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PMBOK Bookmarks
Ch 1 Essentials
Ch 2 Prj Mgmt
Ch 3 PMBOK Foundations
Ch 4
Integration
Ch 5 Scope
Ch
6 Time
Ch
7 Cost
Ch 8 Quality
Ch 9 HR
Ch 10
Comms
Ch 11 Risk
Ch 12
Procurement
Glossary of PMBOK
Terms
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My Views on Studying for and passing the PMP Test
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Study Recommendations:
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I recommend purchasing Alex Sherrer’s
PM Road Trip book.
I found his book and associated web site outstanding. The book
is fairly price and I found it easy to use his web site search
engine to look up areas I had questions on.
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Sign up for PMI and download a softcopy of
the PMBOK. As it turns out you save a little money when you
take the test.
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Try to form a study group; unfortunately,
this wasn’t an option for me because I couldn’t find anyone
interested in taking the test.
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Take as many tests as you can but only
from sources that explain their answers. Be careful on the web
since some questions are outdated and based on the 3rd ed. PMBOK.
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While studying, I suggest looking up the
answers on practice tests as soon as you finish each question.
This way your logic is fresh in your mind and you can immediately
analyze what was wrong with your logic when you finish the question.
This way you won’t remember the logic used to derive a wrong answer.
When you think you are ready to take the real PMP certification
test, then take practice tests all the way through to see where your
overall knowledge stands. I am not good at memorization and
that is why I chose the engineering field where you can figure
problems out based on analysis. The method above works for me but
may not work for everybody, use the method that works best for you.
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Don’t forget that a PM must be “PROACTIVE”.
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Books
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Downloads
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Earning PDUs
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Formulas
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EVMS
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AC – Actual Cost of the project up to the
measurement point
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BAC – Total Budgeted Cost of the project
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SPI = EV / PV
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CPI = EV / AC
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SV = EV – PV
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CV = EV – AC
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PV = Planned % complete x BAC
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EV = Actual % complete x BAC
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EAC = BAC / CPI
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ETC = EAC – AC
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Glossary of PMBOK Terms
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Links
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PMI PDUs
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Test Questions
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Training
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PMBOK Chapter 1 – Project Essentials
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PMBOK Chapter 2 – Project Management
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Constrained Optimization Methods
– Constrained optimization methods are complex, mathematical models normally
used on very large projects. We will need to recognize the following
terms as being part of constrained optimization methods in the project
selection process: linear/non-linear programming, integer programming,
dynamic programming, and multi-objective programming (Sherrer,
2009).
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Organizational Structure (Sherrer,
2009).
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Functional – is based on departmental,
specialty, or business lines, such as accounting, marketing, sales,
customer service, information systems, and so on. This is the most
common organizational structure, and it’s where each person reports to
one superior and functional managers are in charge of personnel.
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Projectized – is centrally based around
projects, so reporting structures fluctuate based on those projects. Projectized
organizations derive their revenue from providing services to others, so
common projectized organizations include accounting, architectural,
construction, engineering, and other professional services firms (Sherrer,
2009).
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Matrix – a mix between functional and
projectized organization, and they may range from a weak to a balanced
to a strong matrix. Matrix organizations are still vertically arranged
by departments, business units, or expertise. But they have an
additional alignment by projects, products, or similar classification
that stretches beyond the vertical alignment. This second alignment can
either be horizontal (usually seen in a weak matrix structure) or
vertically (usually seen in a strong matrix structure).
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Weak – the project manager has very
little authority, particularly in performance and personnel issues
involving the project team because team members still report to
their functional manager first and to the project manager second.
This situation closely resembles what a project manager faces in a
functional organization, and he or she is most likely serving as project coordinators. The project manager faces the same
obstacles in a weak matrix as in a functional organization, so
resource availability, prioritization, loyalty, and performance are
likely obstacles.
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Strong – the project managers have
a much greater authority over the project team, and team members
report first to the project manager and secondly to the functional
manager. But the functional manager is still responsible for the
human resource administration of his or her direct reports. The
project manager may also have full- or part-time support
staff available. For many project mangers, this could be considered
the best structure because it enables him or her to have a high
level of control over the project team but not have to get bogged
down in personnel administration.
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Balanced – is somewhere between a
weak and strong matrix, and there are no definite indicators as to
what constitutes a balanced matrix because there are many possible
combinations an organization could make. But the overriding goal of
a balanced matrix is to provide the project managers with sufficient
authority to successfully manage projects while leaving the
functional manager and its structure in place for all of the
benefits it provides.
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A composite structure is a temporary
shift in the organizational structure for a particular project (Sherrer,
2009).
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The Project Expediter acts primarily as a staff assistant and
communications coordinator only and cannot enforce any decisions.
He/she monitors and reports on the status of the project to senior
management. This role has no authority (Not in PMBOK) (Mulcahy, 2009).
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The Project Coordinator role is similar to expediter, but has
some limited, referential authority to make decisions. The project coordinator may report to
some higher-level manager than the expediter (Not in PMBOK) (Mulcahy, 2009).
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Net present value (NPV): NPV converts future monies to present
values, (as does present value) but it’s more precise because it takes into
account money being received while the project is underway. It shows future
cash flows discounted back to present value expressed as a percentage rate
of return. As with present value, a higher net present value is a better
choice. The formula is very complicated and isn’t provided here (Sherrer,
2009)
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Internal Rate of Return (IRR): The IRR is the inverse of
the net present value, and is based on the same formula. While NPV shows the
cost of capital, IRR shows a break-even rate of return. IRR is
not easy to compute or understand. A higher IRR is the preferred
choice (Sherrer, 2009).
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Economic Value Added: Economic value added is an extension of net
present value and can be used to measure the expected wealth a project will
generate. A higher EVA is preferred. Its formula is (Sherrer, 2009):
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Return on Investment (ROI): ROI is attractive for its
simplicity, but it doesn’t reflect the time value of money or profitability.
A larger ROI is the better choice (Sherrer, 2009):
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Future Value (FV): We all know that $1 today will not have the
same purchasing power in the future, so the future value formula accounts
for this time value of money. It uses the interest rate and the number of
periods to calculate what the future value of money will be. A higher
future value is preferred. Using future value, if the interest rate is 5
percent, $1 today will be worth $1.05 next year (Sherrer, 2009):
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Present Value (PV): If a project will return $1 next year, what
is that dollar worth in today’s value? The present value formula is the
inverse of the future value formula, and it converts future money to reflect
what its present value is by using the interest rate (Sherrer, 2009):
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PMBOK Chapter 3 – PMBOK
Foundations
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PMBOK
Chapter 4 – Project Integration Management
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PMBOK Chapter 5 – Project Scope Management
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The Delphi method is a systematic, interactive forecasting method
which relies on a panel of experts. The experts answer questionnaires in two
or more rounds. After each round, a facilitator provides an anonymous
summary of the experts’ forecasts.
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An affinity diagram
helps people address complex issues through brainstorming and data
categorization. Affinity diagrams can be used to generate ideas, identify
issues, and find relationships between factors contributing to an issue.
Once categories are established, the affinity diagram can be used to
prioritize items and develop an action plan.
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A RACI chart lists all activities and
the project role(s) involved with the activity, and what level of
responsibility the role has for the activity.
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Responsible:
The role(s) performing the work.
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Accountable:
The owner of the activity.
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Consultant:
If applicable, the role(s) serving as
subject matter experts or as decision-makers.
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Inform:
If applicable, the role(s) who need to be kept informed about the
activity but not actively engaged.
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When only a finite amount of requirements can
be addressed, prioritization can often bring out the worst qualities in
people since everyone will have a different view of which requirements
are mandatory, which are essential, and which are merely desirable. The
group may need different decision making techniques for different
categories of requirements, but in some manner the requirements will be
decided by:
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Unanimity:
Every single group member agrees on the same option
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Majority:
The option with more than 50% of support from group is chosen
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Plurality:
The option with the largest block of support is chosen (even if the
largest block doesn’t have a majority)
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Dictatorship:
One person chooses the option.
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Rolling Wave Planning (RWP) – It’s
acceptable for portions of the project’s deliverables to be remain
somewhat undefined. For example, components that are required later in
the project may not be fully defined up front, but rather the full
requirements for them will be developed in subsequent planning sessions.
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Group creativity techniques:
These techniques encourage lateral thinking for creative problem-solving
or identifying innovative solutions. They include brainstorming, idea
and mind mapping, affinity diagrams, and nominal group technique.
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PMBOK Chapter 6 – Project Time Management
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These results allow managers to prioritize
activities for the effective management of project completion, and to
shorten the planned critical path of a project by pruning critical path
activities, by “fast tracking” (i.e., performing more activities in
parallel), and/or by “crashing the critical path” (i.e., shortening
the durations of critical path activities by adding resources
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PMP Exam Tip: There are two
visualization techniques,
Precedence Diagram Method
(PDM)
and Arrow Diagramming Method (ADM). ADM does not
support FF relationships (Mulcahy, 2009). Of the two, PDM is used most
often.
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Types of Dependencies
(Sharma, 2010):
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Finish-Start: In this dependency, an activity cannot
start before a previous activity has ended. For example, you cannot cook a
stew before gathering all the ingredients. Therefore, the activity “Gather
Ingredients” needs to finish, before the activity “Cook Stew” can begin.
This is the most commonly used dependency.
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Start-Start: In this dependency, there is a defined
relationship between the start of activities.
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Finish-Finish: In this dependency, there is a defined
relationship between the end dates of activities.
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Start-Finish: In this dependency, there is a defined
relationship between the start of one activity and the end date of a
successor activity. This dependency is rarely used.
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Resource intensity
shows when and how many resources are needed at a particular time within
the project.
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Resource leveling
techniques match the resource needs of the project with the
organization’s ability to provide resources. When specific resource
types are scarce, there are only a few options if the project budget
doesn’t allow for procuring them from outside the project. One is that
the higher priority activities can have the scarce resources allocated
to them first and the dates of the other activities staggered so that
the resource intensity is lowered.
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Resource smoothing
is a form of resource leveling, and it tries to maintain the most
efficient use of the pool of resources types across the project by
smoothing out the peaks and valleys of the resource intensity.
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The
critical chain is the
longest sequence of dependent (and not necessarily sequential)
activities that prevent the project’s duration from being any shorter.
The Critical Chain Method
(CCM) recognizes that crucial events may not be sequential nor may they
be even within the same project. The primary difference between the
critical chain method
and the critical path method
is its approach to the schedule. The critical chain
method can be thought of as
encouraging a relay race within the project team against the schedule
while the critical path method
focuses on maintaining and meeting the schedule. Creating
critical chain buffers
is also a way to mitigate risks relating to resource scarcity
(Sherrer, 2009).
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Parkinson’s Law
states that work expands to fill the time available. This means that if
it we estimated an activity will take two weeks, it’ll end up taking two
weeks even if it could have been finished it in one1
(Sherrer, 2009).
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Activity dependencies
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Mandatory:
A required, hard logic,
or inherent order to the activities. For example, a book can’t be bound
until it has been printed. Mandatory dependencies can also be caused by
regulatory requirements or organizational procedures. Mandatory
dependencies cannot be altered, they are what they are and
the project has to adhere to those dependencies.
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Discretionary:
Known as soft logic
or preferential logic.
A logical or preferred order to the activities. For example, in a
remodeling project the team would prefer that carpeting not be installed
until all painting has been completed. Discretionary dependencies can be
reordered if necessary but doing so may result in additional risk
factors.
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External:
The dependency is outside of the project, and usually beyond of its
direct control. For example, a technician can’t begin installing the
equipment until the vendor delivers it. Though sometimes external
dependencies can be influenced or made contractual (such as with a
vendor or consultant), they can’t usually be altered. External
dependencies can also lead to scheduling problems when no hard date is
available. For example, some modes of transportation can provide only a
date range of when materials can be expected to arrive.
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The Triangular Distribution is
typically used as a subjective
description of a population
for which there is only limited sample data. It is based on a
knowledge of the minimum and maximum and an inspired guess as to what
the modal value might be. Despite being a simplistic description of a
population, it is a very useful distribution for modeling processes
where the relationship between variables is known, but data is scarce
(possibly because of the high cost of collection).
It is also used as an alternative to the Beta distribution in PERT, CPM
and similar forms of project management tool (Wikipedia, 2010).
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PMBOK
Chapter 7 – Project Cost Management
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Estimating methods
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Analogous estimating uses the costs from similar projects or activities
as the basis for the current project. As long as the two activities are
similar and are occurring under similar situations this can be a fairly
reliable technique (Sherrer, 2009).
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Parametric estimating
uses mathematical formulas to derive estimates from. It isn’t applicable to
all activities, but when it is it usually produces the most accurate
estimates. For example, if it’s known that a material will cost $10 per
cubic meter and 100 cubic meters are needed, the estimated cost is $1,000 (Sherrer,
2009).
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Bottom-up estimating
decomposes activities to the lowest level possible for cost estimating
purposes, and then aggregates component costs back up to a summary activity
level. Bottom-up estimating can take some time to do well, and it
requires specific details to be known about the activity, so it isn’t
generally an available option early in the project planning processes (Sherrer,
2009).
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Top-down estimating is the counterpart to bottom-up,
and it estimates costs by looking only at broad, summary-level
activities. Top-down estimates are the least accurate (Sherrer, 2009).
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Three-point estimates,
sometimes called PERT analysis, help to remove the uncertainty from
estimates by providing a weighted average using the pessimistic, optimistic,
and most-likely values. We saw this formula in chapter six when we were
estimating activity durations: Optimistic
-$75; Most Likely – $100; Pessimistic -$150 (Sherrer, 2009):
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((Optimistic Cost Estimate + (4
x Most-Likely Cost Estimate ) + Pessimistic Cost Estimate)) /6
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Three-point estimate =
($75 + (4 x $100) + $150) / 6
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Three-point estimate =
$625 / 6
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Three-point estimate =
$104.17
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If the project involves procurement activities,
vendor bid analysis may also be used to develop estimates.
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The experienced learning rates for
exploratory discovery and development processes, for individuals and
organizations, is more the focus of the main Learning curve article.
The rule used for representing the learning curve effect states
that the more times a task has been performed, the less time will be
required on each subsequent iteration. Learning curve theory states that
as the quantity of items produced doubles, costs decrease at a
predictable rate (Wikipedia, 2010).
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Types of Cost
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Direct costs can be attributed
specifically to a detailed or summary activity of the project. For
example, dedicated labor, material, supplies, equipment, licenses,
fees, training, travel, or professional service fees. The defining
characteristic for a direct cost is that the goods or
services are used exclusively for the project (Sherrer, 2009).
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Indirect costs are incurred by the
project, but the goods or services are also used for non-project
activities. Common indirect costs might be facility or equipment
rentals and utilities. Indirect costs are typically harder to
quantify. For example, if a color printer is shared by
several project teams, it’s difficult to definitively determine what
percentage of costs each should share (Sherrer, 2009).
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Variable costs fluctuate and can’t
be predicted with absolute certainty. For example, travel or
transportation costs that can change depending upon the cost of fuel
or certain commodities and types of raw materials (Sherrer, 2009).
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Fixed costs are static throughout
the project or have only a small likelihood of fluctuation.
Fixed costs are usually for items such as rents, leases, licenses,
salaries, and fixed fees (Sherrer, 2009).
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Working capital, also known as “WC”, is
a financial metric which represents operating liquidity available to a
business. Along with fixed assets such as plant and equipment, working
capital is considered a part of operating capital. It is calculated as
current assets minus current liabilities (Wikipedia, 2010).
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Economic Value Added or EVA is
an estimate of economic profit, which can be determined, among other
ways, by making corrective adjustments to GAAP accounting, including
deducting the opportunity cost of equity capital. The concept of EVA is
in a sense nothing more than the traditional, commonsense idea of
“profit,” however, the utility of having a separate and more precisely
defined term such as EVA or Residual Cash Flow is that it makes a clear
separation from dubious accounting adjustments that have enabled
businesses such as Enron to report profits while in fact being in the
final approach to becoming insolvent. EVA can be measured as Net
Operating Profit After Taxes (or NOPAT) less the money cost of capital
(Wikipedia, 2010).
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Non-PMBOK Acroymns (ESI,
2009)
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Budgeted Cost of Work Performed (BCWP)
=
Earned Value (EV)
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Budgeted Cost of Work Scheduled (BCWS)
=
Planned Value (PV)
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Actual cost of Work Performed (ACWP)
=
Actual Cost (AC)
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CPI or SPI greater than ONE is ahead of
schedule or under budget
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General classifications for estimate
accuracy (Sherrer, 2009):
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Rough order of magnitude: -25% to
+75% accuracy
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Budget estimate: – 10% to +25%
accuracy
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Definitive estimate: – 5% to +10%
accuracy
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Funding limit reconciliation matches
the project’s planned need for funding with the organization’s ability
to provide that funding. It can be thought of as “resource leveling”
for finances because it reschedules activities to make sure that the
budget for the scheduled activities doesn’t exceed the available budget
for that period. For instance, if the estimated cost for scheduled
activities in the second month of a project is estimated to be $50,000,
but the organization can only provide funding for $40,000 then there is
$10,000 of work that has to be rescheduled to another month (Sherrer,
2009).
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PMBOK Chapter 8 – Project Quality Management
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Pareto analysis is a statistical
technique in decision making that is used for selection of a limited
number of tasks that produce significant overall effect. It uses the
Pareto principle – the idea that by doing 20% of work you can generate
80% of the advantage of doing the entire job. Or in terms of quality
improvement, a large majority of problems (80%) are produced by a few
key causes (20%) (Wikipedia, 2010).
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Ishikawa diagrams (also called
fishbone diagrams or
cause-and-effect diagrams) are diagrams that show the causes of a
certain event. Common uses of the Ishikawa diagram are product design and
quality defect prevention, to identify potential factors causing an overall
effect (Wikipedia, 2010). When the diagram is
completed, the group can use it to validate assumptions, prioritize
actions to eliminate contributing factors, and develop an action
plan (Sherrer, 2009). An Ishikawa or Fishbone
diagram helps stimulate thinking and generate discussion (ESI, 2009).
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Quality Planning Process Tools
(Sherrer,
2009):
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Six Sigma – (Wikipedia, 2010).
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Quality Control Techniques
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Design of experiments (DOE) is a
statistical method that can help make processes and products more
efficient by mathematically simulating changes all at once to the
variables affecting the process. The results can then be viewed to see
how the changed factors not only influence the end result but how the
factors relate to each other.
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PDCA (plan-do-check-act) is an
iterative four-step problem-solving process typically used in business
process improvement. It is also known as the Deming cycle, Shewhart cycle,
Deming wheel, or plan-do-study-act.
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PLAN – Establish the objectives and
processes necessary to deliver results in accordance with the
expected output. By making the expected output the focus, it differs
from other techniques in that the completeness and accuracy of the
specification is also part of the improvement.
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DO – Implement the new processes.
Often on a small scale if possible.
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CHECK – Measure the new processes
and compare the results against the expected results to ascertain
any differences.
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ACT – Analyze the differences to
determine their cause. Each will be part of either one or more of
the P-D-C-A steps. Determine where to apply changes that will
include improvement. When a pass through these four steps does not
result in the need to improve, refine the scope to which PDCA is
applied until there is a plan that involves improvement.
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When the outcomes of processes have no
relationship between each other, they are considered statistically
independent. The errors in an order entry process won’t have any
correlation to the mechanical breakdowns of a truck in the
transportation system (Sherrer, 2009).
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When one choice excludes another, the choices are
said to be mutually exclusive. Choosing to replace a metal-based
product component with a plastic-based component negates any options
that involve using an aluminum-based component (Sherrer, 2009).
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Capability Maturity Model Integration
(CMMI) provides a
framework that focuses on improving business processes by
establishing best practices and then appraising those organizations
on a maturity level from one to five. A higher maturity level
indicates that an organization’s practices are more likely to be
efficient and quality-focused (Sherrer, 2009).
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1. Initial: The procedures for managing the process are
reactive in nature rather than proactive.
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2. Managed: The process is managed through isolated
projects or similar efforts.
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3. Defined: The process is tailored towards
organizational needs rather than just being focused on isolated
projectized objectives.
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4. Quantitatively Managed: The process is aggressively
measured and controlled.
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5. Optimizing: There are concerted and ongoing efforts
focused on improving the process.
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The term Kaizen (Japanese for “improvement”) is a Japanese
word adopted into English referring to a philosophy or practices focusing on
continuous improvement in manufacturing activities, business activities in
general, and even life in general, depending on interpretation and usage.
When used in the business sense and applied to the workplace, kaizen
typically refers to activities that continually improve all functions of a
business, from manufacturing to management and from the CEO to the assembly
line workers. By improving standardized activities and processes, kaizen
aims to eliminate waste (see lean manufacturing). Not in the 4th Ed. PMBOK
(Wikipedia, 2010).
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Kanban (means “card” or “board”) is a concept related to lean and
just-in-time (JIT) production. The Japanese word
kanban
is a common
term meaning “signboard” or “billboard”. Not in
the 4th Ed. PMBOK (Wikipedia, 2010).
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Marginal Analysis – Another purpose of
cost-benefit analysis is related to continual
improvement. As we strive for improving products and processes,
we don’t want to exceed a point beyond which the costs of the
improvements aren’t offset by the anticipated increase in revenue
(sales or profits) (Sherrer, 2009). In other words, incremental
revenue equals the incremental cost (ESI, 2009).
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Gold-plating
the quality requirements – Exceeding the customer’s quality
requirements results in quality costs incurred by the project that
provide no real benefit to the customer (Sherrer, 2009).
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PMBOK Chapter 9 – Human Resource Management
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A Responsibility Assignment Matrix (RAM), (also known as
RACI matrix or Linear Responsibility Chart (LRC)), describes the
participation by various roles in completing tasks or deliverables for a
project or business process. It is especially useful in clarifying roles and
responsibilities in cross-functional/departmental projects and processes.
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A RACI chart lists all activities and the project role(s) involved
with the activity, and what level of responsibility the role has for the
activity. Even if activities have not been fully defined, a RACI chart can
be done for work packages (Sherrer, 2009):
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Responsible: The role(s) performing the work.
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Accountable: The owner of the activity.
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Consultant: If applicable, the role(s) serving as subject
matter experts or as decision-makers.
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Inform: If applicable, the role(s) who need to be kept
informed about the activity but not actively engaged.
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Contingency theories propose that there
is not a single, best leadership style that is effective in all
situations, and managers must change their style to best fit the
circumstance.
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The Expectancy Theory was proposed by
Victor Vroom of the Yale School of Management, and he suggested that
employees are really motivated by goals only when three beliefs are
present (Sherrer, 2009):
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Valence: The person wants to achieve the
goal.
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Expectancy: The person believes it’s
possible to attain the goal.
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Instrumentality: Instrumentality is a
judgment the person makes about whether he or she believes that the
reward will be given.
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Interpersonal Power
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Legitimate: Also known as formal
or normative power, this type of power comes from one’s position, title,
or hierarchy.
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Expert: This type of power comes from
one’s knowledge, expertise, skills, talents, or experience.
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Reward: This type of power comes from
one’s ability to bestow desired rewards to others.
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Coercive: This type of power comes from
one’s ability to apply negative influences, such as punishments, on
others.
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Referent: This type of power comes from
one’s charisma, personality, or hero/heroine status.
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Co-location is providing a common physical area for all or
most of the team members. Co-location helps improve communication and
facilitates team-building (Sherrer, 2009). When you do this, you
can increase communication and help them build a sense of community.
Sometimes the room the co-located team meets in is called a war room
(O’Reilly, 2007).
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Once responsibilities have been assigned for
deliverables, an organizational breakdown structure (OBS) can
provide an alternative method for business units to view the project
activities, work packages, or deliverables assigned to their
departments. The OBS is really just a high-level work breakdown
structure organized by department or business unit.
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Douglas McGregor Theory X
and Theory Y (not in 4th Ed. PMBOK)
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Theory X
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dislike work and will avoid it if they can;
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have to be controlled and threatened before they
will work hard;
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don’t want responsibility and prefer to be
directed;
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want to feel secure at work.
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Theory Y
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actually want to work;
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can be self-directing in line with the firm’s
aims, if they are committed;
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will be committed if motivated by rewards
addressing their higher needs;
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can accept responsibility and may even actively
seek it;
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are imaginative and creative and can use their
ingenuity to solve problems at work.
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William G. Ouchi Theory Z – Theory Z focused on increasing employee loyalty to the company by providing
a job for life with a strong focus on the well-being of the employee, both
on and off the job. According to Ouchi, Theory Z management tends to
promote stable employment, high productivity, and high employee morale and
satisfaction (Wikipedia, 2010). Theory Z managers believe that
employees are motivated when they have a long-term stake in the
organization, such as involvement in the decision-making process (Sherrer,
2009).
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Maslow’s Hierarchy of Needs (not in 4th Ed. PMBOK)
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The Halo Effect refers to a cognitive bias whereby the perception
of a particular trait is influenced by the perception of the former
traits in a sequence of interpretations. Edward L. Thorndike was
the first to support the halo effect with empirical research. In a
psychology study published in 1920, Thorndike asked commanding officers
to rate their soldiers; Thorndike found high cross-correlation between
all positive and all negative traits. People seem not to think of other
individuals in mixed terms; instead we seem to see each person as
roughly good or roughly bad across all categories of measurement (not in 4th Ed. PMBOK) (Wikipedia, 2010).
Just because a person is good in a technical field does not mean he/she will
also be a good project manager (Mulcahy, 2009).
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Conflict Resolution (Sherrer, 2009):
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Problem solving, also known as confronting, is the
preferred approach because it’s the one most likely to result in a
win-win solution for all parties. Problem solving is a
logical approach to finding the cause as well as the best solution.
It lets everyone discuss contributing factors and what the pros and
cons are for each solution. Problem solving is best used when there
is sufficient time to approach the problem and the group members
have a certain level of trust with each other. Problem solving is
also good at fostering team development because it involves
everyone in exploring the issue.
-
Compromise is when all parties perform some give-and-take
to reach a middle settlement. Unfortunately, this results in a lose-lose solution because no one is truly happy with the
solution. Problem solving is the best approach, but compromise may be necessary when time is scarce or there’s a
deadlock that can’t be logically resolved. Compromise can be
especially difficult when there are strong internal values involved.
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Forcing is using one’s power to dictate his or her will
on the group. Forcing results in a win-lose situation,
and this is generally the worst approach. It’s harmful to team
morale because the team is always on the losing position. However,
forcing may be necessary in critical situations when the stakes are
extremely high and there is no time for identifying alternatives.
When forcing is needed, its ill effects on the team can be tempered
by sharing the rationale with them.
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Smoothing is downplaying the issue or focusing only on
the positive. It’s really hiding from the problem, and it doesn’t
address the problem or even acknowledge that the problem exists. Smoothing is not being optimistically healthy –it’s being
Pollyanna and is a poor conflict response. However, smoothing can be used to buy time or when one party believes the
stakes are low and giving a “win” on this issue may be used
to create an obligation later. Smoothing can often be seen
when one party gives in by saying something like “Well, it’s not
important anyway, so you choose.”
-
Withdrawal is avoidance or hiding from the problem, so
it’s not even a conflict resolution technique. Because it
never addresses the problem, its effect will be only temporary
and the problem will resurface later. Withdrawal may be an
option as a temporary measure when there’s a need for cooling off or
there are likely to be other alternatives that will present
themselves if given enough time.
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Tuckman’s Group Development Model – The
Forming – Storming – Norming – Performing is a model of group
development, first proposed by Bruce Tuckman in 1965, who maintained
that these phases are all necessary and inevitable in order for the team
to grow, to face up to challenges, to tackle problems, to find
solutions, to plan work, and to deliver results. This model has become
the basis for subsequent models (Wikipedia, 2010).
-
Forming – In the first stages of team building, the
forming of the team
takes place. The individual’s behavior is driven by a desire to be
accepted by the others, and avoid controversy or conflict.
-
Storming – Every group will then
enter the storming stage in which different ideas compete for
consideration. The team addresses issues such as what problems they
are really supposed to solve, how they will function independently
and together and what leadership model they will accept. Team
members open up to each other and confront each other’s ideas and
perspectives.
-
Norming – The team manages to have
one goal and come to a mutual plan for the team at this stage. Some
may have to give up their own ideas and agree with others in order
to make the team work.
-
Performing – It is possible for
some teams to reach the performing stage. These
high-performing teams are able to function as a unit as they find
ways to get the job done smoothly and effectively without
inappropriate conflict or the need for external supervision. Team
members have become interdependent. By this time they are motivated
and knowledgeable. The team members are now competent, autonomous
and able to handle the decision-making process without supervision.
-
Concurrent Engineering involves multi-functional teams and
overlapping of project schedules (ESI, 2009).
-
Frederick Herzberg – Two Factor
Theory “The Dual Structure Theory” (Not in PMBOK)
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PMBOK Chapter 10 – Project Communications Management
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# of Communication Channel = N (N – 1) / 2
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4 people 4 * 3 = 12/2 = 6
-
5 people 5 * 4 = 20/2 = 10
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12 people 12 * 11 = 132/2 = 66
-
13 people 13 * 12 = 156/2 = 78
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In spoken communication, paralingual
and nonverbal elements carry more information than the words
chosen. Paralingual elements are the pitch, volume, and tone of
voice, and nonverbal communication is body language. The medium
plays the biggest part in the formality of a message. E-mails,
memos, project status reports, and general correspondence is usually
informal written while public documents, like contracts, are formal
written. Telephone calls, meetings, and video conferences are usually
informal verbal, while speeches in front of a large group of people are
usually formal verbal.
-
In speech, tone is primarily expressed
through paralingual communication –the vocal elements,
such as pitch and volume. Nonverbal communication includes
factors such as body language, facial expressions, posture, and hand
gestures. In face-to-face communication, words make up
only 7% of the message while paralingual elements convey 38%
and nonverbal elements convey 55%.
-
Salience refers to the
level of power, legitimacy, and urgency stakeholders have in the
project. The salience model, introduced by Mitchell, Agle, and Wood, is
a Venn diagram that helps the project manager understand the priority
and level of attention a particular stakeholder will need.
-
Power: This is a subjective
determination of how much influence the stakeholder has to impose
his or her will. For example, a chief executive in the company
usually has a very high level of power even if he or she isn’t
directly involved in the project.
-
Legitimacy: This is a gauge of how
much vested interest the stakeholder has, giving the stakeholder a
legitimate stake in the project. For example, a marketing
manager probably has no legitimacy in a project for the accounting
department.
-
Urgency: This is an assessment of
how quickly the stakeholder will expect his or her will to be acted
upon.
-
Forecasting Methods
-
PMBOK Chapter 11 – Project Risk Management
-
Assumptions analysis, which reviews the
reliability of each assumption, what consequences will occur if the
assumption turns out to be inaccurate, and what risk factors are
generated by the assumption.
-
Checklist analysis is where checklists
can be developed based on the risk categories (used in the risk
breakdown structure) or from similar projects. As these checklists are
reviewed throughout the project, they should be improved upon so that
they’re beneficial to subsequent projects.
-
SWOT Analysis is a strategic planning method used
to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved
in a project.
-
Strengths: attributes of the
person or company that are helpful to achieving the objective.
-
Weaknesses: attributes of the
person or company that are harmful to achieving the objective.
-
Opportunities: external
conditions that are helpful to achieving the objective.
-
Threats: external
conditions which could do damage to the objective.
-
Residual risks are those that remain and whose probability
and impact are such that they’re acceptable to the performing
organization’s level of risk tolerance. They can also be those risks in
which there are no reasonable responses for.
-
Secondary risks are those that arise from the primary risk
response activities, and sometimes the secondary risks pose a greater
threat than the original risk.
-
Avoid: Avoidance activities aim to completely eliminate a
risk’s probability or impact to zero. Avoidance can take several forms,
such as restructuring the project activities, scope, schedule, or cost
to eradicate the root causes leading to the risk.
-
Mitigate: If the risk cannot be avoided, actions might be
taken to reduce the risk’s probability or its impact if it does occur. A
mitigated risk response may still require a contingent plan.
-
Transfer: Transference assigns all or part of risk to a third
party through outsourcing, contracts, insurance, warranties, guarantees,
or performance clauses.
-
Sensitivity analysis looks individually
at each project objective and measures how uncertainty could impact that
objective. he results of sensitivity analysis are usually shown as
a tornado diagram or a spider diagram. A tornado diagram is named
due to its funneled appearance.
-
Risk Register
-
Watchlist: Low priority risks
should be regularly monitored so make sure they are not occurring
and that their probability, impact, or priority hasn’t changed
-
Prioritized risks: Qualitative
analysis results in which risks are the highest priority and should
receive detailed risk management efforts
-
Urgent risks: Risk processes may
uncover risks that are already underway or which are imminent.
Urgent risks need immediate planning and action
-
Trends and common factors: Risk
categories, root causes, and impacts may expose trends that can make
for more efficient risk response planning or risk monitoring
-
Probabilities: Risk scores can be
aggregated and analyzed at the objective, deliverable, or project
level to predict how likely it is that the project will reach its
objectives. An overall risk level for the project can also be
tabulated
-
Surveys, such as the Delphi technique,
can be used to gather risk information from subject matter experts. The
Delphi technique does this anonymously so that the results can be
analyzed by a third party without any bias as to the source of the
opinion. The tabulated results can then be used to reach a consensus on
project risks.
-
Expected monetary value (EMV) is the
cost or benefit of an uncertain event. It’s calculated by multiplying
the monetary impact by probability. EMV is what one could expect over
time if the condition is repeated over and over.
-
Per the PM Road Trip, a carnival game in which
there are three shells but only one has a ping-pong ball under it.
The game costs $1 to play and the winner will receive $2 if he correctly
picks the shell with the ball hidden under it. There are two outcomes
based on the one-in-three chance of choosing the correct
shell: either the player loses 66.66% of the time or he wins two dollars
33.33% of the time. The EVM for this game is:
-
EMV = (66.66% x $0) + (33.33% x $2)
-
EMV = $0.67
-
Risk audits review the overall risk management policies,
procedures, and processes. Audits review the effectiveness of the
project risk management plan. Risk audits can also refer to
analyzing whether the risk response actions were effective and what
impact they had on the project’s overall risk level.
-
Responses for positive risks (opportunities)
-
Exploit: Exploitation aims to ensure that the risk event
definitely occurs so that it’s benefits can be realized. Exploitation
can also take advantage of a definitive opportunity by maximizing its
benefits. For example, if a warmer than normal weather pattern emerges
during the winter, the opportunity can be exploited by immediately
adjusting the construction schedule to take advance of the good weather.
-
Enhance: If actions can’t be taken to guarantee that the
opportunity will occur then responses might be taken to enhance its
probability or its beneficial impact if it does occur.
-
Share: Sharing is similar to transference, but its aim is to
share the opportunity with a third party who is best able to capitalize
on it. Many technology companies establish partnerships with other
companies to encourage further development around each other’s products.
For example, if company A develops a new memory chip it may pre-release
the chip to manufacturers so that they can work on incorporating the
chip into a next generation of hand-held computing devices. Company
A is sharing a marketing opportunity with its partners.
-
Risks related to
weather, natural disaster, climate, or environmental effects. Natural
disasters are a type of risk known as
force majeure,
which include any long-term disruptions that can’t be reasonably
foreseen nor prevented.
-
Modeling and simulation. A
project simulation uses a model that translates the specified detailed
uncertainties of the project into their potential impact on project
objectives. Iterative simulations are typically performed using the Monte
Carlo technique. In a simulation, the project model is computed many
times (iterated), with the input values (e.g., cost estimates or activity
durations) chosen at random for each iteration from the probability
distributions of these variables. A probability distribution (e.g., total
cost or completion date) is calculated from the iterations. For a cost
risk analysis, a simulation uses cost estimates. For a schedule risk
analysis, the schedule network diagram and duration estimates are used.
-
PMBOK Chapter 12 – Project Procurement Management
-
Contract Types
-
Sometimes before a customer issues an RFP or RFQ or IFB, the customer
will issue a Request for Information (RFI). The purpose of the RFI
is
to gain “marketing intelligence” about what products, services, and vendors
are available.
-
A request for quotation (RFQ) is a standard business process
whose purpose is to invite suppliers into a bidding process to bid on
specific products or services. RFQ generally means the thing same as IFB
(Invitation For Bid).
-
A request for proposal (referred to as
RFP) is an
invitation for suppliers, often through a bidding process, to submit a
proposal on a specific commodity or service. A bidding process is one of the
best methods for leveraging a company’s negotiating ability and purchasing
power with suppliers. The RFP process brings structure to the procurement
decision and allows the risks and benefits to be identified clearly upfront.
-
An invitation for bid (IFB) or
invitation to bid (ITB) is an invitation to contractors or
equipment suppliers, through a bidding process, to submit a proposal on
a specific project to be realized or product or service to be furnished.
IFB is generally the thing same as RFQ.
-
PMBOK Chapter 13 –
Professional and Social Responsibility
-
Misc PM Stuff
- References
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