Introduction:

1. A project is a temporary endeavor.

2. A portfolio refers to collection of projects, program, sub-portfolios and
operations managed as a group to achieve strategic objectives.
3. Programs are grouped within Portfolio and are comprised of sub-programs
and projects.
4. Individual projects are either within or outside a program but considered as
part of portfolio.
5. Project management is the application of knowledge, skills, tools and
techniques to meet the project requirements.
6. The development of project management plan is an iterative activity and
progressively elaborated throughout the project's lifecycle.
7. OPM (Organizational Project Management) is a strategy execution
framework utilizing project, program and portfolio management as well as
organizational enabling practices to consistently and predictably deliver
organizational strategy producing better performance, better results and a
sustainable competitive advantage.
8. A PMO is management structure that standardizes the project-related
governance processes and facilitates sharing of resources, methodologies, tools and
techniques.
9. Type of PMO:

1. Supportive: Provides consultative role to projects. Degree of control is

low.
2. Controlling: Provides support and all required compliances. Degree of
control is moderate.
3. Directive: Takes control and directly manages project. Degree of control
is high.

10. OPA – Organizational Process Assets are the plans, processes, policies and
knowledge bases specific to and used by the performing organization. It also
includes the organization's knowledge bases such as lesson learned and historical
information. It also includes completed schedules, risk data, and earned value
data.
11. OPA's is grouped in two categories:

1. Process and Procedures

2. Corporate knowledge base.
12. Operations are ongoing endeavors while projects are temporary endeavors.
13. Organizations use governance to establish strategic direction and performance
parameters.
14. It is important for project managers to be knowledgeable about organizational
governance, policies, and procedures.
15. Organizational strategy should provide guidance and direction to project
management. It is expressed through organization's mission and vision, including
orientation to market, competition and other environmental factors.
16. Business values is defined as the entire value of business; total sum of
tangible and intangible elements.
17. Successful business realization begins with comprehensive strategic planning
and management.
18. A project manager is the link between strategy and team.
19. Competencies for project manager:

1. Knowledge – in terms of project management.

2. Performance – In terms of accomplishing by applying project
management skills
3. Personal – Behavior while performing the project related activities.

II. Organizational Influences and Project Life Cycle:

1. The organization's culture is an Enterprise Environmental Factor (EEF).

2. Culture becomes critical factor in defining project success, and multi-
cultural competence becomes critical for the project manager.
3. Project management success is high dependent on effective organizational
communication.
4. Organizational structure is an Enterprise Environmental Factor (EEF).
5. In weak matrix organization the role of project manager is more of expeditor
or coordinator.
6. Strong matrix organizations have many of the characteristics of projectized
organization and have full time project managers with considerable authority.
7. Balance matrix organizations recognizes the need for project manager,
however it does not provides full authority to project managers.
8. Composite organization is a mix of functional and projectized organizations.
9. Enterprise Environmental Factors (EEF) refer to conditions, not under
control of the project team, that influence, constraint and direct the project.
10. A stakeholder is an individual, a group or organization who may affect, be
affected by, or perceive itself to affect by a decision, activity, or outcome of a
project.
11. Stakeholder identification is a continuous process throughout the project's life
cycle.
12. Project governance is an oversight function that is aligned with the
organization's governance model and that encompasses the project life cycle. It is a
critical element of any project.
13. A project governance is separate from organizational governance.
14. The project governance should be clearly defined and described in project
management plan.
15. Project Team includes, Project management staff, Project staff, Supporting
experts, User or customer representatives, Sellers, Business partner members and
business partners.
16. A project life cycle is the series of phases that a project passes through from
its initiation to its closure. It provides basic framework for managing the projects,
regardless of the specific work involved.
17. A project phase is a collection of logically related project activities that
culminates in the completion of one or more deliverables.
18. Two basic types of phase to phase relationship are:

1. Sequential Relationship – A phase starts only when the previous phase is

complete.
2. Overlapping Relationship – A phase starts prior to the completion of the
previous phase. (Ex: Schedule Compression Technique aka Fast
Tracking)

19. Predictive life cycles (aka fully plan-drive) are the ones in which the project
scope, and the time and cost required to deliver the scope are determined as early
in project lifecycle as practically possible.
20. Changes to the project scope should be carefully managed and re-planned
with formal acceptance to new scope.
21. Iterative and Incremental Life Cycles are one in which project phases (also
called iterations) intentionally repeat one or more project activities as the project
team's understanding of the product increases. Thus this life cycle develops the
product both iteratively and incrementally.
22. Large and complex projects are frequently executed in an iterative fashion to
reduce risk by allowing team members to incorporate feedback and lessons learned
between iterations.
23. Adaptive life cycles (aka change driven or agile methods) are intended to
response high level change and ongoing stakeholder involvement.

III. Project Management Processes:

 1. A process is set of interrelated actions and activities performed to create a
pre-specified product, service or result.
2. The project processes fall into two major categories:
1. Project management processes: These processes ensure effective
flow of process throughout the project's life cycle.
2. Product-oriented processes: These processes specify and create
project's product.
3. The PMBOK Guide describes only Project Management Processes
4. Project Management processes apply globally and across industry groups.
5. Project managers and their teams should carefully address each process
and its inputs and outputs and determine which are applicable to the
project they are working on. This effort is called tailoring.
6. The PMBOK Guide describes the nature of project management
processes in terms of the integration between the processes, their
interaction and the purpose they serve.
7. The process groups are not project life cycle phases.
8. Project manager is selected during initiating process group.
9. A project boundary is defined as the point in time at which the start or
completion of the project or a project phase is authorized.
10.The progressive detailing of the project management plan is called
progressive elaboration, indicating that planning and documentation are
iterative and ongoing activities.
11.During project execution, results may require planning updates and rebase
lining.
12.A large portion of the project's budget will be expended in performing the
Executing Process Group processes.
13.The monitoring and controlling process group not only monitors and
controls the work being done, but also monitors and controls the entire
project effort.
14.A knowledge area represents a complete set of concepts, terms and
activities that make up a professional field, project management field, or
area of specialization.

IV. Project Integration Management:

1. Project Management Plan: The process of defining, preparing, and

coordinating all subsidiary plans and integrating them into a
comprehensive project management plan. The project's integrated
baselines and subsidiary plans may be included within the project
management plan.
2. The need for project integration management is necessary in situations
where individual processes interact.
3. The project charter establishes a partnership between the performing and
requesting organizations.
4. A project manager needs to be identified while the project charter is being
developed and always prior to the start of planning.
5. The project charter provides the project manager with the authority to
plan and execute the project.
6. A project charter is not a contract, because there is no consideration or
money promised or exchanged in its creation.
7. The project statement of work (SOW) is a narrative description of
products, service, or results to be delivered by a project.
8. The business need and cost-benefit analysis are contained in the business
case to justify the project.
9. The product scope description documents the characteristics of the
product, service or results that the project will be undertaken to create.
10.The strategic plan documents the organization's strategic vision, goals,
and objectives and may contain a high-level mission statement.
11.Agreements are used to define initial intentions for a project.
12.Facilitation techniques are Brainstorming, conflict resolution, problem
solving and meeting management.
13.Project charter documents the business needs, assumptions, constraints,
the understanding of the customer's needs and high-level requirements,
and the new product, service that it is intended to satisfy.
14.Project baseline includes: Scope Baseline, Schedule Baseline, and Cost
Baseline.
15.The project management plan can only be changed when change request
is generated and approved through perform integrated change control
process.
16.Corrective Action: An intentional activity that realigns the performance of
the project work with the project management plan.
17.Preventive Action: An intentional activity that ensures that the future
performance of the project work is aligned with the project management
plan.
18.Defect repair: An intentional activity to modify a non-confirming product
or product component.
19.Project Management Information System is part of Enterprise
Environmental Factors.
20.Perform integrated change control is the process of reviewing all change
request; approving changes and managing changes to deliverables, OPA's,
 project documents, and the project management plan; and communicating
their disposition.
21. The project perform integrated change control process is conducted from
project inception through completion and is the ultimate responsibility of
project manager.
22.Change Control Board (CCB) is a formally chartered group responsible
for reviewing, evaluating, approving, delaying, or rejecting changes to the
project, and for recording and communicating such decisions.
23.Configuration control focusses on the specifications of both deliverables
and the processes.
24.Changes are documented and updated within the project management
plan as part of the change and configuration management process.
25.Analytical techniques used in project close out are; a] Regression
Analysis b] Trend Analysis
26.Documents to be reviewed by project manager during closure are:

1. Prior phase documentation

2. Customer acceptance documentation from the validate scope process
3. Contract copy.

Project Scope Management:

1. The scope baseline for the project is the approved version of the project
scope statement, Work Breakdown Structure (WBS), and it's associated WBS
Dictionary.
2. Completion of project scope is measured against the project management
plan.
3. Completion of product scope is measured against the product requirements.

4. The scope management plan is a component of the project or program

management plan that describes how the scope will be define, monitored,
controlled, and verified.
5. The requirements management plan is a component of the project
management plan that describes how the requirements will be analyzed,
documented, and managed.
6. Configuration management activity is a component of requirement
management plan.
7. Collect requirements is process determining, documenting, and managing
stakeholder needs and requirements to meet project activities.
8. Requirements include the quantified and documented and expectations of the
sponsor, customer, and other stakeholders.
9. Requirement is the foundation of WBS.
10. The development of requirement begins with :

1. Analysis of the information contained in the project charter

2. Stakeholder Register
3. Stakeholder management plan

11. Requirement can be classified into:

1. Business Requirement – Describes high level needs of organization
2. Stakeholder Requirement – Describes needs of stakeholder / stakeholder
group
3. Solution Requirement – Describes features, functions and characteristics of
the product, service or result that will meet the business and stakeholder
requirements.

1. Functional Requirement – Describes behavior of the product.

2. Non-Functional Requirement – Describes environmental conditions or
qualities required for the product to be effective.

4. Transition Requirements – Describes temporary capabilities (Ex: Training

and data conversion)
5. Project Requirements – Describes the actions, processes, or other conditions
the project needs to meet.
6. Quality Requirements – Captures any condition or criteria needed to validate
the successful completion of a project deliverable or fulfillment of other projects
requirements.
12. Workshops are considered a primary technique for quickly defining cross-
functional requirements and reconciling stakeholder differences.
13. Nominal group technique enhances brainstorming with a voting process to
prioritize most useful ideas for further brainstorming.
14. Idea / mind mapping is a technique in which ideas created through individual
brainstorming sessions are consolidated into a single map to reflect commonality
and differences in understanding, and generate new ideas.
15. Affinity Diagram is a technique that allows large number of ideas to be
classified into groups for review and analysis.
16. Multi-criteria decision analysis is a technique that utilizes a decision matrix to
provide a systematic approach for establishing criteria, such a risk levels,
uncertainty, and evaluation, to evaluate and rank many ideas.
17. Observation is also known as "Job Shadowing".
18. Storyboarding is a prototype technique showing sequence or navigation
through a series of images or illustrations.
19. Context Diagram is an example of Scope Model. They visually depict the
product scope by showing business system and how other people and other
systems interact with it.
20. Requirement documentation describes how individual requirements meet the
business need for the project.
21. Requirements need to unambiguous (measurable and testable), traceable,
complete, consistent, and acceptable to key stakeholders.
22. The requirement traceability matrix is a grid that links the product
requirements from their origin to the deliverables that satisfy them.
23. Define scope is the process of developing a detailed description of the project
and product.
24. The define scope process can be highly iterative.
25. The project scope statement includes:


1. Product scope description.
2. Acceptance criteria.
3. Deliverable
4. Project exclusions
5. Constraints
6. Assumptions

26. Project Documents include:


1. Stakeholder register
2. Requirements documentation
3. Requirement Traceability matrix

27. Create WBS is the process of subdividing project deliverables and project
work into smaller, more manageable components.
28. Decomposition is a technique used for dividing and sub-dividing the project
scope and project deliverables into smaller, more manageable parts.
29. The work package is the work defined at the lowest level of the WBS for
which cost and duration can be estimated and managed.
30. Decomposition may not be possible for a deliverable or subcomponent that
will be accomplished far into the future. The project management team waits until
the deliverable or subcomponent is agreed on, so that the details of the WBS can
be developed. This technique is called or referred as "Roll Wave Planning".
31. The total of the work at the lowest levels should roll up to the higher levels so
that nothing is left out or no extra work is performed. This is referred as 100
percent rule.
32. A control account is a management control point where scope, budget, actual
cost and schedule are integrated and compared to the earned value for performance
measurement.
33. A planning package is WBS component below the control account with
known work content but without detailed schedule activities.
34. WBS dictionary is a document that provides detailed deliverable, activity and
scheduling information about each component in the WBS.
35. Validate scope is the process of formalizing acceptance of the completed
project deliverables.
36. Quality control is the process of measuring the correctness of the deliverables
and meeting the quality requirements specified for the deliverables.
37. Quality control is generally performed before validate scope.
38. The uncontrolled expansion to product or project scope without adjustments
to time, cost and resources is referred to as scope creep.
39. Change is inevitable, hence change control process is mandatory for every
project.
40. Variance Analysis is a technique for the determining the cause and degree of
difference between the baseline and actual performance.
41. Project performance measurements are used to assess the magnitude of
variation from the original scope baseline.

Project Time Management:

1. Plan schedule management is the process of establishing policies,
procedures, and documentation for planning, managing, executing, monitoring and
controlling the project schedule.
2. The schedule management is a major input into the Develop project
management plan process.
3. Define activities is the process of identifying and documenting the specific
actions to be performed to produce the project deliverables.
4. Rolling wave planning is an iterative planning technique in which the work
to be accomplished in the near term is planned in detail, while the work in the
future is planned at a higher level.
5. Activity list is a comprehensive list that includes all schedule activities
required on the project.
6. Activity list also has activity identifier.
7. Activity attributes are used for schedule development and for selecting,
ordering, and sorting the planned schedule activities in various ways within the
reports.
8. A milestone is a significant point or event is project.
9. Milestones have zero duration because they represent a moment in time.
10. Sequence activities is the process of identifying and documenting
relationships among the project activities.
11. The Precedence Diagraming Method (PDM) is a technique used for
constructing a schedule model in which activities are represented by nodes and are
graphically linked by one or more logical relationships to show the sequence in
which the activities are to be performed.
12. Activity-on-node (AON) is one method of representing a precedence diagram.
13. PDM includes four types dependencies or logical relationships:

1. Finish-To-Start
2. Finish-To-Finish
3. Start-To-Start
4. Start-To-Finish

14. A lead is the amount of time whereby a successor activity can be advanced
with respect to a predecessor activity.
15. Lead is often represented as negative value for Lag in scheduling software.
16. A lag is the amount of time where by a successor activity can be delayed with
respect to a predecessor activity.
17. Estimate activity resources is the process of estimating the type and
quantities of material, human resources, equipment, or supplies required to perform
each activity.
18. Bottom-up estimating is a method of estimating project duration or cost by
aggregating the estimates of the lower-level components of the WBS.
19. The resource breakdown structure is a hierarchical representation of resources
by category and type.
20. Estimate activity durations is the process estimating the number of work
periods needed to complete individual activities with estimated resources.
21. Analogous estimating is a technique for estimating the duration or cost of an
activity or a project using historical data from a similar activity or project.
22. Parametric estimating is an estimating technique in which an algorithm is
used to calculate cost or duration based on historical data and project
parameters.
23. Three-point estimating is an estimating technique in which activity duration is
calculated considering, Mostly Likely Duration, Optimistic Duration and
Pessimistic Duration.
24. Two commonly used formulas for three-point estimating are:


1. Triangular Distribution tE = (tO+tM+tP) / 3
2. Beta Distribution (PERT technique) tE = (tO+4tM+tP) / 6

25. A group decision making-technique is an assessment process having multiple

alternatives with an expected outcome in the form of future actions.
26. Contingency reserves are the estimated duration within the schedule baseline,
which is allocated for identified risks that are accepted and for which contingent or
mitigation responses are developed.
27. The contingency reserve may be developed by using quantitative analysis
methods such as Monte Carlo Simulation.
28. Contingency must be clearly identified in schedule documentation.
29. Management reserve are a specified amount of the project duration withheld
for management control process and are reserved for unforeseen work that is
within the scope of the project.
30. Management reserve is never included in schedule baseline.
31. Develop schedule is the process of analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the project schedule
model.
32. Schedule network analysis is a technique that generates the project schedule
model.
33. Various analytical techniques used for Schedule Network Analysis are:


 1. Critical path Method
2. Critical chain method
3. What-if analysis
4. Resource optimization techniques.

34. Critical Path Method is a method used to estimate the minimum project
duration and determine the amount of scheduling flexibility on the logical network
paths within the schedule model.
35. Critical Path Method estimates the longest duration to complete the project.
36. Schedule flexibility is measured by the amount of time that the schedule
activity can be delayed or extended from its early start date without delaying the
project finish date or violating a schedule constraint and is termed as "Total Float".
37. A critical path in CPM is characterized by Zero Total Float.
38. The critical chain method is a schedule method that allows the project team to
place buffers on any project schedule path to account for limited resources and
project uncertainties.
39. The resource constrained critical path is called as critical chain.
40. Buffer placed at the end of the critical chain is known as project buffer.
41. Feeding buffers are placed at each point where a chain of dependent activities
that not on the critical chain feeds into the critical chain.
42. Resource leveling is a technique in which start and finished dates are adjusted
based on resource constraints with the goal of balancing demand for resources with
the available supply.
43. Resource smoothing is a technique that adjusts the activities of a schedule
model such that the requirements of resources on the project do not exceed certain
predefined resource limits.
44. Types of Modeling techniques are:


1. What-if Scenario Analysis
2. Simulation

45. The most common simulation technique is Monte Carlo analysis, in which
distribution of possible activity durations is defined for each activity and used to
calculate a distribution of possible outcomes for the total projects.
46. Leads and lags are refinements applied during network analysis to develop a
viable schedule by adjusting the start time of the successor activities.
47. Schedule compression techniques are used to shorten the schedule duration
without reducing the project scope, in order to meet schedule constraints, imposed
dates, or other schedule activities.
48. Schedule compression techniques include:


1. Crashing: A technique used to shorten the schedule duration of
the least incremental cost by adding resources.
2. Fast tracking: A schedule compression technique in which
activities or phases normally done in sequence are performed in
parallel for at least a portion of their duration.

49. A schedule baseline is an approved version of a schedule model that can be

changed only through formal change control procedures and is used as a basis for
comparison to actual results.
50. Bar charts / Gantt charts represent schedule information where activities are
listed on the vertical axis, dates are shown on the horizontal axis, and activity
durations are shown as horizontal bars placed according to start and finish dates.
51. Control schedule is a process of monitoring the status of project activities to
update project progress and manage changes to the schedule baseline to achieve
the plan.
52. Any change is the schedule baseline can only be approved through perform
integrated change control process.
53. Trend analysis examines project performance over time to determine whether
performance is improving or deteriorating.
54. Schedule forecast are estimates or predictions of conditions and events in the
project's future based information and knowledge available at the time of the
forecast.
Project Cost Management

1. The ability to influence cost is greatest at the early stages of the project,
making early scope definition critical.
2. Project Cost Management should consider the stakeholders requirements for
managing costs.
3. The cost management planning effort occurs early in project planning and
sets the framework for each of the cost management processes so that performance
of the processes will be efficient and coordinated.
4. The schedule baseline defines when the project costs will be incurred.
5. The cost management plan is component of project management plan and
describes how the project costs will be planned, structured, and controlled.
6. Thresholds are typically expressed as percentage deviations from the
baseline plan.
7. Cost trade-offs and risks should be considered, such a make versus buy, buy
versus lease, and the sharing of resources in order to achieve optimal costs for
the project.
8. Project in the initiation phase may have a rough order of magnitude (ROM)
estimate in the range of -25% to +75%. Later in the project, as more information is
known, definitive estimates could narrow the range of accuracy to -5% to +10%.
9. A cost estimate is a quantitative assessment of the likely costs for resources
required to complete the activity.
10. Market conditions describe what products, services and results are available in
the market, from whom, and what terms and conditions.
11. Analogous cost estimating uses the value such as scope, cost, budget and
duration or measure of scale such as size, weight and complexity from a previous,
similar project as the basis for estimating the same parameter or measurement for a
current project.
12. Parametric estimating uses a statistical relationship between relevant
historical data and other variables to calculate a cost estimate for project work.
13. Bottom-up estimating is a method of estimating a component of work. The
cost of individual work packages or activities is estimated to the greatest level of
specified detail. The detailed cost is then summarized and rolled up to higher levels
for subsequent reporting and tracking and purposes.
14. Three-point estimating is a method estimating an activity cost by considering
Most likely Cost, Optimistic Cost and Pessimistic Cost
15. Two commonly used formulas for three-point estimating are:


1. Triangular Distribution tE = (tO+tM+tP) / 3
2. Beta Distribution (PERT technique) tE = (tO+4tM+tP) / 6

16. Cost estimates may include contingency reserves to account for cost
uncertainty.
17. Contingency reserves are the budget within the cost baseline that is allocated
for identified risks, which are accepted and for which contingent or mitigating
responses are developed.
18. Management reserves are an amount of the project budget withheld for
management control purposes and are reserved for unforeseen work that is within
scope of the project.
19. Management reserve is not part of cost baseline of project. It is only added to
cost baseline when it is used to fund unforeseen work of project.
20. Determine budget is the process of aggregating the estimated costs of
individual activities or work packages to establish an authorized cost baseline.
21. A project budget includes all the funds authorized to execute the project.
22. The cost baseline is the approved version of the time-phased project budget,
but excludes management reserves.
23. Total funding requirement and periodic funding requirements are derived
from the cost baseline.
24. The cost baseline will include projected expenditures plus anticipated
liabilities.
25. Control costs is the process of monitoring the status of the project to update
the project costs and managing changes to the baseline.
26. The key to effective cost control is the management of the approved cost
baseline and changes to that baseline.
27. Earned Value Management (EVM) is a methodology that combines scope,
schedule and resources measurements to assess project performance and progress.
28. EVM integrates scope baseline with cost baseline, along with schedule
baseline, to form the performance measurement baseline (PMB).
29. EVM develops and monitors three key dimensions for each work package and
control account

1. Planned Value (PV) – Authorized budget assigned to scheduled work.

2. Earned Value (EV) – Budget associated with the authorized work that has
been completed.
3. Actual Cost (AC) – It is the realized cost incurred for the work performed
on an activity during a specific time period.

30. The total planned value for the project is also known as Budget at Completion
(BAC).
31. Earned Value (EV) measured can never be greater than authorized Planned
Value (PV) budget for a component.
32. Variances determine the status of project.
33. Schedule Variance (SV) is a measure of schedule performance expressed as
the difference between the earned value and the planned value. (Equation SV = EV
– PV).
34. Schedule variance is best used in conjunction with critical path method
(CPM) scheduling and risk management.
35. Cost Variance (CV) is the amount of budget deficit or surplus at a given point
of time, expressed as the difference between earned value and actual cost.
(Equation CV = EV – AC).
36. The cost variance at the end of the project will be the difference between the
budget at completion (BAC) and the actual amount spent.
37. The CV indicates the relationship of physical performance to the costs spent.
38. Schedule Performance Index (SPI) is a measure of schedule efficiency
expressed as the ratio of earned value to planned value. (Equation SPI = EV/PV). It
measures how efficiently the project team is using its time.
39. An SPI < 1 indicates less work was completed than was planned.
40. An SPI > 1 indicates more work was completed than was planned.

41. Cost Performance Index (CPI) is a measure of cost efficiency of budgeted

resources, expressed as the ratio of earned valued to actual cost. (Equation CPI =
EV/AC).It measures the cost efficiency for the work complete.
42. CPI < 1 indicates cost overrun for work completed.
43. CPI > 1 indicated cost underrun of performance to date.
44. Figure below uses S-curves to display EV Data for a project that is
performing over budget and behind the schedule.
45. Forecasts are generated, updated and reissued based on work performance
data that is provided as the project is executed.
46. Estimate at Completion (EAC's) are typically based on the actual costs
incurred for work completed, plus an estimate to complete (ETC) the remaining
work.
47. The most common EAC forecasting approach is manual, bottom-up
summation by the project manager and project team. (Equation EAC = AC +
Bottom-up ETC).
48. Three more common methods for EAC forecasting are:

1. EAC forecast for ETC work performed at the budgeted rate (Equation
EAC = AC + (BAC-EV)
2. EAC forecast for ETC work performed at the present CPI (Equation EAC
= BAC / CPI)
3. EAC forecast for ETC work considering both SPI and CPI factor

(Equation EAC = AC + [(BAC-EV) / (CPI x SPI)].

49. To-Complete Performance Index (TCPI) is a measure of the cost performance

that is required to be achieved with the remaining resources in order to meet a
specified management goal, expressed as the ratio of the cost to finish the
outstanding work to the remaining budget.
(Equation BAC: (BAC - EV) / (BAC - AC)). Incas BAC is no longer viable then
forecasted EAC should be consider to calculate TCPI (Equation EAC: (BAC - EV)
/ (EAC - AC)).
50. Hence,
TCPI = [Work Remaining (BAC - EV)] / [Funds Remaining (BAC - AC) or (EAC
– AC)]
51. Variance at Completion (VAC) = BAC – EAC
52. Trend Analysis examines project performance over time to determine if
performance is improving or deteriorating.
53. Earned Value Performance compares the performance measurement baseline
to actual schedule and cost performance.
Project Quality Management

1. Project quality management includes the processes and activities of the

performing organization that determine quality policies, objectives, and
responsibilities so that the project will satisfy the needs for which it was
undertaken.

2. Quality measures and techniques are specific to the type of deliverables being
produced by the project.

3. Quality and Grade are not the same concepts.

1. Quality as a delivered performance or result is "the degree to which a set

of inherent characteristics fulfill requirements"
2. Grade as a design intent is a category assigned to deliverables having the
same functional use but different technical characteristics.

4. Precision is a measure of exactness.

5. Accuracy is an assessment of correctness.

6. The approaches laid down by modern quality management for achieving ISO
compatibility are:
i. Customer Satisfaction – Understanding, evaluating, defining, and managing
requirements.
ii. Prevention over Inspection – Quality should be planned, designed, and built
into – not inspected into the project's management or the project's deliverables.
iii. Continuous Improvement – The PDCA (Plan-Do-Check-Act) cycle the basis
for quality improvement.
Most commonly used process improvement models are:

1. Organizational Project Management Maturity Model (OPM3)

2. Capability Maturity Model Integration (CMMI)

iv. Management Responsibility – Success requires the participation of all

members of the project team.
v. Cost of Quality (COQ) – Refers to total cost of the conformance work and the
nonconformance work that should be done as a compensatory effort.

7. The costs for quality work may be incurred throughout the deliverable's life
cycle.

8. Plan Quality Management is the process of identifying quality requirements

and/or standards for the project and its deliverables, and documenting how the
project will demonstrate compliance with relevant quality requirements and/or
standards.

9. A cost-benefit analysis for each quality activity compares the cost of the quality
step to the expected benefit.

10. Cost of quality includes all costs incurred over the life of the product by
investment in preventing nonconformance to requirements, appraising the product
or service to conformance to requirements, and failing to meet requirements
(rework).

11. Failure cost are also called as cost of poor quality.

12. Failure cost are categorized into:

1. Internal – Found by the project

2. External – Found by the customer

13. Conformance cost is the money spent during the project to avoid failures.

14. Nonconformance cost is the money spent during and after the project because
of failure.

15. Seven Basic Quality Tools are:

i. Cause and Effect Diagram (aka. Fishbone or Ishikawa Diagrams) – Useful in

linking the undesirable effects as special variation to the assignable cause.
ii. Flowcharts (also referred as Process Maps) – Useful in understanding and
estimating the cost of quality process.
iii. Checksheets (aka. Tally Sheets) – Useful for gathering attributes data while
performing inspections to identify defects. (They are displayed using Pareto
Diagrams).
iv. Pareto Diagrams – Useful to identify the vital few sources that are responsible
for causing most of a problem's effect.
v. Histograms – Useful in describing the central tendency, dispersion, and shape
of a statistical distribution.
vi. Control Charts – Useful to determine whether or not a process is stable or has
predictable performance. Used to track repetitive activities.
A process is said to out of control when:

1. A data point exceeds control limit.

2. Seven consecutive plot points are below the mean.
3. Seven consecutive plot points are above the mean.

vii. Scatter Diagrams (aka. Correlation Charts) – Used to estimate how a

change to the independent variable will influence the value of the dependent
variable.

16. Design of experiments (DOE) is a method of identifying which factors may

influence specific variables of a product or process under development or in
production.

17. DOE plays an important role in optimizing products or processes.

18. Additional Quality Planning Tools are:

1. Brainstorming
2. Force Field Analysis (Diagrams of the forces for and against change)
3. Nominal Group Technique
4. Quality Management and Control Tools

19. The process improvement plan details the steps for analyzing project
management and product development processes to identify activities that enhance
their value.

20. A quality metric specifically describes a project or product attribute and how
the control quality process will measure it.

21. Quality metrics are used in perform quality assurance and control quality
processes.

22. A checklist is a structured tool, usually component-specific, used to verify that

a set of required steps has been performed.
23. Quality checklist should incorporate the acceptance criteria included in the
scope baseline.

24. Perform Quality Assurance is the process of auditing the quality requirements
and the results from quality control measurements to ensure that appropriate
quality standards and operational definitions are used. It uses data created during
Plan Quality Management and Control Quality processes.

25. Perform Quality Assurance also provides an umbrella for continuous process
improvement, which is an iterative means for improving the quality of all
processes.

26. Quality Management and Control Tools are:

1. Affinity Diagrams: It is similar to mind-mapping techniques.

2. Process decision program charts (PDPC): Used to understand a goal in
relation to the steps for getting to the goal.
3. Interrelationship Diagraphs: It provides a process for creative problem
solving in moderately complex scenarios that possess intertwined logical
relationships for up to 50 relevant items.
4. Tree Diagrams (aka. Systematic Diagrams): Used to represent
decomposition hierarchies such as the WBS, RBS (Risk Breakdown
Structure), and OBS (Organizational Breakdown Structure).
5. Prioritization Matrices: Identify key issues and the suitable alternatives
to be prioritized as set of decisions for implementation.
6. Activity Network Diagrams (aka. Arrow Diagrams): Used with project
scheduling methodologies such as PERT, CPM and PDM.
7. Matrix Diagrams: It is used to perform data analysis within the
organizational structure created in the matrix.

27. A quality audit is a structured, independent process to determine if project

activities comply with organizational and project policies, processes, and
procedures.

28. Process analysis follows the steps outlined in the process improvement plan to
identify needed improvements.

29. Control Quality is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend necessary changes.
30. Prevention is keeping errors out of the process and Inspection is keeping errors
out of the hands of the customer.

31. Attribute Sampling (The result either conforms or does not conform) and
Variable Sampling (The result is rated on a continuous scale that measures the
degree of conformity).

32. Tolerances is specified range of acceptable results and Control Limits (that
identify the boundaries of common variation in a statistically stable process and
process performance).

Project Human Resource Management

1. Plan Human Resource Management is the process of identifying and

documenting project roles, responsibilities, required skills, reporting relationships,
and creating a staff management plan.

2. Types of Organization Charts:

1. Hierarchical-Type charts – Used to show positions and relationships in a

graphical, top-down format.
2. Matrix-Based charts – A responsibility assignment matrix (RAM) is a
grid that shows the project resources assigned to each work package.(Ex:
RACI – Responsible, Accountable, Consult, and Inform)
3. Text Oriented Formats – Team member responsibilities that require
detailed descriptions can be specified in text-oriented formats.

3. Networking is the formal and informal interaction with others in an

organization, industry, or professional environment.

4. Organizational theory provides information regarding the way in which

people, teams, and organizational units behave.
5. Recognition and Rewards are a part of the Develop Project Team process.
6. Acquire project team is the process of confirming human resource
availability and obtaining the team necessary to complete project activities.
7. Multi-Decision criteria is used to rate or score potential team members.
8. Resource Calendars document the time periods that each project team
member is available to work on the project.
9. Develop project team is the process of improving competencies, team
member interaction, and overall team environment to enhance project performance.
10. Developing effective project teams is one of the primary responsibilities of
the project manager.
11. Changes in project environment are inevitable, and to manage them
effectively, a continued or a renewed team-building effort should be applied.
12. Tuckman ladder is a model to describe team development which includes 5
stages viz. :

1. Forming – Where team meets and learns about the project.

2. Storming – Team begins to address the project work, technical decisions,
and the project management approach.
3. Norming – Team members work together and learn to trust each other.
4. Performing – At this stage the team functions as a well-organized unit.
5. Adjourning – The team completes the work and moves on from the
project.

13. A team meeting room is also called as "War Room".

14. Manage project team is the process of tracking team member performance,
providing feedback, resolving issues, and managing team changes to optimize
project performance.
15. Conflicts are inevitable in project environment.
16. Five general techniques to resolve conflicts are :

1. Withdraw / Avoid: Retreating from an actual or potential conflict

situation.
2. Smooth /Accommodate: Emphasizing areas of agreement rather areas of
difference.
3. Compromise / Reconcile: Searching for solutions that bring some degree
of satisfaction to all parties.
4. Force / Direct: Pushing one's viewpoint at the expense of others.
5. Collaborate / Problem Solve: Incorporating multiple viewpoints and
insights from differing perspectives.

17. Examples of Interpersonal skills that project manager uses are:

1. Leadership
2. Influencing
3. Effective decision making

Project Communications Management

1. Plan Communications Management is the process of developing an

appropriate approach and plan for project communications based on stakeholder's
information needs and requirements, and available organizational assets.
2. Effective communication means that the information is provided in the right
format, at the right time, to the right audience, and with the right impact.
3. Efficient communication means providing only the information that is
needed.
4. The total number of potential communication channels is n(n-1)/2, where n
represent the no. of stakeholders.
5. The total number of potential communication channels indicates who will
communicate with whom and who will receive what information.
6. The sequence of steps in a basic communication are:

1. Encode – Thoughts and Ideas are translated (encoded) into language by

the sender.
2. Transmit Message – Sent by the sender using communication channel.
3. Decode – The message is translated by the receiver back into meaning
thoughts or ideas.
4. Acknowledge – The receive signals the receipt of the message.
5. Feedback / Response – The receiver transmits the message to the original
sender.

7. Communication methods used to share information among project

stakeholders are:

1. Interactive Communication – Between two or more parties performing a

multidirectional exchange of information.
2. Push Communication – Sent to specific recipients who need to receive the
information.
3. Pull Communication – Used for very large volumes of information, or for
very large audiences, and requires the recipients to access the
communication content at their own discretion.

8. The communications management plan is a component of the project

management plan that describes how project communications will be planned,
structured, monitored, and controlled.
9. Manage Communications is process of creating, collecting, distributing,
storing, retrieving and the ultimate disposition of project information in accordance
to the communication management plan.
10. Techniques and considerations for effective communications management
include:
 1. Sender- Receiver Models
2. Choice of Media
3. Writing Style
4. Meeting Management Techniques
5. Presentation Techniques
6. Facilitation Techniques
7. Listening Techniques

11. Performance reporting is the act of collecting and distributing performance

information, including status reports, progress measurements, and forecasts.
12. The project management plan provides information on project baselines,
communications management, and stakeholder management.
13. PMB –Performance Measurement Baseline – It is an approved plan for the
project work to which the project work is compared, and deviations are measured
for management control.
14. Control communications is the process of monitoring and controlling
communications throughout the entire project lifecycle to ensure the information
needs of the project stakeholders are met.

This post is about my preparation I did for successfully clearing my PMP exam.
While preparing for the exam I jotted down some important points from all the
chapters that helped me in quickly summarizing. The points presented in the notes
are important from my perspective and might differ as per your understanding of
the subject, however this can be used as a reference.
Topic covered in Part 7 : Project Risk Management

Project Risk Management

1. Product risk management includes the process of conducting management

planning, identification, analysis, response planning, and controlling risk on a
project.
2. Project risk is an uncertain event or condition that, if it occurs, has a positive
or negative effect on one or more project objectives such as scope, schedule, cost,
and quality.
3. Known risks are those that have been identified and analyzed, making it
possible to plan responses for those risks.
4. Known risk that cannot be managed proactively, should be assigned a
contingency reserve.
5. Unknown risk cannot be managed proactively and therefore may be assigned
a management reserve.
6. Overall project risk represents the effect of uncertainty on the project as a
whole.
7. The risk attitude of both the organization and the stakeholders may be
influenced by a number of factors, which are broadly classified into three themes:
 1. Risk Appetite
2. Risk Tolerance
3. Risk Threshold

8. Positive and Negative risks are commonly referred to as opportunities and

threats respectively.

9. Risk response reflect an organization's perceived balance between risk taking

and risk avoidance.
10. Plan Risks Management is the process of defining how to conduct risk
management activities for a project.
11. Analytical techniques are used to understand and define the overall risk
management context of the project.
12. Risk Management Context is a combination of stakeholder risk attitudes and
the strategic risk exposure of a given project based on the overall project context.
13. Risk categories provides a mean for grouping potential causes of risk.
14. Probability and impact matrix is a grid for mapping the probability of each
risk occurrence and its impact on project objectives if that risk occurs.
15. Identify risks is the process of determining which risks may affect the project
and documenting their characteristics.
16. Identify risks is an iterative process, because new risk may evolve or become
knowns as the project progresses through its lifecycle.
17. Risk attitudes is an Enterprise Environmental Factor.
18. Delphi technique is a way to reach a consensus of experts.
19. SWOT technique examines the project from each of the strengths, weakness,
opportunities, and threats (SWOT) perspectives to increase the breadth of
identified risks by including internally generated risk.
20. The primary output from Identify Risks is the initial entry into the risk
register.
21. Risk register is a document in which the results of risk analysis and risk
response planning are recorded.
22. Perform Qualitative Risk Analysis is the process of prioritizing risks for
further analysis or action by assessing and combining their probability of
occurrence and impact.
23. Perform Quantitative Risk Analysis is the process of numerically analyzing
the effect of identified risks on overall project objectives.
24. Most commonly used Modeling Techniques for Quantitative Risk Analysis
are:
 1. Sensitivity Analysis – Determines which risks have the most potential
impact on the project. (Ex. Tornado Diagram).
2. Expected Monetary value analysis (EMV) – EMV is a statistical concept
that calculates the average outcome when the future includes scenarios
that may or may not happen. EMV for a project is calculated by
multiplying the value of each possible outcome by its probability of
occurrence and adding the products together.
3. Modeling and Simulation – A project simulation uses a model that
translates the specified detailed uncertainties of the project into their
potential impact on project objectives.

25. Plan Risk Reponses is the process of developing options and actions to
enhance opportunities and to reduce threats to project objectives.
26. The four strategies for dealing with negative risks or threats are :

1. Avoid – Risk avoidance is a risk response strategy whereby the project

team acts to eliminate the threat or protect the project from its impact.
2. Transfer – Risk transference is a risk response strategy whereby project
team shifts the impact of threat to a third party, together with ownership
of the response.
3. Mitigate – Risk mitigation is a risk response strategy whereby the project
team acts to reduce the probability of occurrence or impact of a risk.
4. Accept – Risk acceptance is a risk response strategy whereby the project
team decides to acknowledge the risk and not take any action unless the
risk occurs.(Ex. Contingency Reserve)

27. Use of cost-plus contract transfers the cost risk to the buyer, wherein fixed-
price contract transfer the cost risk to the seller.
28. The four strategies for dealing with positive risks or opportunities are:

1. Exploit – The exploit strategy may be selected for risks with positive
impacts where the organization wishes to ensure that the opportunity is
realized.
2. Enhance – The enhance strategy is used to increase the probability and/or
the positive impacts of an opportunity.
3. Share – Sharing a positive risk involves allocating some or all of the
ownership of the opportunity to third party who is best able to capture the
opportunity for the benefit of the project.
4. Accept – Accepting an opportunity is being willing to take advantage of
the opportunity if it arises, but not actively pursuing it.
29. Control Risks is the process of implementing Risk Response Plan, tracking
identified risks, monitoring residual risks, and evaluating risk processes
effectiveness throughout the project.
30. Risk audits examine and document the effectiveness of risk responses in
dealing with identified risks and their root causes, as well as effectiveness of the
risk management process.
31. Reserve analysis compares the amount of the contingency reserves remaining
to the amount of risk remaining at any time in the project in order to determine if
the remaining reserve is adequate.
32. Recommended corrective actions are activities that realign the performance of
the project work with the project management plan.
33. Recommended preventive actions are activities that ensure that future
performance of the project work is aligned with the project management plan.

Project Procurement Management

1. Project procurement management includes processes necessary to purchase

or acquire products, services, or results needed from outside the project team.
2. A contract is a mutually binding legal agreement that obligates the seller to
provide the specified products, services, or results, and obligates the buyer to
compensate the seller.
3. Plan procurement management is the process of documenting project
procurement decisions, specifying the approach, and identifying potential sellers.
4. Types of legal contractual relationships are:

1. Fixed-price contracts – This category of contract involves setting a fixed

total price for a defined product, service, or result to be provided.
o
1. Firm Fixed price Contracts (FFP) – In this contract
the price of goods is set at the outset and not subject to
change rules unless the scope of work changes. It is
favored by buying organizations.
2. Fixed Price Incentive Fee Contracts (FPIF) – This
fixed-price arrangement gives the buyer and seller some
flexibility in that it allows for deviation from
 performance, with financial incentives tied to achieving
agreed upon metrics.
3. Fixed Price with Economic Price Adjustment
Contracts (FP-EPA) – This contract is used whenever
the seller's performance period spans a considerable
period of years, as is desired with many long-term
relationships. This contract protects the buyer and seller
from external conditions beyond their control.
2. Cost-reimbursable contracts – This category of contract involves
payments (cost reimbursements) to the seller for all legitimate actual costs
incurred for completed work, plus a fee representing seller profit.
o
1. Cost Plus Fixed Fee Contracts (CPFF) – The seller is
reimbursed for all allowable costs for performing the
contract work, and receives a fixed-fee payment
calculated as a percentage of the initial estimated
project costs
2. Cost Plus Incentive Fee Contracts (CPIF) – The seller
is reimbursed for all allowable costs for performing the
contract work, and receives a predetermined incentive
fee based upon achieving certain performance
objectives as set forth in the contract.
3. Cost Plus Award Fee Contracts (CPAF) – The seller is
reimbursed for all legitimate costs, but the majority of
the fee is earned only based on the satisfaction of
certain broad subjective performance criteria defined
and incorporated into the contract.
3. Time and Material Contracts – Time and Material contracts are a
hybrid type of contractual arrangement that contain aspects of both cost-
reimbursable and fixed-price contracts.

5. A make-or-buy analysis is a general arrangement technique used to

determine whether particular can be accomplished by the project team or should be
purchased from outside resources.

6. Procurement Statement of Work (P-SOW) – The statement of work for each

procurement is developed from the project scope baseline and defines only that
portion of the project scope that is to be included within the related contract.
7. Procurement documents are used to solicit proposals from prospective
sellers.
8. Conduct procurements is the process of obtaining seller responses, selecting
a seller, and awarding a contract.
9. Factors influencing make-or-buy decision are:

1. Core capabilities of the organization,

2. Value delivered by vendors meeting the need,
3. Risks associated with meeting the need in a cost-effective manner, and
4. Capability internally compared with the vendor community.

10. P-SOW provides supplier with a clearly stated set of goals, requirements, and
outcomes for which they can provide a quantifiable response.
11. The project manager may not be the lead negotiator on procurements.
12. Final approval of all complex, high-value, high-risk procurements will
generally require organizational senior management approval prior to award.
13. Alternative Dispute Resolution (ADR) – It is a mechanism to resolve disputes
between buyer and seller.
14. Control procurements is a process of managing procurement relationships,
monitoring contract performance, and making changes and corrections to contracts
as appropriate.
15. Agreements can be amended at any time prior to contract closure by mutual
consent, in accordance with the change control terms of the agreement.
16. A contract change control system defines the process by which the
procurement can be modified. It is integrated with the integrated change control
system.
17. A procurement performance review is a structured review of the seller's
progress to deliver project scope and quality, within cost and on schedule, as
compared to the contract.
18. Claims Administration - Contested changes and potential constructive
changes are those requested changes where the buyer or seller cannot reach an
agreement on compensation or cannot agree that change has occurred. These
contested changes are variously called claims, disputes, or appeals. They are
documented, processed, monitored, and managed throughout the contract life
cycle, usually in accordance with the terms of the contract.
19. Settlement of all claims and disputes through negotiation is the preferred
method.
20. A records management system is used by the project manager to manage
contract and procurement documentation and records.
21. Close procurements is the process of completing each procurement.
22. The close procurements process also involves administrative activities such as
finalizing open claims, updating records to reflect final results, and archiving such
information for future use.
23. A procurement audit is a structured review of the procurement process
originating from Plan Procurement Management process through control
procurements.
24. Procurement file is a complete set of indexed contract documentation,
including the closed contract, is prepared for inclusion with the final project files.

Project Stakeholder Management

1. Project stakeholder management includes the processes required to identify

the people, groups, or organizations that could impact or be impacted by the
project, to analyze stakeholder expectations and their impact on the project, and to
develop appropriate management strategies for effectively engaging stakeholders
in project decisions and execution.
2. Identify stakeholders is the process of identifying the people, groups, or
organizations that could impact or be impacted by a decision, activity, or outcome
of the project, analyzing and documenting relevant information regarding their
interests, involvement, inter-dependencies, influence, and potential impact on
project success.
3. Stakeholder analysis is a technique of systematically gathering and analyzing
quantitative and qualitative information to determine whose interests should be
taken into account throughout the project.
4. Steps to be followed for stakeholder analysis are:

1. Identify all potential project stakeholders and relevant information.

2. Analyze the potential impact or support each stakeholder could generate.
3. Assess how key stakeholders are likely to react and respond in various
situations.

5. Various classification models used for stakeholder analysis are:

 1. Power / Interest grid – based on level of authority and level of concern
2. Power / Influence grid – based on level of authority and their active
involvement
3. Influence / Impact grid – based on active involvement and their ability to
effect changes
4. Salience Model – based on their power , urgency and legitimacy

6. Plan stakeholder management is the process of developing appropriate

management strategies to effectively engage stakeholders throughout the project
lifecycle, based on the analysis of their needs, interests, and potential impact on
project success.
7. The engagement level of the stakeholders can be classified as follows:

1. Unaware – Unaware of project and potential impacts

2. Resistant – Aware of project and potential impacts and resistant to change
3. Neutral – Aware of project yet neither supportive nor resistant
4. Supportive – Aware of project and potential impacts and supportive to
change
5. Leading – Aware of project and potential impacts and actively engaged in
ensuring the project is a success

8. Manage stakeholder engagement is the process of communicating and

working with stakeholders to meet their needs/expectations, address issues as they
occur, and foster appropriate stakeholder engagement in project activities
throughout the project life cycle.
9. The ability of stakeholders to influence the project is typically highest during
the initial stages and gets progressively lower as the project progresses.
10. A change log is used to document changes that occur during a project.
11. Interpersonal skills to be applied by project manager to manage stakeholders
are:

1. Building trust
2. Resolving conflict
3. Active listening
4. Overcoming resistance to change

12. Control stakeholder engagement is the process of monitoring overall project

stakeholder relationships and adjusting strategies and plans for engaging
stakeholders.
13. Data are often viewed as the lowest level of abstraction from which
information is derived by other processes.