent scope creep, how to handle
change requests, escalation path for disagreement on scope
elements between stakeholders, process for creating scope
statement, WBS, processing CR, how the deliverables will be
accepted
Requirements Management Plan: how the requirements
will be managed, documented and analyzed,
including how to process requirements, address missed
requirements, configuration
management, prioritize requirements, metrics (and rationale)
for defining the product, define the traceability structure (in
RTM), authorization level for approving new requirements
important: primary means to understand and manage
stakeholder expectations
Collect Requirements
Requirement: a condition/capability that must be met
/possessed by a deliverable to satisfy a contract/standard/etc.,
including quantified/documented needs, wants, expectation of
the sponsor/stakeholder/customer
Business requirements support business objectives of
the company
Stakeholder requirements
Solution requirements functional (product
behavior) and nonfunctional requirements (reliability,
security, performance, safety, etc.)
Transitional requirements : temporary capability
including data conversion/tracking/training
Project requirements : actions/processes/conditions the
project needs to met
Quality requirements : quality criteria defined by
stakeholders
Requirements Collection Tools
interviewing (expert interviewing)
 focus groups (with SME and pre-qualified
stakeholders)
facilitated workshops (QFD (Quality Function
Deployment) capture VOC voice of customer, translate
customer needs into requirements; JAD (Joint Application
Design) facilitated workshop for IT and knowledge
workers)
questionnaires and surveys
observation (shadowing or Gemba)
prototypes
context diagrams (diagrams showing input/source
and output, to show how people interact with the system)
document analysis
Group Creativity Techniques: brainstorming, nominal
group technique (to rank brainstormed ideas by voting
anonymously), mind-mapping, affinity diagram (KJ method
group ideas into larger categories based on their similarity
and give titles to each group), Delphi technique (for experts
with widely varying opinions, all participants are anonymous,
evaluation of ideas funneled by a facilitator), Multi-criteria
Decision Analysis (with a decision matrix)
Group Decisions-making Techniques: Analytic
Hierarchy Process (AHP, for complex decisions, give
different weighs to factors to build an hierarchy), Voting
(unanimous, majority >50%, plurality, dictatorship)
Requirements Traceability Matrix tracks requirements
from origins to deliverables, including source of
requirements and completion status, effective to prevent gold
plating (also work with work authorization system)
requirement documentation needs to be unambiguous,
traceable, compete, consistent and acceptable to key
stakeholders and is approved by the customer and other
stakeholders
Define Scope
project & product scope, outlines what will be and what
will NOT be included in the deliverables, including details of
risks, constraints and assumptions
vs project charter which includes high-level descriptions
 provides alternatives if the budget and schedule could not
meet managements expectations
Product analysis includes techniques such as product
breakdown, systems analysis, requirements analysis, systems
engineering, value engineering, and value analysis
value engineering is a part of the product analysis
technique (Value Engineering (value analysis, value
management, value methodology) finding alternatives to
constraints to improve product/reduce cost without sacrificing
the scope)
project scope statement includes objectives, (project and
product) scope, requirements, boundaries, deliverables,
acceptance criteria, constraints, assumptions, milestones,
cost estimation, specifications, configuration management
requirements, approval requirements, etc.
The scope statement is progressively elaborated
Create WBS
the WBS must be created (if take on a running project
without WBS, stop the project and prepare the WBS first)
WBS is a structured hierarchy created by the
organization/stakeholders, can be in an organization chart or
table form, based on the project deliverables (not tasks
needed)
can be a template in OPA
a higher level above a work package is control account
(control point where scope, cost and schedule are compared
to earn value for performance measurement), a work package
can have only ONE control account
WBS includes 100% of scope (100% rule)
code of accounts: a numbering system to identify WBS
components
chart of accounts: a list of all account names and numbers
1.1 for the 2nd level, 1.1.1 for the 3rd level
WBS is a decomposition tool to break down work into lowest
level manageable (time and cost can be estimated, work
package can be assigned to a team member) work packages,
e.g. by phase or major deliverables
 different work packages can be at different levels of
decompositions
WBS does not show dependencies between work packages,
but a WBS dictionary does (WBS dictionary clarifies WBS by
adding additional information)
the major deliverables should always be defined in terms of
how the project will actually be organized, for a project
with phases, the decomposition should begin with the phase
first
scope baseline, an output from Create WBS, is created by
the project team
the work packages are broken down enough to delegate to a
staff, usu. 8 80 hours work
Validate Scope
gain formal acceptance of deliverables
from customer/stakeholders (e.g. obtain customer sign off,
requirements validations, etc.) near the end of
project/phase/each deliverable, e.g. user acceptance test
work performance data tells how the deliverables were
created, work performance data includes non-conformance
and compliance data
change requests may be an output
if no formal sign off is received as stipulated, follow the pre-
defined process in PM plan, e.g. escalation to management
often preceded by Control Quality Process to give the
verified deliverable as input to this
process, verified deliverables is fed from the control
quality process
vs Control Quality: the process of monitoring/recording
results of executing quality activities to assess performance
and recommend necessary changes, e.g. unit testing -> high
quality vs low quality
need to perform even in case of early
termination/cancellation of the project to save any usable
deliverables for other projects
Control Scope
assessing additional requirements by the customer
or proactively overlooking the project scope
 measure the work product against the scope baseline to
ensure the project stays on track proactively, may need
preventive, corrective actions or defect repair
to prevent unnecessary changes (either internally or
externally requested) to the project
a documented and enforced change control process
the customer has the ultimate authority to change scope
while the senior management can make use of management
reserves
variance analysis method to compare planned (baseline)
and actual work and determine the causes/actions e.g. update
baseline (keep the variance) or preventive/corrective actions,
both need CR
work performance info scope variance, causes,
recommended action
may update the inputs requirements documentation &
requirement traceability matrix & lessons learnt in OPA
in general, disagreement should be resolved in favor of
the customer
7

PMP Certification Study Notes 6 Project Time Management

ntroduction: This part of the PMP exam study notes is based on

chapter 6 of PMBOK Guide 5th Edition. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

Plan Schedule Management

define policies, procedures and documentation for managing
and controlling project schedule
including scheduling methodology, tools, level of accuracy,
control thresholds (limit beyond which preventive/corrective
actions needed), rules of performance measurement (e.g.
earned value)
lead and lags are NOT schedule constraints
Define Activities
the scope baseline is used here as it represents the
approved (stable) scope
further decompose work packages into activities for more
detailed and accurate estimations
activities is the PMI terminology for tasks and work
efforts
activity is more related to the actual work/process to
produce the deliverables
activity types: level of efforts (support, measured in time
period), discrete efforts or apportioned effort (in direct
proportion to another discrete effort)
activities have durations while milestones do not (zero
duration)
Sequence Activities
WBS is no longer needed, so the Project Scope
Statement is the input rather than scope baseline
Precedence Diagramming Method (PDM) to diagram
dependencies
Network Diagramming Tools are software tools that
graphically represent activity sequences
network diagrams: shows dependencies, duration, workflow,
helps identifying critical paths
precedence relationships (also known as activity
on node (AON) approach): finish-to-start (~95%), start-to-
start, finish-to-finish, start-to-finish (least)
Activity on Arrow (AOA) or Arrow Diagramming
Method (ADM) activities are represented as arrows, dashed
arrows represent dummy activities (duration: 0) that shows
dependencies
Graphical Evaluation and Review Technique (GERT) allows
for conditional branching and loops
Network Dependency Types (to be determined during
Sequence Activities Process):
Mandatory Dependency (hard logic): A must be
completed before B begins/ technical dependencies may
not be hard
 Discretionary Dependency (preferred, soft logic):
sequence preferred by the organization, may be removed
should fast-tracking is required
External Dependency: dependency required by
external organization
Internal Dependency: precedence relationship
usually within the project teams control
Milestones: the completion of a key deliverable/a phase in
the project, as checkpoints/summary for progress, often used
in funding vendor activities
Milestone list is part of i) project plan, ii) project scope
statement, iii) WBS dictionary
Leads: begin successor activity before end of predecessor,
for schedule compression (fast tracking) (negative lags)
Lags: imposed delay to successor activity, e.g. wait 2 weeks
for concrete to cure (FS +14 days)
Network Diagram Setup : 7-box method, usually using
software tools or 5-box method
if the ES and LS are identical, the activity is on the critical
path
Estimate Activity Resources
closely related to Estimate Cost Process (in Cost
Management)
resource calendar spells out the availability of resources
(internal/external) during the project period
matches human resources to activities (as human resources
will afect duration)
efort (man day, work week, etc.) vs duration vs time
lapsed (total time needed, including holidays, time off)
alternative analysis includes make-or-buy decisions, different
tools, different skills, etc.
Activity Resource Requirements may include the basis of
estimation
Estimate Activity Durations
consults SME (subject matter experts, i.e. the one carrying
out the actual work) to come with with the estimation, not on
the PMs own
 Analogous Estimating: based on previous activity with
similar nature (a form of expert judgement), used
when little is known or very similar scope, works well when
project is small, NOT ACCURATE
Parametric Estimating: based on some parameters, e.g. the
time for producing 1000 component based on that for 1
component * 1000, use an algorithm based on historical data,
accuracy depends on the parameters selected, can be used on
[a portion of / the entire] project
One-Point Estimating: based on expert judgement, but
highly unreliable
Three-Point Estimating: best (optimistic), most likely
(realistic), worst
(pessimistic) cases, Triangular Distribution
vs PERT (Project Evaluation and Review
Techniques, Beta Distribution, weighted average using
statistical methods [most likely * 4 95% confidence level
with 2 sigma]), triangular distribution (non-weighted average
of three data points), uncertainties are accounted for
In real world applications, the PERT estimate is processed
using Monte Carlo analysis, tie specific confidence factors to
the PERT estimate
Bottom-Up Estimating: a detailed estimate by decomposing
the tasks and derive the estimates based on reliable historical
values, most accurate but time-consuming
Heuristics: use rule of thumb for estimating
standard deviation (sigma value, deviation from mean, to
specify the precision of measurement): 1 sigma: 68%, 2 sigma
95%, 3 sigma 99.7%, 6 sigma 99.99%
accuracy is the conformance to target value
contingency reserve: for known unknowns, owned by PM,
may be updated, part of schedule baseline
management reserve: for unknown unknowns, owned by
management, included in overall schedule requirements
update to documents: basis of estimates, assumptions and
contingencies
activity duration estimate may be in a range, dont
include lags
Develop Schedule
the schedule baseline is the approved and signed version
of project schedule that is incorporated into the PM plan
the schedule is calendar-based taking into accounts
holidays/resource availability/vacations
vs the time estimate (work efort/level of efort) just
describes the man hours / man days
Slack/Float: activities that can be
delayed without impacting the schedule
Free slack/float: time an activity can be delayed without
delaying the Early Start of the successor
Total slack/float: time an activity can be delayed from early
start without delaying the project end date (scheduling
flexibility), can be negative, 0 (on the critical path) or
positive
Project Float: without affecting another project
Negative float: problem with schedule, need schedule
rework
Project slack/float: time the project can be delayed without
delaying another project
Early Start (ES) earliest time to start the activity
Late Start (LS) latest time to start without impacting
the late finish
Early Finish (EF) earliest time to end the activity
Late Finish (LF) latest time to finish without impacting
successor activity
Slack/Float = LS ES or LF EF
The float is the highest single value along the critical
path, NOT the sum of them
Critical Path: the longest path that amount to shortest
possible completion time (usually zero float, activities with
mandatory dependency with finish-to-start relationship), can
have more than 1 critical paths (more risks), critical paths
may change (keep an eye on near-critical paths)
activities on the critical path are called critical activities
Path with negative float = behind schedule, need
compression to eliminate negative float
Forward Pass : compute the early start
 Backward Pass : compute the late start
Fast Tracking : allow overlapping of activities or activities in
parallel, included risks/resource overloading
Crashing : shorten the activities by adding resources, may
result in team burnout
Scheduling Techniques
Critical Path Method (CPM) compute the forward and
backward pass to determine the critical path and float
Critical Chain Method (CCM) deal with scarce resources
and uncertainties, keep the resources levelly loaded by
chaining all activities and grouping the contingency and put at
the end as project bufer, for activities running in parallel,
the contingency is called feeding bufer (expect 50% of
activities to overrun)
Buffer is determined by assessing the amount of
uncertainties, human factors, etc.
Parkinsons Law: Work expands so as to fill the time
available for its completion.
Resource Optimization Techniques
Resource leveling is used to adjust the variation in
resource loading to stabilize the number of resources working
each time and to avoid burnout, may need to extend the
schedule in CPM
Resource smoothing is to adjust resource requirements so
as not to exceed predetermined resource limits, but
only optimized within the float boundaries
Modeling Techniques
What if analysis: to address feasibility/possibility of
meeting project schedule, useful in creating contingency plan
Monte Carlo: run thousand of times to obtain the
distribution using a set of random variables
(stochastic variables), use a combination of PERT estimate
and triangular distributions as end point estimates to
create the model to eliminate schedule risks, the graph is a
S curve
Network Diagram: bar charts with logical connections
Hammock activities: higher-level summary activities
between milestones
 Milestone Charts: show only major deliverables/events on
the timeline
data date (status date, as-of date): the date on which the
data is recorded
the Schedule Data includes schedule milestones, schedule
activities, activities attributes, and documentation of all
assumptions and constraints, alternative schedules and
scheduling of contingency reserves
the Project Calendars identify working days
Control Schedule
measure result, make adjustments, adjust metrics
Performance Review includes: Trend Analysis, CPM, CCM,
Earned Value Management
Change Requests generated are to be assessed in the
Perform Integrated Control Process
8

PMP Certification Study Notes 7 Project Cost Management

ntroduction: This part of the PMP exam study notes is based on

chapter 7 of PMBOK Guide 5th Edition. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

sunk cost cost already incurred in the past and cannot be

recovered, do not consider anymore
opportunity cost difference in value between one path vs
alternative (= 100% of value of next best alternative)
value analysis/ engineering cost reduction without affecting
the scope
Benefit Cost Analysis (BCA) / Cost Benefit Analysis (CBA)
determine feasibility, bigger benefit/cost ratio (BCR)
Payback Period the length of time to recover the
investment
Return on Investment (ROI) the efficiency of investment =
(Gain-Cost)/Cost
 Time Value of Money Present Value (PV) = value /
(1+interest rate)*year, Future Value (FV) = value * (1+interest
rate)*year
Net Present Value (NPV) = PV of cash inflows PV of
cash outflows (cost)
funding for project: self-fund, funding with equity, funding
with debts
discount rate rate used to calculate present value of
expected yearly benefits and costs
Plan Cost Management
The Cost Management Plan establishes: i) level
of accuracy and level of precision, ii) unit of measurement,
iii) WBS procedure links (to control account (CA)), iv) control
threshold, v) earned value rules of performance,
reporting, funding and processes
Life cycle costing = total cost of ownership : production
cost, running and maintenance cost, etc.
Estimate Costs
similar to Estimate Activity Resources
look for ways to reduce cost
ensure the SME to deliver the estimates (more accurate)
based on WBS
Cost Types
Variable costs costs change with the amount of work,
e.g. hourly consultants
Fixed costs costs that are constant, e.g. equipment
leases
Direct costs directly attributed to the project
Indirect costs shared costs like AC, lighting, etc.
Cost Estimate Tools
Analogous Estimating (Top Down Estimate) compare
to a similar project in the past (an estimating heuristic/rule
of thumb)
Parametric Estimating use a parameter and
repetitive units of identical work
Bottom-up Estimating detailed estimates of each
individual activity from historical data, more accurate and
time-consuming
 Activity Cost Estimates may include indirect cost and
contingency reserves
usually in a range of values
Basis of Estimates detailed analysis on how the cost
estimate was derived (assumptions, constraints, possible
range (+/-15%), confidence level of final estimate)
Determine Budget
Budget is more about when to spend money
Historical Relationships analogous/parametric
estimation
Reserve Analysis addresses Management
Reserve (unknown unknowns) and Contingency
Reserve (known risks) [not included in calculation of earned
value managment]
Funding Limit Reconciliation addresses variance
between funding limit (e.g. monthly or yearly limit) and
planned expenditure, may require rescheduling of work to
level of the rate of expenditure
Value Engineering to improve quality/shorten schedule
without affecting the scope
Project Budget = Cost baseline (the approved time-
phased budget) + Management Reserve
when management reserve is used during project
execution, the amount is added to the cost baseline
S-curve : total project expenditure over project lifecycle
Control Costs
Check against the Project Funding Requirements
including informing stakeholders of all approved changes
and their costs
Earned Value Calculation
Index > 1: under budget/ahead of schedule
Index < 1: over budget/behind schedule
Estimate at Complete: 1) new estimate required (original
flawed), 2) no BAC variance, 3) CPI will continue, 4) sub-
standard cost/schedule will continue
TCPI: >1 not enough funding remain (over
budget), <1 more fund available than needed (under
budget)
 Earned Value Accrual
Discrete Eforts describes activities that can be
planned/measured for output, including Fixed
Formula (activity given a % of budget of work package
at start and earn the remaining when completed, e.g.
50/50, 20/80 or 0/100), Weighted Milestone (earn value
for milestones of deliverables of the work
package), Percentage Complete, Physical
Measurement
Apportioned Eforts describes work that has a
direct/supporting relationship to discrete work, e.g. testing,
pm activities, calculated as % of the discrete work
Level of Eforts (LOE) describes activities without
deliverables, e.g. troubleshooting, assigned the earned
value as scheduled, without schedule variance but may
have cost variance
e.g. perform Control Cost weekly during execution where
money is spent fastest
Variance Analysis to check against the baseline for any
variance
SPI at end of project must be 1
SPI is NOT telling much information to whether the
project is on schedule as the Critical Path must also be
investigated to get a meaningful picture
8

PMP Certification Study Notes 8 Project Quality Management

Introduction: This part of the PMP exam study notes is based on

chapter 8 of PMBOK Guide 5th Edition. More information on my PMP
certification exam preparation can be found at my PMP exam and
certification journey here.

everyone in the organization is responsible for the quality

(project team for destined parts while PM for project
quality), PM is ultimately responsible for the project
quality
prevention over inspection
 outliers are singular measurements outside the control
limits
continuous improvement to ensure quality (quality
assurance)
some costs of quality will be borne by the organization
(organization quality policy, e.g. quality audit, ISO
accreditation)
Quality: the degree to which a set of inherent
characteristics fulfills requirements, decrease rework/costs,
increase productivity/stakeholder satisfaction
under control: the process is predictable and repeatable
PM: perform continuous improvement activities (quality
assurance), verify quality before completion of deliverables
(control quality)
Grade (fit for use or not) vs Quality (conformance to stated
requirements)
Accuracy (correctness) vs Precision (consistence, how
closely conforms to target, standard deviation is a measure of
precision, smaller standard deviation higher precision)
Quality Management Concepts
Crosby Zero Defects: identify processes to remove
defects, quality is built in to the processes
Juran Fitness for Use: does the product/service meet
customers need? i) Grade, ii) Quality conformance, iii)
Reliability/maintainability, iv) Safety, v) Actual Use
W. Edwards Deming: 85% of quality problem is
managers responsibility, develop System of Profound
Knowledge [system = components working together to
achieve an aim] i) Appreciation for system, ii) Knowledge
about variation (special cause vs common cause) , iii)
Theory of Knowledge (built up by
prediction/observation/adjustment) , iv) Psychology
Six Sigma: achieve 3.4/1 mil defect level (99.999%)
using DMAIC (Define, Measure, Analyze, Implement,
Control) or [Design for Six Sigma] DMADV (Define,
Measure, Analyze, Design, Validate) approach, refine the
process to get rid of human error and outside influences
 with precise measurements, variations are random in
nature
Just In Time: eliminate build up of inventory
Total Quality Management (TQM): ISO 8402 all
members to center on quality to drive
customer satisfaction , refine the process of producing
the product
Kaizen : implement consistent and incremental
improvement, to reduce costs, cycle time, drive customer
satisfaction using PDCA (Plan Do Check Act)
The Plan-Do-Check-Act cycle is a way of making small
improvements and testing their impact before you make a
change to the process as a whole. It comes from W.
Edwards Demings work in process improvement, which
popularized the cycle that was originally invented by
Walter Shewhart in the 1930s.
Capability Maturity Model Integration (CMMI):
improve overall software quality (design, development and
deployment)
ISO9000: ensures the defined processes are performed
in accordance to the plan
Quality Management processes are so focused on
reviewing EVERY deliverable not just the final product, but
all of the components, designs and specifications too.
Plan Quality Management
quality policy (either organizational or just for the project),
methods and procedures to meet the objectives and satisfy
customers needs
identify the quality requirements and document how to
achieve
Cost-benefit Analysis: cost of implementing quality
requirements against benefits
Cost of Quality: lowest quality cost is prevention, highest
quality cost (poor quality) is rework and defect repair (as
high as 5000 times the cost for carrying out unit testing), lost
reputation and sales, failure cost may be internal/external
(found by customer)
Warranty claims are external cost of quality
 Cost of Quality is the total cost of quality efforts throughout
the products lifecycle
cost of conformance (prevention cost, appraisal cost) vs cost
of non-conformance (failure cost [internal/external])
internal/external is reference to the project (not the
organization)
Poka Yoke (mistake proofing), Zero Quality Control (100%
source inspection), Voice of Customer and FEMA (Failure
Modes of Effects Analysis) are planning tools for quality
management
Quality Metrics: function points, MTBF (mean time between
failure), MTTR (mean time to repair)
Marginal Analysis: ROI of quality measures
7 Basic Quality Tools
Cause-and-efect / Ishikawa / Fishbone Diagram: for
identifying the cause
Flowchart: (e.g. SIPOC diagram) for identifying failing
process steps and process improvement opportunities
Check Sheets (tally sheets): collecting
data/documenting steps for defeat analysis
Histograms: does not consider the influence of time
on the variation that exits within a distribution
Pareto Chart: based on 80/20 principle, a prioritization
tool to identify critical issues in descending order of
frequency, sort of a histogram
Statistical Process Control (SPC) Chart: determine
if a process is stable/predictable using statistical sampling
(assessed by accuracy[conformance]
and precision[standard deviation]), identity the internally
computed control limits (UCL/LCL) and specification
limits (USL/LSL) by the customer/PM
run chart is similar to control chart, but without
the control
usually +-3sigma i.e. a range of 6 sigma
a form of time series
if a process is within control limit but beyond
specification limit, the process is experiencing common
cause variation (random) that cannot be corrected by
 the system, management help is needed (special cause
can be tackled but NOT common cause)
Stability Analysis / Zone Test: rule of seven (7
consecutive on either side of the mean = out of control),
rule of six (six consecutive with a trend = out of control),
rule of ten (10 as a saw-tooth pattern around the mean),
rule of one (1 point beyond control limit) [signal in the
noise]
Scatter Diagram: for trending, a form
of regression analysis
Benchmarking: compare to past
activities/standard/competition
Design of Experiments (DOE): change several factors at a
time for each experiment, to determine testing
approaches and their impact on cost of quality
Additional Quality Planning Tools
Loss Function: a financial measure of the users
dissatisfaction with product performance
Matrix Diagrams: House of Quality (HOQ) used in Quality
Function Deployment (QFD) (method to transform user
demands [VOC] into design quality)
Kano Model: differentiate features as satisfy, delight or
dissatisfy
Marginal Analysis: cost-benefits analysis
Force Field Analysis (FFA): reviews any proposed action
with proactive and opposing forces
Process Improvement Plan: process boundaries,
configuration, process metrics/efficiencies, targets for
improved performance
Quality Checklists: checklist to verify a series of steps have
been performed
The goal is to refine the process so that human errors and
outside influences no longer exist, and any remaining
variations are completely random
Perform Quality Assurance
in the Executing Process Group
ensures the quality standards are being followed, to ensure
unfinished works would meet the quality requirements
 by quality assurance department or sponsor/customer not
actively involved in the project
primarily concerned with overall process
improvement for activities and processes (rather than the
deliverable)
utilize the data collected in Control Quality Process
Quality Management Tools
Affinity Diagrams: like a mind-mapping diagram,
organize thoughts on how to solve problems
Process Decision Program Charts (PDPC): defines a
goal and the steps involved, useful for contingency
planning
Interrelationship Digraphs: maps cause-and-effect
relationships for problems with multiple
variables/outcomes
Tree Diagrams
Prioritization Matrices: define issues and alternatives
that need to be prioritized for decision, items are given a
priority score through brainstorming
Activity Network Diagrams
Matrix Diagrams: e.g. house of quality in QFD
Kaizen , Kanben : quality assurance methods
developed by Japanese
Quality Audit: to verify quality of processes, to seek
improvement, identify best practices, reduce overall cost of
quality, confirm implementation of approved changes,
need quality documentations
Quality Review: to review the quality management plan
change requests are mostly procedural changes
Control Quality
verify the deliverables against customers specifications
to ensure customer satisfaction
validate the changes against the original approved
change requests
conditional probability (events somewhat
related) vs statistical independence (events not
interrelated) vs mutual exclusivity
statistical sampling for control quality
 variable (continuous) data: measurements, can do maths
on e.g. average
attribute (discrete) data: yes/no, no.123, just an
identifier, cant do maths on
QC includes the PM process (lesson learnt, budget, scope)
tolerance (spec limits, deliverables acceptable) vs control
limits (process acceptable)
if within control limit but outside tolerance: rework the
process to give better precision
all control and execution processes may generate lesson
learned
9

PMP Certification Study Notes 9 Project Human Resource Management

Introduction: This part of the notes on PMP Exam is about Project

Human Resources Management, one of the knowledge areas required for
the PMP exam. It is based on chapter 7 of PMBOK Guide 5th Edition.
The following is a summary or a checklist of what you should know for the
Project Human Resources Management knowledge area. If you would like
to learn the tips and tricks for the PMP exam, do check out my PMP
exam and certification journey here.

Sexism, racism or other discrimination should never be

tolerated, no matter what the circumstances. You must
separate your team from discriminatory practices, even if
those practices are normal in the country where youre
working.
Plan Human Resource Management
plan to organize and lead the project team
include roles and responsibilities (identify resources that
can take up the responsibilities) as documented (ownership of
deliverables) in RAM in the form of RACI chart (matrix) or
in a chart/text form, org charts an organizational
breakdown structure (OBS) and staffing management
plan staff acquisition, release, resource calendar, resource
histogram, training, rewards, compliance & safety
requirements
 The OBS displays organizational relationships and then
uses them for assigning work to resources in a project (WBS)
networking is useful in understanding skills of individuals and
the political and interpersonal factors within the organization
org chart indicated the reporting structure of the project

What is a RACI chart / RACI matrix or RACI graph?

The four letters of RACI stands for:
Responsible Which project member
is responsible for carrying out the execution of the task?
Accountable The Project member who is
held accountable for the tasks and be given the authority
to make decisions? In general, there should only be 1
member accountable for the project task.
Consulted The stakeholders that should
be consulted for the work or be included in the decision
making (to be engaged in two-way communication).
Informed Who should be informed of the decisions
or progresses of the work by means of email updates,
progress reports, etc. (one-way communication)?
The RACI chart is a tool for tracking the tools for tracking the
roles and responsibilities of project members for specific
project tasks during project execution.
While there can be unlimited number of members
responsible for the execution of a project task, there should
only be one member accountable for the same task. Fixing
the accountability to a single person will allow the project
team members to know which person to go to should they
need to know the progresses or details of the task. This can
also avoid the false assumption that the other person (if there
are more than one accountable) accountable for the task has
taken care of the task but in the end no one has looked after
the task.
The member responsible and accountable can be the same
for small tasks.
Below is an example of the RACI chart for a website project:
Project Manager Graphic Designer Co
 Logo Design A R

Web Copy C

Web Coding A C

Acquire Project Team

to acquire the final project team
pre-assignment is the selection of certain team members in
advance
acquisition is to acquire resources from outside through
hiring consultants or subcontracting
includes bringing on contractors / consultants
halo efect: a cognitive bias (if he is good at one thing, he
will be good at everything)
Multi-criteria Decision Analysis: to select team members
based on a no. of factors: availability, cost, experience, ability,
knowledge, skills, attitude, etc.
training is usually paid for by the organization, not project
Develop Project Team
enhancing and improving overall team performance
offer feedback, support, engage team members, manage
conflicts, facilitate cooperation
cross-train people
team performance assessments : assess team
performance as a whole vs project performance appraisals:
individual performance
training cost can be set within the project budget or
supported by the organization
PM Authority: legitimate (assigned in project charter),
reward, penalty, expert (need to be earned), referent
(charisma and likable, or ally with people with higher power),
representative (elected as representative)
Expert > Reward are best forms of power. Penalty is worst.
Tuckman Model: Forming Stroming Norming Performing
Adjourning
cultural difference should be considered when determining
award and recognition
 recognition should focus on win-win reward for the team
(NOT competitive-based)
team building is important throughout the whole project
period
Motivational Theories
Maslows Hierarchy of Needs personal needs
(Physiological > Security > Social > Esteem > Self
Actualization)
Herzbergs Hygiene Theory satisfaction
(motivators) vs dissatisfaction (hygiene factors to avoid
dissatisfaction but do not provide satisfaction, also called
KITA factors e.g. incentives/punishments), hygiene factors
include good working conditions, a satisfying personal life,
and good relations with the boss and coworkers
Expectancy Theory Expectancy (extra work will be
rewarded) Instrumentality (good results will be
rewarded) Valence (the individuals expected reward), for
a person to be motivated, efforts/performance/outcome
must be matched will only work hard for achievable
goals
Achievement Theory three motivation needs:
achievement (nAch), power (nPow), affiliation (nAff), best
is a balanced style for the PM
Contingency Theory task-oriented/relationship-
oriented with stress level (high stress -> task-oriented
better)
Leadership Theory
including: analytical (with expertise), autocratic (with
power), bureaucratic, charismatic, consultative, driver
(micromanagement), influencing, laissez-faire (stay out)
Theory X assumes employees are lazy and avoid
work, need incentive/threats/close supervising
Theory Y assumes employees may be ambitious and
self-motivated, will perform given the right conditions
Theory Z (japanese) increasing loyalty by providing
job for life with focus on well-being of employee (on and off
job), produces high productivity and morale
 Situational Continuum Leadership directing/telling
> coaching/selling (manager define the work) >
supporting/participating (subordinate define the work) >
delegating according to maturity/capability of the
subordinate
Manage Project Team
track team member performance, provide feedback, resolve
issues
when managed properly, differences of opinion can lead to
increased creativity and better decision making
issue log is fed from Manage Stakeholder Engagement
used to understand who is responsible for resolving specific
issues
conflict management: conflicts force a search for
alternatives, need openness, not personal, focus on present
and future
conflicts: schedule, project priority, resources, technical
opinions, administrative overhead (too much administration
work), cost, personality
conflict resolution
collaborate/problem solve[confrontation of problem]
(best)
compromise/reconcile (give-and-take,
temporary/partially resolve)
force/direct (worst/short-lived)
smooth/accommodate (emphasis common grounds
and avoid/touch lightly the disagreements for
harmony/relationship)
withdraw/avoid (other leads to lose-lose)
compromise is lose-lose
Forcing would only provide a temporary solution
Award decisions are made during the process of project
performance appraisals
monitoring and controlling is typically performed by
functional managers/HR for functional org
10

PMP Certification Study Notes 10 Project Communication Management

Introduction: This part of the PMP exam study notes on Project
Communication Management is based on chapter 10 of PMBOK Guide
5th Edition. More information on my PMP certification exam preparation
can be found at my PMP exam and certification journey here.

assure the timely collection, generation, distribution,

storage, retrieval and ultimate disposition of project
information
very important to the ultimate success of the project
message transmission: 7% in word, 38% in vocal pitch, 55%
in body language (Albert Mehrabian)
dont wait to communication good/bad news
the sender has the responsibility to ensure the receiver
correctly understand the message
if part of the project is procured, more formal written
communication will be expected
Plan Communications Management
identify the needs for stakeholder communication
the who, what, when (frequency), why, where and how of
communications needs and the persons responsible
time and budget for the resources, escalation path, flow
charts, constraints, guideline and templates
Communication Methods
interactive (multidirectional communication, most
effective)
push (active, messages sent without validation of
receipt)
pull (passive, access directly by stakeholders)
low context vs high context (japan, more polite)
may need to limit who can communicate with whom and who
will receive what information
(Shannon-Weaver model)Sender-Receiver Model: i)
encoded idea, ii) message and feedback, iii) medium, iv) noise
level, v) the decoded idea. The sender to ensure info is
clear, complete and the recipient correct understands.
 The recipient to ensure complete message is received
(to acknowledge) and provide feedback/response.
Effective Listening: feedback, active listening and
paralingual (voice expression, nonverbal elements)
Communication channels: N (N -1) / 2 // N is the number
of team members
meetings should facilitate problem solving
PM spends 90% of their time
on COMMUNICATION activities, 50% of the time is spent on
communicating with the team
efficient communication: only the required messages
efective communication: right timing, right format, right
medium
Manage Communications
create, collect, distribute, store, retrieve and dispose project
information according to the Communication Management
Plan
ensures good communications, noises managed,
stakeholders may feedback on how to improve
Communication Barriers vs Communication Enhancers
55% message thru body language, 38% thru paralingual,
7% thru words used
Types of Communications: Formal Written, Formal Verbal,
Information Written, Informal Verbal
Performance Reporting: status, progress, variance, trend,
earned value reports and forecasts, summary of changes, risks
and issues
PM Plan Update to show the latest performance (against
Performance Measurement Baseline)
Feedback from stakeholders are to be stored in OPA
Control Communications
to ensure optimal information flow for effective stakeholder
expectation management
issue log is to document the issues and monitor its
resolutions (with person responsible)
11

PMP Certification Study Notes 11 Project Risk Management

Introduction: This part of the PMP exam study notes on Project Risk
Management is based on chapter 11 of PMBOK Guide 5th Edition. More
information on my PMP certification exam preparation can be found
at my PMP exam and certification journey here.

risk identification, management and response strategy

impacts every area of the project management life cycle
everyone is responsible for identifying risks
risk has one or more causes and has one or more
impacts
risk = uncertainty; risk management: increase the
probability of project success by minimizing/eliminating
negative risks (threats) and increasing positive events
(opportunities)
risk attitudes (EEF): risk appetite (willingness to take risks
for rewards), tolerance for risk (risk tolerant or risk
averse), risk threshold (level beyond which the org refuses
to tolerate risks and may change its response)
pure (insurable) risk vs business risk (can be +ve or -ve)
known risks that cannot be dealt with proactively (active
acceptance) should be assigned a contingency reserve or
if the known risks cannot be analyzed, just wait for its
happening and implement workaround (passive acceptance)
Plan Risk Management
define and provide resources and time to perform risk
management, including: methodology, roles and
responsibilities, budget, timing (when and how often), risk
categories (e.g. RBS), definitions, stakeholder tolerances (a
EEF), reporting and tracking
performed at project initiation and early in the Planning
process
 failure to address risks early on can ultimately be more
costly
analytical techniques include stakeholder risk profile
analysis, strategic risk scoring sheets
a risk breakdown structure (RBS) (included in the PM
Plan) risks grouped by categories and occurring areas
key risk categories: scope creep, inherent schedule flaws,
employee turnover, specification breakdown (conflicts in
deliverable specifications), poor productivity
Identify Risks
determine all risks affecting the project
information-gathering techniques:
brainstorming, delphi technique [a panel of independent
experts, maintain anonymity, use questionnaire, encourage
open critique], root cause analysis [performed after an
event to gain understanding to prevent similar events from
occurring], expert interviewing, SWOT analysis
root cause analysis: safety-based (prevent accidents),
production-based, process-based (include business process),
failure-based, systems-based (all above)
root cause analysis tools: FMEA, Pareto Analysis, Bayesian
Inference (conditional probability), Ishikawa Diagrams, Kepner-
Tregoe
Monte Carlo analysis can identify points of schedule risks
Influence Diagram graphical representations of situations
showing causal influences, time ordering of events, and other
relationships among variables and outcomes.
Risk Register (typically not including the risk reserve)
The Risk Register may include a risk statement
any risk with a probability of >70% is an issue (to be dealt
with proactively and recorded in the issue log)
Perform Qualitative Risk Analysis
prioritizing risks for further analysis/action and identify high
priority risks
need to identify bias and correct it (e.g. risk attitude of the
stakeholders)
qualitative risk assessment matrix (format described in
the Risk Management Plan)
 update to risk register and other related documents
risk register update are output of Perform Qualitative Risk
Analysis, Perform Quantitative Analysis, Plan Risk Responses
and Monitor & Control Risks
the scope baseline is used to understand whether the project
is a recurrent type or a state-of-the-art type (more risks)
risks requiring near-term responses are more urgent to
address
Perform Quantitative Risk Analysis
the cost, schedule and risk management plan contains
guidelines on establishing and managing risks
involves mathematical modeling for forecasts and trend
analysis
data gathering and representation techniques:
interviewing, probability distributions [normal distribution
(bell shaped curve)],
sensitivity analysis (using the tornado diagram as
presentation) for determining the risks that have the most
impact on the project
Failure Modes Efects Analysis (FMEA)
FMEA for manufactured product or where risk may be
undetectable, Risk Priority Number (RPN) = severity (1-10) x
occurrence ([0.07%] 1-10 [20%]) X detectability (1-10
[undetectable]), also a non-proprietary approach for risk
management
Expected Value / Expected Monetary Value (EMV),
probability x impact (cost/effort lost), opportunities (+ve
values), threats (-ve values)
Monte Carlo Analysis by running simulations many
times over in order to calculate those same probabilities
heuristically just like actually playing and recording your
results in a real casino situation, S curve (cumulative
distribution) will result, may use PERT/triangular distribution to
model data, may use thousands of data points (a random
variable), for budget/schedule analysis
Decision Tree Analysis another form of EMV, branching:
decision squares (decision branch options), circles
(uncertainty branch possible outcomes)
Plan Risk Responses
plan response to enhance opportunities and reduce threats
each risk is owned by a responsible person
the watch list is the list of low priority risks items in the risk
register
a fallback plan will be used if 1) risk response not effective,
2) accepted risk occurs
risk strategies: 1) prevent risk, 2) response to risk, 3) reduce
risk, 4) promote opportunities, 5) fallback if risk response fails
negative risk strategies: eliminate/avoid (not to use,
extend the schedule), transfer (outsource, warranty,
insurance), mitigate (reduce the risk by more
testing/precautionary actions/redundancy), accept (passive
do nothing or active contingency)
positive risk strategies: exploit (ensure opportunity by using
internal resources e.g. reduce cost/use of top talents/new
tech), share (contractor with specialized skills, joint venture),
enhance (increase likelihood / impact e.g. fast-tracking, add
resources etc.), accept
passive risk acceptance to be dealt with when the risk
occurs
Contingency Plan (contingent response
strategies) (plan A) are developed for specific risk (when you
have accepted a risk) with certain triggers vs Fallback Plan
(plan B)
Residual Risks risks remains after the risk response
strategy was implemented, may be identified in the planning
process (may subject to contingency/fallback planning) They
dont need any further analysis because you have already
planned the most complete response strategy you know in
dealing with the risk that came before them.
Secondary Risks risk arises when the risk response
strategy was implemented
Contingency Reserve: known unknowns (determined risk),
part of cost baseline
Management Reserve: unknown unknowns (discovery risk),
part of project budget
 The Risk Register is now completed with: risks and
descriptions, triggers, response strategy, persons responsible,
results from qualitative and quantitative analysis, residual and
secondary risks, contingency and fallback, risk budget/time
Control Risks
when the above risk planning processes have been
performed with due diligence, the project is said to have a
low risk profile
to check if assumptions are still valid, procedures are being
followed and any deviance
to identify new risks and evaluate effectiveness of risk
response plan
any need to adjust contingency and management reserves
to re-assess the individual risk response strategies to see if
they are effective
risk audits deal with effectiveness of risk response and the
risk management process
risk audits are usually performed by experts outside project
team for the whole risk management process
reserve analysis and fund for contingencies apply only to
the specific risks on the project for which they were set aside
workaround: when no contingency plan exists, executed
on-the-fly to address unplanned events still need to pass
through normal change control if change requests are needed
determine the workaround is performed in control risks
12

PMP Certification Study Notes 12 Project Procurement Management

Introduction: This part of the PMP exam study notes on Project

Procurement Management is based on chapter 12 of PMBOK Guide 5th
Edition. More information on my PMP certification exam preparation can
be found at my PMP exam and certification journey here.

Procurement Statement of Work (SOW) is a legal document

subject to legal reviews, legal advise should be sought
throughout the whole procurement process
sellers are external to the project team
 need to go through all 4 processes for each and
every procurement
contract elements: ofer (seller offer
buyer), acceptance (buyer
criteria), capacity (physical/financial
capabilities), consideration (seller receive), legal
purpose (must be legal under law)
best if contract is signed after PM is assigned
PM needs to understand terms and conditions, identify risks,
include procurement time in schedule and involve in
negotiations
Centralized contracting vs decentralized contracting
sole source, single source (preferred), oligopoly (very few
sellers)
procurement categories: major complexity (high risk), minor
complexity (low risk, expensive), routine purchase
(Commercial Off the Shelf Products COTS), goods and services
(to perform part of our product)
a contract is not required to be written, it can be verbal or
handshake, for internal projects, formal contract is best
procurement applies to actors (as a service)
immaterial breach is minor breach
point of total assumption (PTA) = Target Cost + (Ceiling Price
Target Price) / % Share of Cost Overrun
Plan Procurement Management
determine whether to obtain products/services outside of
organization
identify possible sellers and pre-meeting with them
identify explicitly what is needed
make-or-buy analysis is a compulsory process, needs to
take risks into considerations
carefully written terms and conditions can transfer/share
risks
teaming agreements or joint ventures
procurement documents: request for proposal (RFP),
invitation for bid (IFB), request for quote (RFQ), request for
information (RFI), tender notice, invitation for negotiation,
seller initial response
 the procurement management plan specifies how a project
will acquire goods/services from outside, includes: contract
type, risk management, constraints and assumptions,
insurance requirements, form and format, pre-qualified sellers,
metrics used, etc.
Procurement Statement of Work (SOW)
performance (describe what can be
accomplished), functional (convey the end purpose or
result), design (convey precisely what are to be done), can be
developed by the seller or buyer detail enough to allow the
potential sellers to decide whether they want/are qualified (at
a minimum) to pursue the work
Contract Types:
Firm Fixed Price (FFP) the price is fixed,
specifications are well known, risk on the seller
Fixed Price Incentive Fee (FPIF) incentives for
faster/better than contracted
Fixed Price with Economic Adjustment / Economic Price
Adjustment (FPEA / FP-EPA) inflation are taken into
account
Purchase Order (PO) for off-the-shelf goods/services
with published rates
Cost Reimbursable (CR) / Cost Plus buying the
expertise (not the products), outcome is not clear, risk on
the buyer, little incentive to control costs on buyer, need
invoice audits
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF) incentive for
performance, sharing of unused money if under/over
contracted amount
Cost Plus Award Fee (CPAF) award to be given
based on agreed criteria, solely decided by the
customer on the degree of satisfaction
Cost Plus Percentage of Costs (CPPC) illegal for
contracts with US Government
Cost Contract no profit, for NGO
Best Efforts obligates the seller to utilize best
attempts, high uncertainty in meeting the goal
 Time and Materials (T&M) (hybrid type) when
scope is not known, need constant monitoring to control
schedule and cost, simple, for short duration, good for
proof-of-concept type projects
Point of Total Assumption (in fixed-price (incentive
fee) contracts) in budget overrun, the point at which the seller
assumes all additional costs for delivering the product/service
PTA = (Ceiling Price Total Price) / Buyers Share
Ratio + Target Cost
target cost = total cost = estimated cost, total price = total
cost + total profit
Request for Proposal (RFP) cost reimbursable contract,
functional/performance SOW
Invitation for Bid (IFB) / Request for Bid (RFB) fixed-price
contract, design SOW
Request for Quote time and material, any type of SOW
Cancellation for Convenience buyer can cancel and pay
up to the point
Cancellation for Cause default by either party, may
result in legal actions
Escrow survivability of seller in doubt, put the product in
escrow (esp. if seller not give up intellectual properties)
Force Majeure standard disclaimer refers to Acts of God
Indemnification / Liability responsible party
LOI Letter of Intent not legally binding
Privity the contractor may use sub-contractor, no direct
contractual relationship with buyer
Retainage amount to be withheld to ensure delivery
Risk of Loss how the risk is shoulder by the parties
Time is of the Essence delay in delivery will cause
cardinal breach of contract
Work Made for Hire all work owned by the buyer
Sole Source vs Single Source (preferred vendor for long-
term relationship)
Evaluation Criteria: risk, understanding of need, life-cycle
cost, technical capability, management approach, technical
approach
Conduct Procurements
identify the sellers and award the contracts
PM may not be the lead negotiator on procurement, but may
be present to assist
may need senior management approval before awarding the
contracts
bidders conference is a Q&A session with bidders, all
bidders receive the same information (bidder are careful not
to expose their technical approach during the session => may
not have many questions)
NOT to have secret meetings or communications with
individual vendors
may set up qualified sellers lists
review seller proposals: weighting systems, independent
estimates, screening systems (screen out non-qualified
vendors), seller ratings systems (for past performance), expert
judgement
Contract Negotiations and Tactics
Fait Accompli not negotiable terms
Deadline deadline for deliverables
Good Guy/ Bad Guy one friendly, one aggressive
Missing Man decision maker is missing
Limited Authority not given authority
Fair and Reasonable what is fair?
Unreasonable making unreasonable demands
Delay esp in critical moments
Attack force compliance
Agreement is legally binding and should include (PM should
NOT attempt to write the agreement):
statement of work, schedule baseline, performance
reporting, period of performance, roles and responsibilities,
warranty, payment terms, fees and retainers, incentives,
liability, penalties, etc.
Control Procurements
performed by both seller and buyer
manage procurement relationships, monitor contract
performance, make change and corrections
 the procurement administrator may be external to the
project team
may identify early signs and capture details for pre-mature
termination of contract
the claims administration process deals with
changes/disputes, disputes is best to be settled
through negotiation > ADR
may need Alternative Dispute Resolution (ADR) by 3rd
parties in case disputes cannot be settled
For Fixed Price contracts, look out for Bait and
Switch (replace with cheaper materials), look out for
excessive change requests
For Cost Reimbursable contracts, audit all invoices, look
out for additional charges, tie payment to milestones, make
sure people with the required skill sets are doing the job
For Time and Materials contracts, ensure hours are not
padded, follow the milestone dates
Contract Change Control System: for handling change
requests (define who has the authority to approve changes
(usually not the PM, but may be assigned the authority))
Work performance data includes: the cost incurred and the
invoice needs to be paid
OPA may include the sellers performance
Close Procurements
all work are completed, deliverables accepted, claims settled
OR terminated by either party
at completion / termination of contract
prior to administrative closure of Close Project or Phase
unresolved claims may be left for litigation after closure
settlement of claims/invoices, audit, archive, lessons learned
the contract is complete when all the specifications are
satisfied, no matter the customer is satisfied with the product
or not
Procurement Audit is the structured review of the
procurement process from Plan Procurement Management
through Control Procurements, is used to capture lessons
learned from the procurement exercise
 once a procurement is cancelled, the next process will be
the close procurements
12

PMP Certification Study Notes 13 Project Stakeholder Management

Introduction: This part of the PMP exam study notes on Project

Stakeholder Management is based on chapter 13 of PMBOK Guide 5th
Edition. More information on my PMP certification exam preparation can
be found at my PMP exam and certification journey here.

stakeholders are groups/individuals who may afect / be

afected by the project
identify stakeholders is a continually process throughout the
project lifecycle
identify stakeholders, communicate and engage them,
manage expectations and focus on satisfaction
stakeholder satisfaction is a key project objective
the Project Manager is responsible for the engaging and
managing the various stakeholders in a project
Identify Stakeholders
identify stakeholders and document their
importance/influence (=active
involvement) /impact/interest/involvement
3 Is: importance, interest, influence
stakeholders from operation process needed to be included
determine the stakeholders hot buttons (what response in
specific situations) and develop support strategies
procurement documents are used for determining external
stakeholders such as the seller
stakeholders have the greatest influence in the initial
stage of the project
stakeholder analysis matrix is part of the stakeholder
management strategy (output of identify stakeholders)
Salience Model: describing stakeholders based on
the power (influence), urgency and legitimacy
document only influential stakeholders if there is a
large number of stakeholders
 document the impact using a power/influence grid,
power/interest grid, influence/impact grid, salience model
Plan Stakeholder Management
management strategies to engage stakeholders
throughout project lifecycle
Stakeholder Management Plan contains: current/desired
engagement levels, scope and impact to stakeholders,
interrelationships, communication requirements and forms,
how to update the plan
The distribution of this plan requires precautions as the
engagement level of stakeholders is a very sensitive
information
Engagement Level
Unaware
Resistant: resistant to change
Neutral
Supportive: supportive of change
Leading: actively engaged for project success
Stakeholder Engagement Assessment Matrix: (C-
current level, D-desired level)
Manage Stakeholder Engagement
aim: increase support and minimize resistance from
stakeholders by addressing issues
the communication requirements of individual stakeholder
are recorded in the Project Communication Plan
PM may call upon sponsor for assistance
communicate and work with stakeholders to meet their
needs/expectations and address issues
build trust and resolve conflicts, negotiation skills,
communication skills
need to communicate bad news/issues in a timely manner
feedback from stakeholders is stored in OPA
the Issue Log (Action Item Log): to identify issues/define
impacts, owner (most important element) and
priority/with due date
Control Stakeholder Engagement
monitor overall stakeholder relationships and adjusting
strategies
000

PMP / PMI-ACP Certification Study Notes Professional and Social Responsibility

Introduction: This section of my PMP Exam Study Notes is a

summary of the Professional and Social Responsibility published by the
Project Management Institute (PMI) that applies to all professional
certification holders including PMP and PMI-ACP. Students preparing
for the PMP exam or the PMI-ACP exam should understand and
memorize these as the Professional and Social Responsibility would be
tested during the exams.

Note: I have recorded in details about my PMP exam or PMI-

ACP exam experience and also a Complete Guide for the PMP
Certification. Hope such information would be helpful to PMP or
PMI-ACP aspirants.

Responsibility
in the best interest of the society, public and environment
accept assignments consistent with skills and fulfill
commitments
accept stretch assignment when the assigner is fully aware
of the skill gaps
own error and make corrections
uphold laws and regulations
report illegal/unethical activities substantiated with facts
ask for direction should the decision is beyond assigned
authority
Respect
show respect to others
listen and understand others
conduct in a professional manner, even if not reciprocated
resolve conflicts directly
negotiate in good faith
 do not influence others for personal benefits
respect others rights
Fairness
transparency in decision making
be objective
provide equal access to information, equal opportunities
disclose any conflict of interests and refrain from making
decisions in case of conflict of interest
do not deny opportunities base on personal considerations
do not discriminate
apply rules without favoritism or prejudice
Honesty
understand the truth and be truthful
honour commitments
not to deceive others
not engage in dishonest behavior for personal gain / at the
expense of others
111

PMP Formulas and Calculation for PMP Certification Demystified

Summary: Many consider the most difficult part of the PMP exam to be
the calculations and PMP formulas. Luckily PMP calculation is
not quantum physics, you just need to understand and memorize the
following PMP Calculation formulas. Keep calm and study on! (You can
read more about my PMP exam and certification journey here.)

PMP Formulas mentioned in the PMBOK Guide 5th Edition

NEW! Click here if you would like to have a more in-depth

explanation of the Earned Value Management (EVM) formulas.
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

Cost <1
Performanc CPI = EV/AC Over budget
e Index = 1 On
EV = Earned Value
(CPI) budget
AC = Actual Cost
> 1 Under
budget
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

sometimes the
term
cumulative
CPI would be
shown, which
actually is the
CPI up to that
moment

Schedule <0
Variance SV = EV PV Behind schedu
(SV) le
EV = Earned Value
= 0 On
PV = Planned Value
schedule
> 0 Ahead of
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

schedule

<0
Over budget
Cost CV = EV AC
= 0 On
Variance
EV = Earned Value budget
(CV)
AC = Actual Cost > 0 Within
budget

Estimate at if the original

Completion EAC = AC + New ETC estimate is
(EAC) if based on wrong
AC = Actual Cost
original is data/assumptio
New ETC = New Estimate to
flawed ns or
Completion
circumstances
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

have changed

the variance is
Estimate at
EAC = AC + BAC EV caused by a
Completion
one-time event
(EAC) if BAC AC = Actual Cost and is not likely
remains the BAC = Budget at completion to happen
same EV = Earned Value again

Estimate at if the CPI would

Completion EAC = BAC/CPI remain the
(EAC) if CPI same till end of
BAC = Budget at completion
remains the project, i.e. the
CPI = Cost performance
same original
index
estimation is
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

not accurate

EAC = AC + [(BAC -EV)/ use when the

Estimate at (CPI*SPI)] question gives
Completion all the values
(EAC) if AC = Actual Cost (AC, BAC, EV,
substandar BAC = Budget at completion CPI and SPI),
d EV = Earned Value otherwise, this
performanc CPI = Cost Performance formula is not
e continues Index likely to be
SPI = Schedule Performance used
Index
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

TCPI = (BAC EV)/

(BAC AC)

BAC = Budget at completion <

To- EV = Earned value 1 Under budg
Complete AC = Actual Cost et
Performanc = 1 On
e Index TCPI = Remaining Work budget
(TCPI) /Remaining Funds > 1 Over
budget
BAC = Budget at completion
EV = Earned value
CPI = Cost performance
index
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

ETC = EAC -AC

Estimate to
Completion EAC = Estimate at
Completion
AC = Actual Cost

<0
VAC = BAC EAC Over budget
Variance at = 0 On
Completion BAC = Budget at completion budget
EAC = Estimate at > 0 Under
Completion budget
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

(O + 4M + P)/6
PERT
Estimation O= Optimistic estimate
M= Most Likely estimate
P= Pessimistic estimate

this is a rough
(P O)/6
Standard estimate for the
Deviation O= Optimistic estimate standard
P= Pessimistic estimate deviation

Float/Slack = 0 On
LS ES critical path
 Name
(Abbreviati
on) Formula Interpretation

n should
include the
project
manager

No. of e.g. if the no. of

n (n-1)/2
Communica team members
tion n = number of members in increase from 4
Channels the team to 5, the
increase in
communication
channels:
5(5-1)/2 4(4-
1)/2 = 4

LS = Late start
ES = Early start
< 0 Behind
LF EF schedule

LF = Late finish
EF = Early finish

PMP Formulas

Note: Wanna download all PMP Formulas as a printable file for your
PMP Certification exam prep? Please share this post to your social
network first and you will be able to see the download link. Thanks for
helping this PMP website grow!
222

Are You PMP Exam Ready? List of Free PMP Mock Exam Questions w/w Benchmark

Note to PMP Certification Aspirants: If you have just begun

your PMP exam journey and would like to learn more about the
PMP Exam and preparation (e.g. how to earn 35 Contact Hours,
which PMP Exam reference book to buy, is reading PMBOK
Guide necessary, etc.), downloading my PMP Study Notes
for FREE as well as reading my other PMP Exam tips and
experience, please visit my detailed PMP Exam journey
sharing here I have described in details my whole PMP
journey from the very beginning of understanding the PMP
requirements, preparing for the PMP Exam and tips on writing
the real PMP Exam, together with a few cost saving tips on
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Top PMP Tip: How to tell if you are Project Management

Professional (PMP) exam ready? PMP sample exams help a lot,
especially if the practice exams are to be carried out in a simulated
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suggested free PMP sample exam questions for aspirants to
test their exam readiness.

One of the most frequent question a PMP aspirant will ask is: am I
PMP exam ready? It is not only a waste of time and money if you
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the screen and 15 seconds of blank screen for the result to appear.
How to know if you are ready for the real PMP exam?

By looking at your mock PMP examination questions

results. As a rule of thumb proposed by many PMP prep books and
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read the answer explanations for those questions they have got it wrong.
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I tried my best to get your scores during my mock

exams, bought PM Exam Simulator but only wrote 3 tests got
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Domain Name

Initiation

Planning

Executing

Monitoring and Controlling

Closing Mod

My PMP Proficiency Levels according to Domai

The information above may serve as a benchmark for your estimation of
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333

PMP Earned Value Management (EVM) Calculation Explained in Simple Terms

Summary: Among all the PMP Exam formulas calculation questions,

the Earned Value Management (EVM) questions are usually considered the
most important ones as candidates will need to solve quite a few of them in
the real PMP Exam I got around 5+ EVM questions on my PMP
Exam paper and I am quite confident that I could get them all correct.

However, many project managers may not have done any EVM in their
projects and many of them consider the EVM questions a bit scary. This
post aims to help PMP aspirants to understand easily the
EVM concepts and how to tackle the EVM questions.

Introduction

PMP Earned Value Management (EVM) questions are difficult?

Or easy?

As project managers come from different backgrounds, there is no

consensus for the level of difficulty of EVM questions. But if you can
understand the concepts of EVM firmly, you too will find that EVM
questions for the PMP Exam is indeed NOT difficult at all.
After all, the PMP Exam is not an exam decided for Maths students, the
PMP Exam tests your understanding of project management as a whole.

To arrive at the correct answers for EVM questions, all you need to do in
the PMP Exam is to:

1. Read the question carefully

2. Select the correct formula to apply
3. Calculate the answer (this is often the easiest part! You can
get most answers without the use of calculators)

PMP EVM Concepts Explained With Examples

Earned value management (EVM) is used to assess the schedule and cost
performance of a project with EVM, the project manager will know
exactly whether the project is:

ahead of / on / behind schedule

under / on / over budget

Earned value management (EVM) bases on the concept that i) work

completed will deliver value and ii) the value delivered equals the budget
put into the work. The value gained can be assessed along the progression
of the project. In reality, earned value management is very complicated as
value usually cannot simply be assessed based on the percentage of
completion.

Good news here: PMI has simplified PMP EVM calculation to very
ideal situations! You will just need to know the following to get
your PMP EVM questions correct.

Basic EVM Formulas

To speak more clearly how the value is to be managed, a number of terms

are defined in EVM (explained with the example of building 10
houses each has a value of US$1000 expected to be completed in
10 weeks in proportion):
 Planned Value (PV) The budgeted value of the work
completed so far at a specific date
example: at end of week 4, altogether 4 houses should be
completed, the PV is US$4000
Earned Value (EV) The actual value of the work
completed so far at a specific date (refer to the Notes on
Earned Value Measurement section below)
example: by end of week 4, only 3 houses are completed, the
EV is US$3000
Actual Cost (AC) The total expenditure for the work so
far at a specific date
example: by end of week 4, US$4000 was spend, the AC is
US$4000

EVM is based on monitoring these three aspects along the project in order
to reveal the health of the project with the following indices:

Schedule Variance (SV) difference between PV and EV,

to tell whether the project work is ahead of / on /
behind schedule
SV = EV PV
If the project is behind schedule the SV will be negative
(i.e. achieved less than what planned)
If the project is on schedule the SV = 0
If the project is ahead of schedule the SV will be positive
(i.e. achieved more than what planned)
example: by end of week 4, the SV = EV PV =
US$3000 US$4000 = -US$1000 (behind schedule)
Schedule Performance Index (SPI) ratio between EV
and PV, to reflect whether the project work is ahead of / on /
behind schedule in relative terms
SPI = EV/PV
If the project is behind schedule the SPI < 1 (i.e. achieved
less than what planned)
If the project is on schedule the SPI = 1
If the project is ahead of schedule the SPI > 1 (i.e.
achieved more than what planned)
example: by end of week 4, the SPI = EV/PV =
US$3000/US$4000 = 0.75 (behind schedule)
 Cost Variance (CV) difference between PV and AC, to tell
whether the project work is under / on / over budget
CV = EV AC
If the project is over budget the CV will be negative (i.e.
achieved less than spent)
If the project is on budget the CV = 0
If the project is under budget the CV will be positive (i.e.
achieved more than spent)
example: by end of week 4, the CV = EV AC =
US$3000 US$4000 = -US$1000 (over budget)
Cost Performance Index (CPI) ratio between EV and
AC, to reflect whether the project work is under / on /
over budget in relative terms
CPI = EV/AC
If the project is over budget the CPI < 1 (i.e. achieved less
than spent)
If the project is on budget the CPI = 1
If the project is under budget the CPI > 1 (i.e. achieved
more than spent)
example: by end of week 4, the CPI = EV/AC =
US$3000/US$4000 = 0.75 (over budget)

Note both SV and SPI / CV and CPI give similar information on schedule /
budget but the indices will give more insights into the actual performance
with a meaning comparison.

From my experience, the most difficult process of solving EVM problems

for PMP Exams is to identify the PV, EV and AC from the wordy
calculation questions. Then you will just have to recall the correct formula
to substitute the values into to get the answer the question will usually
ask you directly about the actual indices to get.

Advanced EVM Formulas

Budget at Completion (BAC) also known as the
project/work budget, that is the total amount of money
originally planned to spend on the project/work
 example: the BAC for the housing project = US$1000 x
10 = US$10000
Estimate at completion (EAC) as the project goes on,
there may be variations into the actual final cost from the
planned final cost, EAC is a way to project/estimate the
planned cost at project finish based on the currently
available data
The following formulas can be used to calculate EAC
based on which information and conditions given in the
question:
EAC = BAC/CPI
If we believe the project will continue to spend at the
same rate up to now
The delay is caused by reasons which is likely
to continue (e.g. labour with less skilled than
expected)
example: the EAC for the housing project =
US$10000 / 0.75 = US$13333
EAC = AC + (BAC-EV)
If we believe that future expenditures will occur at the
original forecasted amount (no more delays of the
same kind in future)

The delay might be caused by some

unforeseen reasons (e.g. typhoon) which is not
likely to happen again
example: the EAC for the housing project =
US$4000 + (US$10000 $3000) = US$11000
EAC = AC + [(BAC-EV)/(SPI*CPI)]
If we believe that both current cost and current
schedule performance will impact future cost
performance
The performance of the project will continue
with sub-prime standards (over budget and behind
schedule)
This formula is less likely to be used for the
PMP Exam
 example: the EAC for the housing project =
US$4000 + [(US$10000 $3000)/(0.75*0.75)] =
US$16444
EAC = AC + New Estimate
If we believe the original conditions and assumptions
are wrong
Will not be tested as there is nothing to
calculate
Variance at Completion (VAC) the variance at
completion, i.e. the difference between the new estimate at
completion and original planned value
VAC = BAC EAC
If we forecast the project will be over budget, VAC will
be negative
If we forecast the project will be under budget, VAC will be
positive
example: the VAC for the housing project = US$10000
US$13333 (just take the 1st EAC as an example only) =
-US$3333
To Complete Performance Index (TCPI) the efficiency
needed to finish the project on budget, it is the ratio
between budgeted cost of work remaining and money
remaining
TCPI = (BAC-EV)/(BAC-AC)
Use this equation if the project is required to finish
within BAC
example: the TCPI for the housing project at end
of week 4 = (US$10000 US$3000) / (US$10000
US$4000) = 1.167
TCPI = (BAC-EV)/(EAC-AC)
Use this equation if the project is required to finish within
new EAC
example: the TCPI for the housing project at end
of week 4 with new EAC US$13333 = (US$10000
US$3000) / (US$13333 US$4000) = 0.75
Notes on Earned Value Measurement

The following will discuss how earned value is measured for project and
work, from simple physical measurements, percentage complete to
weighted milestones. Since the PMP EVM questions cannot describe a
lot of information, the part on earned value measurements will normally be
based on simplified situations like physical measurements or percentage
complete.

It is likely that you will not be tested on the more difficult ways of measuring
earned values. These are included here for your reference only.

Physical Measurement directly transform the physical

measurement of the amount of work completed into EV
example: building 10 houses each has a value of
US$1000 expected to be completed in 10 weeks in
proportion, earned value of 3 house built is US$3000
Percentage Complete directly transform the percentage
of the amount of work completed into EV
example: building 10 houses each has a value of
US$1000 expected to be completed in 10 weeks in
proportion, earned value of 30% complete is US$3000
Weighted Milestone a EV is assigned to the 100%
completion of each milestone of the work packages with prior
agreement with stakeholders
Fixed Formula a specific percentage of the overall PV is
assigned to the start of a work package and the remaining
assigned upon completion; these must be agreed upon in the
project management plan
0/100 rule: 0% EV at the activity begins; 100% EV upon
completion
20/80 rule: 20% EV at the activity begins; 80% EV upon
completion.
50/50 rule: 50% EV at the activity begins; 50% EV upon
completion
EVM Charts

In common practices, EVM will also involve plotting the values on a graph
in order to help stakeholders concerned to visualize the progress and the
health of the project. More often than not you will find the EV, AC and PV
plotted on a graph and you will be asked on the interpretation of the graph.

Insights to be gained from the chart:

If EV line is below PV, the project is behind schedule; if EV is

above PV, the project is ahead of schedule.
If AC line is below EV, the project is within budget; if AC is
above EV, the project is over budget.

Below is an example of the EVM charts you would be likely to encounter in

your PMP Exam solid lines represent actual figures while dotted lines
represent forecasted figures:
Judging from the chart above, we can infer that the
project is currently over budget and behind schedule.
PMP Earned Value Management (EVM) Formulas in PMBOK Guide At a
Glance

Name
(Abbreviati
on) Formula Interpretation

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

<1
Over budget
= 1 On
budget
> 1 Under
budget
Cost
CPI = EV/AC
Performanc
sometimes the
e Index EV = Earned Value term
(CPI) AC = Actual Cost cumulative
CPI would be
shown, which
actually is the
CPI up to that
moment

Schedule <0
Variance SV = EV PV Behind schedu
(SV) le
 Name
(Abbreviati
on) Formula Interpretation

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

= 0 On
EV = Earned Value schedule
PV = Planned Value > 0 Ahead of
schedule

<0
Over budget
Cost CV = EV AC
= 0 On
Variance
EV = Earned Value budget
(CV)
AC = Actual Cost > 0 Within
budget

if the original
Estimate at estimate is
EAC = AC + New ETC
Completion based on wrong
(EAC) if AC = Actual Cost data/assumptio
original is New ETC = New Estimate to ns or
flawed Completion circumstances
have changed

Estimate at the variance is

Completion EAC = AC + BAC EV caused by a
 Name
(Abbreviati
on) Formula Interpretation

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

one-time event
(EAC) if BAC
and is not likely
remains the AC = Actual Cost
to happen
same BAC = Budget at completion
again
EV = Earned Value

if the CPI would

Estimate at remain the
EAC = BAC/CPI
Completion same till end of
(EAC) if CPI BAC = Budget at completion project, i.e. the
remains the CPI = Cost performance original
same index estimation is
not accurate

Estimate at use when the

Completion EAC = AC + [(BAC -EV)/ question gives
(EAC) if (CPI*SPI)] all the values
substandar (AC, BAC, EV,
AC = Actual Cost
d CPI and SPI),
BAC = Budget at completion
performanc otherwise, this
EV = Earned Value
e continues formula is not
CPI = Cost Performance
 Name
(Abbreviati
on) Formula Interpretation

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

Index likely to be
SPI = Schedule Performance used
Index

TCPI = (BAC EV)/

(BAC AC)

BAC = Budget at completion <

To- EV = Earned value 1 Under budg
Complete AC = Actual Cost et
Performanc = 1 On
e Index TCPI = Remaining Work budget
(TCPI) /Remaining Funds > 1 Over
budget
BAC = Budget at completion
EV = Earned value
CPI = Cost performance
index

Estimate to
ETC = EAC -AC
 Name
(Abbreviati
on) Formula Interpretation

<1
behind schedu
Schedule
SPI = EV/PV le
Performanc
= 1 on
e Index EV = Earned Value schedule
(SPI) PV = Planned Value > 1 ahead of
schedule

EAC = Estimate at
Completion Completion
AC = Actual Cost

<0
VAC = BAC EAC Over budget
Variance at = 0 On
Completion BAC = Budget at completion budget
EAC = Estimate at > 0 Under
Completion budget

12 PMP EVM Formulas

Additional Resources

After understanding the above and memorizing the EVM formulas, PMP
aspirants should be able to answer PMP EVM calculation questions. Now
it is time to test your understanding of EVM calculation by going through
some practice questions at the article tips and skills on how to answer
all PMP EVM questions correctly 20+ practice questions on PMP
EVM are also included to help you hone your EVM skills and all questions
are fully explained.

444

Top Tips for Tackling PMP EVM Questions (20+ Practice Questions Included)

Earned Value Management (EVM) Calculation questions are usually

regarded as one of the most difficult part of the PMP Exam. However, if
PMP Certification Aspirants can understand the EVM Calculation
formulas correctly and master a few skills to tackle the EVM questions,
these dreaded EVM questions would become life-savers as nearly every
PMP Certification Aspirants can get all the EVM questions correct.

Below you will find 20+ PMP EVM practice questions categorized by
related skills to help you understand what you are required to know in order
to correctly answer all the EVM questions that would appear on the PMP
Exam. Try them and understand thoroughly how to tackle the questions
through the explanations to each question.

You too will be able to get all PMP EVM questions correct. Wish you
PMP success!

Note: the answer explanation to each question is directly under

the question choices in the grey box you can either move the
cursor over it or highlight it with the mouse to reveal the
answer

EVM Graph Questions

The EVM graph questions are one of the easiest questions to answer as
you will only need to understand the meaning of the relative positions of the
AC, PV and EV:
 AC vs PV: whether the project is under or over budget (AC >
PV = over budget; AC < PV = under budget)
EV vs PV: whether the project is ahead of or behind schedule
(EV > PV = ahead of schedule; EV < PV = behind
schedule)

1. With reference to the diagram below, it can be inferred that

the project is currently:

A. ahead of schedule and under budget

B. ahead of schedule and over budget
C. behind schedule and under budget
D. behind schedule and over budget
Solution: D
As of today, AC > PV = over budget and EV < PV =
 behind schedule, so the project is both behind schedule
and over budget.

2 With reference to the diagram below, it can be inferred that

the project is currently:

A. ahead of schedule and under budget

B. ahead of schedule and over budget
C. behind schedule and under budget
D. behind schedule and over budget
Solution: C
As of today, AC < EV = under budget and EV < PV =
behind schedule, so the project is behind schedule and
under budget.
2 With reference to the diagram below, it can be inferred that
the project is currently:

A. ahead of schedule and under budget

B. ahead of schedule and over budget
C. behind schedule and under budget
D. behind schedule and over budget
Solution: B
As of today, AC > PV = over budget and EV > PV = ahead
of schedule, so the project is ahead of schedule and over
budget.
Definition of EVM Metrics

These types of questions will test you on your understanding of the

meaning of various EVM metrics:

Planned Value (PV) how much work was scheduled to

date
Earned Value (EV) how much work was completed to
date
Actual Cost (AC) the amount of money spent so far
Budget at Completion (BAC) the total budget for the
project
Estimate at Completion (EAC) the estimated total
amount of money needed to be put into the project based on
the information available as today
Estimate to Completion (ETC) how much more do we
need to put into the project to complete it
Variance at Completion (VAC) the difference between
the estimated total cost and the original budget
Cost Performance Index (CPI) ratio between EV and
AC, to reflect whether the project work is under / on / over
budget in relative terms
Schedule Performance Index (SPI) ratio between EV
and PV, to reflect whether the project work is ahead of / on /
behind schedule in relative terms
To Complete Performance Index (TCPI) the efficiency
needed to finish the project on budget, it is the ratio between
budgeted cost of work remaining and money remaining

1. If a project has a Schedule Performance Index (SPI) of 0.90,

this means that:
A. 90% of the work planned to date has been completed
B. 90% of the work of the whole project has been completed
C. 90% of the budget planned to date has been spent
D. 90% of the project budget has been spent
 Solution: A
The Schedule Performance Index (SPI) represents the
performance of the project in terms of schedule up to
the moment. If it is smaller than 1, less than 100% of the
scheduled work has been completed to date.

2 If a project has a Cost Performance Index (CPI) of 0.90, this

means that:
A. 90% of the work planned to date has been completed
B. 90% of the budget planned to date has been spent
C. 111% of the budget planned to date has been spent
D. 111% of the project budget has been spent
Solution: C
The Cost Performance Index (CPI) represents the performance
of the project in terms of budget up to the moment. If it is
smaller than 1, the project is currently over budget (i.e. has
spent more than what has been planned).

2 If a project has a To Complete Performance Index (TCPI) of

0.90, this means that:
A. 90% of the work planned up to today has been
completed
B. 90% of the budget planned up to today has been spent
C. the project can spend money at a rate 11% higher
than planned and still meet the project budget
D. the project can spend money at a rate
10% lower than planned to meet the project budget
Solution: C
The To Complete Performance Index (TCPI) is the efficiency
needed to finish the project on budget. If it is smaller than 1,
 that means that we have more money left on the budget than
the remaining Planned Value (PV) to achieve. Therefore, in
theory, we can spend more money yet can still finish the
project on budget. (However, in reality, it is generally
preferred to finish the project under budget. A TCPI smaller
than 1 is a good sign that the project is going healthy.)

2 A project with both Schedule Performance Index (SPI) and Cost

Performance Index (CPI) of 0.80. The project is currently:
A. ahead of schedule and under budget
B. behind schedule and under budget
C. ahead of schedule and over budget
D. behind schedule and over budget
Solution: D
CPI < 1 = over budget and SPI < 1 = behind schedule, so
the project is both behind schedule and over budget.

2 According to EVM, which term below represents

the outstanding amount of money required to finish the
project?
A. Planned Value (PV)
B. Earned Value (EV)
C. Estimate to Complete (ETC)
D. Estimate at Completion (EAC)
Solution: C
By definition, Estimate to Completion (ETC) is the amount
of money we need to put into the project from today in order
to complete it.
 2 According to EVM, which term below represents the budgeted
cost of the work to be completed to date?
A. Planned Value (PV)
B. Earned Value (EV)
C. Estimate to Complete (ETC)
D. Estimate at Completion (EAC)
Solution: A
By definition, Planned Value (PV) is how much value of work
was scheduled to achieve to date.

Simple EVM Calculation Questions

For these types of questions, you will simply need to recall the correct EVM
calculation formulas and correctly substitute the values into the formulas
to arrive at the correct answer. Please do make use of the on-screen
calculator / physical calculator provided to do the calculation even if you are
a Maths wizard. It is a pity to lose marks for careless calculation even if you
have selected the correct formula.

Also, most of such simple EVM calculation questions will supply more than
enough information for you to use as a kind of distractor, it is a test of
whether you can select the correct formulas as well as the correct values to
substitute into the formulas.

SV = EV PV
CV = EV AC
SPI = EV/PV
CPI = EV/AC
VAC = BAC EAC
1. A project with Earned Value (EV) = $1000, Actual Cost (AC) =
$800 and Planned Value (PV) = $800. What is the Schedule
Variance (SV)?
A. $200
B. $0
C. -$100
D. -$200
Solution: A
SV = EV PV
SV = $1000 $800 = $200
Note that the Actual Cost (AC) is not used in the calculation.

2 A project with Earned Value (EV) = $1000, Actual Cost (AC) =

$800 and Planned Value (PV) = $800. What is the
Cost Variance (CV)?
A. $200
B. $0
C. -$100
D. -$200
Solution: A
CV = EV AC
CV = $1000 $800 = $200
Note that the Planned Value (PV) is not used in the calculation.

2 A project with Earned Value (EV) = $250, Actual Cost (AC) =

$200 and Planned Value (PV) = $350. What is the Schedule
Performance Index (SPI)?
 A. 1.25
B. 0.80
C. 0.71
D. 1.40
Solution: C
The formula to be used to calculate SPI is:
SPI = EV / PV
SPI = $250 / $350 = 0.71

2 A project with Earned Value (EV) = $250, Actual Cost (AC) =

$200 and Planned Value (PV) = $350. What is the Cost
Performance Index (CPI)?
A. 1.25
B. 0.80
C. 0.71
D. 1.40
Solution: A
The formula to be used to calculate CPI is:
CPI = EV / AC
CPI = $250 / $200 = 1.25

EVM Estimate At Completion (EAC) Questions

Since there are multiple Estimate at Completion (EAC) formulas, PMP

Certification Aspirants should be able to get clues from the questions on
which EAC formula to use:

EAC = BAC/CPI
If we believe the project will continue to spend at the same
 rate up to now (e.g. the delay is caused by reasons which is
likely to continue)
EAC = AC + (BAC-EV)
If we believe that future expenditures will occur at the original
forecasted amount (no more delays of the same kind in
future)
EAC = AC + [(BAC-EV)/(SPI*CPI)]
If we believe that both current cost and current schedule
performance will impact future cost performance
EAC = AC + New Estimate
If we believe the original conditions and assumptions are
wrong

1. For the project with original project budget $1000 and

both the Cost Performance Index (CPI) and Schedule
Performance Index (SPI) equal 1. Assuming the project will
continue to spend money at the same rate, what is the
Estimate At Completion (EAC) of the project?
A. $833
B. $933
C. $1,000
D. $1,033
Solution: C
As the project will continue to spend at the same current rate,
the formula to be used would be:
EAC = BAC/CPI
EAC = $1000 / 1 = $1000

2 For the project with Earned Value (EV) = $360, Actual Cost
(AC) = $400 and both Cost Performance Index (CPI) and
Schedule Performance Index (SPI) equal 0.90. The
 original project budget is $1,000. Assuming the remaining
work will be impacted by the current cost performance and
current schedule performance, what is the Estimate At
Completion (EAC) of the project?
A. $1,090
B. $1,190
C. $1,290
D. $1,390
Solution: B
As the project will be impacted by the current cost
performance and current schedule performance, the formula
would be:
EAC = AC + [(BAC-EV)/(SPI*CPI)]
EAC = $400 + [($1000 $360) / (0.9 * 0.9)] = $1190

2 For a project with Estimate at Completion (EAC)

= $120,000 and Cost Performance Index (CPI) is 0.90. What is
the Budget at Completion (BAC)?
A. $108,000
B. $118,000
C. $158,000
D. $208,000
Solution: A
As no information is given on the future performance of the
project, we could safely assume that the project will spend at
the same rate. So we will make use of the formula:
EAC = BAC / CPI
$120,000 = BAC / 0.90
BAC = $120,000 * 0.90 = $108,000
Wordy Calculation Questions

Usually these questions will describe you as the project manager of a

project which is X months into the schedule and X% of work has been
completed so far along with lots of other information. The questions will
span several lines. Then it will ask you to calculate some EVM metrics
based on the information provided.

Also, the questions will usually not make use of EVM terms (like Planned
Value, Actual Cost, Earned Value, etc.) but you can easily infer those
values from the descriptions provided. The key to answering wordy
questions correctly is to read the questions carefully and extract useful
information from the questions and write down PV, EV, AC, etc. while you
are reading the questions.

1. You are the project manager of a housing project in which a

total of 10 houses are to be build over 10 months (1 house per
month). The total budget for the housing project is
$1,000,000. The project is now at the end of the 6th month
with 5 houses built and $500,000 spent. The project is behind
schedule owing to a work strike for a month. The
Cost Performance Index (CPI) for the project is:
A. 1.0
B. 0.9
C. 1.1
D. 1.2
Solution: A
The formula to be used to calculate CPI is:
CPI = EV / AC
CPI = $500,000 / $500,000 = 1.0
 2 You are the project manager of a road paving project. A total
of 10km of road is to be paved over a 5-month period. The
total budget for the project is $10,000. The project is now at
the end of the 3rd month with 8km of road paved and $8,000
spent. The Schedule Performance Index (SPI) for the project is:
A. 0.78
B. 0.98
C. 1.20
D. 1.33
Solution: D
Since the road is assumed to be paved linearly, i.e. 2km of
road per month. At the end of 3rd month, the PV should be
$6,000 (for 6km of road). The formula to be used to calculate
SPI is:
SPI = EV / PV
CPI = $8,000 / $6,000 = 1.33

Complicated EVM Calculation Questions

These types of questions will required PMP Certification Aspirants to

make use of more than 1 PMP EVM formulas. These questions are
considered the most difficult of all PMP EVM questions. Most PMP
Certification Aspirants not coming from a Science / Maths background
would not even know which EVM formulas to pick, let alone arriving at the
correct answer. But the good news is that these questions
would seldom appear on the PMP Exam (for your
reference: I got none in my PMP Exam).

1. For a project with Earned Value (EV) = $300, Actual Cost (AC)
= $350 and Planned Value (PV) = $400. The overall project
 budget is $1,000. Assume that you will continue to spend at
the same rate as you are currently spending. What is the
Variance At Completion (VAC)?
A. -$150
B. $150
C. -$167
D. $167
Solution: C
As the project will continue to spend at the same current rate,
the formula to be used would be:
VAC = BAC EAC
EAC = BAC/CPI
CPI = EV/AC
VAC = BAC BAC/(EV/AC) =$1000 $1000/($300/$350) = -
$167

2 For the project with Earned Value (EV) = $300, Actual Cost
(AC) = $250 and Planned Value (PV) = $300. The
original project budget is $1000. Assuming the project will
continue to spend money at the same rate, what is the
Estimate At Completion (EAC) of the project?
A. $833
B. $933
C. $1,000
D. $1,033
Solution: A
As the project will continue to spend at the same current rate,
the formula to be used would be:
EAC = BAC/CPI
CPI = EV/AC
EAC = BAC/(EV/AC) = $1000 / ($300/$250) = $833
 2 For the project with Earned Value (EV) = $350, Actual Cost
(AC) = $300 and Planned Value (PV) = $400. The
original project budget is $1,000. Assuming the remaining
work will be impacted by the current cost performance and
current schedule performance, what is the Estimate At
Completion (EAC) of the project?
A. $837
B. $937
C. $987
D. $1,280
Solution: B
As the project will be impacted by the current cost
performance and current schedule performance, the formula
would be:
EAC = AC + [(BAC-EV)/(SPI*CPI)]
SPI = EV / PV = $350 / $400 = 0.875
CPI = EV / AC = $350 / $300 = 1.167
EAC = BAC/(EV/AC) = $300 + [($1000 $350) / (0.875 *
1.167)] = $937

555

PMP Exam Glossary Flashcard [A,B]

Interactive PMP Glossary List to test your understanding and

readiness for the PMP Exam

Of all the PMP Exam Prep references and materials, the glossary is
often overlooked. However, it is an extremely important tool for PMP
Certification Aspirants to assess their readiness for PMP Exam. It is even
better if the glossary is presented in the flashcard format so that PMP
Certification Aspirants will be able to check whether they have correctly
understood all the concepts required for passing the PMP Exam. Below is
the PMP Exam Glossary Flashcard created for you. Do take advantage
of this free tool to assist your PMP Exam preparation (the complete list
of all PMP Glossary articles can be found here)!

(note: you will only need to move the mouse cursor over the
glossary item to read the explanations)

PMP Exam Glossary A

Accept [Project Risk Management] one of the risk response

strategies for threats/opportunities in which the risk is accepted
as it is without any risk mitigation measures and the risk will only
be dealt with either actively or passively if it occurs.
see
also Avoid, Transfer, Mitigate, Exploit, Share and Enhance

Acceptance Criteria [Project Quality Management] the

factors the deliverables must be met before they will be formally
accepted.

Accepted Deliverables [Project Quality Management] the

deliverables (e.g. products, services or capabilities) that
are accepted by the client / customer to meet the acceptance
criteria (click here for a detailed discussion on verified deliverable
vs accepted deliverable).
see also Verified Deliverables

Accommodation [Project Scope Management] both sides of a

conflicting situation try to identify points of agreements and play
down disagreement
see
also Avoidance, Compromise, Forcing, Collaboration and Con
frontation

Accuracy [Project Quality Management] a measure of

correctness.
see also Precision
Achievement Theory [Project Human
Resource Management] one of the motivational
theories proposing that individuals are motivated by either
achievement, power and affiliation.

Acquire Project Team [Project Human Resource

Management] the process to acquire team members with
required competencies to complete the project successfully.

Activity [Project Time Management] the work package is

decomposed into activities. Each activity must have an expected
duration.
Activity Attributes [Project Time Management] a document
providing additional information to the activities listed in the
activity list; additional info include: activity identifier, description,
constraints, assumptions, predecessor and successor activities,
resources and responsible persons.

Activity Identifier [Project Time Management] one of the

activity attributes used to uniquely identify an activity for
sequencing and tracking activities.

Activity Duration [Project Time Management] the time

required for the schedule activity between the start and finish
dates.

Activity List [Project Time Management] a document listing all

the activities of the project with identifiers and brief descriptions.

Activity-on-Arrow (AOA) [Project Time Management] a

diagramming technique used for sequencing activities by placing
the activities on arrows and dependencies are indicated by
connecting the arrows with nodes.

Activity-on-Node (AON) [Project Time Management] a

diagramming technique used for sequencing activities by placing
the activities on the nodes which are connected by arrows to
show dependencies.
Actual Cost (AC) [Project Cost Management] the actual
amount of money/cost to date spent on performing the project
work.

Adaptive Life Cycle [Project Integration Management] an

Agile project management methodology enabling faster response
to changes by managing the project in short iterations.

Adjusting Leads and Lags [Project

Time Management] during project execution, adjusting leads and
lags is a technique used to bring delayed project activities into
alignment with the project plan.
Affinity Diagrams [Project Quality Management] a business
tool to organize ideas and data based on natural relationships
used in brainstorming sessions.

Agreements [Project Procurement Management] a written or

verbal communication (e.g. contract, memo, email, verbal
arrangement) to indicate preliminary intentions of a
project/work.

Alternative Analysis [Project Time Management] a technique

to identify and analyse the different options to perform the project
work most efficiently.

Alternatives Generation [Project Scope Management] a

technique to generate and analyze different options for carrying
out the project work for greatest efficiency.

Analogous Estimating [Project Time/Cost Management] a

method to estimate the activity/project durations and costs based
on available information from similar project performed before.
Great for the initial phase of the project but estimates are not
very accurate.

Analytical Techniques [Project

Risk/Procurement/Stakeholder Management] methods used to
identify possible risks / consequences based on project variables
and interactions.

Apportioned Efort [Project Time/Cost Management] used in

earned value management (EVM) to measure
schedule/cost performances calculated in direct proportion to the
progress of another discrete effort(s).
see also Discrete Eforts and Level of Eforts

Approved Change Request [Project

Integration Management] a change request that has been
submitted through Perform Integrated Change Control process
and approved for implementation.

Arbitration [Project Procurement Management] when there is

a dispute between the vendor and the client, arbitration is an
effective way for problem resolution by involving a neutral third-
party.

Assignable Cause [Project Quality Management] is an

identifiable and specific cause for the variation in the control
chart. Assignable causes must be investigated and remedied.

Attribute Sampling [Project Quality Management] is a

process for internal control by checking for a particular attribute
(i.e. either pass or fail).

Avoid [Project Risk Management] Use for negative risks

(i.e. threats) by incorporating plans to stay clear of / eliminate the
risk events and impacts.
see also Transfer, Mitigate and Accept

Avoidance [Project Scope Management] both sides of a

conflicting situation ignore the conflict, which is not considered a
good conflict resolution technique
see
also Accommodation, Compromise, Forcing, Collaboration an
d Confrontation
PMP Exam Glossary B

Backlog [Project Scope Management] a documented list of

prioritized project tasks, often used in Agile project
methodologies.

Backward Pass [Project Scope Management] a method for

calculating the late start and late finish dates for each activity of
the activity schedule diagram from end to start.
see also Critical Path Method (CPM)

Balanced Matrix a type of matrix organization where the

project manager has as much control over the budget and
resources compared to a functional manager.

Baseline [Project Time/Cost Management] is the approved

version of project plan (scope, cost, schedule) used to
compare with actual work performance.

Basis of Estimates additional information outlining the basis

for the project estimates.

Benchmarking [Project Quality Management] the practice of

measuring existing processes and procedures with similar
orgnaizations to establish a basis for comparison for performance
improvements.

Bidder Conference [Project Procurement Management] a

conference with all bidders for clarification on the contract
requirements to ensure all bidders share the same understanding.

Bottom-up Estimating [Project Time/Cost Management] an

accurate but time-consuming estimating method by adding up
the estimates for individual activity costs/durations.

Budget [Project Cost Management] the

estimated expenditures for the project for a specific period.

Budget at Completion
(BAC) [Project Cost Management] often used in earned value
management (EVM), it is the total expenditure for the project on
finish.

Bufer [Project Time Management] reserve time added to

activity durations to reduce the likelihood of missing activity finish
dates

Business Case [Project Integration Management] used to

judge whether a project is feasible and viable, often includes a
financial feasibility study, rough budget and justifications for the
project

PMP Exam Glossary C

Cause and Efect Diagram (also known as a fishbone or

Ishikawa diagram) [Project Quality Management] a diagramming
technique to identify the origin and effect of an issue.

Change Control Board (CCB) [Project

Integration Management] a group of people responsible for
approving / rejecting major change requests (as defined in the
Project Management Plan).

Change Log [Project Integration Management] a list consisting

of all changes to the project and their impacts.

Change Request [Project Integration Management] a formal

document for making change(s) to the project.

Claim [Project Procurement Management] when a contract is

not fully fulfilled, either side may make a request for
compensation/ claim.

Code of Accounts [Project Scope Management] a numbering

system used to identify WBS components.

Colocation [Project Scope Management] team members work

together in the same physical space to enhance
communication and knowledge sharing.
Collaboration [Project Scope Management] both sides of a
conflicting situation work together for mutually consented
solution, often considered the best conflict resolution technique
see
also Accommodation, Avoidance, Compromise, Forcing and C
onfrontation

Communication Channels [Project

Communication Management] the number of lines of
communication between individuals involved within a project,
calculated by the formula: N (N-1) / 2 where N is the number of
people involved.
Common Cause [Project Quality Management] the control
chart indicates that the process is within the control limits but
outside specification limits which are often usual and natural
variations in the system

Communication Methods [Project

Communication Management] techniques used for
communication, can be Interactive, Push or Pull.

Communication Models [Project

Communication Management] describes how information
is exchanged (e.g. Sender-Encode-Message-Decode-Receiver
Model).

Communication Technology [Project

Communication Management] software / hardwares used to assist
communication.

Compromise [Project Human Resource Management] one of

the conflict resolution technique in which disagreements are
settled by making concessions on both sides.
see
also Accommodation, Avoidance, Forcing, Confrontation and
Collaboration
Configuration Management System [Project
Quality Management] manages the assets of the project
deliverables by recording the functional or physical characteristics
of the deliverables and components; a component of the project
management information system.

Conformance [Project Quality Management] indicates that

the results comply with the quality requirement.

Confrontation [Project Human Resource Management] a

conflict resolution technique to determine a collaborative and
workable solution by open discussion
see
also Accommodation, Avoidance, Forcing, Confrontation and
Collaboration

Constraint any factors that impose limitations on project.

Contingency Plan [Project Risk Management] a strategy

describing the measures to tackle documented risks once they
arise.

Contingency Reserve [Project Cost/Time Management] the

budget set aside to fund contingent responses for identified risks
(known unknown) once they arise.
see also Management Reserve

Control Accounts [Project Scope Management] strategically

placed for grouping work breakdown structure (WBS) components
with a view to better managing cost, scope and/or schedule
for earned value management measurements.

Control Chart [Project Quality Management] a statistical

process tool to monitor process performance and stability over
time (whether the process is within control limits).

Control Limits [Project Quality Management] the upper and

lower limit on the control chart used to determine whether a
process is under control by taking normal variations into account.
see also Specification Limits

Corrective actions [Project Quality Management] activities

performed with a view to realign project performance with what
are planned in the project plan.

Cost Aggregation [Project Cost Management] the

accumulated cost estimates for all tasks within a work package.

Cost Baseline [Project Cost Management] represents the

budget of estimated costs to be disbursed over the duration of
the project, apart from any management reserves. The cost
baseline can be used to compare actual costs for the project.

Cost of Quality (COQ) [Project Quality Management] includes

all costs of conformance (quality assurance/control
measures) and costs of non-conformance (rework).

Cost Performance Index (CPI) [Project

Cost Management] an earned value management (EVM) metric
for cost efficiency of the project to date (formula: CPI = EV / AC).

Cost Plus Award Fee (CPAF) [Project

Procurement Management] a contract type in which the buyer
pays the seller all allowable costs plus extra money awarded for
meeting the performance targets specified in the contract as
determined by the buyer.

Cost Plus Fixed Fee (CPFF) [Project

Procurement Management] a contract type in which the buyer
pays the seller all allowable costs plus a fixed amount of money
as the seller profit.

Cost Plus Incentive Fee (CPIF) [Project

Procurement Management] a contract type in which the buyer
pays the seller all allowable costs plus incentives and sharing
of unused money if under/over contracted amount.
Cost Variance (CV) [Project Cost Management] an earned
value management (EVM) metric for indicating the difference
between the earned value and the actual cost (formula: CV = EV
AC).

Cost-benefit Analysis a financial analysis tool

for determining the costs and benefits of the project and whether
the project is worthwhile.

Cost Reimbursable Contract [Project

Procurement Management] a contract type in which all allowable
costs are bore by the buyer with additional money awarded to the
seller by completing the contract requirements; most of the risks
are on the buyer side.

Crashing [Project Time Management] a schedule compression

technique used to shorten the schedule by adding extra
resources.

Criteria [Project Quality Management] factors used to evaluate

and decide when the deliverables meet the project requirements.

Critical Chain Method (CCM) [Project Time Management] a

technique for improving accuracy of project schedule by taking
into accounts the limited resource availability and uncertainties.

Critical Path Activity [Project Time Management] all the

activity on the critical path of a project schedule (using Critical
Path Method).

Critical Path Method (CPM) [Project Time Management] a

technique for determining the schedule of the project by taking
into accounts the sequence of activities for the longest work path.

Customer [Project Stakeholder Management] the ones who

request and/or pay for the project / deliverables.

PMP Exam Glossary D

Data Date the time the data is recorded.

Decision Tree Analysis [Project
Risk Management] a diagramming technique to help visualizing
the Expected Monetary Value (EMV) of various options to assist in
decision-making.

Decomposition [Project Scope Management] the project

scope is broken down into smaller segments for better estimation.

Defect Repair [Project Cost Management] the correction

action required for deliverables not meeting requirements.

Deliverable [Project Scope Management] the verifiable

product, service, result or capability produced by a process, phase
or project.

Delphi Technique questionnaires are circulated among

subject matter experts (SME) for anonymous feedback and
recirculated until a consensus is reached.

Dependency [Project Time Management] an activity may

depend on the execution/finish of other activities; can be
mandatory, discretional, external or internal.

Design of Experiments (DOE) [Project

Quality Management] a statistical approach
allowing simultaneous altering of several variables for comparison
in order to find out the lowest cost of quality.

Diagramming Techniques various methods employed for

representing information and the relationships in a visual way.

Dictatorship [Project Human Resource Management] a group

decision-making technique in which the leader direct the decision
making, best on in case when there are a lot of uncertainties.

Discounted Cash Flow [Project Cost Management] a

technique used to compare the value of the future cash flows of
the project with the current value of the dollar by taking inflation
into accounts.
Discrete Efort [Project Cost/Time Management] used in
earned value management (EVM) to measure work performance
in relation to explicit work efforts that contribute to the
completion of the project.
see also Apportioned Efort and Level of Eforts

Discretionary Dependency [Project Time Management] (also

known as preferred logic) two activities are considered to be best
if carried out in sequence; but the sequence can be altered if
needed.
see also Mandatory Dependency
Duration [Project Time Management] the amount of time
between the start and finish of a schedule activity; often
expressed in work days.

PMP Exam Glossary E

Early Finish Date (EF) [Project Time Management] the earliest

date an activity can be completed by taking project constraints into
accounts.
Early Start Date (ES) [Project Time Management] the earliest
date an activity can begin based by taking project constraints into accounts.
Earned Value (EV) [Project Time/Cost Management] a metric
for measuring the proportion of work finished by making comparision to the
activity/project budget.
Earned Value Management (EVM) [Project Time/Cost
Management] the recommended method for measuring project
performance by comparing the planned value against earned value for
cost, schedule and scope measurement; there are various defined metrics
for the performance measurement, e.g. CPI, SPI, etc.
Emotional Intelligence [Project Human Resource
Management] ones ability to understand and manage their own emotion
and establish relationship with others.
Enhance [Project Risk Management] a risk responses strategy to
increase the likelihood of occurrence of positive risks.
see also Accept, Exploit and Share

Enterprise Environmental Factors (EEF) all factors outside the

control of the project team that can positively or negatively influence the
project; can be internal and external to the performing organization.
Estimate at completion (EAC) [Project Time/Cost
Management] the estimated total cost for completing the project; may be
updated with actual costs during project execution.
Estimate to complete (ETC) [Project Time/Cost
Management] the estimated remaining cost for completing the project,
i.e. the estimated cost that is required to bring the project to completion.
Expected Monetary Value (EMV) Analysis [Project Risk
Management] used in conjunction with decision-tree analysis, EVM
analysis is a statistical method to calculates monetary impact of all
probable outcomes with reference to the probabilities of occurrence; a tool
for Quantitative Risk Analysis.
Expert Judgment individuals/group of people to exercise the
knowledge of their area(s) of expertise for making the best decision.
Expectancy Theory [Project Human Resource Management] a
motivational theory proposing that people are motivated by their
expectations of results to behave or act in a certain manner.
Exploit [Project Risk Management] a risk responses strategy to
ensure the occurrence of a positive risk
see also Accept, Enhance and Share

External Dependency [Project Time Management] when the

beginning or finishing an activity is dependent on external parties, e.g.
Government, vendor, etc., the activity is said to have external dependency
PMP Exam Glossary F

Fast-Tracking [Project Time Management] when time is running

out, the project management may make use of this schedule compression
technique in which activities are performed in parallel to save time.
see also Crushing

Fallback [Project Risk Management] actions to be taken if the

original plan proves to be ineffective / risk occurs.
Feasibility Study [Project Integration Management] performed
at the beginning of a project to estimate the benefits and chances of
success of the project.
Finish-to-Finish [Project Time Management] a logical
relationship between two activities whereby the successor activity cannot
complete till the predecessor activity completes.
Finish-to-Start [Project Time Management] a logical relationship
between two activities whereby the successor activity cannot begin till the
predecessor activity completes.
Firm Fixed-Price contract (FFP) [Project Procurement
Management] a type of contract in which the buyer pays the seller a price
as agreed in the contract without taking actual costs into account.
Fixed Formula Method [Project Time/Cost Management] an
Earned Value (EV) method for measuring progress based on a pre-
determined formula (e.g. 0/100, 25/75, 50/50 for 25/75 arrangement,
when the activity begin, it will receive 25% completeness.
see also Percent Complete and Level of Efort

Fixed-Price Incentive Fee Contract (FPIF) [Project

Procurement Management] a type of contract where the buyer pays a
price as agreed in the contract plus an incentive for meeting performance
targets. The seller assumes most risk.
Fixed-Price with Economic Price Adjustment Contract (FP-
EPA) [Project Procurement Management] a type of contract for a
fixed price fee with the inflation taken into accounts.
Float [Project Time Management] the amount of time that a task in
a project can be delayed without causing a delay to other tasks.
see also Slack, Total Float and Free Float

Force Majeure [Project Procurement Management] usually

written as a claus in the contract, these are events of catastrophic nature
that are beyond the control of the team.
Forcing [Project Human Resource Management] a conflict
resolution technique in which an individual forces other to accept a
solution / resolution.
Forward Pass [Project Time Management] a critical path method
(CPM) practice to find out the early start and early finish dates for each
activity of the network diagram by going through the schedule from start to
end.
see also Backward Pass

Free Float [Project Time Management] the amount of time that a

task in a project can be delayed without causing a delay to the early start of
a successor activity.
see also Total Float

Functional Manager a manager of a department or business unit with

subordinates working to produce products / services.
Functional Organization a type of organization structure in which the
organization is divided into smaller groups based on specialized functional
areas.
Funding Limit Reconciliation [Project Cost Management] an
act to compare and adjust the funding limits by refining the scope /
rescheduling the activities to ensure funding limits are not exceeded.

PMP Exam Glossary G

Gantt Charts [Project Time Management] a type of bar chart for

presenting time and duration of scheduled activities.
Gold Plating a concious descision to add extra functinality / features not
in the project scope to exceed customer satisifaction which can often lead
to scope creep, NOT recommended by PMI.
Grade [Project Quality Management] a category assigned to
products that have the same functionality but different technical
characteristics, e.g. different grades of eggs (large, small, etc.)
Ground Rules [Project Human Resource Management] a set of
established expectations for the conduct of team members.

PMP Exam Glossary H

Hammock Activity [Project Time Management] represents a

group of similar activities as one activity to simplify the schedule network
diagram.
Hygiene Theory [Project Human Resource
Management] introduced by Frederick Herzberg, the Hygiene Theory
proposes that peoples attitudes towards work are influenced by presence
of motivators (satisfiers) and hygiene factors (absence of which would
create dissatisfaction).

PMP Exam Glossary I

Impact [Project Risk Management] the magnitude of the

consequences posed by an opportunity / threat.
Incentive Fee [Project Procurement Management] money paid to
the seller for meeting performance, cost / schedule targets set in the
contract.
Independent Estimates [Project Procurement
Management] make use of external information / resources to establish
the reasonability of vendors quotation.
Influence Diagram [Project Quality Management] a diagram that
show potential influences that conditions in the project can have on others.
Information Management Systems [Project Stakeholder
Management] systems used to gather, store and circulate project
information in the desired format to stakeholders.
Input are information / resources that are added to a process for
processing to create specific outputs.
Inspection [Project Quality Management] actions performed (e.g.
testing, measuring, reviewing and examining) to determine compliance of
project deliverable with quality requirements.
Inspections and Audits [Project Procurement
Management] judge and verify the sellers performance / deliverables by
the contact requirements.
Internal Dependency [Project Time
Management] dependencies of tasks that are under control of the project
team.
see also External Dependency

Internal Rate of Return (IRR) [Project Integration

Management] return of the investment for the investment period
expressed as percentage. The higher the IRR, the better the project
outcome.
Interpersonal Skills (Soft Skills) [Project Human Resource
Management] skills to motivate team members through delegation,
coaching, communication, etc.
Interrelationship Digraphs [Project Human Quality
Management] maps cause-and-effect relationships for problems with
multiple variables/outcomes.
Invitation for Bid (IFB) [Project Procurement
Management] inviting sellers to submit proposals to a project.

Issue [Project Stakeholder Management] unexpected problems,

gaps, inconsistencies or conflicts in the project.
Issue Log [Project Stakeholder Management] a project document
in which all the issues are recorded and tracked, used to report issues with
stakeholders.
Iterative Project Management Life Cycle allow more flexibility in
responding to changes by conducting the project in iterative cycles (mini-
waterfalls).

PMP Exam Glossary K

Kaizen [Project Quality Management] a management theory

promoting incremental changes for continuous improvement, originated in
Japan.
Kick-of Meeting [Project Integration Management] the very first
meeting for project team and all relevant stakeholders to formally begin the
project by aligning common understanding of project goals.

PMP Exam Glossary L

Lag [Project Time Management] used in project schedule network,

lag represents the delay between the successor activity and the
predecessor activity.
Late Finish Date (LF) [Project Time Management] the latest
date the activity can finish by taking project schedule constraints into
accounts.
Late Start Date (LS) [Project Time Management] the latest date
the activity can begin by taking project schedule constraints into accounts.
Lead [Project Time Management] used in project schedule network,
lead represents the overlapping of the successor activity and the
predecessor activity, i.e. the successor activity begins before the end of the
predecessor activity.
Leadership Styles [Project Human Resource
Management] how the leader motivate and lead the project team, e.g.
authoritarian, democratic, laissez-faire,etc.
Lessons Learned [Project Integration
Management] documentation of knowledge gained during project
lifecycle, in particular the factors leading to successes and failures of the
project.
Level of Efort (LOE) [Project Time/Cost Management] an
earned value management (EVM) method to assign percentage
completeness of support activities (not directly contributing to the project
deliverables).
see also Fixed Formula Method and Percent Complete

Logical Relationships / Logical Dependencies [Project Time

Management] the dependencies for / associations between two project
activities, i.e. finish-to-start (FS), finish-to-finish (FF), start-to-start (SS) and
start-to-finish (SF)
Lump Sum Contracts [Project Procurement Management] a
type of contract in which the seller receive a pre-agreed amount of money,
best for well-defined tasks.

PMP Exam Glossary M

Management Reserve [Project Cost Management] extra fund

set aside in the project budget for unknown unknowns, must be authorized
by management before spending.
see also Contingency Reserve

Mandatory Dependency / Hard Logic [Project Time

Management] a type of dependency between activities that must be
followed.
see also Discretionary Dependency

Maslows Hierarchy of Needs [Project Human Resource

Management] a motivational theory put forward by Maslow avocating five
basic needs (in order) of human physical, safety and security, social, self-
esteem and self-actualization.
Matrix Diagrams [Project Quality Management] a quality
management tool by constructing relationships between various factors in a
grid.
Matrix Organization an organizational structure where the project
manager and the functional managers shares management responsibility;
three types of matrixstrong, balanced and weak.
Milestone [Project Time Management] an important event in the
project timeline that has no duration.
Milestone List [Project Time Management] a listing of milestones
of the project.
Mind Maps [Project Quality Management] is a diagramming
technique used to visually organize information to explore ideas.
Mitigate [Project Risk Management] a risk response strategy to
reduce the probability / level of impact of a negative risk.
see also Accept, Avoid and Transfer

Monte Carlo Simulation [Project Risk Management] by making

use of software simulation to run the project under different conditions
multiple time to analyze possible project outcomes.

PMP Exam Glossary N

Negotiation [Project Procurement Management] commincation

and discussion between parties to reach consensus / acceptable outcome.
Network Diagram / Logic Diagram [Project Time
Management] is a sequence of activities that are linked together with
logical dependencies.
Networking [Project Human Resource Management] interact and
communicate with others to get acquainted and build a relationship with
them.
Net Present Value (NPV) [Project Integration
Management] the present value (PV) of the future net cash flow for the
project.
Nominal Group Technique [Project Stakeholder
Management] a technique to faciliate gathering and organizing ideas
from all participants to assist decision-making.
Non-conformance [Project Quality Management] the rework
needed to be implemented as a result of not performing the activities
correctly the first time, a type of cost of quality (COQ).

PMP Exam Glossary O

Opportunity [Project Risk Management] a type of risk which is

considered to have positive impact on the project, also known as a positive
risk.
see also Threat

Ordinal Scale [Project Risk Management] a relative scale for

ranking risks (i.e. low, moderate and high).
Organizational Breakdown Structure (OBS) [Project Scope
Management] a hierarchical structure of the organization in the work
breakdown structure (WBS) which is used for assigning work to resources
for a project.
Organizational Process Assets (OPA) a collective name for all the
organizational information, e.g. policies, procedures, processes and
knowledgebase which would be useful for the project.
Organizational Structures describes how the structure of the
organization management, e.g. functional, matrix, projectorized and
composite
Output the outcome (e.g. deliverables, result, etc.) generated by a
process from inputs.
PMP Exam Glossary P

Parametric Estimating [Project Cost/Time Management] by

making use of unit costs (from industry statistics, etc.) to compute the costs
and durations of individual activies, considered to be more accurate.
see also Analogous Estimating

Pareto Diagram [Project Risk Management] a histogram for

identifying the most critical issues by making use of 80/20 rule.
Path Convergence [Project Time Management] in the project
network diagram where the path converge from two or more predecessor
activities to one successor activity.
Path Divergence [Project Time Management] in the project
network diagram where the path diverge from one predecessor activity to
two or more successor activities.
Percent Complete [Project Cost/Time Management] an
estimate of the amount of work completed for an activity or work package.
see also Apportioned Efort, Fixed Formula
Method and Level of Efort

Performing Organization the organization direclty involved with

the project.
Phase-Gate a checkpoint for reviewing the project and making the
decision for the project to proceed to next phase or terminate.
Planned Value (PV) [Project Cost Management] the approved
budget for project work completed to date.
Plurality a decision based on relatively more vote for one choice than
others, as opposed to majority which must have more than 50% of vote.
Portfolio includes many programs, projects and operations grouped
according to organizational strategic objectives.
Precedence Diagramming Method (PDM) [Project Time
Management] a diagramming technique for scheduling project activities
according to logical relationship, e.g. Critical Path Network Diagram and
Critical Chain Network Diagram.
Precision [Project Quality Management] indicate the exactness
and consistency (i.e. with little variation).
see also Accuracy

Predecessor Activity [Project Time Management] the activity

before a dependent activity in the project schedule.
Preventive Action [Project Quality Management] actions taken
to minimize / avoid failing to meet the quality standards of the project.
Prioritization Matrix [Project Quality Management] define
issues and alternatives that need to be prioritized for decision, items are
given a priority score through brainstorming.
Probability [Project Risk Management] a measurement scale of
the likelihood of the occurrence of a risk.
Probability and Impact Matrix [Project Risk Management] a
visual representation of the results from Risk Probability and Impact
Assessments that assists the project team to prioritize risks.
Procedure a series of steps to execute a process in a consistent
manner.
Process actions that turn input(s) into outputs.

Process Analysis [Project Quality Management] a technique for

continual process improvement by systematically analyzing current
processes.
Process Decision Program Charts [Project Quality
Management] a decision tree to systematically identify what might go
wrong in the plan under development
Process Improvement Plan [Project Quality
Management] defines the actions to be taken for analyzing processes
and identifying improvements, it is a subsidiary plan of the Project
Management Plan.
Procurement Audits [Project Procurement Management] a
review of the contracting process with a view to ensure adherence to
agreed procedures and identify ways to improve.
Procurement Documents [Project Procurement
Management] docuemnts used for bids and proposals, including the
procurement statement of work (SOW), RFP, RFI, RFQ, seller proposals,
etc.
Procurement Negotiations [Project Procurement
Management] a technique to resolve issue and disputes in a procurement
contract; alternative dispute resolution (ADR) methods are frequently
used before legal proceedings.
Procurement Statement of Work (SOW) [Project
Procurement Management] document containing the necessary
requirements to the sellers to facilitate their understanding of the
requirements.
Product Analysis [Project Scope Management] includes
techniques such as product breakdown, systems analysis, requirements
analysis, systems engineering, value engineering and value analysis to
establish the feasibility of the product.
Product Life Cycle describes the life of the project, the five stages
of product life cycle are Development > Introduction > Growth > Maturity >
Decline
see also Project Life Cycle

Program a group of related projects and related activities managed

together for synergy otherwise cannot be achieved by managing them
individually.
Program Evaluation and Review Technique
(PERT) [Project Time/Cost Management] a technique used to
calculate a more reliable estimate by making use of the formula: (O + (4 *
ML) + P) / 6 including optimistic (O), pessimistic (P) and most likely (ML)
estimates.
Progressive Elaboration more details are added to the project
plan as more information becomes available while the project progresses.
Project a temporary undertaking to create a unique deliverable
(including product, service or result).
Project Calendar [Project Time Management] a document
identifing the work periods available for resources to be assigned to
scheduled activities.
Project Funding Requirements [Project Cost
Management] outlines the total amount of funding required for the
project; derived from the cost baseline, management reserve and liabilities.
Project Governance [Project Integration Management] the
management framework (including policies, regulations, functions,
processes, procedures and responsibilities) for project control and decision
making.
Project Life Cycle the different phases for the creation of the final
product; 5 stages of Project life cycle Initiating > Planning > Execution >
Monitoring & Controlling > Closure.
see also Product Life Cycle

Project Management by applying appropriate processes, tools,

techniques, skills, knowledge, leadership and resources to strike for
successful outcome for a project.
Project Management Information system (PMIS) [Project
Stakeholder Management] a system (can be manual or automated)
used to collect, distribute and store all project management information.
Project Management Office (PMO) an office within the
performing organization providing guidance and support (e.g. project
governance, tools, templates, training) for project managers.
Project Manager (PM) an individual who is accountable for
delivering the project objectives successfully by leading the project team
and managing the project work.
Project Phase a large project can be sub-divided into phases by
grouping some related activities for completing part of the overall
deliverable, often with phase gates at the end of the phase.
Project Schedule [Project Time Management] a list of project
activities with links, start & finish dates, durations, milestones and
resources.
Project Schedule Network Diagram [Project Time
Management] graphical representation of the logical sequence and
relationship of project activities.
Project Scope [Project Scope Management] the very work
required to produce the project deliverable(s).
Project Scope Statement [Project Scope
Management] documents all the deliverables of the project by including
objectives, assumptions and constraints.
Projectized Organization a type of organizational structure in
which the project manager is assigned with all the authority and resource to
manage the project and team members.
Proposal Evaluation Techniques [Project Procurement
Management] a methodology to assess compliance of bids based on
organizational procurement policy.
Prototypes [Project Requirement Management] models or mock-
ups for experimenting ideas to get feedback on requirements from
stakeholders.

PMP Exam Glossary Q

Quality [Project Quality Management] the extent of the

characteristics of the deliverable fulfilling requirements (functional,
aesthetics, durability, etc.).
Quality Audits [Project Quality Management] the process to
identify existing deficiencies impeding quality goals.
Quality Checklist [Project Quality Management] a list of actions
and steps to be taken for quality control.
Quality Control Measurements [Project Quality
Management] the measurements recorded during the Control Quality
process.
Quality Function Deployment (QFD) [Project Quality
Management] is a method to transfer user requirements into design
quality, e.g. House of Quality (HOQ).
Quality Metrics [Project Quality Management] the qualitative or
quantitative measurements for quality management.
Quality Policy [Project Quality Management] documentations on
the organizational quality guidelines and implementation.
Questionnaires and Surveys [Project Stakeholder
Management] a document with list of questions for quickly gathering
feedback from a large target audience.

PMP Exam Glossary R

RACI Chart [Project Quality Management] a type of responsibility

assignment matrix (RAM) chart inidicating the reponsibilities of project team
members to tasks, RACI stands for Responsible, Accountable, Consult &
Inform.
Records Management System [Project Procurement
Management] part of Project Management Information System (PMIS)
including processes and automated tools to organize, track, access and
archive all project information and contract documents effectively.
Regulation regulatory requirements issued by a government
authority.
Request for Information (RFI) [Project Procurement
Management] a document for procurement intended for collecting
information from potential suppliers.
Request for Proposal (RFP) [Project Procurement
Management] a document for procurement used for requesting proposals
from potential suppliers for a specific product, service or capability.
Request for Quotation (RFQ) [Project Procurement
Management] a document for procurement inviting suppliers to submit
bids, often used for standard / commodity products or services.
Requirements Traceability Matrix [Project Scope
Management] a chart used for tracking product requirements to the
inherited business values / project objectives.
Reserve [Project Cost/Time Management] the time / funds set
aside in the project for responding to risks / uncertainties.
see also Contingency Reserve and Management Reserve.

Reserve Analysis [Project Cost/Time/Risk Management] a

process to assesses if there is sufficient time / funds for the contingency
reserve to address risks / uncertainties.
Residual Risk [Project Risk Management] the remaining risks
after risk response strategies have been executed.
Resource [Project Cost/Human Resource Management] all
inputs required to perform the project tasks, including staff, materials,
equipment, funds and services
Resource Breakdown Structure (RBS) [Project Time
Management] a hierarchical chart organizing project resources into
categories / sub-categories.
Resource Calendar [Project Human Resource/Time
Management] documents the availability of human reosource by time.
Resource Histogram [Project Time Management] a visual
representation displaying the specific amounts of time a particular resource
is scheduled to work on the project.
Resource Leveling [Project Time Management] a resource
optimization technique to change the start and finish dates of activites in
view of resource availability.
Resource Optimization Techniques [Project Time
Management] techniques to optimize utilization of resource.
see also Resource Leveling and Smoothing.

Resource Smoothing [Project Time Management] a resource

optimization technique to adjust schedule so that the amount of activities at
any particular time meets the predefined resource limits.
Responsibility Assignment Matrix (RAM) [Project Scope
Management] a document for referencing project resources with WBS
work package elements for tracking responsibility.
Revision approved modification to schedule, budget, plan, process,
etc. in response to change requests or corrective actions.
Rework [Project Quality Management] the work needs to be
carried out again as the deliverables from an acitivty do not meet quality
requirements.
Risk [Project Risk Management] an uncertainty for the project that
may have positive / negative effects on the project outcome. see also
Threat and Opportunity
Risk Acceptance [Project Risk Management] a response strategy
by responding to risks once they occur without carrying out any measure to
alter the possibility of occurrence.
Risk Appetite [Project Risk Management] a qualitative
measurement of how willing the organization is to take risks for the desired
outcome.
Risk Audits [Project Risk Management] a process to assess the
efficiency of the risk management plan and measures and the adherence to
organization risk policy.
Risk Avoidance [Project Risk Management] a risk response
strategy to totally remove the threat for protecting the project.
Risk Breakdown Structure (RBS) [Project Risk
Management] a hierarchically representation of all risks organized by
categories and sub-categories.
Risk Categories [Project Risk Management] grouping of risks by
taking references to WBS elements or project phases, etc.
Risk Data Quality Assessment [Project Risk Management] a
process to verify the accuracy and completeness of risk data.
Risk Mitigation [Project Risk Management] a risk response
strategy to reduce the probability and impact of a threat.
Risk Reassessment [Project Risk Management] a process to
identify new risks and assess current risks.
Risk Register [Project Risk Management] a document listing all
identified risks and details, it is continually refined through several
processes of risk management.
Risk Tolerance [Project Risk Management] the degree of risk an
organization is willing to take.
Risk Transfer [Project Risk Management] a risk response strategy
to shift the impact of a threat to a third-party (often through contractual
terms or insurance, etc.).
Risk Urgency Assessment [Project Risk Management] assess
the urgency of risk responses for all risks.
Rolling Wave Planning a project management methology in which
near term activities are planned in details while future activites are planned
in high level. As the project progresses, more information becomes
available so that future activities can be planned in more details.
Root Cause Analysis [Project Quality Management] a process
to finding outthe underlying reason for variances or defects.
Rule of Seven [Project Quality Management] in control charts, if
seven consecutive measurements from a process are plotted on one side
of the mean either within or outside the control limits, indicating that the
process is out of control.

PMP Exam Glossary S

Scatter Diagram [Project Quality Management] a graphical tool

to track and correlate two variables over time.
Schedule Baseline [Project Time Management] a document for
the latest approved project schedule, used to compare with actual
measurements for performance comparision.
Schedule Compression [Project Time Management] techniques
(e.g. Crashing and Fast-Tracking) to reduce the project during without
changing the project scope.
Schedule Data [Project Time Management] the information
needed for the project schedule, including activity attributes, milestones,
assumptions and constraints etc.
Schedule Forecasts [Project Time Management] schedule
predictions of project activites by taking reference to work performance
information.
Schedule Model [Project Time Management] a methodology to
create and control the project schedule by integrating the scheduling
method, scheduling tools and planning information.
Schedule Network Analysis [Project Time Management] a
diagramatic representation of the project schedule by showing the logical
relationships of activities (i.e. predecessors and successors).
Schedule Performance Index (SPI) [Project Time
Management] used in Earned Value Management (EVM), a metric for
indicating schedule efficiency (the ratio between earned value and planned
value). The formula for SPI is EV / PV.
Schedule Variance (SV) [Project Time Management] used in
Earned Value Management (EVM), a metric for indicating schedule
performance (the difference between earned value and planned value). The
formula for SV is EV PV.
Scheduling Tool [Project Time Management] manual or
automated methods for developing, analyzing and tracking the schedule of
project activities.
Scope [Project Scope Management] the boundaries of work to be
performed to deliver the desired outcomes and objectives.
Scope Baseline [Project Scope Management] the latest approved
project scope statement, WBS and WBS Dictionary, used to compare with
actual results for performance measurement.
Scope Change [Project Scope Management] approved changes
to the project scope that will affect the project cost and schedule.
Scope Creep [Project Scope Management] additions to the
project scope that are not authorized through change control.
Secondary Risk [Project Risk Management] the new risks
created as a result of implementing the risk response strategies.
Selected Sellers [Project Procurement Management] the
shortlisted sellers who can fulfill the requirements of the contract.
Seller [Project Procurement Management] any service providers,
vendors or suppliers who can provide the requested product, services or
results.
Seller Proposals [Project Procurement Management] the official
submissions by vendors in response to procurement documents (e.g. RFI,
RFP, RFQ).
Sensitivity Analysis [Project Risk Management] an analytical
technique to determine the impacts of risks, to be represented by a
Tornado Diagram.
Seven Basic Quality Tools [Project Quality
Management] seven standard quality management tools, incluidng cause
& effect diagram, scatter diagram, flowcharts, Pareto, histogram, control
charts and check-sheets.
Share [Project Risk Management] a risk response strategy for
increasing the likelihood of occurrence of opportunities by sharing the
benefits with a third-party for enhanced capability.
see also Accept, Exploit and Enhance

Simulation [Project Risk Management] an analytical technique

using the estimated costs and durations as inputs to discover potential risks
and impacts (e.g. Monte Carlo Analysis).
Six Sigma [Project Quality Management] a methodology for
eliminating process defects as employed for process improvement.
Source Selection Criteria [Project Procurement
Management] factors to be considered while assessing bids for their
suitability.
Specification Limits [Project Procurement Management] the
upper and lower limits for the control chart established by customers
quality requirements
see also Control Limits

Sponsor the one who has the authority to authorizes resources and
funding for the project and also helps to promotion and faciliate the project.
Staffing Management Plan [Project Human Resource
Management] (part of the human resource management plan) a
document containing staff acquisitions rules, training, timeline needs, safety
compliance and release criteria of project team members.
Stakeholder [Project Stakeholder Management] any individuals
or organizations who can impact / are impacted by the project outcome.
Stakeholder Analysis [Project Stakeholder Management] a
process to collect stakeholder information (e.g. influence, interests and
power) to understand their importance and impact to the project.
Stakeholder Register [Project Stakeholder Management] a
document recording all stakeholders of the project with required details.
Start Date [Project Schedule Management] the specific date an
activity is scheduled to begin.
Start-to-Finish (SF) [Project Schedule Management] a logical
relationship for two activities in which the predecessor activity must begin
before successor activity ends.
Start-to-Start (SS) [Project Schedule Management] a logical
relationship for two activities in which the predecessor activity must begin
before the successor activity begins.
Statement of Work (SOW) [Project Integration
Management] a document containing the objectives of the project.

Statistical Sampling [Project Quality Management] inspection

of a randomly chosen subset of process outcome for quality assurance as it
is impractical to inspect the whole set.
Subproject portion of a project to be managed as a project.

Successor Activity [Project Schedule Management] an activity

having a logical follow relationship with another activity.
Summary Activity [Project Time Management] represents a
group of similar activities as one activity to simplify the schedule network
diagram; same as Hammock Activity
SWOT Analysis [Project Risk Management] a method to identify
project risks by analyzing Strengths and Weaknesses (internal to the
performing organization) and Opportunities and Threats (external).
PMP Exam Glossary T

Technique a process or method that is applied to produce a product /

deliverable.
Templates a predetermined format used as the starting point for
creating documents for standardization and reduction of waste.
Threat [Project Risk Management] a negative risk that may impede
the project success.
see also Risk and Opportunity

Three-Point Estimate [Project Cost / Time Management] an

estimation method used to calculate a more accurate estimate by making
use of optimistic (O), most likely (M) and pessimistic (P) estimates with the
formula (O + 4M + P)/6

Time & Material Contract (T&M) [Project Procurement

Management] a contract type where the cost is payable based on the
actual time and materials spent, used for highly uncertain project scope in
which both the vendor and the buyer assume more risks.
To-Complete Performance Index (TCPI) [Project Cost / Time
Management] a metric for Earned Value Management (EVM) which
equals the ratio between the remaining fund and the remaining work.
Tolerance [Project Quality Management] the acceptable range of
measurement (upper and lower limits) to meet the project quality
requirement.
Tornado Diagram [Project Quality Management] a visual
representation of the sensitivity analysis for determining the risks that have
the most impact on the project.
Total Float [Project Time Management] the time an activity can be
delayed from early start without delaying the project end date (scheduling
flexibility), can be negative, 0 (on the critical path) or positive.
see also Free Float and Project Float
Total Quality Management (TQM) [Project Quality
Management] a proactive and continuous effort where all team members
to center on quality to drive customer satisfaction and refine the process of
producing the product.
Transfer [Project Risk Management] a risk response strategy for
negative risks in which the risks are shifted to a third-party, e.g. by
outsourcing, warranty or insurance.
see also Avoid, Mitigate and Accept

Tree Diagrams [Project Quality Management] one of the 7

Quality Management Tools used to break down broad categories into finer
and finer levels of details.
Trend Analysis [Project Time / Risk Management] by analyzing
the project information over time to establish the likely outcome of the
project, used in performance and risk analysis.
Trigger [Project Risk Management] a symptom or warning sign
telling that a risk is about to materialize.

PMP Exam Glossary V

Validation [Project Scope Management] the assurance that a

product, service, or system meets the needs of the customer and
stakeholders, often involving external customers.
see also Verification

Validated Deliverable [obsolete] this term originally

appeared in the first publication of PMBOK Guide 5th Edition but
was later amended as Verified Deliverable in the errata.

Value Engineering [Project Cost Management] trying to improve

quality/shorten schedule without affecting the scope.
Variance [Project Cost / Time Management] a deviation from what
was planned compared to the actual measurements.
Variance Analysis [Project Cost / Time Management] a method
used to find out the causes of variation between planned and actual
performance.
Variance at Completion (VAC) [Project Cost / Time
Management] a metric for Earned Value Management (EVM) equals the
difference between budget at completion and expected costs (estimate at
completion) based on the performance trends.
Verification [Project Quality Management] an internal process of
reviewing and inspecting the deliverable to ensure compliance with
regulation, requirement, specification or imposed conditions.
see also Validation

Verified Deliverable [Project Quality Management] the

deliverables have been determined to fulfil the customer requirements
through the Control Quality process (click here for a detailed
discussion on verified deliverable vs accepted deliverable).
see also Accepted Deliverables

Voice of the Customer [Project Scope / Quality

Management] a tool used to digging out the actual needs and desires of
the customers.

PMP Exam Glossary W

WBS dictionary [Project Scope Management] a document

adding details to the WBS components, details may include statement of
work, responsible entity, activities, milestones, resource requirements,
estimates, quality requirements, acceptance criteria, technical
specifications and contract details, etc.
What-if Scenario Analysis [Project Time Management] a
technique used to assess the viability of project schedule under different
adverse scenarios.
Work Authorization System (WAS) a component of the project
management information system used to ensure work is performed at the
right time, in the correct logical order and by the assigned resources.
Work Breakdown Structure (WBS) [Project Scope
Management] a hierarchical graphical representation of the entire scope
of the project.
Work Package [Project Scope Management] the lowest level of
WBS for project deliverables after decomposition.
Work Performance Data the raw data obtained through
observations and measurements during the project work.
Work Performance Information project performance data
analyzed in context and integrated based on relationships across areas.
Work Performance Reports a consolidated document showing
work performance information for the purpose of project decision-making or
circulation to stakeholders.
Workaround [Project Risk Management] an unplanned response
to a negative risk that has happened.