PMP Final Notes Nagaraja Narayana

8/6/2019 PMP Final Notes Nagaraja Narayana

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PMP final preparation notes

1. Portfolio management involves examining new projects for inclusion intothe portfolio.

2. project charter without signatures of sponsor is invalid3. project charters are written after the project is selected4. reviews and approvals of each phase before the next phase can begin

are called as phase exits , milestones, phase gates , decision gates,stage-gate, or kill points .

5. stake holder identification is a continuous process6. software maintenance ( example banking software once started to use

in bank ) is an ongoing activity and should never be part of any project7. In the project selection method mathematical models are also called

constrained optimization methodsThe other type of project selection method benefit measurement methods

Or comparative approach8. Many Executing process outputs are inputs to the Monitoring andControlling processes, and several Monitoring and Controlling outputsare inputs to the Executing processes.

9. Focus groups bring prequalified stakeholders together. Facilitatedworkshops involve cross-functional stakeholders.

10. NPV measures the excess or short fall of cash flows through the projectand to some time horizon during the life of the project result, after accounting for the cost of financing

11. Changes to the start and finish dates of activities in the schedule arecalled revisions. When changes are made to the schedule that will causesignificant schedule delays, you should rebase line the schedule.

12. analogous estimating is also known as top down estimating13. Imposed dates and key events constraints are two categories of time

constraints that should be taken into consideration when examining theconstraints input to the Schedule Development process. parametricmodeling uses a historical information available for estimatingFor ex information about the rate of doing plumbing work for square feetis considered to estimate the plumbing work for the whole buildingthe parametric model estimation depends upon the accuracy of historical database2types of parametric estimating are (Refer mulcahy 153)

y Regression analysis (scatter diagram)

y Learning curve

14. Weak matrix is also called project co coordinator organization15. SME ±subject matter experts16. It is the project manager¶s responsibility to present all the necessary

information to The sponsors and stakeholders so that they can make



decisions that are in the Best interest of the project, quality, and thetimeline

17. The payback period is how long it takes to recoup your investment.It is also the referred as the time it takes to reach break-even point

18. The internal rate of return (IRR) is the interest rate that makes the netpresent value of all cash flows equal zeroIt is also referred as the return on investment

19. Straight-line depreciation method is A method that divides an asset¶scost and its expected salvage value by its expected utilization period

20. salience model is a term related with the stakeholder analysis techniqueof identify stakeholders process it refers to power, legitimacy andurgency stakeholders have in the project

21. Working capital is the difference between current assets less currentliabilities22. The project charter is authorized by some one external to the project

such as Sponsor, PMP, and portfolio committee. Note that the projectmanager may help in preparing the project charter

23. Every project has the highest level of risk and uncertaintyat the initiation of the project. This is due to the fact that few, deliverableshave been provided and the milestones have not been met at thebeginning of a project. As milestones are met and deliverables areprovided, the risk and uncertainty decreases as you develop successesfor the project. Your risk generally decreases as you proceed from theinitiation phase to the planning phase to the executing phase and closeout

24. Sensitivity analysis is a technique that identifies the risks that will havethe greatest effect on overall project outcomes.

25.Establishing a contingency reserve, including amounts of time,money or resources to handle known or unknown risks. This is anexample of active risk acceptance. The contingency plan should berevisited when even ever a identified risk occur.

26. the risk owner should update the PM if any midcourse action is requiredon the risk he owns and also update the status of the risk he owns

27. Note the project charter is an output of initiating process group28. The stakeholder doesn¶t choose a project manager . The project

manager is chosen by project sponsor 29. project charter does not include resource assignments and time frames

30. Failing to identify a deliverable in the scope definition process does notmean a scope change has occurred. So while defining activities if ufind that some deliverables are missing u can simply Update the WBS



to include the missing deliverables, and define the appropriateactivities that support creating those deliverables.

But if a scope change is requested by any stakeholders then u need toinitiate the change request

31. mandatory dependencies ( HARD LOGIC)are those that arecontractually required or inherent in the nature of work . discretionarydependencies are sequencing decisions taken by team whilesequencing the activities they are also called soft logicor preferential logic ,and they may limit the scheduling options andthey must be documented and should be revisited if schedulecompression is necessary

32. the resource pool consists of the information like experience skill setcapabilities of resources

33. Quantitatively based durations estimation IS using quantity of time for each work category ( EXAMPLE minutes per foot )

34. The project manager even though may have technical expertise to doestimation, he should actively involve his team to make estimate ,in caseif he does estimation he should take a buy in from them

35. order of magnitude is a an estimating term used with cost estimates36. Note the difference between costing and pricing .in pricing you add

profit in costing you just add the cost of individual items or activities or process

37. Activity list updates happen during Activity sequencing and activityduration estimating

38. scope planning is a term used in PMBOK 3 & it refers to collectrequirements process of PMBOK4

39. The risk management plan should address approaches, tools,and data sources as well as roles and responsibilities, budgeting,timing, interpretation rules, risk thresholds, reporting formats, and tracking.

40. To develop risk management plan it may not be necessary to involveevery one in the Project team , it is just sufficient to involve projectmanager, selected project team members and anyone in theorganization with responsibility to manage the risk planning andexecution activities

But for identification of risks end users, SME¶s from outside theproject team and any body from team can be involved. Stake holdersfrom outside the project team can be involved for objective information. Allof the team members are involved with to ensure sense of responsibilityfor the risks and associated risks response plans.

41. the plan risk management process should begin as project is conceivedand should be completed early during project planning so that riskresponse are developed as early as possible



42.Utility function is a commonly used technique to find out thetolerance of a project manager towards risk

43. Project schedule development is the discipline of determining A. Thestart and finish dates for each project activity

44. The tools lie ADM (AOA ) PDM doesn¶t consider the resource

constraints they simply help in sequencing the activities . the out put of sequence activities is project schedule n/w diagrams the actualscheduling happens in develop schedule process with o/p as projectschedule

45. ADM uses only finish-to-start dependencies and may require the use of dummy activities to define all logical relationship correctly

46.Hammock: An aggregate or summary activity 47. the project sponsor may impose constraints like imposed dates and

major millstones they should be considered while arriving the schedule48. A lead will allow the acceleration of successor activity where as a lag will

delay the successor activity Lead removes time from an activity where

as lag adds a time we can think lag as a positive time added to theschedule

49. A control account is a management point where the scope cost andschedule are integrated and compared to the earned valuemeasurement Control accounts are placed at selected managementpoints in the WBS Each WBS may include one or more work packages,

but each of the work packages must be associated with only one workpackage.

Control Account : .... A management control point can be placed at selectedmanagement points (specific components at selected levels) of the WBSabove the work package level. These control points are used as a basis for planning when associated work packages have not yet been planned

50. A WBS can be rolled up or collapsed to provide information at theappropriate level

51. The cost of the WBS effort creation is not a factor considered by PMI as

a challenge to create a WBS and is assumed as part of aProject

52. At the WBS level you can review for presence of risks and segmentthem into risk events

53. Scope management plan includes how the procedures for how thescope is approved



54. Risk management should start as soon as you have appropriate input

and it should be repeated throughout the life of the project, since newrisks can be identified and may change the degree of risk on the project.

55.D

efinitions of risk probability and impact The project team membersare either risk prone (one who is ready to take risk) or risk averse(onewho feels he cant take the risks ) so in either case there are chances of bias. So in order to neutralize these biases the risk management shouldhave clear cut definitions of risk probability and impact of risks these definitions are decided and are the output of risk managementplan. The risk definitions are definitions consist of impact values alongwith the explanations of definitions like (low impact 0.1, moderateimpact 0.2 , high impact 0.5) on the x axis and the project objectivesare in the y axis . the corresponding cell of these matrix contains theexact definitions of the project objective having the defined impact (

Refer PMBOK 4)

56. the stakeholders risk tolerance should not be implied but should beuncovered and refined continually.

57.The risk identification can occur during the initiating and planningprocess groups ( in PMP exam terminology Onset of project ) riskmay also be identified during any part of the project

58. The root cause analysis is used as a tool and technique to identifyrisks and to dig further in the identified risks so that root causemay throw up some more risks

59. A person¶s willingness to accept risk is known as the utility function

60. when in the risk management process are responses are identified ?

Ans: as soon as a risk is identified the team may have a ready responsealso i.e. d identify risk process &plan risk response process

61. Risk management responsibilities will be assigned in the plan riskmanagement process (Refer page 279 PMBOK4) where as riskowner will be decided during plan risk responses process

62.once a risk response is identified for a risk and monitored usingmonitor and control risk process , the process of performingquantitative risk analysis should repeated to evaluate the overallproject risk has been satisfactorily decreased, so that the trendcan be analyzed to reduce or increase the risk management action



63.Fallback plan if available can be used (Fallback plan(s) are also riskresponse plans developed as alternative plans during plan risk responseprocess. Fall back plans are generally planned for a risk plans withhigh probability of occurrence in order to respond if the first identified

risk strategy fails.

64. Contingency plan on the other says that risk might occur and beready to handle it with plan.

65.A workaround is an unplanned risk response to a negative riskevent. When an unplanned risk happens a workarounds areimplemented to deal with the consequences of the risk

66. For an identified risk there might single risk response strategy or multipleresponses strategies

67. Creating prototype is an example of risk mitigation (an example of strategy for negative risks.) 68. triggers may be discovered during the identify risk process(alongwith the identified risks which is entered in the risk register) and arewatched during the monitor and control risk process

69. contingency reserves or allowances are the project funds that are held inreserve to offset an unavoidable threat to project scope ,schedule cost or quality it also including reserving time and resources to account for risks

70. Enhance: Increase the occurrence of a positive event.

71. Expected monetary value (EMV) =probability of occurrence X Impactvalue.

72. The EMV value is used to quantify the overall project risks and notindividual risks . The sum total of EMV is used to quantify the amount of contingency reserve required for the project.

73. you depend on a fallback plan when the primary plan doesn¶t work

74. variable costs are generally associated with the manufactureOf a product, and vary with the volume of product produced.

75. there are 2 types of depreciation a)straight line depreciationb) Accelerated depreciation

76. Law of diminishing return: the more you put into something the less youget out of it. In the PMP context for an activity to complete whichrequires 1 resource, If you 2 resources, still the output remains same.



77. Functional analysis related .to value engineering.

78. benefit/cost ratio( >1)or cost /benefit(<1) ratio used for the selection of projects

79. Product analysis is a tool and technique of Define scope.80. In the verify scope the deliverables which are not accepted aredocumented along with the reasons for non conformance

81. The Verify Scope process is where the level of detail concerning theamount of work completed is documented(even If the subcontractedwork is cancelled)

82. In the control scope process change requests can include corrective &preventive actions and defect repair which are routed through theperform integrated control process.

83. Risk ranking is done in perform qualitative risk analysis, identifiedwhich risks need additional analysis, also trend analysis is done inthe same process

84. Histogram is a vertical bar chart.85. control quality is performed before verify scope but these 2 processes

can be performed in parallel86. Early termination... can result from a mutual agreement of the parties or

from the default of one of the parties. 87. Force Majeure : a situation that can be considered as an act of god that

ie due to unavoidable instances like fire, freak accidents where either of the parties are not able to perform their contacting obligations . forcemajeure if occurs it is considered to be neither parties fault. it is usuallyresolvedby the seller receieving an extension of time of contract.

88. once a contract is signed it is legally binding unless both the partiesviolate the applicable law.

89. Once a seller completes the work specified in the contract SOW it isconsidered as contract is complete but . that does not mean thecontract is closed. Tricky (RITA MULACHY PAGE 406)

90. the primary object of incentive clause in a contract is to synchronize theobjectives of both the seller and buyer

91. from the buyer point of when ever there is an emergency to complete thework as early as possible , the best way is to include incentive in thecontract so that the project gets completed early



92. in the case of cost reimbursable contacts you need high effort to auditthe invoices

93. X theory of management, is another term used for an authoritarianmanagement style.

94.The responsibility assignment matrix (RAM) is used to link role assignments closely toscope and the WBS

95.Performance reports are an out put of communication management knowledge area

96. the existing quality policy is a part of the organizational process assetsinput and is the organization¶s intended direction with regard to quality.The existing policy may be used as is. If quality policy is not present thanthe project management team should create one.

97.fishbone diagrams are used in plan quality, perform quality control and risk

identifications

98. Quality objectives are special characteristics for which a product isdesigned and tested

99. The importance of a risk response is defined by time criticality The time criticality of arisk-related action can increase the importance of a risk this

100. risk Quality data Assessment which is a technique used for perform qualitativeanalysis also checks the understanding of the risks by project team members . it alsochecks the quality and reliability of data

101. The difference between qualitative &quantitative risk analysis is Qualitative riskanalysis assesses the impact and likelihood, whereas quantitative risk analysis assesses theconsequence on specific project objectives

102. quantitative analysis focuses on the probability of achieving the cost and timeobjectives

103. A risk response plan need to be agreed by all parties involved

104. risk response plan defines the actions required to reduce the threat. It doesn¶treduced the threat

105. Identifying risks requiring the most attention Iis found in the perform quantitative analysisprocess

The tonrdo diagram is used in this procees

106. A risk register is also called a risk response plan107. residual risk : a risk that remains after implementing a risk response

strategy

Residual risks that are expected to remain after planned responses havebeen taken, as well as those which have been deliberately accepted



108. A statement of work requires sufficient detail for the prospectiveseller to determine whether he can and wants to do the work required.

Answer B is incorrect because a contract involves pricing and timing andsometimes performance incentives

109. A meeting with prospective vendors is called a biddingconference, or a prebidconference.

110. prodcurement audit is the structured review of procurement process from

plan procurement process to administer procurement process

111. a responsibility assignment matrix also known as linear responsibility charts

112. from the PMP aspect prototype are used in collecting requirementsand also for risk mitigation activity

113. Pareto s Law (80 /20 rule ) 80 % of the problems are due to 20 %causes. It can be used to look at past problems and to determine whichproblems to focus on

114. The knowledge that the team and stakeholders gain by actuallyperforming the project is known as lesson learned

115.

smoothing power is a temporary solution given by project manager

116. Maslow¶s Hierarchy of Needs is a pyramid of hierarchical needs,from basic physical needs to self-actualization

117. herzberg motivation and hygine theory read kim heldmann page353

118. The solicitation process is the means by which you let vendors know what

your requirements are. They then respond with a proposal on how they can meetyour requirements

119. Expectancy Theory asserts that people are motivated in their work with theexpectation of being rewarded

120. A contract between buyer and seller is created at what point in the procurementprocess During source selection, based on evaluation criteria, procurement policies, andsupplier history

121. the purpose of contract administration is to To ensure the seller¶s performance meetsthe contractual requirements



122. Workaround plans and corrective action are the output of monitor and control risks 123. whenevera sposor asks you to change scope , first tell him the impact on the schedule

and cost

124. Change requests can exist in many forms; however, they must be formalrequests, as opposed to informal requests, developed within the context of a changecontrol system consisting of documented procedures.

125. To assess the degree to which the project scope will change, you need tocompare the requests with WBS

126. If the cost variance and the schedule variance are the same and greater thanzero, what does this mean

The variance is favorable to the project

127. Value engg is a tool in scope planning for analyzing a design, determining itsfunctions, and assessing how toprovide those functions cost effectively

128. How can change requests impact the scope?

A. Either expansion or shrinking of the scope

129. Graphical Evaluation and Review techniques are similar to PERTbut have the distinct advantages of allowing for looping, branching, andmultiple project end results

130. The PERT method calculates the expected value²or weightedaverage²to determine project duration.

131. the completed checklists are part of project records132. project organization chart : graphic display of project teams and

their reporting relationships133. Schedule limitations can shape the size of the project team but will

not influence its organizational design134. Reserve analysis compares the amount of contingency reserves

remaining to the amount of risk remaining at any time in the project, inorder to determine if the remaining reserve is adequate.

135. contingency reserve are for residual risks (known unknown)

136. The ability of the stakeholders to influence the final characteristicsof the projects product is highest at the start and gets progressivelylower as the project continues.

137. Legitimate Power (formal power): The ability to gain supportbecause project personnel perceive the project manager as beingofficially empowered to issue orders.

Legitimate powers are formal authority within the organization

* Reward Power: The ability to gain support because project personnelperceive the project manager as capable of directly or indirectly dispensingvalued organizational rewards (i.e. salary, promotion, bonus, future workassignments



* Penalty Power/coercive power: The ability to gain support because theproject personnel perceive the project manager as capable of directly or indirectly dispensing penalties that they wish to avoid. Penalty power usuallyderives from the same source as reward power, with one being a necessary

condition for the other * Expert Power: The ability to gain support because personnel perceive theproject manager as possessing special knowledge or expertise. (thatfunctional personnel perceive as consider as important)* Referent power: The ability to gain support because project personnel feelpersonally attracted to the project manager or project ( also charisma of project manager works

138. note expert and reward powers are the powers favoured PMIPENALTY POWER is the worst choice

Reward and & penalty are powers derived from project managers

position in the companyexpert power is earned on own by project manager 139. Trend analysis involves examining project performance over time todetermine if performance is improving or deteriorating

140. Quality management can be defined as the process of ensuringthat a project meets the implied and stated needs of the project clients.

141. Description of how a project management team shouldimplement the overall intentions and direction of an organizationwith regards to quality (as expressed by top management) isavailable in Quality Management Plan

142. marginal analysis is a term related with the quality Where asregression analysis is a term related with parametric estimating

143. cost of quality is divided as in below diagram

144. Prevention and appraisal costs (cost of conformance) include costsfor quality planning, quality control and quality assurance to ensurecompliance to requirements

145. Common causes : the source of variation is inherent in the systemand predictable also called also called random cause on a control chartit appears as part of the random process variation and indicated byrandom points.

146. special cause also called as assignable cause that is notinherent in the system is not predictable and is intermittent on a control



chart the points beyond he control limits or non random points within thecontrol limits indicate it. (remember rule of 7) point

147. quality gurus :

Phillip Crosby: zero defects, prevention is the key, do it first time

Joseph M Juran: advocated top management involvement Definedquality as fitness for use. Juran Also proposed grades of quality

Edward Deming : quality is management problem . 85% of cost of quality is a management problem . workers should be trained andshould be shown what acceptable quality is.

Walter schewhart: control chart author, and Plan do check act cycle.

Kaizan: improve the quality of the people first and then quality of products or service.

148. grade : same functional use but different technical characteristics149. Failure costs are also called cost of poor quality or cost of

nonconformance

150. to control the processes the THREE SIGMA VALUES ARE Setwithin the UPPERSPECIFICATION limit and lower specification limit.

151. six sigma value are 3.4 defects per million or +/- 6 sigma 99.99985 %+/- 3 sigma 99.73 %+/- 2 sigma 95.46 %+/- 1 sigma 68.26 %

152. histogram is a vertical bar chart153. The seven basic tools of quality are

y Run chart

y Control chart

y

Pareto charty Flow chart

y Scatter diagram

y Cause and effect diagram

y Histogram

These are all quality control tools



154. a listing of all the project team members, their roles and

communication information. This information should reside in the project team directory

155. Number of Communication Channels increases exponentially whennumber of people increase

156. generally accepted methods for translating project objectives intotangible deliverables and requirements is also referred to as productanalysis

157. During Project Plan Execution, which area will the Project Manager spend least time on ans : documentation

158. When deciding which project to select Select project with lower

Life Cycle Cost 159. A metric is an operational definition that describes, in very

specific terms, what something is and how the quality controlprocess measures it.qualty metrics are used in both qualityassurance and quality control

160. duration of the project is the length of the critical path, and not thesum of durations for all the tasks in the project

161. the term Progressive elaboration should not be confused withscope creep.

162. Project Requirements: Describes the conditions or capabilities thatmust be met or possessed by the deliverables of the project to satisfy acontract, standard, specification, or other formally imposed documents.

163. Decomposition may not be possible for a deliverable or subprojectthat will be accomplished far into the future

164. IRR is the discount rate when the present value of the cash inflows equals

the original investment IRR is the discount rate when the present value of thecash inflows equals the original investment. Projects with the highest IRR value

should be selected 165. Influencing skills, not negotiation, use power and politics to get

things accomplished.166. The payback period is the least precise of all the cash flow

techniques, not discounted cash flow.167. Management directives are constraints because they either restrict

or dictate the actions of the project team.

168. Cost and schedule estimates are derived from the work packagelevel of the WBS, not from the project scope statement.



169. it Is your responsibility to recognize the effort of your colleagyewhen he has contributed the effort towards the report generation for management (even if you have modified the report and your colleague isok with it)

170. the project scope accomplishment is measured against project plan

171. Theories of human resource management plan:

172. In the develop schedule process , what if scenarios are used todevelop the schedule ( Monte Carlo analysis ) similarly the quantitativerisk analysis used Monte Carlo analysis

173. Expectancy theory :VICTOR VROOMexpectance of a positive outcome by mangers and motivating the resources by

the managers drive people.

BY FREDRICK HERZBERG: HYGINE AND MOTIVATION THEORY

MASLOWS THEORY: OF HIERARCHY OF NEEDS :

Basic needs:Safety and security needs:Social needs:Self esteem needs:Self actualization:

Contingency theory : combination of theory y & HYGINIC THEORY

Theory z : William ouchy loyalty towards organization

174. In customer meetings when ever a problem are raised the bestthing is to listen to the problem and gather as much as information isavailable

175. Contingent response strategies identify strategies to be used if specified risk event occur. Once these reserve strategies are identifiedthen it leads to the development of contingency reserve within the costand schedule baseline

176. while developing project schedule it is evident that contingencyreserve is planned for schedule development . this is done taking care of



risks in the schedule. If these risks didn¶t occur then the project maycomplete ahead of schedule. in such cases it is important to make a listof risks that didn¶t occur. And report to the management why the projectwas complted earlier . honesty pays

177. scope statement is an input to qualitative risk analysis

178. implied warranties are those warranties (not written warranties )with the fitness for purpose or use

179. the ultimate purpose of risk management is to reduce uncertainty

180. EMV calculations assumes risk neutrality

181. A contact is in place only when . Both offer and acceptance hashappened

182. The order of precedence is the priority in which project documentswill govern when there are inconsistencies between them.

183. A waiver is a term applied to the relinquishing of the rights of anyparty of the contract

184. adhering to the contractual requirements of the customer is theultimate responsibility of the project manager

185. A contract change control system is the way by which procurementsystems can be modified.

186. the cost involved with request seller responses are most of thepaidby prospective sellers

187. The make or buy analysis considers both direct & indirect costs

188. In the case of cost reimbursable contracts the bidding efforts by theprospective sellers are less.

189. Unit price contact is used when quality & type of work can bedefined but the quantity is unknown

190. ethnocentric means believing once culture is superior

191. change agents are anyone inside or outside organization who iscommitted to change

192. accepting a gift is conflict of interest in American culture



193. affinity diagram : grouping similar ideas together rthen allowing for

brainstorming

194. Six sigma process life cycle DMAIC Define ,Measure, analyse improve, control

195. the roles of Project manager in weak matrix are

project expeditor : primarily acts as a staff assistant and communication coordinator hecan not enforce any decisionwhere are project coordinator similar to coordinator except that has some power to makedecisions

196. mutual exclusivity : two events are said to be mutually exclusive if theycannot occur in a single trial ( for example flipping a coin you cant get both headand tail in the same time when u flip

197.Mean: regular meaning of "average"median: middle value to find the median, your numbers have to be listed in numerical order mode: most oftenrange difference between the highest and the lowest

198. The formula for ROS is simply: operating profit / total sales × 100 =percentage return on sales For example, if a business makes $150 on a sale worth$950, ROS is:

150 / 950 = 0.158 × 100 = 15.8%

199.



200. inspections terms

There are 2 types of acceptance sampling

y attribute sampling : the results of inspection either confirs or not

conforms (Go or No go)y variable sampling :

Variable sampling plans can be used to gradually reduce the level of inspection required toverify conformance.

The objective of such plans is to allow inspection frequency to be reduced as confidence in agiven process increases, or conversely to allow inspection frequency to be increased asconfidence falls.

There are four stages of contract life cycle : they are

R equirements (in plan procurements process) : decide the project tprocuremetn

decision

R equisition (in plan procurement process) : RFP RFQ RFI A REVIEW OF

POTE NTIAL Vendors takes place

Solicitation(in conduct procurements process) : the vendors are asked to cpometefor the contract and respond for RFP The resulting output is the proposal

Award : vendors are chosen and contracts are awarded

: A term such as bid, tender or quotation is generally used when the seller

selection decision will be based on price (as when buying commercial or standard items), while a term such as proposal is generally used when other considerations, such as technical skills or technical approach are paramount

PMP Notes

1. a standard is ³a document approved by a recognized body that provides for common andrepeated use, rules, guidelines, or characteristics for products, processes, or services with which compliance is not mandatory.´

2. PDM Or activity on node(AON) use four types of relationships FS,FF,SS SFFinish to start is the most commonly used diagram

3. Arrow diagram method or Activity on arrow uses only finish to start

4. Scope creep is only common if there was poor planning for the project or an effectivechange control management plan was not utilized correctly.

5.

6. project managers are not the best resource for providing estimates on daily operationsand time allocations; people doing the actual work are the best sources



7. If stakeholders requirements are discussed and scope is finalized there is less scope for project failure or getting delayed.

8. PMBOK defines "Hammock Activity" as, "A group of related schedule activities aggregated

at some summary level, and displayed/reported as a single activity at that summary

level."

9. Total Float- The amount of time an activity can be delayed without delaying project end date or next milestone 10. free float L: The amount of time a schedule activity can be delayed with out delaying the

ealy start date of a successor activity .

11. Project Float - The amount of time project can be delayed without delaying promised completion date. Activities on critical path

have zero float.

12. How is a change control board used? Can there be more than one?To approve or reject change requests according to responsibilities defined and agreedupon by key stakeholders. Multiple CCBs may be used on large projects

13. What is the 80 hour rule?Each task should be broken down into work packages that require no more than 80

hours to complete.

14. What is the difference between scope verification and quality control?Scope verification is primarily concerned with acceptance of the work results; qualitycontrol is primarily concerned with the correctness of the work results

15. Design of experiments : The use of experimentation to statistically determine whichvariables will improve quality .When should scope verification occur? At the end of theproject

Design of Experiments is a statistical method that helps identify which factorsmight influence specific variables. The technique is used most frequently tothe product of the project... however; it can also be applied to projectmanagement issues, such as cost and schedule tradeoffs. For example,

senior engineers will cost more than junior engineers but can also beexpected to complete the assigned work in less time.

16. performance measurement baseline : also called project performance baseline typicallyintegrates scope ,cost ,schedule parameters of projectbut may also include technicalparameters

17. Does the matrix form of project organization facilitate or complicateproject team development?It complicates team development because team members are accountable to both afunctional manager and a project manager

18. What is the expectancy theory?

It holds that people tend to be highly productive and motivated if they believe their efforts will lead to successful results and they will be rewarded for their success

19. What is variance analysis? Comparing actual project results to planned or expectedresults in terms of cost, schedule, scope, quality, and risk.

determining the cause of variance relative to the scope baseline anddeciding whether corrective action is requiredIS PART OF VARIANCEANALYSIS



20. Control Thresholds: Variance thresholds for costs or other indicators (e.g.person-days, volume or product) at designated time points over theduration of the project can be defined to indicate the agreed amount of variation allowed.

21. What is active listening? Listening in which the recipient is attentive and asks for clarification of ambiguous messages

22. What is major cause of conflict with functional managers?Schedules

23. What is the tool for used for communication planning?Stakeholder analysis

24. What factor has the greatest effect on the project'scommunication requirements? The project's organizational structure

25. What is the primary condition leading to conflict

in both the weak and strong matrix organizations? Ambiguous jurisdictions. They exist when two or more parties have relatedresponsibilities, but their work boundaries and role definitions are unclear

26. When is a project considered closed? When the archive is completed. All project docsgoes into the archives; this is the last thing to create before releasing the team.

27. What is fast tracking? Compressing the schedule by overlapping activities that wouldnormally be done in sequence; may result in rework and increased risk; logicalRelationships are modified

28. How does resource leveling work? By using positive float available on non-critical paths,schedule by smoothing or leveling peaks and valleys of resource utilization

29. What is lag? Required waiting time between activities

30. What are control accounts? They represent the basic level at which project performanceis measured and reported.

31. What is a reserve? A provision in the project plan to mitigate cost and/or schedule risk.Management reserves are for ³unknown unknowns´ and contingency reserves are for ³known unknowns´.

32. Funding limit reconciliation : a tool and technique of determine budget process whichhelps to match the planned needs of funding with the organizations ability to providefunding

33. What is a known-unknown risk? Risk that can be identified as possibly happening (e.g.Flood if a business is located in a flood zone)

34. In Statistical Process Control, the variation in a process is categorized as either

y Common (General) Cause Variation also called Chance cause

y or Special (Assignable) Cause Variation.The common cause variation arises from a multitude of small factors that invariably effect anyprocess and will conform to a normal distribution, or a distribution that is closely related to the



normal distribution. The special cause variation arises from specific factors that have anidentifiable effect on the process.Common cause variation is inherent in the process and can only be reduced by changes tothe system, and usually requires management action eg. upgrading a machine. Specialcauses can often be tracked down and fixed without extensive changes to the system eg.fixing a fault on a machine or improving the quality of raw materials.

35. The basic rule of statistical process control is:Variation from common-cause systems should be left to chance, but special causes of variation should be identified and eliminated.This is Shewhart¶s original rule. However, the rule should not be misinterpreted as meaningthat variation from common causes should be ignored. Rather, common-cause variation isexplored "off-line." That is, we look for long-term process improvements to address common-cause variation.

36. What is the Rule of Seven? If seven or more observations in a row occur on the sameside of the mean, even though within control limits, they should be investigated as an

Assignable cause.

37. What is the underlying concept of a Pareto Diagram? A relatively small number (20%) of causes will typically produce a largemajority (80%) of the problems or defects.

38. Run chart displays the trends in a process over a period of time39. Who is ultimately responsible for quality? The individual. The project manager has overall

responsibility40. Lessons learned are completed by? Project team

41. You are a new project manager. It is best to rely on ?? to improve your chances of success? Historical information

42. Note: Risk rating The probability rating and overall rating score gives a basis for overallrating for each of the risk this risk rating is correlated to a table of the probability and

impact matrix that provides the overall risk classification for the risk(as high low andmedium) This was each risk is rated .and based upon the risk rating all the risks arefurther ranked to choose further priority keeping the project objective in mind.

Note that risk can also be prioritized based upon the expected monetary valueimpact or any other combination of other methods

43. You transfer the risk when you purchase an insurance44. risk tolerances are determined in order to help the team to rank the risks45. The low priority risks which are identified during qualitative process are kept on watch list

And are revisited during project execution stage

46. A work around is an unplanned risk response to a risk that has Occurred47. Workaround plans9response and corrective actions are taken in monitor and control risks process

48. When you buy insurance you add the that cost to contingency reserve. You aretransferring the risk by buying the insurance.

49. Note the term qualify the risk means you need to assess the risk for qualitative analysis &quantitative analysis.

50. when a project is deviating form the baseline ensure that you revisit the risksmanagement processes



51. When ever a new risk is identified you need to analyze the risk and later qualify the risk

for the qualitative and quantitative analysis

52. If your project sponsor demands a cut in estimation ,If you as a project manager isaccurate in your estimates then provide the sponsor with your estimate with proper supporting documents so that even you are ethical right and let management /sponsor decide the next decision

53. All project objective should be measurable and the deliverables must be quantifiable andthe success criteria of the project must be clearly defined in the project charter.

54. Risk analysis of the project should be complete before any contract should be signed.this is basically to have a clarity on the contract to be signed so that all clauses can becovered in the contract to safeguard the interest of the project

55. The make or buys analysis conducted during the project procurement process shouldconsider the

The actual out of pocket cost to purchase the product as well as the indirect cost of

managing the procurement

56. it is better to make rather than buy If you have an idle plant, or want to have control or you need to protect the intellectual proprietary

57.

PMI Ethics related notes:

y The rule of thumb here is not to do anything in another country that would be illegal(or immoral) in your own country

y If you have a particular revelation inspired by reading the study

guide, then you can share that, but not the text of a book (even if paraphrased).Obviously there are some grey areas in there, but the rule of thumb here (and in allother responsibility areas) is: if you are not 100% sure that something is permissible,then don¶t do it.

y Again, you need to be careful about sharing lessons learned, best practices,researches from your own projects, because unless you own the company, youprobably don¶t own the Organizational Process Assets derived from your projects,they belong to your employers. The approach here is to seek formal (written andsigned) permission for release of the information ± and if unsuccessful, ³no´ means³no´.

Stereotype - not allowing for individual differences or exceptions. ³All people from[wherever] are lazy and hard to motivate´Generalization ± opinions based on a small sample. ³I know ALL about New Yorker¶s, IWorked with one once´.Ethnocentrism - Always seeing things from your perspective. µMy way is normal; their Way is not¶Culture shock ± a feeling of disorientation when living or working in a different culture.



58. To assess the degree to which the project scope will change, you need to compare withWork breakdown structure(WBS)

59. note that when you re-baseline the schedule or Cost or scope you will involve only thosestakeholders whoa re required for a particular activity or WBS related & All are notinvolved in this

60. A planning package is a WBS component below the control account

61. A code of accounts is assigned to the WBS components. A chart of account iswhere all the codes are contained.

62. A positive (greater than zero) schedule varianceindicates that the project is ahead of schedule. A positive cost variance indicates that the project is under budget

63. Performance reports are an input to scope change control, as are the work breakdownstructure, change requests, and the scope management plan.

64. Change requests when raised by customer and agreed by Change control boardincrease the scope or decrease the scope

65. As a project manger you wish to have an effective project management plan whereby youwant to avoid changes by defining completely and correctly the baselines and projectscope. But in practicality it is you cant avoid changes

66. the perform integrated change control process allows for the effective execution andincorporation of a change into the project plan

67. there is a great uncertainty in the initiating phase of the project

68. Lessons learned are important to document because an organization can use them toimprove future projects and the Project Management process to do that the best thing isto use Checklists for risk identification

69. Inspections are performed during a project to certify that results are conforming torequirements. They may also be called walkthroughs, audits, or reviews.

70. An outside party conducts a risk audit, whereas the project team conducts a risk review.Risk reviews should be scheduled regularly

71. Scope verification differs from quality control in that scope verification is concerned withthe acceptance, and not the correctness, of the work results. Both scope verification andquality control are necessary in a successful project

72. when ever a change is necessitated due to internal or external factors of the project thefirst thing to be done is to document the change, the reasons for the change, and itseffect on the project in a change request

73. reserves are A provision in the project plan to mitigate cost or schedule risk 74. A budget update is necessary when there is a change to an approved cost baseline. 75. cost performance baseline provides details on the planned budget over time

76. Firm fixed price are the most commonly used contract preferred by the buyingorganization

77. In the fixed price incentive fee contract the final contract price is decided at the endof the contract and a price ceiling is set above which the seller has to bear theexpenses

78. You are getting outside support to execute the project and you don¶t have a precisedefinition of work to do which contract you go? : Go for Time & material contract.

79. Total cost of ownership includes the initial purchase price other costs expected to beincurred during the life of the product, such as service, repair, and insurance





100. Gantt chart( horizontal bar chart) is used in scheduling and doesn¶t contain information of resources101. Bar charts are vertical ( resource histogram is a vertical bar chart)102. laissez faire : A leadership style where leader gives all the control to group and generally absent

.the leader will share the information only when asked A leadership style where people are left alone and

manager work as consultant type as required

103. both gantt chart and network diagrams show dependcnies but it is much dificutlt to read in gantttchart

104. DELINIATE :to trace the outline of; sketch or trace in outline;represent pictorially: He delineated the state of Texas on the map witha red pencil

105.Which process defines the project success or failure ?

Define scope :

106.The ethics code does allow for a "stretch assignment", one that you may not havedirect experience with. For these assignments, you have a duty to inform the key

stakeholders of your knowledge gaps so that they may make an informed decisionregarding your suitability to the project. This standard of conduct should be valuable toyour business partners. They should be made aware of it.

107. High Context Cultures ("High-context cultures") are characterized byhigh internal guidance to groups or subgroups, long-lasting relationships andgenerate expectations known. The family is an example of high contextculture. The parent group meetings to be their children's school is also anexample. Globally, Japan and Korea are an example of exceptionally highcontext cultures. In high context cultures the relationship is more importantthan the task.

108.Low Context Cultures ("Low-context cultures") are characterized by creating

little difference between internal groups or subgroups and by a focus on theindividual. Codes in these cultures, beliefs and customs must be expressed sothat newcomers can interact. In a low context culture is given a lot importancto the rules. An example of low-context culture is the behavior of people in anairport. Globally, the U.S. is an example of a low context culture. In low-context cultures, the task is more important than the relationship

201. For resource allocating On larger projects, RAMs can bedeveloped at various levels. For example, a high-level RAM can definewhat project team or group is responsible for each component of theWBS, while lower level RAMs are used within the group to designate

roles, responsibilities, and levels of authority for specific activities.

202. giving stakeholder extras is gold plating

203. a communication management plan can attempt to controlcommunications ,but the project manager needs to have opencommunications with everyone



204. Communications Planning becomes increasingly important in avirtual team environment. Additional time may need to be spent to setclear expectations, develop protocols for confronting conflict, includepeople in decision-making and share credit in successes.

205. When projects are run in phases It is better to have project charter for eachphase

206. The only relation ship allowed in Activity on arrow or arrow diagram method isFinish to start

207. The critical path provided the shortest time to complete the project and not thelongest time

208. quality planning happens during the plan quality process as well as plan qualitycontrol.

209. project risk review happens during the monitor and control risk process

210. fringe benefits are included in overhead

211. gantt charts provide schedule

212. another name for the waiting time between 2 tasks is Lagthe primary aim of incentive clauses in contract is to synchronize the objectives of bothseller and the buyer

213. A heuristic is a rule of thumb ex cost per length of hole dug, cosr per square feetof space

214. communication requirements and quality standards are required beforeidentifying the risks related with quality

215. indentifying the ³ potential problems´ is a quality planning activity 216. the primary objective of quality assurance process is to drive continuous

improvement process

217. determining right quality standards are being used: qualityassurance

218. evaluating quality against standards is is quality control 219. determining what quality standards should be used is quality planning

220. Gantt chart is used to show progress 221. the primary purpose of network diagram is to show interdepencies

222. in order to complete the project charter the project manager should understand the

constraints present in the project

223. business processes that are ongoing and repeatable should be run in an functional

organization setup

224. The responsibility assignment matrix is used to define the connection between the

Work packages or activities and the resources.

225. The resource Gantt chart is referred to find WHEN the resources should be allocated.

226. summary milestone and summary budget info will be available in project charter

227. determining whether the quality standards are applicable to the project is an action of

quality assurance process

228. when you are buying a component from a sole seller( seller with patent) the biggest

concern for the buyer is the financial stability of the seller(u should have the risk of

bankruptcy



229. providing bonus for meeting specific quality measures is rewarding power of project

manager

230. there might be questions in PMP regarding a phase activity is completed or nearing

completed , the first thing a project manager should do is to scope verification at the end of

each phase

231. A work break down structure is used to complete all the task defined in the scope

232. WBS Should be complete so that it is referred for allocating the resources

233. communications under contract should tend towards formal written communication

234. a TIGHT matrix refers to co-locating and has got nothing to do with Matrix organization

235. In a contract the words are binding more than the numbers if there is a discrepancy in

the way it is defined like Twenty computers(25) but the document also mentions as 25 then

the Twenty holds good for both the seller and the buyer

236. Conflict results in communication barrier and miscommunication

237. A persons willingness to accept risk is the Utility Function (also called the

Utility Theory)

238. The project manager may not be the lead negotiator to the procurement process. anproject management team may be available for negotiation process to assist on technical ,

quality and management requirements

239. major constraints is another way of telling triple constraints

240. Stakeholders have a role to share the requirements. the manager should involve them

proactively

241. All stakeholders should be involved to identify the requirements

242. the project might be cancelled by the client in the middle of execution if the purpose as

mentioned in the project charter is not achieved .

243. When ever risk response plans are identified, there will be risk response activities,

these activities should be updated in the WBS

244. The project manager should not develop risk responses himself rather he shouldinvolve team members and get a buy in for the risk responses

245. If you have proprietary data than it is better to do the work within the organization than

giving outside

246.

247. once a preliminary budge and schedule has been derived then the risk management

process should happen before that you should not do any iterations to arrive to finalize the

budget

248. Extensive use of written communications is most likely to aid in problem solving in

projects.249. for communicating with the customer WBS is used for scheduling the resource the Gantt

chart is used

250. IF a manager supervises the resource, then it is his responsibility to ensure the

performance of the resource

251. The tool and technique of verify scope process is Inspection. It is also called as walk

through ,audit, reviews. The f requency of these audits can be mentioned in the scope

management plan

252. In the procurement process the contract is the binding thing.



253. larger the benefit cost ratio, SPI & CPI the better for the project

254. problem solving is the best way to solve problems

255. As the quality is increased there will be associated benefits for the project. Some of

these benefits are an increased productivity, increased cost effectiveness, decreased risk and

improved employee morale

organizational risks typically include time, cost, scope objectives that areinconsistent, a lack of funding, a lack of prioritization or changing priorities,and resource conflicts with other projects the organization has undertaken.

PMP Final Notes Nagaraja Narayana

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