Card Set Information

2010-05-27 13:12:30

PMP Flash Cards
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  1. Key Outputs:
    Direct and Manage Project Execution
    • Deliverables
    • Work Performance Information
    • Change Requests
  2. Key Outputs:
    Direct and Manage Project Execution
    • Deliverables
    • Work Performance Information
    • Change Requests
  3. BCR
    • Benefit Cost Ratio
    • The BCR is the ratio of benefits to cost. For example, if you expect a construction to cost $1,000,000, and you expect to be able to sell that completed building for $1,500,000 then your BCR is 1,500,000/1,000,000=1.5 to 1. In other words you get $1.5 of benefit for every $1 of cost. A ratio of greater than 1 indicates that benefits are greater than costs.
  4. EVA
    • Economic Value Add
    • It looks at how much value a project has truly created for its shareholders. It does more than simply look at the net profits. It also looks at the opportunity costs.
    • For example: Investiment: $175,000; Net profit: $10,000; Opportunity cost: 6% return if capital was invested
    • EVA = after tax profit – (capital invested * capital cost)
    • EVA = $10,000 – ($175,000 * 6%) = -$500
    • In this sample, company actually lost $500 as far as EVA since they would have earned more in interested if they had invested in the bank instead of the project.
  5. IRR
    • Internal Rate of Return
    • Project returns as an interest rate. If this project were and interest rate, what it would be? Bigger is better when looking at IRR.
  6. Opportunity Cost
    Based on the theory that a dollar can only be invested at one place at a time, opportunity cost asks “What is the cost of the other opportunities we missed by investing our money in this project”? For project selection purposes, the smaller the opportunity cost, the better, because it is not desirable to miss out on a great opportunity
  7. Payback Period
    The payback period is how long it will take to recoup an investment in a project. A shorter payback period is better than a longer one.
  8. PV
    • Present Value
    • PV is based on the “time value of money” economic theory that a dollar today is worth more than a dollar tomorrow. PV as a way to take time out of the equation and evaluate how much a project is worth right now. It is important to understand that with PV bigger is better
  9. NPV
    • Net Present Value
    • NPV is the same as PV except that you also factor in your costs. Bigger PV or NPV makes a project more attractive, and NPV calculations have already factored in the costs
  10. ROI
    • Return on Investment
    • ROI is a percentage that shows what return you make by investing in something.
    • ROI = (benefit-cost)/cost
    • Bigger is better
  11. ROIC
    • Return of Invested Capital
    • The measure of ROIC looks at how an organization uses the money invested in a project, and it is expressed as percentage.
    • ROIC = Net profit (after tax) / Capital invested
  12. [output/input] A document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities.
    Project charter [output/input]
  13. Project Charter
    • It is created during the Develop Project Charter process
    • It is created based on some need, and it should explain that need
    • It is signed by the performing organization’s senior management
    • It names the project manager and gives PM authority to manage
    • It should include the high level project requirements
    • It should include a high level milestone view of the project schedule
    • It is a high level document hat does not include project details, the specifics of project activities will be developed later
    • It includes a summary-level preliminary project budget
  14. [Output/Input] A formal, approved document that defines how the project is executed, monitored, and controlled. It may be a summary or detailed and may be composed of one or more subsidiary management plans and other planning documents.
    Project Management Plan [Output/Input]
  15. Project Management Plan
    • The project plan is a formal, approved document that defines how the project is managed, executed, and controlled. It may be summary or detailed and may be composed of one or more subsidiary management plans and other planning documents
    • 1.It’s formal written piece of communication
    • 2.It’s a single document. It’s no 15 separate plans. Once those separate documents are approved as the project plan, they become a single document
    • 3.It’s approved. There’s a point in time at which it officially becomes the project plan. Who approves it differ based on the organizational structure and other factors:
    • a.Project manager
    • b.Project sponsor
    • c.Functional managers who are providing resources for the project
    • 4.It defines how the project is managed, executed, and controlled.It may be summary or detailed.
  16. Difference between Perform Integrated Change Control and Monitor and Control Project Work
    • Perform Integrated Change Control: focused on managing change to project scope
    • Monitor and Control project Work: focused on managing the way that scope is executed
  17. Key Outputs
    Collect Requirements
    • Requirements Documentation
    • Requirements Management Plan
    • Requirements Traceability Matrix
  18. Key Output
    Define Scope
    Project Scope Statement
  19. Key Output
    Create WBS
    • Work Breakdown Structure
    • WBS Dictionary
  20. Key Output
    Verify Scope
    Accepted Deliverables
  21. Key Output
    Control Scope
    (Scope) Change Requests
  22. where ideas are shared in a rapid-fire setting and are not discussed until everyone is out of ideas
  23. where brainstormed ideas are voted upon and sorted by priority
    Nominal Group Technique
  24. a means of gathering expert judgment where the participants do no know who the others are and therefore are not able to influence each other’s opinion. The Delphi technique is designed to prevent groupthink and to find out a participant’s real opinion
    Delphi Technique
  25. a technique of diagramming ideas and creating meaningful associations in a graphical format. A mind map helps the team see meaningful associations among ideas
    Idea and Mind mapping
  26. this technique allows large number of ideas to be sorted into groups for review and analysis
    Affinity Diagram
  27. A group decision technique where everyone on the tam must agree with the decision before is made. A jury is a common example where unanimity is used
  28. A group decision technique where a simple majority of votes is enough to make a decision. Many political elections are examples of the majority technique, where anything over 50% is sufficient to decide the outcome
  29. A group decision technique where the group agrees to support an outcome, even if the individuals do not all support the decision
  30. A group decision technique where the largest block of individuals decides the outcome. Plurality differs from Majority in that plurality does not require more than 50% to be in agreement. For example, if 30% vote for A, and 30% vote for B, and 40% vote for C, outcome C would carry the group because it represents the largest block. It is not uncommon for plurality technique to employ a run-off between the 2 options that received the highest votes until on option receives a true majority
  31. A group decision technique where one person makes the decisions for the entire group. This technique is generally not viewed favorably when it comes to the exam
  32. A plannning technique that subdivides the project scope and project deliverables into smaller, more manageable components, until the project work associated with accomplishing the project scope and providing the deliverables is defined in sufficient detail to support executing, monitoring, and controlling the work
    Decomposition [technique]
  33. A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope of the project.
    Work Breakdown Structure (WBS) [Output/Input]
  34. A document that describes each component in the WBS. For each WBS component, it includes a brief definition of the scope or statement of work, defined deliverables(s), a list of associated activities, and a list of milestones. Other information may include: responsible organization, start and end dates, resources required, an estimate of cost, charge number, contract information, quality requirements, and technical references to facilitate performance of the work.
    WBS Dictionary [Output/Input]
  35. The process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder's needs and expectations.
    Develop Project Charter [Process]
  36. The process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.
    Develop Project Management Plan [Process]
  37. The process of performing the work defined in the project management plan to achieve the project's objectives
    Direct and Manage Project Execution [Process]
  38. The process of reviewing all the change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and project management plan.
    Perform Integrated Change Control [Process]
  39. The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase
    Close Project or Phase [Process]
  40. The process of defining and documenting stakeholders' needs to meet the project objective
    Collect Requirements [Process]
  41. The process of developing a detailed description of the project and product.
    Define Scope [Process]
  42. The process of subdiving project deliverables and project work into smaller, more manageble components
    Create WBS [Process]
  43. The process of formalizing acceptance of the completed project deliverables
    Verify Scope [Process]
  44. The process of monitoring the status of the project and product scope and managing changes to the scope baseline
    Control Scope [Process]
  45. [Technique] A form of progressive elaboration planning where the work to be accomplished in the newar term is planned in detail at a low level of the work breakdown structure, while the work far in the future is planned at a relatively high level of the work breakdown structure, but the detailed planning of the work to be performed within another one or two periods in the near future is done as work is being completed during the current period.
    Rolling Wave Planning [Technique]
  46. an approved specific version of the detailed scope statement, work breakdown structure (WBS), and its associated WBS dictionary
    Scope baseline
  47. The document that describes how the project scope will be defined, developed, and verified and how the work breakdown structure will be created and defined, and that provides guidance on how the project scope will be managed and controlled by the project management team. It is contained in or is a subsidiary plan of the project management plan.
    Scope Management Plan [Output/Input]
  48. Person or organization (e.g. customer, sponsor, peforming organization, or the public) that is actively involved in the project, or whose interests may be positively or negatively affected by execution of completion of project. Person or organization that my also exert influence over the over the project and its deliverables.
  49. A narrative description of products, services, or results to be supplied.
    Statement of Work (SOW)
  50. [Tool] An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project managment processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems
    Project Management Information System (PMIS)
  51. The process of developing an approximation of the monetary resources needed to complete project activities
    Estimate Costs [Process]
  52. The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
    Determine Budget [Process]
  53. The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline
    Control Costs [Process]
  54. [cost] Why early scope definition is critical?
    The ability to influence cost is greates at the early stages of the project, making early scope definition critical
  55. What is established in a Cost Management Plan (part of Develop Project Management Plan process)?
    • * Level of accuracy (precision)
    • * units of measure (hours/days/week)
    • * Organizational procedures links (control account - account number assigned in WBS)
    • * Control thresholds (variance % from the baseline plan)
    • * rules of performance measurement (earned value management - EVM)
    • * reporting formats
    • * process descriptions
  56. Outputs of Estimate Cost Process
    • * Activity cost estimates
    • * basis of estimates
    • * project document updates
  57. Outputs of Determine Budget Process
    • * Cost performance baseline
    • * Project funding requirements
    • * Project document updates
  58. Outputs of Control Cost Process
    • * Work performance measurements
    • * budget forecasts
    • * organizational process assets updates
    • * change requests
    • * project management plan updates
    • * project document updates
  59. The process of identifying the specific actions to be performed to produce the project deliverables
    Define Activities [process]
  60. The process of identifying and documenting relationships among the project activities.
    Sequence Activities [process]
  61. The process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity
    Estimate Activity Resources [process]
  62. The process of approximating the number of work periods needed to complete individual activities with estimated resources
    Estimate activity durations [process]
  63. The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule
    Develop Schedule [process]
  64. The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline
    Control Schedule [Process]
  65. Define Activities Process Outputs:
    • * Activity list
    • * Activity attributes
    • * Milestone list
  66. Define Activities Process Tools & Techniques:
    • * Decomposition
    • * Rolling wave planning
    • * Templates
    • * Expert judgement
  67. Define Activities Process Inputs:
    • * Scope baseline
    • * Enterprise environmental factors
    • * Organizational Process Assets
  68. Sequence Activities Process Outputs:
    • * Project Schedule Network Diagrams
    • * Project document updates
  69. Sequence Activities Process Tools & Techniques:
    • * Precedence diagramming method (PDM)
    • * Dependency determination
    • * Applying leads and lags
    • * Schedule network templates
  70. Sequence Activities Process Inputs:
    • * Activity list
    • * Activity attributes
    • * Milestone list
    • * Project scope statement
    • * Organizational process assets
  71. [Technique] A schedule network diagramming technique in which schedule activities are represented by boxes (or nodes). Schedule activities are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed
    Prcedence Diagramming Method (PDM) [Technique]
  72. What are the 4 types of dependencies or logical relationships used in PDM?
    • * Finish-to-start (FS)
    • * Finish-to-finish (FF)
    • * Start-to-start (SS)
    • * Start-to-finish (SF)
  73. The logical relationship where completion of work of the successor activity cannot finish until the completion of work of the predecessor activity
    Finish-to-finish (FF)
  74. The logical relationship where initiation of work of the successor activity depends upon the completion of work of the predecessor activity. Most common relationship used.
    Finish-to-start (FS)
  75. The logical relationship where completion of the successor schedule activity is dependent upon the initiation of the predecessor schedule activity.
    Start-to-Finish (SF)
  76. The logical relationship where initiation of the work of the successor schedule activity depends upon the initiaion of the work of the predecessor schedule activity
    Start-to-Start (SS)
  77. what are the 3 types of dependencies used to define the sequence among the activities?
    • * mandatory dependencies
    • * discretionary dependencies
    • * external dependencies
  78. [Technique] A modificiation of a logical relationship that allows an accelaration of the successor activity.
    Lead [Technique] For example, in a finish-to-start dependency with a ten-day lead, the successor activity can start ten days before the predecessor activity has finished. A negative lead is equivalent to a positive lag.
  79. [Technique] A modification of a logical relationship that directs a delay in the successor activity
    Lag [Technique] For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor activity has finished.
  80. Estimate Activity Resources Process Inputs:
    • * Activity List
    • * Activity Attributes
    • * Resource calendars
    • * Enterprise environmental factors
    • * Organizational process assets
  81. Estimate Activity Resources Process Tools & Techniques:
    • * Expert judgement
    • * Alternatives analysis
    • * Published estimating data
    • * Bottom-up estimating
    • * Project management software
  82. Estimate Activity Resources Process Outputs:
    • * Activity resource requirements
    • * Resource breakdown structure
    • * Project document updates
  83. A calendar of working days and nonworking days that determines those dates on which each specific resource is idle or can be active. Typically defines resource specific holidays and resource availability periods.
    Resource Calendar
  84. [Technique] A method of estimating a component of work. The work is decomposed into more detail. An estimate is prepared of what is needed to meet the requirements of each of the lower, more detailed pieces of work, and these estimates are then aggregated into a total quantity for the component of work. The accuracy of bottom-up estimating is driven by the size and complexity of the work identified at lower levels.
    Bottom-up Estimating [Technique]
  85. A hierarchical struture of resources by resource category and resource type used in resource leveling schedules and to develop resource-limited schedules, and which may be used to identify and analyze project human resource assignments.
    Resource Breakdown Structure
  86. Estimate Activity Durations Process Inputs:
    • * Activity List
    • * Activity attributes
    • * Activity resource requirements
    • * Resource calendars
    • * Project scope statement
    • * Enterprise environmental factors
    • * Organizational process assets
  87. Estimate Activity Durations Process Tools & Techniques:
    • * Expert judgment
    • * Analogous estimating
    • * Parametric estimating
    • * Three-point estimating
    • * Reserver analysis
  88. Estimate Activity Durations Process Outputs:
    • * Activity duration estimates
    • * Project document updates
  89. [Technique] An estimating technique that uses the values of parameters, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous, similar activity as the basis for estimating the same parameter or measure for a future activity.
    Analagous Estimating
  90. [Technique] An estimating technique that uses a statistical relationship between historical data and other variables (eg square footage in construction, lines of code in shoftware development) to calculate an estimate for activity parameters, such as scope, cost, budget, and duration. An example for the cost parameter is multiplying the planned quantitiy of work to be performed by the historical cost per unit to obtain the estimated cost
    Parametric Estimating [Technique]
  91. [Technique] An analytical technique that uses 3 cost or duration estimates to represent the optimistic, most likely, and pessismistic scenarios. This technique is applied to improve the accuracy of the estimates of cost or duration when the underlying activity or cost component is uncertain.
    Three-point estimate
  92. PERT: Program Evaluation and Review Technique
    • Te = (To + 4 Tm + Tp)/6
    • Te: Expected
    • To: Optimistic
    • Tm: Most likely
    • Tp: Pessimistic
  93. A technique for estimating that applies a weighted average of optmistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.
    Program Evaluation and Review Technique (PERT)
  94. [Technique] An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserver for the schedule duration, budget, estimate cost, or funds for a project
    Reserve Analysis
  95. Develop Schedule Process Inputs
    • * Activity list
    • * Activity attributes
    • * Project schedule network diagrams
    • * Activity resource requirements
    • * Resource calendars
    • * Activity duration estimates
    • * Project scope statement
    • * Enterprise environmental factors
    • * Organizational process assets
  96. Develop Schedule Process Tools & Techniques:
    • * Schedule network analysis
    • * Critical path method
    • * Critical chain method
    • * Resource leveling
    • * What-if scenario analysis
    • * Applying leads and lags
    • * Schedule compression
    • * Scheduling tool
  97. Develop Schedule Process Outputs:
    • * Project schedule
    • * Schedule baseline
    • * Schedule data
    • * Project document updates
  98. [Technique] A schedule network analysis technique used to determine the amount of scheduling flexibility (te amount of float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. Early start and finish dates are calculated by means of a forward pass, using a specified start date. Late start and finish dates are calculated by means of a backward pass, starting from a specified completion date, which sometimes is the project early finish date determined during the forward pass calculation
    Critical Path Methodology (CPM)
  99. [Technique] A schedule network analysis technique that modifies the project schedule to account for limited resources
    Critical Chain Method
  100. The total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date, or violating a schedule constraint. Calculated using the critical path method technique and determining the difference between the early finish dates and late finish dates.
    Total float
  101. Any schedule activity on a critical path in a project schedule. Most commonly determined by using the critical path method.
    • Critical Activity.
    • Although some activities are critical, in the dictionary sense, without being on the critical pah, this meaning is seldom used in the project context.
  102. The amount of time that a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities.
    Free Float
  103. A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier to provide further detail on what types of risk are meant to be mitigated.
    Reserve (Management Reserve, Contigency Reserve)
  104. [Technique] Any form of schedule network analysis in which scheduling decisions (start and finish dates) are driven by resource constraints (e.g. limited resource availability or difficult-to-manage changes in resource availability levels)
    • Resource Leveling
    • Resource leveling is necessary when resources have been over-allocated, such as when a resource has been assigned to two or more activities during the same time period, when shared or critical required resources are only avalibale at certain times or are only available in limited quantities.
  105. [Technique] A technique that computes or iterates, the project cost or project schedule many times using input values selected at random from probability distributions of possible costs or durations, to calculate a distribution of possible total project cost or completion dates.
    Monte Carlos Analysis
  106. [Technique] Shortening the project schedule duration without reducing the project scope
    Schedule compression: Crashing and Fast tracking
  107. [Technique] A specific type of project schedule compression technique performed by taking action to decrease the total project schedule duration after analyzing a number of alternatives to determine how to get the maximun schedule duration compression for the least additional cost.
    • Crashing.
    • Typical approaches for crashing a schedule include reducing schedule activity durations and increasing the assignment of resources on schedule activities.
  108. [Technique] A specific project schedule compression technique that changes network logic to overlap phases that would normally be done in sequence, such as the design phase and construction phase, or to perform schedule activities in parallel.
    Fast Tracking
  109. How can Project Schedule be presented graphically?
    • * milestone charts
    • * bar charts
    • * project schedule network diagrams
  110. [Output/Input] Any schematic display of the logical relationship among the project schedule activities. Always drawn from left to right to reflect project work chronology.
    Project Schedule Newtork Diagram.
  111. A specific version of the schedule model used to compare actual results to the plan to determine if preventive or corrective action is needed to meet the project objectives
    Schedule Baseline
  112. Control Schedule Process Inputs:
    • * Project management plan
    • * Project schedule
    • * Work performance information
    • * Organizational process assets
  113. Control Schedule Process Tools & Techniques:
    • * Performance reviews
    • * Variance analysis
    • * Project management software
    • * Resource leveling
    • * What-if scenario analysis
    • * Adjusting leads and lagas
    • * Schedule compression
    • * Scheduling tool
  114. Control Schedule Process Outputs:
    • * Work performance measurements
    • * Organizational process assets updates
    • * change requests
    • * Project management plan updates
    • * Project document updates
  115. [Technique] A method for resolving the total variance in the set of scope, cost, and schedule variables into specific component variances that are associated with defined factors affecting the scope, cost and schedule variables.
    • Variance Analysis
    • Schedule performance measurements (SV, SPI) are used to assess the magnitude of variation to the original schedule baseline.