Hot Topics - Flashcards for Passing the PMP and CAPM Exams

Flashcards For Passing thePMf>® and CAPM®Exams

Fifth Edition

© Copyright 2005Rita Mulcahy, PMP

RMC Publications, Inc.

All Rights Reserved.No part of this publication may becopied or reproduced in any formwhatsoever, stored in a retrieval

system, or transmitted in any formwithout the prior written permission of

the author.

ISBN 1-932735-01-1Library of Congress Control Number:

2005905459Printed in the U.S.A.

For more information see:E-mail: [email protected]

Web: www.rmcproject.comPhone: 952.846.4484

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WARNING: This is not astand-alone product! You will needother review materials in order to passthe PMP or CAPM exam. We make nowarranties or representations that useof these materials will result inpassage of either exam. This book isdesigned to work with the book PMPExam Prep 5th Edition by RitaMulcahy, PMP, available atwww.rmcproject.com. If you arestudying for the PMP exam, use thechapter references on each Hot Topicsflashcard to find further information inthe PMP Exam Prep Book.

"PMP", "PMBOK" and "CAPM" are marks of the Project

Management Institute, Inc. RMC Project Management,Inc. has been reviewed and approved as a provider of

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3

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

623

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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.

5

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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8

...

What is the definition of aproject?

9

• Temporary

• Unique

• Progressivelyelaborated

See the Framework Chapter

10

What is the definition of aprogram?

11

A group of interrelatedprojects, managed in acoordinated way


12

What is a product lifecycle?

13

The cycle of a product'slife from conception towithdrawal


14

What is a project lifecycle?

15

What you need to do toDO the work

It varies by industry andtype of project


16

What is the projectmanagement process?

17

What you need to do toMANAGE the work

• Initiating

• Planning

• Executing

• Monitoring andcontrolling

• Closing


18

What is a projectmanagement office?

19

A department thatcentralizes themanagement of projects

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


20

- - - -What is a constraint?

21

Anything that limits theteam's options

These include:

• Imposed milestone dates

• Cash flow requirements

• Resources available


22

What are the componentsof the "triple constraint"?

What is it used for?

23

• Cost

• Time

• Scope

• Quality

• Risk

• Customer satisfaction

It is used to help evaluatecompeting demandsSee the Framework Chapter

24

Who are stakeholders?

25

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

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


26

What should we do withstakeholders?

27

• Identify all stakeholders

• Determine all of theirrequirements

• Determine all of theirexpectations

• Communicate with them

• Manage their influence


28

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

29

• Functional

• Projectized

• Matrix


30

What is a functionalorganization?

31

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


32

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

33

The company is groupedby project

The team has nodepartment to go to atproject end

The project manager hastotal control of theresources


34

What is a matrixorganization?

35

A blend of functional andprojectized organizationwhere the team membershave two bosses


36

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

37

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


38

What is a weak matrixorganization?

39

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

Project management rolesinclude:

• Project expediter

• Project coordinator


40

What is a balanced matrixorganization?

41

An organization wherepower is equally balancedbetween project managersand functional managers

This is the preferred formof matrix


42

What is the process ofintegration management?

43

• 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

44

What are the methods toselect a project?

45

• Benefit measurement(comparative)

• Constrainedoptimization(mathematical)


46

What is develop projectmanagement plan?

What is its output?

47

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

Output: The projectmanagement plan


48

What is the preliminaryproject scope statement?

49

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

What must be done toaccomplish the projectobjectives


50

What are key outputs ofdirect and manage projectexecution?

51

• Deliverables

• Requested changes

• Implemented changerequests, correctiveand preventive actionsand defect repair


52

What are key outputs ofmonitor and controlproject work?

53

• Recommendedcorrective actions,preventive actions anddefect repair


• Forecasts


54

What are key outputs ofintegrated change control?

55

• Approved changerequests, correctiveactions, preventiveactions and defectrepair

• Rejected changerequests

• Validated defect repair

• Deliverables


56

What are key outputs of closeproject?

57

• Administrative and contractclosure procedures

• Final product

• Formal acceptance

• Project files

• Project closure documents

• Organizational processassets updates


58

Explain the projectmanager's role asintegrator.

59

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


60

What are baselines?

61

Parts of project managementplan used to measureperformance against

Includes:

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

baselines

Can change with approvedchanges


62

What is the proj ectstatement of work?

63

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

64

What is a workauthorization system?

65

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


66

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

67

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


68

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

69

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


70

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

When are they used?

71

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

Used throughout theproject managementprocess


72

What are organizationalprocess assets?

When are they used?

73

• Company processes andprocedures

• Historical information

• Lessons learned

Used throughout theproject managementprocess


74

What is historicalinformation?

75

Records of past projectsused to plan and managefuture projects

Records of current projectto become part oforganizational processassets


76

What is a projectmanagement informationsystem?

77

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


78

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

Who may be on it?

79

A group of people thatapproves or rejectschanges

May include:

• Project manager

• Customer

• Outside experts

• Sponsor

• Others


80

What are change requests?

When are they approved?

81

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

They are approved inintegrated change control


82

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

83

Actions taken to deal withanticipated or possibledeviations from theperformance baselines


84

- - - - - - - ~ ~ ~

What are corrective actions?

85

Actions taken to bringexpected future projectperformance in line withthe project managementplan


86

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

How does it help the project?

87

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

88

What is the process ofscope management?

89

• Scope planning

• Scope definition

• Create WBS

• Scope verification

• Scope control


90

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

91

Project scope managementplan


92

What are the key outputsof scope definition?

93

• Project scopestatement



94

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

95

• Workbreakdown structure(WBS)

• WBS dictionary

• Scope baseline



96

What are the key outputsof scope verification?

97

• Customer formalacceptance of projectdeliverables



98

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

99

• Accepted deliverables


• Recommendedcorrective actions


100

What is the definition ofscope management?

101

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

• Determining if work isincluded in the projector not


102

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

103

Part of the projectmanagement plan

A plan for how scope willbe planned, executed andcontrolled


104

What is a project scopestatement?

What are the key itemsincluded?

105

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

106

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

107

Stakeholder analysis occursduring the process of scopedefinition.


108

Product analysis ispart of which scopemanagement process?

109

Product analysis occursduring the process ofscope definition.


110

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

What is it used for inplanning?

111

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


112

What do work breakdownstructures show?

113

• Hierarchy

• Interrelationships

• Work packages

• Control account

• Numbering system


114

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

115

Subdividing the majordeliverables into smaller,more manageablecomponents


116

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

117

A description of the workto be done for each workpackage


118

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

119

Activities are generatedfrom each work package

Work packages are shownin a WBS

Activities are shown in anactivity list and networkdiagram


120

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

When is it done?

121

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


122

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

123

Product scope isrequirements

Project scope is the projectmanagement work neededto accomplish the productscope


124

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

125

• Scope statement

• WBS

• WBS dictionary


126

What is the process oftime management?

127

• Schedule managementplanning

• Activity definition

• Activity sequencing

• Activity resourceestimating

• Activity durationestimating

• Schedule development

• Schedule controlSee the Time Chapter

128

What is the key output ofschedule managementplanning?

129

A schedule managementplan

See the Time Chapter

130

What is the key output ofactivity definition?

131

Activity list


132

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

133

Network diagram


134

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

135

Activity resourcerequirements


136

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

137

Activity duration estimates


138

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

What are its key outputs?

139

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

Outputs:

• Project schedule

• Schedule baseline



140

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

What are key outputs ofschedule control?

141

• Schedule updates

• Performancemeasurements




142

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

How is an AOA diagramdifferent from a AONdiagram?

143

An AOA diagram has onlyfinish-to-start relationships

An AON diagram can havefour relationships betweenactivities


144

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

What are mandatorydependencies anddiscretionarydependencies?

145

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


146

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

What are externaldependencies?

147

Based on the needs of aparty OUTSIDE theproject


148

What is a resourcebreakdown structure?

149

A hierarchical list of identifiedresources by category


150

What is a schedule model?

Why is it used?

151

A tool to perform schedulenetwork analysis


152

----------

What is the critical path?

How does it help theproject?

153

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


154

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

155

The path closest in lengthto the critical path


156

- - - - - - -Define lag.

157

Waiting time inserted intothe schedule


158

Define total float and theformula for total float.

159

The amount of time anactivity can be delayedwithout delaying theproject

Formula:

Late start - Early startORLate finish - Early finish


160

Define free float andproject float.

161

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.


162

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

What are the methods tocompress a schedule?

163

• Crashing

• Fast tracking

• Re-estimating


164

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

What is crashing?

165

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


166

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

167

Schedule compression bydoing more critical pathactivities in parallel


168

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

What is the critical chainmethod?

169

A schedule networkanalysis tool that makesuse of buffers


170

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

171

Decreasing project and/oractivity cost byeliminating the risks inactivities


172

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

173

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


174

What is a schedulemanagement plan?

175


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


176

What is the schedulebaseline?

177

Approved schedule withany approved changes, usedto measure project scheduleperformance


178

What are the main toolsfor displaying a schedule?

179

• Network diagrams

• Bar charts

• Milestone charts

• Flowcharts


180

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

181

• Interdependenciesbetween activities

• How project activitieswill flow frombeginning to end

• When estimates areadded

• May also be used tofind the critical path


182

What do simple bar chartsshow?

183

Project schedule or projectstatus


184

What do milestone chartsshow?

185

High-level project status


186

What do flowcharts show?

187

Work flow or process flowthrough a system


188

What is a Monte Carloanalysis?

189

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


190

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

50/50 rule

20/80 rule

0/100 rule

191

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


192

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

193

• Cost managementplanning

• Cost estimating

• Cost budgeting

• Cost control

See the Cost Chapter

194

What is a key output ofcost managementplanning?

195

Cost management plan


196

What are key outputs ofcost estimating?

197

• Activity cost estimates



198

What are key outputs ofcost budgeting?

199

• Cost baseline

• Funding requirements



200

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

201


• Performancemeasurements


• Forecasted completion


202

N arne some inputs toestimating.

203

• 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


204

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

What is a costmanagement plan?

205


How cost will be planned,executed and controlled


206

What are the mainapproaches to cost orschedule estimating?

207

• Analogous estimating

• Bottom-up estimating(cost only)

• Parametric estimating

• Three-point estimates

• One-time estimates


208

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

209

Top-down estimating thatlooks at the past to predictthe future

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


210

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

211

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


212

What is parametricestimating?

213

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


214

What is earned valueanalysis?

215

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

Can be used to predictfuture cost performanceand project completiondates


216

What is the range for anorder of magnitudeestimate?

217

-50 percent to +100percent from actual


218

What is the differencebetween a cost budget anda cost baseline?

219

Cost budget addsmanagement reserve tothe cost baseline


220

What is the formula forcost variance?

221

EY -AC=CY


222

What is the formula forschedule variance?

223

EV - PV= SV


224

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

225

EV / AC = CPI


226

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

227

EV / PV = SPI


228

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

229

• BAC / CPI = EACor

• AC + ETC

• AC + BAC - EV

• AC + (BAC - EV)CPI


230

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

What is the formula forestimate to complete?

231

EAC -AC = ETC


232

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

What is the formula forvariance at completion?

233

BAC - EAC = VAC


234

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

235

The value today of futurecash flows

PV= FV(1 + r)n


236

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

237

The value in today'sdollars of some futurecosts and expenses

For cost, the lower thenumber the better

For revenue, the higher thenumber the better


238

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

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

239

The rate an investment inthe project will return

The higher the number thebetter

The rate at which aproject's inflows andoutflows are equal


240

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

241

The number of timeperiods to recover theinvestment

A lower number is betterthan a higher one


242

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

243

BenefitCost

The higher the number thebetter


244

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

245

The opportunity given upby selecting one projectover another


246

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

247

Expended costs


248

Define the law ofdiminishing returns.

249

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


250

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

251

Current assets minuscurrent liabilities

The amount of fundsavailable to spend onprojects


252

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

253

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


254

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

255

Direct Cost: A costdirectly attributable to theproject

Indirect Cost: Overhead


256

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

257

Straight LineDepreciation: Depreciatesame amount each timeperiod

Accelerated Depreciation:Depreciate an amountgreater than straight lineeach time period


258

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

259

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


260

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

261

Finding a less costly wayof doing essentially thesame work


262

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

263

• Quality planning

• Quality assurance

• Quality control

See the Quality Chapter

264

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

265

• Quality managementplan

• Quality metrics

• Quality baseline

• Process improvementplan


266

What are key outputs ofperform quality assurance?

267




268

What are key outputs ofperform quality control?

269

• Quality controlmeasurements

• Validated defect repair


• Recommendedcorrective andpreventive actions anddefect repair


270

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

271

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


272

What is marginal analysis?

273

An analysis to determinewhen optimal quality isreached

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


274

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

275


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


276

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

277

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


278

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

What is it used for?

279

The project's qualityobjectives

One of the baselines usedto measure performanceagainst


280

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

281

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


282

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

283

The never-endingenhancement of aproduct/service throughsmall, continuousenhancements


284

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

How does this affectattention to quality?

285

Little inventory ismaintained

It forces attention toquality


286

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

What does ISO 9000stand for?

- -..-'

287

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


288

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

289

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


290

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

291

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


292

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

293

Two events that cannotoccur in a single trial

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


294

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

295

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


296

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

297

Symmetric bell-shapedfrequency distributioncurve

The most commonprobability distribution


298

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

What do three sigma andsix sigma refer to?

299

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

300

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

301

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


302

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

303

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


304

What are the impacts ofpoor quality?

305

• Higher costs

• Increased rework

• Lower morale

• Lower customersatisfaction

• Increased risk


306

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

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

Which costs should begreater?

What does cost ofnonconformance mean?

Provide examples.

307

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

308

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

309

• Find existing qualitystandards andprocesses

• Create additionalproject specificprocesses andstandards

• Determine what workyou will do to meetthose standards

• Determine how youwill measure

• Create quality plan


310

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

311

• Benchmarking

• Cost-benefit analysis

• Design of experiments

• Cost of quality


312

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

313

Comparing your companyor department'sperformance to those ofother companies


314

-- -- --

Define cost-benefitanalysis.

- -

315

Comparing the costs of aneffort to the benefits ofthat effort


316

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

317

A statistical method forchanging importantvariables to determinewhat combination willimprove overall quality


318

What is the purpose ofquality assurance?

319

• Making sure allprocesses are used onthe project andperforming continuousprocess improvement

• Determine if activitiescomply with processes

• Continuousimprovement

• Identify improvementsthe company needs tomake

• Recommend changes


320

What are some of theactivities in qualityassurance?

321

• Process analysis

• Quality audits


322

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

323

Structured reviews ofquality activities thatidentify lessons learned


324

What is the purpose ofquality control?

325

• Measure specificproj ect results againstquality standards

• Make changes toquality baseline

• Identify root causesand qualityimprovements

• Recommend correctiveand preventive actions,changes, and defectrepair

• Validate deliverables


326

Name the quality controltools.

327

• Cause and effectdiagram

• Flowchart

• Histogram

• Pareto chart

• Run chart

• Scatter diagram

• Control chart


328

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

What is defect repair?

329

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


330

- - - ------

What is a cause and effect(fishbone) diagram?

Why is it used?

331

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


332

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

-'

333

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


334

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

What does a Pareto chartshow?

Why is it used?

335

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


336

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

337

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


338

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

339

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


340

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

341

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


342

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

343

The acceptable range ofvariation on a controlchart


344

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

345

Customer's measuresdefining acceptableproduct/servicecharacteristics andtolerances


346

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

347

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


348

What does the rule ofseven mean?

349

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


350

What is a special cause?

351

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


352

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

353

• Human resourceplanning

• Acquire project team

• Develop project team

• Manage project team

See the Human Resources Chapter

354

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

What are key outputs ofhuman resource planning?

355

• Roles andresponsibilities

• Staffing managementplan

• Project organizationalchart


356

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

What are key outputs ofacquire project team?

357

• Project staff (team)assignment

• Resource availability


358

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

359

Team performanceassessment: Evaluatingteam effectiveness


360

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

361


• Recommendedpreventive andcorrective actions


362

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

363

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.


364

- - - - - - - - - -

Define sponsor.

365

• 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


366

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

367

• Create the workbreakdown structureand help with projectmanagement planning

• Estimate activities

• Complete activities

• Help control and closeout the project

• Held accountable forassigned activities


368

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

369

They may help:

• Plan the project

• Approve changes

• Identify constraints

• Perform the riskmanagement process


370

Define the role offunctional managers.

371

Resource managers:

• Participate in planning

• Approve final projectmanagement plan

• Approve final schedule

• Assist with problemsrelated to team memberperformance


372

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

373

When and how humanresource requirementswill be met

• Recognition andrewards

• Staff acquisition

• Timetable

• Release criteria

• Training needs


374

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

375

• 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)


376

- - - - - - -

What must a projectmanager do to manage aproject team?

377

• Observe

• Use an issue log

• Keep in touch

• Complete projectperformance appraisals

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


378

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

379

An assessment by theproject manager ofproject teameffectiveness


380

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

381

• Formal

• Reward

• Penalty

• Expert

• Referent


382

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

383

• Directing

• Facilitating

• Coaching

• Supportive

• Autocratic

• Consultative

• Consensus


384

Name the most commonsources of conflict onprojects.

385

• Schedules

• Priorities

• Resources

• Technical opinions

NOT personalities


386

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

387

• Problem solving(confronting)

• Compromise

• Withdrawal(avoidance)

• Smoothing

• Forcing


388

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

Define compromising.

389

Problem Solving: Solvingthe real problem(Win-win)

Compromising: Makingall parties somewhathappy(Lose-lose)


390

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

Define smoothing.

Define forcing.

391

Withdrawal: Postponing aproject decision oravoiding addressing theproblem

Smoothing: Emphasizingagreement rather thandifferences of opinion

Forcing: Do it my way


392

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

393

• 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


394

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

395

An evaluation ofindividual team membereffectiveness


396

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

397

People are motivatedaccording to hierarchy:

• Self-actualization

• Esteem

• Social

• Safety

• Physiological


398

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

399

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


400

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

401

• Hygiene factors

• Motivating agents


402

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

403

The team and otherresources are needed tocomplete closure

See the Communications Chapter

404

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

When does it occur?

405

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.


406

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

407

• Communicationsplanning

• Informationdistribution

• Performance reporting

• Manage stakeholders


408

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

409

Communicationsmanagement plan


410

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

411

• Team and stakeholdershave the informationthey need



412

- - - - - - - - - -

What are key outputs ofperformance reporting?

413

• Stakeholders knowhow the project isperforming

• Performance reports

• Forecasts




414

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

415

• Resolved issues

• Approved changerequests

• Approved correctiveactions


416

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

417

Determining theinformation andcommunication needs ofstakeholders


418

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

419


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


420

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

Describe the informationdistribution requirementson projects.

421

Implementing thecommunicationsmanagement plan

Creating reports including:

• Lessons learned• Performance reports

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


422

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

Describe thecommunications modeland its components.

423

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

• Nonverbalcommunication

• Paralingual• Active listening• Effective listening• Feedback


424

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

425

About 55 percent


426

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

427

Pitch and tone of voice


428

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

429

• Formal

• Informal

• Written

• Verbal


430

- - -------

How much time do projectmanagers spendcommunicating?

431

90 percent


432

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

Name communicationblockers.

433

• Noise

• Distance

• Improper encoding

• "That was a bad idea"

• Hostility

• Language

• Culture


434

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

435

• 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.


436

What is the formula forcommunication channels?

437

[N (N-I)] /2


438

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

What is an issue log?

439

Documents project issues,persons responsible forresolving issues and targetresolution dates


440

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

What do we do withthem?

441

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


442

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

443

• Risk managementplanning

• Risk identification

• Qualitative riskanalysis

• Quantitative riskanalysis

• Risk response planning

• Risk monitoring andcontrol

See the Risk Chapter

444

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

What is the key output ofrisk managementplanning?

445

Risk management plan


446

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

447

• Risks

• Risk register


448

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

449

• List of risks

• Ranked risks bycategory

• Watchlist


450

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

451

• Probability ofachieving the cost andtime objectives

• Prioritized list ofquantified risks


452

--What are key outputs ofrisk response planning?

--

453

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

cost• Fallback plans• Contracts• Revised project

management plan• Residual risks• Secondary risks


454

What are key outputs ofrisk monitoring andcontrol?

455


• Recommendedpreventive andcorrective actions

• Updates to the riskregister

• Risk audits

• Periodic risk reviews

• Risks closed


456

-- -- -- -- - '-

Define risks.

457

Events that can affect aproject for better or worse

Threats and opportunities


458

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

459

• Probability

• Impact

• Timing

• Frequency


460

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

461

Unwilling to take risks


462

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

463

Amount of risk acceptable


464

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

465

• Organizational processassets

• Enterpriseenvironmental factors

• Project charter

• Project scopestatement

• Proj ect scopemanagement plan

• Staffing plans

• WBS• Network diagram

• Cost and timeestimates


466

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

467

Lists of common sourcesof risk, including:

• Technical

• Project management

• Schedule

• Cost

• Others


468

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

469

• Documentationreviews

• Brainstorming• Delphi Technique• Root cause

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

techniques


470

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

471

• Business

• Pure


472

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

473

Early warning signs that arisk event is about tooccur


474

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

What is assumptionsanalysis?

When is it done?

475

Explores the validity ofproject assumptions toidentify new risks in riskidentification


476

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

When is it done?

477

• Reviewing how wellunderstood is the risk

• A method to testreliability of riskinformation collected

• It is done duringqualitative riskanalysis


478

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

479

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


480

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

481

Probability times impact


482

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

483

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


484

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

485

The person assigned toexecute risk responses foreach critical risk


486

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

487

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

488

Narne and define the riskresponse strategies foropportunities.

489

Exploit: Enhance theopportunity

Share: Allocate ownershipto a third party

Enhance: IncreaseprobabIhty or impacts

Accept:PassIve - Do nothingIf it happens, it happens

Active - Developcontingency plans


490

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

491

Risks that remain after riskresponse planning:

• Risks for whichcontingency andfallback plans havebeen created

• Risks which have beenaccepted

Outputs of risk responseplanning


492

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

493

New risks created by riskresponse strategies



494

-- -- - - - -

How does buyinginsurance relate to riskresponse planning?

- -

495

It exchanges an unknownrisk for a known risk

It is a method to decreaseproject risk

It is an output of riskresponse planning


496

------ -

What do contracts have todo with risk responseplanning?

497

A contract helps allocateand mitigate risks

A risk analysis is donebefore a contract is signed

Contracts are outputs ofrisk response planning


498

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

499

Planned responses to risks



500

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

- - - - - - - - - -

What are fallback plans?

501

Actions that will be takenif the contingency plan isnot effective



502

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

503

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

It is an output of riskresponse planning


504

What are reserves?

505

Time or cost added to theproject to account for risk

Also referred to as:

• ~anagementreserve

• Contingency reserve

Reserves are outputs ofrisk response planning


506

What is a contingencyreserve?

507

Time or cost allocated tocover known unknowns

Included in cost baseline


508

What is a managementreserve?

509

Time or cost allocated tocover unknown unknowns

Included in cost budget


510

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

When do they occur?

511

Identification of newrisks

They occur during riskmonitoring and control


512

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

When is it done?

513

• Determining reserves

• Managing the reservesand making sure theamount remaining isadequate

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


514

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

515

Examining anddocumenting theeffectiveness of the riskresponse and the riskresponse owner


516

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

517

• Plan purchases andacquisitions

• Plan contracting

• Request sellerresponses

• Select sellers

• Contractadministration

• Contract closureSee the Procurement Chapter

518

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

519

• 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

520

- -------

What are key outputs ofplan purchases andacquisitions?

521

• Procurementmanagement plan

• Contract statement ofwork



522

What are key outputs ofplan contracting?

523

• Procurementdocuments

• Evaluation criteria


524

-

What are key outputs ofrequest seller responses?

525

• Procurementdocuments

• Proposals


526

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

527

• Contract signed

• Contract managementplan



528

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

529

• Substantial completion




530

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

531

• Product verification

• Financial closure

• Update and indexrecords

• Performance reporting

• Procurement audits

• Lessons learned

• Formal acceptance


532

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

533

A plan for how eachcontract will beadministered


534

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

535


Describes howprocurements will beplanned, executed andcontrolled


536

~ WI' WI' ...

- ------

What is required for alegal contract?

537

• Offer

• Acceptance

• Consideration

• Legal capacity

• Legal purpose


538

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

539

May include all of thefollowing:

• Legal terms

• Business terms

• Contract statement ofwork

• Marketing literature

• Drawings


540

Describe the projectmanager's role inprocurement.

541

• 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


542

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

543

• Increased expertise incontracting

• Standardized practices

• Clear career path


544

- - - -

Narne the disadvantages ofcentralized contracting.

545

• One person works onmany projects

• May be difficult toobtain contracting helpwhen needed


546

------

Narne the advantages ofdecentralized contracting.

547

• Easier access tocontracting expertise

• More loyalty to theproject

• More focused contractexpenence


548

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

Name the disadvantages ofdecentralized contracting.

549

• No home for thecontracts person afterthe project

• Less focus onimproving contractingexpertise

• Inefficient use ofresources

• Little standardizationof contractingprocesses from oneproject to the next


550

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

What does make-or-buyrefer to?

551

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


552

- - - - -

What are the main typesof contracts?

553

• Cost reimbursable

• Fixed price

• Time and material

• Purchase order


554

- --

What is a costreimbursable contract?

555

All costs are reimbursed


556

What is a cost plus fixedfee contract?

557

All costs are reimbursed

The fee is fixed at acertain monetary amount


558

What is a cost pluspercentage of costcontract?

559

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


560

What is a cost plusincentive fee contract?

561

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


562

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

563

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


564

-------

What is a fixed pricecontract?

565

There is only one fee foraccomplishing all thework


566

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

567

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


568

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

- -

569

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


570

-- -- - - - - - -

Describe how contractadministration efforts willbe different with eachcontract form.

571

This critical conceptcannot be summarizedhere.

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


572

- - -

What is a purchase order?

- -

573

A unilateral contract


574

What are incentives?

What might they be usedfor?

575

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

Incentives for:

• Time

• Cost

• Quality

• Scope


576

Who has the cost risk in acost reimbursablecontract?

In a fixed price contract?

577

Risk in a costreimbursable contract isborne by the buyer

Risk in a fixed pricecontract is borne by theseller


578

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

579

• Performance

• Functional/detailed

• Design


580

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

581

• Request for proposal(RFP)

• Invitation for bid(IFB)

• Request for quotation(RFQ)


582

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

What are specialprovisions?

583

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


584

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

585

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


586

- - - - - - - - - -

What is a letter of intent?

587

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


588

- - - - - - - -

What does privity refer to?

589

Contractual relationshipsbetween two or morecompanies


590

------

What does non-competitiveprocurement mean?

591

Work awarded to a singlesource or sole sourcewithout competition


592

When are evaluationcriteria created and used?

What do they refer to?

593

Created during plancontracting

Rationale that the buyerwill use to weight or scoresuppliers' proposals

Used during select sellersto pick a supplier


594

What is a bidderconference?

What should be watchedout for?

595

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


596

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

597

A list of sellers who havebeen pre-approved


598

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

What are the objectives ofnegotiation?

599

• Obtain a fair andreasonable price

• Develop a goodrelationship with theother side


600

- -------

Name some negotiationtactics.

601

• Attacks• Personal insults

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

• Missing man

• Delay• Extreme demands• Withdrawal• Fait accompli


602

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

603

• Review invoices

• Integrated changecontrol

• Interpret the contract

• Monitor performanceagainst the contract

• Risk management

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


604

- ------

Why might there beconflict between thecontract administrator andthe project manager?

605

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


606

-'

What is a contract changecontrol system?

607

A system created tomodify the contract and tocontrol changes to thecontract


608

-- --- - - -

What must be done for allcontract changes?

609

They must be formallydocumented


610

What is the purpose of abuyer-conductedperformance review?

611

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


612

-- -- --Define claimsadministration.

-- --

613

Managing contestedchanges and constructivechanges (claims) requestedby the seller


614

- - -- ---

What is the key function ofa records managementsystem?

615

Maintain an index ofcontract documentationand records to assist inretrieval

Part of the projectmanagement informationsystem


616

-- - -

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

--

617

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


618

- ------

What is the purpose ofcontract closure in theprocurement managementprocess?

619

• Perform a procurementaudit

• Complete the workdone under contract


620

- -

What is a procurementaudit?

- - -

621

Structured review of theprocurement process anddetermination of lessonslearned to help otherprocurements


622

- -" -

What does professionaland social responsibilitymean?

623

• 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

624

What does "ensureindividual integrity" mean?

625

• 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

626

What does "contribute tothe project managementknowledge base" mean?

627

• Share lessons learned

• Write articles

• Mentor others

• Perform research onbest practices


628

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

What does "enhancepersonal professionalcompetence" mean?

629

• Understand your ownstrengths andweaknesses

• Continue to learn

• Look for new practices


630

- - -- --

What does "balancestakeholders' interests"mean?

-- --

631

Part of "promote interactionamong stakeholders", itmeans:

• Work to get clear andcomplete projectobjectives and projectrequirements

• Understandstakeholders' interests

• Recommendapproaches that strivefor fair resolution


632

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

633

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


634

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

Notes:

- - - - - -

Notes:

Notes:

- -Notes:

Notes:'

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