Hot Topics - Flashcards For Passing the PMP and CAPM Exams

Flashcards For Passing thePMf>® and CAPM®Exams

Fifth Edition

RMC Publications, Inc.

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Table of Contents

Introduction 3

How To Use This Book 5

About Us 6

RMC Products 7Framework 9Integration 43Scope 87

Time 127

Cost 193Quality 263Human Resources 353Communications 403Risk 443

Procurement 517Professional and Social Responsibility

How To Use This Book: Thisbook has been updated for thePMBOK® Guide - Third Edition,designed as a portable reference to theHot Topics on the PMP and CAPMexams, to be used to improve testtaking speed and information recall.Note that the Professional and SocialResponsibility chapter is not coveredin the CAPM exam.

Read the front of each page and see ifyou can recall the items on the back ofthe page and know what they mean. Ifstudying for the PMP exam, HotTopics you are unfamiliar with shouldbe reviewed in the book PMP ExamPrep, 5th Edition and the PMBOK®Guide. An audio version of Hot Topicsis also available on CD-ROM.

About UsRita Mulcahy, PMP,is an internationallyrecognized expertin projectmanagement and asought afterspeaker, trainer and author. She hassix project management books andproducts to her credit, and was aContributor and Reviewer to thePMBOK® Guide - Third Edition.Rita has spoken at PMI's annualproject management symposium tostanding room only crowds and hasbeen asked to present encores for anunheard of four years!RMC Project Management, Inc.provides Tricks of the Trade" forproject management, PMP examprep and advanced projectmanagement training.

See us at www.rmcproject.com.

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What is the definition of aproject?

• Temporary

• Unique

• Progressivelyelaborated

See the Framework Chapter

What is the definition of aprogram?

A group of interrelatedprojects, managed in acoordinated way

What is a product lifecycle?

The cycle of a product'slife from conception towithdrawal

What is a project lifecycle?

What you need to do toDO the work

It varies by industry andtype of project

What is the projectmanagement process?

What you need to do toMANAGE the work

• Initiating

• Planning

• Executing

• Monitoring andcontrolling

• Closing

What is a projectmanagement office?

A department thatcentralizes themanagement of projects

The PMO providestemplates and guidelines,shares lessons learnedbetween projects and isrepresented on the changecontrol board

- - - -What is a constraint?

Anything that limits theteam's options

These include:

• Imposed milestone dates

• Cash flow requirements

• Resources available

What are the componentsof the "triple constraint"?

What is it used for?

• Cost

• Time

• Scope

• Quality

• Risk

• Customer satisfaction

It is used to help evaluatecompeting demandsSee the Framework Chapter

Who are stakeholders?

Anyone whose interests maybe positively or negativelyimpacted by the project,including:

• Project manager• Customer• Sponsor• Performing organization• Team• Funding sources• End user• Society• PMO

What should we do withstakeholders?

• Identify all stakeholders

• Determine all of theirrequirements

• Determine all of theirexpectations

• Communicate with them

• Manage their influence

- - - - --- --- - "'-" - -What are three primaryforms of organization?

• Functional

• Projectized

• Matrix

What is a functionalorganization?

The company isgrouped by areas ofspecialization (e.g.,accounting, marketing)

- - .--.. .--.. .--.. .--.. - - - -What is a proj ectizedorganization?

The company is groupedby project

The team has nodepartment to go to atproject end

The project manager hastotal control of theresources

What is a matrixorganization?

A blend of functional andprojectized organizationwhere the team membershave two bosses

- - - - - - ~ - - -What is a strong matrixorganization?

A matrix organizationwhere the balance ofpower rests with theproject manager instead ofthe functional manager

What is a weak matrixorganization?

A matrix organizationwhere the balance of powerrests with the functionalmanager instead of theproject manager

Project management rolesinclude:

• Project expediter

• Project coordinator

What is a balanced matrixorganization?

An organization wherepower is equally balancedbetween project managersand functional managers

This is the preferred formof matrix

What is the process ofintegration management?

• Develop projectcharter

• Develop preliminaryproject scope statement

• Develop projectmanagement plan

• Direct and manageproject execution

• Monitor and controlproject work

• Integrated changecontrol

• Close project

See the Integration Chapter

What are the methods toselect a project?

• Benefit measurement(comparative)

• Constrainedoptimization(mathematical)

What is develop projectmanagement plan?

What is its output?

The process of creating aproject management planthat is bought into,approved, realistic andformal

Output: The projectmanagement plan

What is the preliminaryproject scope statement?

Created with input from thesponsor, it is the firstattempt to determine theproject scope

What must be done toaccomplish the projectobjectives

What are key outputs ofdirect and manage projectexecution?

• Deliverables

• Requested changes

• Implemented changerequests, correctiveand preventive actionsand defect repair

What are key outputs ofmonitor and controlproject work?

• Recommendedcorrective actions,preventive actions anddefect repair

• Forecasts

What are key outputs ofintegrated change control?

• Approved changerequests, correctiveactions, preventiveactions and defectrepair

• Rejected changerequests

• Validated defect repair

• Deliverables

What are key outputs of closeproject?

• Administrative and contractclosure procedures

• Final product

• Formal acceptance

• Project files

• Project closure documents

• Organizational processassets updates

Explain the projectmanager's role asintegrator.

Making sure all the piecesof the project are properlycoordinated and puttogether into one cohesivewhole

What are baselines?

Parts of project managementplan used to measureperformance against

Includes:

• Schedule baseline• Scope baseline• Cost baseline• Quality baseline• Performance measurement

baselines

Can change with approvedchanges

What is the proj ectstatement of work?

Describes need, productscope and how project fitsinto the strategic plan

Created by thecustomer/sponsor prior to thebeginning of the project

Is later refined into thepreliminary and project scopestatementsSee the Integration Chapter

What is a workauthorization system?

A formal procedure forsanctioning project workto ensure work is done atthe right time, and in theproper sequence

- - - - - - - - - -What is configurationmanagement?

Making sure everyoneknows what version of thescope, schedule and othercomponents of the projectmanagement plan are thelatest versions

- - - - - - - - - -What is a change controlsystem?

A system of formalprocedures, set up in advance,defining how projectdeliverables anddocumentation are controlled,changed and approved

- - - - - - - - - -What are enterpriseenvironmental factors?

When are they used?

Company culture andexisting systems that theproject will have to dealwith or can make use of

Used throughout theproject managementprocess

What are organizationalprocess assets?

When are they used?

• Company processes andprocedures

• Historical information

• Lessons learned

Used throughout theproject managementprocess

What is historicalinformation?

Records of past projectsused to plan and managefuture projects

Records of current projectto become part oforganizational processassets

What is a projectmanagement informationsystem?

The manual andautomated system tosubmit and track changes,and monitor and controlproject activities

-- -- -- -- -- - -- - - -What is a change controlboard?

Who may be on it?

A group of people thatapproves or rejectschanges

May include:

• Project manager

• Customer

• Outside experts

• Sponsor

• Others

What are change requests?

When are they approved?

Fonnal requests to changeparts of the project afterthe project managementplan is approved

They are approved inintegrated change control

- - - - - - - - - -What are preventive actions?

Actions taken to deal withanticipated or possibledeviations from theperformance baselines

- - - - - - - ~ ~ ~

What are corrective actions?

Actions taken to bringexpected future projectperformance in line withthe project managementplan

- - - - - - - - - -What is a project charter?

How does it help the project?

A document issued by thesponsor during projectinitiating that:

• Formally recognizesthe existence of theproject

• Gives the projectmanager authority

• Documents thebusiness need,justification, customerrequirements and theproduct or service tosatisfy thoserequirements

See the Scope Chapter

What is the process ofscope management?

• Scope planning

• Scope definition

• Create WBS

• Scope verification

• Scope control

- - - -- - --- ....." -- - -What is the key output ofscope planning?

Project scope managementplan

What are the key outputsof scope definition?

• Project scopestatement

- - - - .......... - .......... .......... ......, -What are the key outputs ofcreate WBS?

• Workbreakdown structure(WBS)

• WBS dictionary

• Scope baseline

What are the key outputsof scope verification?

• Customer formalacceptance of projectdeliverables

........... ........... - - - - - - - -What are the key outputsof scope control?

• Accepted deliverables

• Recommendedcorrective actions

What is the definition ofscope management?

• Doing all the work,and only the work,included in the project

• Determining if work isincluded in the projector not

- - - - - - - - - -What is a scopemanagement plan?

Part of the projectmanagement plan

A plan for how scope willbe planned, executed andcontrolled

What is a project scopestatement?

What are the key itemsincluded?

A written description ofthe project deliverablesand the work required tocreate those deliverables

It includes:• Project objectives• Product scope• Project requirements• Project boundaries• Project deliverables• Product acceptance

criteria• Project constraints and

assumptionsSee the Scope Chapter

-- - -Stakeholder analysis is partof which scope managementprocess?

Stakeholder analysis occursduring the process of scopedefinition.

Product analysis ispart of which scopemanagement process?

Product analysis occursduring the process ofscope definition.

- -- -- - - - - - -- --What is a work breakdownstructure (WBS)?

What is it used for inplanning?

Created during proj ectplanning by the team andused to define ordecompose the proj ect intosmaller, more manageablepieces

Used to help determineproj ect staffing,estimating, scheduling andrisk management

What do work breakdownstructures show?

• Hierarchy

• Interrelationships

• Work packages

• Control account

• Numbering system

- - - - - - - - - -What is scopedecomposition?

Subdividing the majordeliverables into smaller,more manageablecomponents

~ ~ ........ - - ........ - ......" - -What is a WBSdictionary?

A description of the workto be done for each workpackage

- - - - - - - - - -How are work packagesdifferent from activities?

Activities are generatedfrom each work package

Work packages are shownin a WBS

Activities are shown in anactivity list and networkdiagram

- - - - - - - - - -What is scopeverifi cation?

When is it done?

The process of formalizingacceptance of the projectscope by thestakeholders/customer

It is done during projectmonitoring and controllingand at the end of eachphase of the project lifecycle

- --- - _. -~ "'-- - '''-- -What is the differencebetween product scopeand project scope?

Product scope isrequirements

Project scope is the projectmanagement work neededto accomplish the productscope

........................ _-'----""--"-What makes up the scopebaseline?

• Scope statement

• WBS

• WBS dictionary

What is the process oftime management?

• Schedule managementplanning

• Activity definition

• Activity sequencing

• Activity resourceestimating

• Activity durationestimating

• Schedule development

• Schedule controlSee the Time Chapter

What is the key output ofschedule managementplanning?

A schedule managementplan

See the Time Chapter

What is the key output ofactivity definition?

Activity list

- - - - - - - - ....." -What is the key output ofactivity sequencing?

Network diagram

- - - "'- - - - - ......" -What is the key output ofactivity resourceestimating?

Activity resourcerequirements

- - - - - - - - - -What is the key output ofactivity durationestimating?

Activity duration estimates

- - - - - - - - - -What is scheduledevelopment?

What are its key outputs?

The actions and toolsnecessary to create abought into, approved,realistic and formal projectschedule

Outputs:

• Project schedule

• Schedule baseline

---------'-----

What are key outputs ofschedule control?

• Schedule updates

• Performancemeasurements

~ -- -- -- -- -- - -- - --

How is an AOA diagramdifferent from a AONdiagram?

An AOA diagram has onlyfinish-to-start relationships

An AON diagram can havefour relationships betweenactivities

- - --- - - - - - - ~

What are mandatorydependencies anddiscretionarydependencies?

Mandatory: One activityMUST be done after orbefore anotherMay also be called hardlogicDiscretionary: When youPREFER activities to beaccomplished in a certainorderMay also be called:

• Preferred• Preferential• Soft logic

- - -- - - --- --- --- --- ....."

What are externaldependencies?

Based on the needs of aparty OUTSIDE theproject

What is a resourcebreakdown structure?

A hierarchical list of identifiedresources by category

What is a schedule model?

Why is it used?

A tool to perform schedulenetwork analysis

----------

What is the critical path?

How does it help theproject?

The longest path in thenetwork diagram that tellsyou the shortest time inwhich the project can becompleted

Tells the project managerwhere to focus his time

Helps to shorten the lengthof the project

- - - - - - -- -- -- -What is the near-criticalpath?

The path closest in lengthto the critical path

- - - - - - -Define lag.

Waiting time inserted intothe schedule

Define total float and theformula for total float.

The amount of time anactivity can be delayedwithout delaying theproject

Formula:

Late start - Early startORLate finish - Early finish

Define free float andproject float.

Free Float: The amount oftime an activity can bedelayed without delaying theearly start date of itssuccessor

Project Float: The amount oftime the project can bedelayed without affecting aproject's required due date

The desired project end dateless the actual end date.

- - - - - - - -.-. ......, ......,

What are the methods tocompress a schedule?

• Crashing

• Fast tracking

• Re-estimating

- - ""-" - ""-" - ""-" - ""-" ""-"

What is crashing?

Schedule compressionthrough analyzing cost andschedule trade-offs toobtain the greatestcompression for the leastcost while maintainingscope

- - - - - - - - - -What is fast tracking?

Schedule compression bydoing more critical pathactivities in parallel

~ ~ - - - - - - - ......"

What is the critical chainmethod?

A schedule networkanalysis tool that makesuse of buffers

""--'" ""--'" ""--'" ""--'" ""--'" - - - - -What is re-estimating?

Decreasing project and/oractivity cost byeliminating the risks inactivities

- - - - - - - - - -What is resource leveling?

Keeping the amount ofresources used for eachtime period constant, thusaffecting the projectduration

What is a schedulemanagement plan?

A plan for how theschedule will be planned,executed and controlled

What is the schedulebaseline?

Approved schedule withany approved changes, usedto measure project scheduleperformance

What are the main toolsfor displaying a schedule?

• Network diagrams

• Bar charts

• Milestone charts

• Flowcharts

- - - - - - ......."" ......."" ......."" -What do networkdiagrams show?

• Interdependenciesbetween activities

• How project activitieswill flow frombeginning to end

• When estimates areadded

• May also be used tofind the critical path

What do simple bar chartsshow?

Project schedule or projectstatus

What do milestone chartsshow?

High-level project status

What do flowcharts show?

Work flow or process flowthrough a system

What is a Monte Carloanalysis?

A schedule networkanalysis technique

Used to simulate theproject to determine howlikely you are to get theproject completed by anyspecific date or for anyspecific cost

Also used in quantitativerisk analysis to determinean overall level of risk onthe project

- - - - - --- - - --- -What are the followingrules?

50/50 rule

20/80 rule

0/100 rule

Methods of progressreporting

50 percent of the effort isreported complete (20percent or 0 percent) whenan activity begins

The balance (50 percent,80 percent or 100 percent)is recorded only when anactivity is finished

--' - -- - - - - -What is the process of costmanagement?

• Cost managementplanning

• Cost estimating

• Cost budgeting

• Cost control

See the Cost Chapter

What is a key output ofcost managementplanning?

Cost management plan

What are key outputs ofcost estimating?

• Activity cost estimates

What are key outputs ofcost budgeting?

• Cost baseline

• Funding requirements

~ ~ ~ - - - - - - -What are key outputs ofcost control?

• Performancemeasurements

• Forecasted completion

N arne some inputs toestimating.

• Project scope statement• Work breakdown

structure• Network diagram• Schedule and

management plan• Enterprise

environmental factors• Organizational process

assets• Resource pool• Project management

effort• Risk management plan

and register• Project objectives

- - - -- -- - - - ....." ....."

What is a costmanagement plan?

How cost will be planned,executed and controlled

What are the mainapproaches to cost orschedule estimating?

• Analogous estimating

• Bottom-up estimating(cost only)

• Parametric estimating

• Three-point estimates

• One-time estimates

- - - - - - - - - -What is analogousestimating?

Top-down estimating thatlooks at the past to predictthe future

"The last three projectscost $25,000, or took sixmonths, and so should thisone"

- _._"--_ .......... _-What is bottom-upestimating?

Estimating based on thedetails of the project, e.g.,from the bottom of thework breakdown structure

What is parametricestimating?

Extrapolating fromhistorical information toestimate costs, e.g., costper line of code, hours perinstallation

What is earned valueanalysis?

A method of measuringproject performance thatlooks at the value earnedfor work accomplished

Can be used to predictfuture cost performanceand project completiondates

What is the range for anorder of magnitudeestimate?

-50 percent to +100percent from actual

What is the differencebetween a cost budget anda cost baseline?

Cost budget addsmanagement reserve tothe cost baseline

What is the formula forcost variance?

EY -AC=CY

What is the formula forschedule variance?

EV - PV= SV

- - - - - - - - - -What is the formula forcost performance index?

EV / AC = CPI

- - - - - - - - --- -What is the formula forschedule performanceindex?

EV / PV = SPI

-'-------"What are the formulas forestimate at completion?

• BAC / CPI = EACor

• AC + ETC

• AC + BAC - EV

• AC + (BAC - EV)CPI

- - - - - - - - -....- ...,.

What is the formula forestimate to complete?

EAC -AC = ETC

- - - - - - - - - ......,

What is the formula forvariance at completion?

BAC - EAC = VAC

-- -- - - - - - - - -Define present value.

The value today of futurecash flows

PV= FV(1 + r)n

- - - - - - - - - -Define net present value.

The value in today'sdollars of some futurecosts and expenses

For cost, the lower thenumber the better

For revenue, the higher thenumber the better

... WI' WI' WI' ...

- - - - - - - - - -Define internal rate ofreturn.

The rate an investment inthe project will return

The higher the number thebetter

The rate at which aproject's inflows andoutflows are equal

- - - - - - - - - -Define payback period.

The number of timeperiods to recover theinvestment

A lower number is betterthan a higher one

- - - - - - - - - -Define benefit cost ratio.

BenefitCost

The higher the number thebetter

--'--'-""'-'- - - - -Define opportunity cost.

The opportunity given upby selecting one projectover another

- --- - - - - - - ....., -What are sunk costs?

Expended costs

Define the law ofdiminishing returns.

The more you put into theeffort, the less you get outof it

- - - - - - - - - -Define working capital.

Current assets minuscurrent liabilities

The amount of fundsavailable to spend onprojects

--- - - - - - - - -- -Describe a variable costand a fixed costchargeable to the project.

Variable Cost: A cost thatvaries with the amount ofwork done on the project

Fixed Cost: A cost thatdoes not vary with theamount of work done onthe project

- ~ ~ - - --- - - - -Describe a direct cost andan indirect cost chargeableto the project.

Direct Cost: A costdirectly attributable to theproject

Indirect Cost: Overhead

- - - - - - - - - -What are different types ofdepreciation?

Straight LineDepreciation: Depreciatesame amount each timeperiod

Accelerated Depreciation:Depreciate an amountgreater than straight lineeach time period

- - - - - - - - - -What does life cyclecosting mean?

Considering the futurecost of operating andmaintaining the project ordeliverable over its lifewhen planning andmanaging the project

- - - - - - - - - -What is value analysis?

Finding a less costly wayof doing essentially thesame work

---'--------What is the process ofquality management?

• Quality planning

• Quality assurance

• Quality control

See the Quality Chapter

- - - - - -- - - - --What are key outputs ofquality planning?

• Quality managementplan

• Quality metrics

• Quality baseline

• Process improvementplan

What are key outputs ofperform quality assurance?

What are key outputs ofperform quality control?

• Quality controlmeasurements

• Validated defect repair

• Recommendedcorrective andpreventive actions anddefect repair

-.-... -.-... - - - - - - - -What does gold platingmean?

Adding extra items andservices that do notnecessarily contributeadded value or quality tocustomer deliverables

What is marginal analysis?

An analysis to determinewhen optimal quality isreached

An analysis to determinethe point whereincremental revenue fromimprovement equals theincremental cost to secureit

- - - - - - - - - -What is a qualitymanagement plan?

A plan for how the projectmanagement team willimplement the performingorganization's qualitypolicy

- - - - - - - - - -What is a processimprovement plan?

A plan for analyzingprocesses used on theproject to decreasedefects, save time andmoney and increasecustomer satisfaction

- - - - - - - - - -What is the qualitybaseline?

What is it used for?

The project's qualityobjectives

One of the baselines usedto measure performanceagainst

-_._------....-._----What are quality metrics?

Specific measures ofquality to be used on theproject in qualityassurance and qualitycontrol

"----------What does continuousimprovement mean?

The never-endingenhancement of aproduct/service throughsmall, continuousenhancements

~ -- -- -- - - - - - -How much inventory ismaintained in a just intime environment?

How does this affectattention to quality?

Little inventory ismaintained

It forces attention toquality

........... _-----

What does ISO 9000stand for?

- -..-'

One of the InternationalOrganization forStandardization (ISO)international qualitystandards that asks, "Doyou have a qualitystandard, and are youfollowing it?"

-- -- - - - -- - - - -What is the definition oftotal quality management?

A comprehensivemanagement philosophyof encouraging the findingof ways to continuouslyimprove the quality ofbusiness practices,products or services

- - - - - --- - '- - -What does the phraseprevention over inspectionmean?

The cost of avoiding orpreventing mistakes isalways much less than thecost of correcting them

- - - - - - --- - --- -What does mutuallyexclusive mean?

Two events that cannotoccur in a single trial

For example, you can'troll a 5 and a 6 on one die

- - - - - - - - - -What does statisticalindependence mean?

The probability of "B"occurring does not dependon "A" occurring

For example, the outcomeof a second dice roll is notinfluenced by (dependenton) the outcome of thefirst roll

- - - - - - - - - -What is a normaldistribution curve?

Symmetric bell-shapedfrequency distributioncurve

The most commonprobability distribution

"- - -- .- -------

What do three sigma andsix sigma refer to?

Often used as qualitystandards.Three Sigma: +/- Threestandard deviations fromthe distribution meanunder which 99.73% of allitems are acceptable

Six Sigma: +/- Sixstandard deviations fromthe mean under which99.999998% of all itemsare acceptableA higher quality standardthan three sigmaSee the Quality Chapter

--- --- - - --- - - - - -What is the differencebetween a population anda sample?

Population: The totalnumber of individualmembers, items orelements comprising auniquely defined group

For example: All women

Sample: A subset ofpopulation members

For example: Women overthe age of 30 in England

"-'" -- -- -- -- - - - - -Who has responsibility forquality on a project?

The project manager isultimately responsible, butthe team members mustinspect their own work

What are the impacts ofpoor quality?

• Higher costs

• Increased rework

• Lower morale

• Lower customersatisfaction

• Increased risk

........................

- - - - - - - - - -Name costs ofconformance and costs ofnonconformance.

Which costs should begreater?

What does cost ofnonconformance mean?

Provide examples.

Costs of conformance:• Quality training• Studies• Surveys

The costs of conformanceshould be less than thecosts of nonconformance.Costs of nonconformance:

• Rework• Scrap• Inventory costs• Warranty costs

Costs of nonconformanceare associated with poorquality.See the Quality Chapter

- - - - - - - - - -What is the purpose ofquality planning?

• Find existing qualitystandards andprocesses

• Create additionalproject specificprocesses andstandards

• Determine what workyou will do to meetthose standards

• Determine how youwill measure

• Create quality plan

- - - - - - - - - -Name some of the toolsused in quality planning.

• Benchmarking

• Cost-benefit analysis

• Design of experiments

• Cost of quality

- - - - - - - - - -Define benchmarking.

Comparing your companyor department'sperformance to those ofother companies

-- -- --

Define cost-benefitanalysis.

Comparing the costs of aneffort to the benefits ofthat effort

~ - -- - - - - - - -What is a design ofexperiments?

A statistical method forchanging importantvariables to determinewhat combination willimprove overall quality

What is the purpose ofquality assurance?

• Making sure allprocesses are used onthe project andperforming continuousprocess improvement

• Determine if activitiescomply with processes

• Continuousimprovement

• Identify improvementsthe company needs tomake

• Recommend changes

What are some of theactivities in qualityassurance?

• Process analysis

• Quality audits

~ ~ ~ - - ~ - - - -What are quality audits?

Structured reviews ofquality activities thatidentify lessons learned

What is the purpose ofquality control?

• Measure specificproj ect results againstquality standards

• Make changes toquality baseline

• Identify root causesand qualityimprovements

• Recommend correctiveand preventive actions,changes, and defectrepair

• Validate deliverables

Name the quality controltools.

• Cause and effectdiagram

• Flowchart

• Histogram

• Pareto chart

• Run chart

• Scatter diagram

• Control chart

---.... - - - - - - - - ....",

What is defect repair?

Rework when a componentof the project does not meetspecifications

Discovered during qualitycontrol, formed into changerequests during monitor andcontrol project work, andapproved or rejected duringintegrated change control

- - - ------

What is a cause and effect(fishbone) diagram?

Why is it used?

Creative way to look atthe causes or potentialcauses of a problem

Used to explore the futureor the past

Also called a fishbone orIshikawa diagram

Maybe used in qualityplanning or control

- -- -- -- --What is a checklist?

A list of items to inspector a picture of an item thatis marked to showlocations of defects foundduring inspection

- -- -- -- -- -- -- -- - "-""

What does a Pareto chartshow?

Why is it used?

Graphically prioritizescauses of processproblems (by frequency ofoccurrence) to help focusattention on the mostcritical issues affectingquality

- - - - - - - - - -What is the 80/20 rule?

80 percent of processproblems are caused by 20percent of the causes

- - - - - - - - - -What is statisticalsampling?

Inspecting by choosingonly part of a population(a sample) to test

- - - - - - - - - -What is a control chart?

Specialized trend chartdocumenting whether ameasured process is in orout of statistical control

......... ......... - - - - - - - -What are control limits?

The acceptable range ofvariation on a controlchart

- - - - - - - - - -What are the specificationlimits on a control chart?

Customer's measuresdefining acceptableproduct/servicecharacteristics andtolerances

- - - - - - - - - -What does out of controlmean?

The process is performingneither consistently norpredictably, due to theexistence of assignablecauses

What does the rule ofseven mean?

Seven consecutive datapoints appearing on acontrol chart on one sideof the mean, suggestingthat the process is out ofstatistical control

What is a special cause?

A data point on a controlchart or rule of sevenindicating that themeasured process is out ofstatistical control and thatthe cause(s) of the eventmust be investigated

- -- -- -- - - - -- - -What is the process ofhuman resourcemanagement?

• Human resourceplanning

• Acquire project team

• Develop project team

• Manage project team

See the Human Resources Chapter

-- -- -- --- --- --- - -- - '-'"

What are key outputs ofhuman resource planning?

• Roles andresponsibilities

• Staffing managementplan

• Project organizationalchart

- - - - - - - - - ----

What are key outputs ofacquire project team?

• Project staff (team)assignment

• Resource availability

- - - - - - - - -- --What is a key output ofdevelop project team?

Team performanceassessment: Evaluatingteam effectiveness

- - - - - - - - - -What are key outputs ofmanage project team?

• Recommendedpreventive andcorrective actions

- - - - - - - - - -Describe the roles andresponsibilities of all thepeople involved in aproject.

This topic cannot besummarized here, but it iscritical to understand whodoes what on the exam.

See the Human ResourcesChapter in PMP Exam Prepfor more on this topic.

- - - - - - - - - -

Define sponsor.

• Provides informationfor preliminary projectscope statement

• Issues the charter

• Provides funding

• May dictate dates

• Approves projectmanagement plan

• Agrees to the changecontrol board

• Is involved in risk

-- - -- --Describe the team's role.

• Create the workbreakdown structureand help with projectmanagement planning

• Estimate activities

• Complete activities

• Help control and closeout the project

• Held accountable forassigned activities

- -- -- -- - -- -- -- -- --Define the role of thestakeholders.

They may help:

• Plan the project

• Approve changes

• Identify constraints

• Perform the riskmanagement process

Define the role offunctional managers.

Resource managers:

• Participate in planning

• Approve final projectmanagement plan

• Approve final schedule

• Assist with problemsrelated to team memberperformance

---- ---- - - - - - - - -What are the key elementsin a staffing managementplan?

When and how humanresource requirementswill be met

• Recognition andrewards

• Staff acquisition

• Timetable

• Release criteria

• Training needs

What must a proj ectmanager do in order todevelop the project team?

• Hold team buildingactivities throughoutthe project life

• Obtain and providetraining where needed

• Establish ground rules

• Create and giverecognition andrewards

• Place team members inthe same location(co-location)

- - - - - - -

What must a projectmanager do to manage aproject team?

• Observe

• Use an issue log

• Keep in touch

• Complete projectperformance appraisals

• Actively look for andhelp resolve conflictsthat the team cannotresolve on their own

- - - - - - - - - -What is a teamperformance assessment?

An assessment by theproject manager ofproject teameffectiveness

- - - - - - - - - -Narne the powers of theproject manager.

• Formal

• Reward

• Penalty

• Expert

• Referent

- - - - - - - - - -Narne the differentleadership styles a projectmanager may choose touse.

• Directing

• Facilitating

• Coaching

• Supportive

• Autocratic

• Consultative

• Consensus

Name the most commonsources of conflict onprojects.

• Schedules

• Priorities

• Resources

• Technical opinions

NOT personalities

-- -- -- - - - - - -- -N arne conflict resolutiontechniques.

• Problem solving(confronting)

• Compromise

• Withdrawal(avoidance)

• Smoothing

• Forcing

- - - - - - - - - -Define problem solving.

Define compromising.

Problem Solving: Solvingthe real problem(Win-win)

Compromising: Makingall parties somewhathappy(Lose-lose)

- - - - - - - - - -Define withdrawal.

Define smoothing.

Define forcing.

Withdrawal: Postponing aproject decision oravoiding addressing theproblem

Smoothing: Emphasizingagreement rather thandifferences of opinion

Forcing: Do it my way

- - - - - - - - - -What are the projectmanager's human resourceresponsibilities?

• Create a team directory• Negotiate for best

resources• Create project-related

job descriptions forteam members

• Make sure teammembers obtainneeded training

• Create reward systems• Create a staffing

management plan

........ - - - ........ - - - - -What is a projectperformance appraisal?

An evaluation ofindividual team membereffectiveness

- - - - - - - - - -What is Maslow's theory?

People are motivatedaccording to hierarchy:

• Self-actualization

• Esteem

• Social

• Safety

• Physiological

- - - - - - - - - -What did McGregordescribe?

Theory X: Managers whoaccept this theory believethat people need to bewatched every second

Theory Y: Managers whoaccept this theory believethat people want toachieve and can workwithout supervision

-- -- --- - --What did Herzbergdescribe?

• Hygiene factors

• Motivating agents

- - - - -- - -- - - -Why is releasing resourcesthe last activity in closure?

The team and otherresources are needed tocomplete closure

See the Communications Chapter

- - - - - - - - --- -What is a kickoff meeting?

When does it occur?

A meeting of all parties tothe project (projectstakeholders, sellers, etc.) tomake sure everyone is "onthe same page"

It is held at the end of theplanning process group.

-- -- - - - - - -- - -What is the process ofcommunicationsmanagement?

• Communicationsplanning

• Informationdistribution

• Performance reporting

• Manage stakeholders

- - - - - - - - - -What is the key output ofcommunications planning?

Communicationsmanagement plan

- - - - - - - - - -What are key outputs ofinformation distribution?

• Team and stakeholdershave the informationthey need

- - - - - - - - - -

What are key outputs ofperformance reporting?

• Stakeholders knowhow the project isperforming

• Performance reports

• Forecasts

- - - - - - - - - -What are key outputs ofmanage stakeholders?

• Resolved issues

• Approved changerequests

• Approved correctiveactions

- - - - - - - - - -Define communicationsplanning.

Determining theinformation andcommunication needs ofstakeholders

- - - - "-What is a communicationsmanagement plan?

A formal plan thatdescribes what will becommunicated andreceived from whom,when, and how often

--- -- --- '-'" - - - ......", -

Describe the informationdistribution requirementson projects.

Implementing thecommunicationsmanagement plan

Creating reports including:

• Lessons learned• Performance reports

See the CommunicationsChapter in PMP Exam Prepfor more on this topic.

-- -- - -- -- -- -- -- -..-' -..-'

Describe thecommunications modeland its components.

Messages are encoded, transmitted and unencoded, andmust include attention to:

• Nonverbalcommunication

• Paralingual• Active listening• Effective listening• Feedback

- -- -- -- -- - -How much ofcommunication isnonverbal?

About 55 percent

- -- -- - - - - - - -What does paralingualmean?

Pitch and tone of voice

~ ~ - ~ - - - - - -Name communicationsmethods.

• Formal

• Informal

• Written

• Verbal

- - -------

How much time do projectmanagers spendcommunicating?

90 percent

'-"" -- -- -- -- -- - -- - -

Name communicationblockers.

• Noise

• Distance

• Improper encoding

• "That was a bad idea"

• Hostility

• Language

• Culture

------- -- -- -- -- --Describe the rules foreffective meetings.

• Set a time limit• Schedule in advance• Create an agenda with

team input• Distribute agenda in

advance• Lead meeting with a

set of rules

See the CommunicationsChapter in PMP Exam Prepfor more on this topic.

What is the formula forcommunication channels?

[N (N-I)] /2

- -- -- -- - - - ....."

What is an issue log?

Documents project issues,persons responsible forresolving issues and targetresolution dates

- -- -- - - -- - - -- -What are lessons learned?

What do we do withthem?

What went right, wrong,and could be donedifferently

Used in planning a projectand are generated by theproject to be used by otherprojects in the future

- - - - - - - - - -What is the process of riskmanagement?

• Risk managementplanning

• Risk identification

• Qualitative riskanalysis

• Quantitative riskanalysis

• Risk response planning

• Risk monitoring andcontrol

See the Risk Chapter

- ----- -- ------

What is the key output ofrisk managementplanning?

Risk management plan

- - - - - --- - - - -What are key outputs ofrisk identification?

• Risks

• Risk register

- - - - - - - - - -What are key outputs ofqualitative risk analysisadded to the risk register?

• List of risks

• Ranked risks bycategory

• Watchlist

------ - - -What are key outputs ofquantitative risk analysisadded to the risk register?

• Probability ofachieving the cost andtime objectives

• Prioritized list ofquantified risks

--What are key outputs ofrisk response planning?

• Risk response plans• Contingency plans• Triggers• Reserves for time and

cost• Fallback plans• Contracts• Revised project

management plan• Residual risks• Secondary risks

What are key outputs ofrisk monitoring andcontrol?

• Recommendedpreventive andcorrective actions

• Updates to the riskregister

• Risk audits

• Periodic risk reviews

• Risks closed

-- -- -- -- - '-

Define risks.

Events that can affect aproject for better or worse

Threats and opportunities

- - - - -- -- -- - -- -Describe key things oneneeds to know about eachrisk.

• Probability

• Impact

• Timing

• Frequency

- - - - - - - - - -Someone who is riskaverse IS:

Unwilling to take risks

- - - - - - - - - -What is risk tolerance?

Amount of risk acceptable

- - - - - - - - -Narne the inputs to therisk management process.

• Organizational processassets

• Enterpriseenvironmental factors

• Project charter

• Project scopestatement

• Proj ect scopemanagement plan

• Staffing plans

• WBS• Network diagram

• Cost and timeestimates

- - - - - - - - -What are risk categories?

Lists of common sourcesof risk, including:

• Technical

• Project management

• Schedule

• Cost

• Others

- -- -- '-- -' -- - -- --What are riskidentification techniques?

• Documentationreviews

• Brainstorming• Delphi Technique• Root cause

identification• Interviewing• SWOT• Checklists• Assumptions analysis• Diagramming

techniques

-- --- -- -- '-' -- - - - -What are the types ofrisks?

• Business

• Pure

--'""-"---------What are risk triggers?

Early warning signs that arisk event is about tooccur

-- "'--' -- -- -- -- - - -- "-"'

What is assumptionsanalysis?

When is it done?

Explores the validity ofproject assumptions toidentify new risks in riskidentification

-- - -- - - - - - - -What is risk data qualityassessment?

When is it done?

• Reviewing how wellunderstood is the risk

• A method to testreliability of riskinformation collected

• It is done duringqualitative riskanalysis

-- -- -- - - - - - - -What is a probability andimpact matrix?

The company's scale todetermine which riskscontinue through the riskmanagement process

- -- - - - - - - - -What is the formula forexpected monetary value?

Probability times impact

- - - - - - - - -What is a decision tree?

A model of a decision tobe made which includesthe probabilities andimpacts of future events tohelp make a decisiontoday

- - - - - - - -Who is a risk responseowner?

The person assigned toexecute risk responses foreach critical risk

--- '-- -- -' "-- - '-'-- -- - -N arne and define the riskresponse strategies forthreats.

Avoid: Eliminate a specificthreat by eliminating thecause

Mitigate; Reduce theprobabIlIty or Impact

Accept:PassIve - Do nothingIf it happens, it happens.

Active - Developcontingency plans

Transfer: Make anotherparty responsible for a risk

May include: outsourcing,InsuranceJ warranties,bonds ana guaranteesSee the Risk Chapter

Narne and define the riskresponse strategies foropportunities.

Exploit: Enhance theopportunity

Share: Allocate ownershipto a third party

Enhance: IncreaseprobabIhty or impacts

Accept:PassIve - Do nothingIf it happens, it happens

Active - Developcontingency plans

--- -- - - - - - - -What are residual risks?

Risks that remain after riskresponse planning:

• Risks for whichcontingency andfallback plans havebeen created

• Risks which have beenaccepted

Outputs of risk responseplanning

--- - - - - - - - -What are secondary risks?

New risks created by riskresponse strategies

-- -- - - - -

How does buyinginsurance relate to riskresponse planning?

It exchanges an unknownrisk for a known risk

It is a method to decreaseproject risk

It is an output of riskresponse planning

------ -

What do contracts have todo with risk responseplanning?

A contract helps allocateand mitigate risks

A risk analysis is donebefore a contract is signed

Contracts are outputs ofrisk response planning

- - -- - - - - - -What are contingencyplans?

Planned responses to risks

.............................

- - - - - - - - - -

What are fallback plans?

Actions that will be takenif the contingency plan isnot effective

-- -- -- -- -- -- -- - - -What does a revisedproject management planhave to do with riskmanagement?

The components of theproject management planwill need to be updatedbased on the results of riskplanning

It is an output of riskresponse planning

What are reserves?

Time or cost added to theproject to account for risk

Also referred to as:

• ~anagementreserve

• Contingency reserve

Reserves are outputs ofrisk response planning

What is a contingencyreserve?

Time or cost allocated tocover known unknowns

Included in cost baseline

What is a managementreserve?

Time or cost allocated tocover unknown unknowns

Included in cost budget

--- -- -- -- - -- - -- --What are riskreassessments?

When do they occur?

Identification of newrisks

They occur during riskmonitoring and control

- --- --- - - - - -- - -What is reserve analysis?

When is it done?

• Determining reserves

• Managing the reservesand making sure theamount remaining isadequate

It is done during riskresponse planning,monitoring andcontrolling, activityduration estimating, costbudgeting and costcontrol

- -- - - - --- - - - -What are risk responseaudits?

Examining anddocumenting theeffectiveness of the riskresponse and the riskresponse owner

- - -- -- - '-' - - - -What is the process ofprocurement management?

• Plan purchases andacquisitions

• Plan contracting

• Request sellerresponses

• Select sellers

• Contractadministration

• Contract closureSee the Procurement Chapter

- - -- -- -- -- -- -- -- --Narne the inputs to theprocurement managementprocess.

• Enterpriseenvironmental factors

• Organizational processassets

• WBS• Risk register• Proj ect scope

statement• Project schedule• Cost estimate for

contracted work• Cost baseline for the

project

See the Procurement Chapter

- -------

What are key outputs ofplan purchases andacquisitions?

• Procurementmanagement plan

• Contract statement ofwork

What are key outputs ofplan contracting?

• Procurementdocuments

• Evaluation criteria

What are key outputs ofrequest seller responses?

• Procurementdocuments

• Proposals

"'--" -- - -- - - - - -What are key outputs ofselect sellers?

• Contract signed

• Contract managementplan

-- --- -- -- - - - - - -What are key outputs ofcontract administration?

• Substantial completion

-- - -...- -...- - - - - - -What are key outputs ofcontract closure?

• Product verification

• Financial closure

• Update and indexrecords

• Performance reporting

• Procurement audits

• Lessons learned

• Formal acceptance

- -- - - - - - - -What is a contractmanagement plan?

A plan for how eachcontract will beadministered

- - - - - - - - -What is a procurementmanagement plan?

Describes howprocurements will beplanned, executed andcontrolled

~ WI' WI' ...

- ------

What is required for alegal contract?

• Offer

• Acceptance

• Consideration

• Legal capacity

• Legal purpose

- - - - - - - - -What is a contract?

May include all of thefollowing:

• Legal terms

• Business terms

• Contract statement ofwork

• Marketing literature

• Drawings

Describe the projectmanager's role inprocurement.

• Understand theprocurement process

• Make sure the workdescribed in thecontract is complete

• Be involved in thewhole contractingprocess

• Help tailor the contractto the project

• Incorporate mitigationand allocation of risksinto the contract

------Name the advantages ofcentralized contracting.

• Increased expertise incontracting

• Standardized practices

• Clear career path

- - - -

Narne the disadvantages ofcentralized contracting.

• One person works onmany projects

• May be difficult toobtain contracting helpwhen needed

------

Narne the advantages ofdecentralized contracting.

• Easier access tocontracting expertise

• More loyalty to theproject

• More focused contractexpenence

-- -- --- - - -- - --- -- -

Name the disadvantages ofdecentralized contracting.

• No home for thecontracts person afterthe project

• Less focus onimproving contractingexpertise

• Inefficient use ofresources

• Little standardizationof contractingprocesses from oneproject to the next

-- -- - -- -- - -- -- -

What does make-or-buyrefer to?

Analyzing whether theperforming organizationshould do the work or buythe services/supplies fromoutside the organization

- - - - -

What are the main typesof contracts?

• Cost reimbursable

• Fixed price

• Time and material

• Purchase order

What is a costreimbursable contract?

All costs are reimbursed

What is a cost plus fixedfee contract?

All costs are reimbursed

The fee is fixed at acertain monetary amount

What is a cost pluspercentage of costcontract?

All costs are reimbursed,plus a specific percentageof costs as fee or profit

What is a cost plusincentive fee contract?

Costs are reimbursed plusan incentive, usually anadditional fee, forexceeding performancecriteria that have beendetermined in advance

-- -- --- -- - - -- -- -- --What is a time andmaterial contract?

Usually a fixed hourly rateor a fixed cost per item,plus a reimbursablecomponent for expenses ormaterials

-------

What is a fixed pricecontract?

There is only one fee foraccomplishing all thework

- - - - - - - - - -What is a fixed price plusincentive fee contract?

Total price is fixed, but anadditional amount may bepaid for exceedingperformance criteriadetermined in advance

- -- -- - - -What is a fixed priceeconomic price adjustmentcontract?

A fixed price contract withan allowable adjustmentfor price increase, due tocost increases in later timeperiods

-- -- - - - - - -

Describe how contractadministration efforts willbe different with eachcontract form.

This critical conceptcannot be summarizedhere.

See the ProcurementChapter in PMP Exam Prepfor more on this topic.

What is a purchase order?

A unilateral contract

What are incentives?

What might they be usedfor?

Help bring the seller'sobjectives in line with thebuyer's

Incentives for:

• Time

• Cost

• Quality

• Scope

Who has the cost risk in acost reimbursablecontract?

In a fixed price contract?

Risk in a costreimbursable contract isborne by the buyer

Risk in a fixed pricecontract is borne by theseller

--- -- -- - - -- - -- --Name the types of contractstatements of work.

• Performance

• Functional/detailed

• Design

-- --- - - - - - - -What are procurementdocuments?

• Request for proposal(RFP)

• Invitation for bid(IFB)

• Request for quotation(RFQ)

- -- -- -- - - - - - -What are standard contractterms and conditions?

What are specialprovisions?

Standard Contract Termsand Provisions: Terms andconditions which are usedfor all contracts within thecompany

Special Provisions: Termsand conditions created forthe unique needs of theproject

Created with the input ofthe project manager

--- --- - -- - - -- - - -Name common terms andconditions that may be ina contract.

Please review the long listof terms and conditionsand what they mean inPMP Exam Prep,Procurement Chapter.

- - - - - - - - - -

What is a letter of intent?

A letter from the buyer,without legal binding,saying the buyer intends tohire the seller

- - - - - - - -

What does privity refer to?

Contractual relationshipsbetween two or morecompanies

------

What does non-competitiveprocurement mean?

Work awarded to a singlesource or sole sourcewithout competition

When are evaluationcriteria created and used?

What do they refer to?

Created during plancontracting

Rationale that the buyerwill use to weight or scoresuppliers' proposals

Used during select sellersto pick a supplier

What is a bidderconference?

What should be watchedout for?

A meeting withprospective sellers tomake sure all understandthe procurement and havea chance to ask questions

Watch for:

• Collusion

• Sellers not askingquestions

• All questions andanswers are distributedto all

-------What is a qualifiedseller list?

A list of sellers who havebeen pre-approved

- '--"'" -------

What are the objectives ofnegotiation?

• Obtain a fair andreasonable price

• Develop a goodrelationship with theother side

- -------

Name some negotiationtactics.

• Attacks• Personal insults

• Good guy/Bad guy• Deadline• Lying• Limited authority

• Missing man

• Delay• Extreme demands• Withdrawal• Fait accompli

- -- - - - - - - -Name some of the projectmanager's activities duringcontract administration.

• Review invoices

• Integrated changecontrol

• Interpret the contract

• Monitor performanceagainst the contract

• Risk management

Please see the long list inPMP Exam Prep,Procurement Chapter.

- ------

Why might there beconflict between thecontract administrator andthe project manager?

The contract administratoris the only one with thepower to change thecontract (including theproject scope)

What is a contract changecontrol system?

A system created tomodify the contract and tocontrol changes to thecontract

-- --- - - -

What must be done for allcontract changes?

They must be formallydocumented

What is the purpose of abuyer-conductedperformance review?

Identify seller's successesor failures, and allow thebuyer to rate the seller'sability to perform

-- -- --Define claimsadministration.

Managing contestedchanges and constructivechanges (claims) requestedby the seller

- - -- ---

What is the key function ofa records managementsystem?

Maintain an index ofcontract documentationand records to assist inretrieval

Part of the projectmanagement informationsystem

-- - -

Name the guidelines forinterpreting what is or isnot included in thecontract.

See the ProcurementChapter in PMP Exam Prepfor more on this topic.

- ------

What is the purpose ofcontract closure in theprocurement managementprocess?

• Perform a procurementaudit

• Complete the workdone under contract

What is a procurementaudit?

Structured review of theprocurement process anddetermination of lessonslearned to help otherprocurements

- -" -

What does professionaland social responsibilitymean?

• Ensure individualintegrity

• Contribute to theproject managementknowledge base

• Enhance personalprofessionalcompetence

• Promote interactionamong stakeholders

For the PMP exam, makesure you read the extensiveinformation on this topic inPMP Exam Prep, ProfResponsibility Chapter.See the Prof. Responsibility Chapter

What does "ensureindividual integrity" mean?

• Follow PMI's code ofprofessional conduct

• Tell the truth in reports• Follow copyright and

other laws• Treat others with

respect• Report violations• Do not put personal

gain over project needs• Do not give or take

bribes

See the Prof. Responsibility Chapter

What does "contribute tothe project managementknowledge base" mean?

• Share lessons learned

• Write articles

• Mentor others

• Perform research onbest practices

-- "--' -- -- -- -- -- -- --

What does "enhancepersonal professionalcompetence" mean?

• Understand your ownstrengths andweaknesses

• Continue to learn

• Look for new practices

- - -- --

What does "balancestakeholders' interests"mean?

Part of "promote interactionamong stakeholders", itmeans:

• Work to get clear andcomplete projectobjectives and projectrequirements

• Understandstakeholders' interests

• Recommendapproaches that strivefor fair resolution

-- -- -- - -- -- -- -- -- --What does "interact withteam and stakeholders in aprofessional andcooperative manner"mean?

Part of "promote interactionamong stakeholders", itmeans:

• Respect culturaldifferences

• Understand others'needs

• Follow practices in othercountries, as long asthey do not violate laws

• Provide others withproject charter, scheduleand project managementplan they need to dotheir work

-- -- -- -- --Notes:

Notes:

- - - - - -

Notes:

- -Notes:

Notes:'

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