Hi,

I have tried to segregate Raga's 355 points in KA, Please check and make nessary changes.

Organization

 

1.       Balanced – PM and FM has equal power

2.       BALANCED MATRIX: Folks who work in a balanced matrix organization report to a PM AND a functional manager equally. 

3.       Communications are COMPLEX in Matrix organization

4.       Complex project will best fit in MATRIX org structure

5.       Conflicting priorities in resource assignments – is an issue in the Matrix structure

6.       Functional – FM has more power

7.       In a matrixed organization, the project manager doesn’t have legitimate power, because the team doesn’t directly report to the project manager.

8.       Projectized – PM has more power

9.       Strong – MATRIX – PM has more power

10.   STRONG MATRIX: Project managers have more authority than functional managers, but the team still reports to both managers.

11.   Team building is difficult in Matrix Org structure

12.   Team development with WEAK Matrix is very difficult

13.   WEAK – FM has more power

14.   Which questions the functional manager is most likely to ask : WHO WILL DO THE TASK

 

Introduction

 

1.       Getting coffee from Wife is a Project, Getting Coffee from Vending Machine is OPERATION (There are no surprises!..Thanks ARI)

2.       Operations: are ongoing and repetitive

 

Processes

 

1.       A process goes out of control when there are special causes of variation

2.       Baseline is established during the PLANNING

3.       Control Management System tracks the changes(not configuration management)

4.       Last step in Administrative closure is Release resources or Measure customer certification at the end of the project by capturing customer feedback, in order to assist in project evaluation and enhance customer relationships.

5.       Outputs of all 42 Processes will be stored in PMIS.

6.       Planning phase is LEAST Risky

7.       PMBOK Guide process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle

8.       PMIS resides in EEF (enterprise environmental factors)

9.       Product of the Project is Actually created in EXECUTION Phase /Group

10.   Report Performance focuses on performance reporting against baselines, such as scope, schedule, cost, or quality. Report Performance uses time, cost, and related work performance information.

11.   Templates and forms which are available in the organization are reusable components. Any resource that can be reused as a useful tool is part of the total methodology of project planning

12.   The best use of "collect project records" is to recall what happened on the project, good or bad.

13.   Enterprise Environmental Factors refer to external factors in the company, that may influence the project. Enterprise Environmental Factors may include cultural factors, political climate, infrastructure and other external factors within the organization that may impact the project. Enterprise Environmental Factors are input to many planning processes

 

 

Basics

 

1.       Portfolio: A portfolio is a group of projects or programs that are linked together by a business goal.

2.       Portfolios are organized around business goals and Programs are organized around a shared benefit in managing them together."

3.       Program: A program is a group of projects that are closely linked, to the point where managing them together provides some benefit

4.       Project: A project is any work that produces a specific result and is temporary. Projects always have a beginning and an end. But they are never ongoing

 

Scope Management

 

1.       100% rule comes in WBS

2.       Brain storming and Lateral Thinking are used in scope definition for ALTERNATIVES IDENTIFICATION

3.       Completion of Product scope is measured against Product Requirements.

4.       Completion of PROJECT scope is measured against the PM plan (not PRODUCT SCOPE)

5.       Completion of Project Scope is measured against the Project Management Plan.

6.       Fringe benefits are included in overhead and are part of indirect costs. 

7.       Generally, only one person is assigned Accountability for a work package, but more than one person may be responsible for performing the work on a work package

8.       If the project is cancelled/terminated before completion, Verify Scope is performed to show where the Project was in relation to the Scope when it ended.

9.       If we don't receive a final sign off from our customer; we have to escalate the issue to our Management.

10.   Product scope: means the features and functions of the product or service that you and your team are building.

11.   Project scope: is all of the work that needs to be done to make the product.

12.   RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP

13.   Requirement  Traceability Matrix helps preventing gold plating

14.   SCOPE CREEP = UNMANAGED changes to the Project SCOPE

15.   Scope verification is primarily concerned with ACCEPTANCE of deliverables. Quality control is done before scope verification.

16.   Scope verification should be done – WHEN A PROJECT IS TERMINATED to determine the extent of the completion

17.   Sponsor or Initiator can create project charter or delegate it to PM

18.   The primary difference between focus groups and facilitated workshops are that focus groups are gatherings of prequalified subject matter experts and stakeholders and facilitated workshops consist of cross-functional stakeholders who can define cross-functional requirements.

19.   The project scope management plan – will not have the project constraints and assumptions (RD, Scope statement and scope BSL – will)

20.   The Scope Statement provides the Product Description, Acceptance Criteria, Key Deliverables, Project Boundaries, Assumptions, and Constraints about the Project.

21.   The WBS doesn’t show the order of the work packages or any dependencies between them

22.   The WBS doesn’t show the order of the work packages or any dependencies between them.

23.   The work package is the LOWEST level on a WBS;

24.   Verify Scope happens at the end of each phase and the project and upon delivery of Product/Service/Result. 

25.   Verify Scope is concerned with completeness and acceptance, and Perform Quality Control is concerned with correctness.

26.   Verify Scope: The process of formalizing acceptance of the completed project deliverables. Usually performed after Perform Quality Control. 

27.   Work Authorization systems helps in preventing scope creep

28.   Progressive Elaboration involves the process of taking a project from concept to detailed design.

 

Time Management

 

1.       A group of related scheduled activities – shown as single aggregate activity for the reporting purpose is known as HAMMOCK Activity

2.       ADM’s drawback is that it can only show finish-to-start (FS) relationships

3.       An activity that consumes no time or resources and shows only a dependency = DUMMY Activity

4.       Approximating number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process. Activity List ,Activity resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK Page no 177

5.       CPM - FLOAT usage; CCM - Buffer usage.

6.       CRASHING =MORE COST

7.       Crashing is applying more resources to shorten the duration

8.       Defining activities is an iterative process performed together by the project manager and the project team member by further decomposing the WBS work packages

9.       Duration is the amount of time that an activity takes, while effort is the total number of person-hours that are expended.

10.   ELAPSED TIME is the time inclusive of NON working days

11.   FAST TRACK =MORE RISK  

12.   In order to show relationships between tasks on different node branches, ADM diagrams use dummy activities

13.   Lag means – make sure one tasks waits before it gets started

14.   Lag time causes the successor task to begin some time after its predecessor task concludes...for example, FS+1 would delay the start of the successor by 1 day.

15.   Lead means you let the task get started before its predecessor is done

16.   Lead time causes the successor task to begin before its predecessor task concludes...for example FS-2 would schedule the successor task to start before the predecessor task finish.

17.   Leads and lags are APPLIED as part of the Develop Schedule process, but then they are ADJUSTED in the process of Control Schedule.

18.   Milestone Duration is ZERO

19.   Milestone Schedule can also be called as Master Schedule.

20.   Networks (diagram) identify the Activity  dependencies and  path convergence risks

21.   Over allotted – then do resource leveling

22.   Parkinson's Law states that work will expand to fulfill the time allotted to it. (SUPER!- That’s what we do in real life right…)

23.   Path convergence is characterized by a schedule activity with more than one predecessor activity.

24.   Path Convergence: The merging or joining parallel schedule network paths into the same node in a project schedule network diagram. 

25.   Path divergence is characterized by a schedule activity with more than one successor activity.

26.   Path Divergence: Extending or generating parallel schedule network paths from the same node in a project schedule network diagram. 

27.   PERT Is also a NETWORK DIAGRAM

28.   Pert is Superior to CPM

29.   Progressive Elaboration is what happens in rolling wave planning process

30.   RDU = Remaining Duration

31.   Resource Calendars specify WHEN and HOW LONG identified project resource will be available during the project.

32.   Resource leveling can cause the original critical path to change.

33.   Resource leveling results in INCREASED PROJECT DURATION

34.   Rough order of Estimate = +-50% 

35.   Soft logic allows the project manager to make decisions based on conditions outside of the project, best practices, or guidelines.

36.   Successor Activity LS- Duration of current activity= LS of Current Activity

37.   The Arrow Diagramming Method (ADM) creates diagrams known as activity-on-arrow (AOA).

38.   The arrow diagramming method does not support finish-to-finish of relationships. 

39.   The critical chain Method modifies the  SCHEDULE to account for LIMITED RESOURCES

40.   The nodes on the AOA diagrams represent completion of the activities and have ZERO time usage

41.   The Precedence Diagramming Method (PDM) creates diagrams known as activity-on-node (AON).

42.   The primary purpose of a network diagram is to show logical relationships. 

43.   The Resource Breakdown Structure shows various resources, both human and mechanical needed for project.

44.   Triangular distribution = PERT – Relies on Optimistic, Pessimistic and Most likely estimates(in Risk rating)

45.   Resource Smoothing - Adjusting activity such that resource requirement do not exceed predefined limit. Critical path is not changed, change in completion date, activities are adjusted using free and total float. May not optimize all the resources.

 

Cost management

 

1.       Analogous is TOP DOWN

2.       Bottoms up is Accurate (When Parametric was not given)

3.       Control Account may include one or more Work Packages, each Work Package represents only one Control Account.

4.       Controlling unexpected project cost is to engage stakeholders early to prevent unnecessary and costly changes later in the project.

5.       Cost base line does not include management reserve

6.       Cost benefit: Looking at how much your quality activities will cost.

7.       Cost Performance baseline is represented as S curve

8.       Costs and staffing levels are lowest early in the life cycle, peak while the project work is underway, and then drop off as the project nears completion.

9.       CPI is considered most critical EVM Metric  

10.   Definite cost are most accurate

11.   Direct cost: include dedicated labor, material, supplies, equipment, licenses, fees, training, travel, or professional service fees - [Applied directly to THIS project]

12.   EVM does not play a major role in QUALITY MANAGEMENT PG

13.   Fixed cost: 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

14.   Independent estimates are prepared to compare  the cost  to an estimate created with 

15.   Indirect cost: Example, if a color printer is shared by several project teams, it’s difficult to definitively determine what percentage of costs each should share. [Expenses not for ONE project - these are Shared Expenses]

16.   Life Cycle Costing includes Acquisition, Operation, Maintenance, and Disposal Costs

17.   One method to determine how well the project is getting executed is using – CPI (Cost performance Index)

18.   Order of Magnitude Estimate: Rough Order of Magnitude (ROM): -50% to +50% (at Initiation) as the project moves, estimates should become more accurate, 

19.   Parametric Estimates may not scale

20.   Parametric is More Accurate

21.   Straight line depreciation formula= (Initial cost-scrap value)/life

22.   Sunk Costs: costs incurred that cannot be reversed irrespective to future events

23.   TCPI is the projection of the cost performance that must be achieved on the remaining work

24.   The cost expanded at the  completion  of phase is known as SUNK costs

25.   The final cost of the project is HIGH at the start and gets progressively LOW as the project continues

26.   The S curve is the cost performance baseline. The cost performance baseline is used to track cost performance based on the original plan plus approved changes.

27.   The To-Complete-Performance-Index (TCPI) is: The cost performance index (CPI) required in the remainder of a project to meet financial goals.

28.   Value Engineering/ Analysis: finding less costly way to do the same work. E.g. outsourcing

29.   Variable cost: 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.

30.   When original estimates are flawed then EAC = AC + ETC

31.   Zero Schedule Varience (SV) means the task is completed.

 

 

Quality Management

 

1.       12 to 20% of the sales is estimated to be the cost of NON QUALITY

2.       85% cost of quality = DEMING

3.       A statistical method that helps identify which factors may influence specific variables of a product or process under development or in production is DESIGN OF EXPERIMENTS

4.       Attribute Sampling: is binary, it either conforms to quality or it doesn’t (YES or NO). 

5.       Benchmarking is a Technique used in QUALITY PLANNING

6.       Benchmarking: means using the results of quality planning on other projects to set goals for your own.

7.       Cause & Effect/Ishikawa/Fishbone Diagram or 5 WHY Technique.

8.       Common Causes are generally acceptable.

9.       Common causes are thus generally considered as non-preventable and accepted as part of the process. 

10.   Control chart: Determines whether or not process is stable and within set limits .

11.   Control charts are graphic display of the results over a time of a process. They are used to determine if the process is "in control".

12.   Control Charts: The upper and lower control limits are set at THREE STANDARD DEVIATIONS ABOVE and BELOW MEAN.

13.   Control Limits are set at three standard deviations above and below the mean. As long as your results fall within the control limits, your process is considered to be in control. 

14.   Cost of Quality = Prevention cost + Appraisal cost + control cost

15.   Design of experiments uses experiments and 'what-if' scenarios to determine what variables are affecting quality.

16.   Design of experiments: is the list of all the kinds of tests you are going to run on your product.

17.   Dr. Genichi Taguchi developed the concept of 'Loss Function'.

18.   Engineering is primarily responsible for creating design and test specifications.

19.   Fishbone diagram/Ishikawa: Determines how various factors linked to potential problems or effects, root cause 

20.   Flow Chart: Shows HOW PROCESSES INTERRELATE.

21.   Having an allowable defect rate is an example of the cost of non-quality. Any system or process that will accept defects adds cost to the product or service.

22.   Histogram (Column Chart): It shows HOW OFTEN something occurs, or its FREQUENCY (no Ranking).

23.   Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause.  

24.   If the performing organization lacks the formal quality policy, or if project involves multiple performing organizations, The project management team, will develop the quality policy for each project.

25.   If the results fall under customer tolerance then the results are acceptable to client

26.   If you have to look/refer any plan – to respond regarding improving customer satisfaction – you need to look at QUALITY PLAN

27.   Inspection keeps errors in the product from reaching the customer. Prevention keeps errors from occurring in the process.

28.   Inspections are called as reviews, Audits and walkthroughs

29.   Inspections are NOT called as Assessments

30.   Jurans Quality Triology = Quality PLANNING Quality IMPROVEMENT Quality CONTROL

31.   Just In Time (JIT): To reduce expensive cost of holding inventory, many companies decrease inventory close to zero. A company using JIT must have high quality practices. 

32.   KAIZEN = process Improvement

33.   Low grade is OK, but Low Quality is NOT OK

34.   Marginal analysis: Spend time on improvement if it improves revenues or productivity.

35.   Measuring Quality of the product against standard is called Benchmarking

36.   Pareto chart: Focus on critical issues to improve quality 

37.   Pareto Charts (80-20 rule): This is a Histogram showing defects RANKED from GREATEST to LEAST. This rule states that 80% of the problems come from 20% of the causes. It is used to help determine the FEW ROOT CAUSES behind the MAJORITY OF THE PROBLEMS on a project.

38.   Philip corsby – said QUALITY IS FREE

39.   Philip Crosby = ZEro Defects, 

40.   Q: Optimal quality is reached at what point? A: When revenue from improvement equals the incremental costs to achieve the quality. Marginal analysis provides that optimal quality is reached when the cost of the improvements equals the incremental costs to achieve the quality.

41.   QA is typically management process

42.   Quality assurance is focused on the processes and not the quality of the deliverables. 

43.   Quality control measurements are used to reevaluate and analyze the quality standards and processes and are fed back through: Quality ASSURANCE

44.   Quality is the process of completing the scope to meet stated or implied needs.

45.   QUALITY: is defined as degree to which your project fulfills requirements. Customer satisfaction, Fitness for use, Conformance to requirements

46.   Rule of Seven: If seven or more consecutive data points fall on one side of the mean, they should be investigated. This is true even if the seven data points are within control limits.

47.   Run Chart: tell about TRENDS in the project. Shows the HISTORY and PATTERN.

48.   Scatter Diagram: It is powerful tool for SPOTTING TRENDS in Data. Scatter Diagrams are made using two variables (a dependent variable and an independent variable).

49.   Sensitivity Analysis are part of Quantitative Analysis

50.   special causes are considered preventable. For example, a backup generator failed to start up during a power failure. The failure of the backup generator can be prevented in the future through regular mechanical maintenance and operational tests.  

51.   Special Causes: considered unusual and preventable by process improvement. 

52.   Standard deviation in a chart measures PRECISION

53.   Statistical sampling for Inspection is used to reduce the cost of Quality control

54.   The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control – THIS IS DEFINITION FOR CONTROL CHARTS

55.   The BIG Four: 1. Ishikawa; 2. Deming; 3. Juran; and 4. Crosby.

56.   The Pillars of the quality are DOING It RIGHT – first time and ZERO Defects

57.   The practice of ceasing mass inspections and ending awards based on price is credited to DEMING

58.   The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs. 

59.   This is important for us to remember: quality assurance is concerned with quality processes while quality control is concerned with quality deliverables.

60.   Tolerances deal with the limits your project has set for product acceptance. 

61.   Tolerances focus on whether the product is acceptable, while Control Limits focus on whether the process itself is acceptable. (Control limit is for PROCESS)

62.   UCL : Upper control limit : Is derived from Random variation

63.   UTL : Upper tolerance limit is the higher of two tolerance limits

64.   Variable Sampling: Measures how well something conforms to quality (RANGES).

65.   W. Edwards Deming = Plan DO- check- Act + He also developed 14 activities for implementing quality

66.   Kaizen Theory - Apply continuous small improvements to reduce costs and ensure consistency.

67.   Marginal Analysis - You compare the cost of incremental improvements against the increase in revenue made from quality improvements. Optimal quality is reached when cost of improvements equals the costs to achieve quality.

 

Risk management

 

1.       Avoid, Mitigate, Transfer, Accept – are applicable for Negative Risks also

2.       Beta Distribution and Triangular distribution are probability distributions used in Risk Analysis

3.       Force Majeure Risks, such as Earthquakes, Floods, Acts of Terrorism, Etc., should be covered under Disaster Recovery Procedures instead of Risk Management.

4.       High Standard Deviation is High Risk.

5.       INFLATION – is a EXTERNAL UN Predictable RISK

6.       Monte Carlo analysis gives you:An indication of the risk involved in the project

7.       Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results

8.       Monte carlo simulation provides PROBABILITY OF ANY TASK BEING AT THE CRITICAL PATH

9.       Outsourcing IS RISK TRANSFERENCE

10.   Planning meetings are used to create the Risk Management plan.

11.   Project risk is categorized by 3 factors a) Risk event, b) risk probability) amount at stake

12.   Residual risks are REMINING RISKS after risk responses have been implemented

13.   Risk audit documents the effectiveness of the risk responses

14.   Risk Breakdown Structure (RBS): It is not breaking down the actial risks, instead, we are breaking down the CATEGORIES of risks that we will evaluate.

15.   Risk is highest early in the project since uncertainty is high about the project’s deliverables, resource needs, and work required.

16.   Risk mitigation is to DECREASE THE PROBABILITY OF RISK

17.   Risk response- fails> then contingency plan...If contingency plan fails then > Fall back plan, i.e in other words=> It can be looked at as a contingency plan for the contingency plan

18.   RISK response of eliminating a threat = RISK AVOIDANCE

19.   Risk Score: The probability and impact score for the risk. This is obtained from a formula (usually probability x impact) defined in the risk management plan and generated from the probability and impact matrix. 

20.   Sensitivity chart displays sensitivities in DESENDING ORDER

21.   The amount of tolerance a person or organization has for risks is referred to as its risk utility, 

22.   The contingency reserve is for known - unknowns, or risks that you know about and explicitly planned for and put in your risk register.

23.   The management reserve is for unknown-unknowns—things that you haven’t planned for but could impact your project. 

24.   Transfer: Transference assigns all or part of risk to a third party through outsourcing, contracts, insurance, warranties, guarantees, or performance clauses.

25.   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.

26.   "Responses to threat include -- 1.Reducing the probability of risk  2. Developing contingency plans 3. Passively accepting consequences. 4. Transferring risk"

 

Communication management

 

1.       According to Kerzner - "90% of the Project Manager's time is spent communicating"

2.       Communication Management plan defines the  contents of the performance reports

3.       Compromising: Lose-Lose method

4.       Conflict can come from seven main sources, of which the first three account for 50% . They are 1. Schedules, 2. Priorities, 3. Manpower/human resource availability, 4. Technical opinions, 5. Procedural or project administration, 6. Costs,7. Personalities (SP is first 2 and CP is last 2)

5.       Conflict is not a filter of communication—it is a communication hindrance.

6.       Confronting: It’s a Win-Win situation 

7.       Distribute Information is concerned with general project information, such as meeting minutes, issues, and correspondence. 

8.       First time feedback to a team member = Informal verbal (Face 2 Face), second time FORMAL written

9.       Meetings are always classified as INFORMAL VERBAL

10.   Non verbal communication is about 55%

11.   Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.

12.   Nonverbal communication means your gestures, facial expressions, and physical appearance while you are communicating your message.

13.   Paralingual communication is the tone and pitch of your voice when you’re talking to people. If you sound anxious or upset, that will have an impact on the way people take the news you are giving

14.   SENDER'S responsibility to make the message clear, complete, and understood 

15.   Smoothing: Lose-Yield method

16.   Symbols are always used in the communications

17.   Withdrawal: Lose-Leave method

 

HR Management

 

1.       Acquisition: When the performing organization lacks the in house staff needed to complete the project, the required services can be acquired from outside sources.

2.       As per HERZBERG base Salary is a HYGINE FACTOR

3.       BRUCE TRUKMAN Model is related to TEAMMANAGEMENT

4.       Changing Management Approach based on the team members experience = SITUATIONAL  CONTINUUM

5.       Employee records should be updated by PM when he completes the tasks assigned to him

6.       Individual development is the Foundation of Team development

7.       Laissez-faire: The leader turns nearly all control over to the group and is generally absent.

8.       large number of simultaneously performed projects utilize the same groups of human and other resources – is called RESOURCE POOLING

9.       Let the people involved in the conflict work it out first

10.   Participative leadership is most preferred leadership style

11.   Staffing Management Plan: WHEN and HOW resource will be ADDED and TAKEN OFF the team.

12.   Theory X - Autoritarion leadership style

13.   Theory Y - Autoritarion Democratic/ Laissez- faire leadership style

14.   Theory Z - Autoritarion Democratic leadership style

15.   Training for the team members is not a prerequisite – it can happen during the project also

16.   Withdrawal – has cooling off period – but the problem is not solved

17.   Withdrawal is the LEAST preferred method by PM’s

18.   Worker needs to be involved in Management Practice = OUCHI’s THEORY Z

 

Procurement Management

 

1.       Arbitration and mediation are Negotiation Techniques

2.       Comparing proposals received from sellers done in the Conduct Procurements.

3.       Contract is LEGAL relationship and project is not

4.       FIRM FIXED PRICE = Seller carries COST RISK, Buyer carries SCOPE RISK

5.       For an immediate work, a letter contract may be sufficient

6.       For cost plus contract RFP is suitable

7.       For immediate work, a letter contract may suffice. The intent of the letter contract is to allow the vendor to get to work immediately to solve the project problem.

8.       LOI is not a legal document

9.       MAKE or BUY is used for PLAN Purchases and Acquisitions 

10.   Make payment to seller is done in the Administer Procurements

11.   Output for source selection is contract

12.   Payment bonds are specifically designed to ensure that the prime contractor provides payment of Subcontractors, laborers, and sellers of material

13.   Performance Measures are done in contract Administration

14.   PM can not be a lead negotiator

15.   Probing, scratching and small bites  – are the behaviors of the contract negotiations

16.   Procurement Audit, is used to identify successes to transfer the success to other procurements

17.   Procurement Audit, Negotiated settlements and record management system are tool and Techniques of contract closeout process

18.   Procurement closure needs to happen before Project Closure. All procurements MUST be CLOSED before the project is closed.

19.   Procurement documents ensure the receipt of complete proposals

20.   Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE

21.   Seller completes the work as specified, but the buyer is not happy – then the contract is said to be COMPLETE (not closed though)

22.   Single source seller means – there is only one seller the company wants to do business with 

23.   Solicitation is the process of obtaining quotations , bids , offer, 

24.   The payment system is how your company pays its sellers.

25.   The procurement SOW might be prepared by either the buyer or the seller. Buyer might prepare the SOW and give it to the seller, who in turn rewrite it so that they can price the work properly. If the buyer does not know how to prepare a SOW or the seller would be better at creating the SOW because of their expertise about the product or service, the seller might prepare it and then give the buyer to review.

26.   The stage of the negotiation meeting – when he points of concession is identified = scratch bargaining

27.   UNILATERAL: this is a special class of contract in which the seller doesn't have to explicitly accept the offer in order for a contract to be established. This is a unilateral contract, and the best example is a purchase order (PO). 

28.   What is a constructive change? = consideration of undocumented change = A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.

29.   When you must begin work immediately without a procurement statement of work, the most appropriate choice is time and material. 

30.   Time and Material Contracts - T&M – has the characteristics of both Fixed and Cost reimbursement

31.   Cost Plus Fixed Fee Contract - CPFF - More risk for BUYER (some say T&M)

32.   Firm Fixed Price Contract - FFP - More risk for SELLER

 

Integration Management

 

1.       Administrative closure should be carried out at the completion of each phase of the project

2.       Any change in the Project Charter needs to be approved by sponsor or person who has authorized the charter

3.       BCR 1.8 means that revenue from the project is 1.8 times the cost

4.       Benefit Measurement Methods: employ various forms of analysis and comparative approaches to make project decisions. These methods include comparative approaches such as cost-benefit analysis, scoring models, and benefit contribution methods that include various cash flow techniques and economic models.

5.       Contract closure occurs before Administrative closure

6.       Historical information is the best input for the initiation phase

7.       If IRR and payback period Is given then DO THE PROJECT SELECTION ONLY BASED ON higher IRR .   An investment with a higher IRR is not necessarily better than an investment with a lower IRR. If two projects are mutually exclusive, once should choose the project with the higher NPV at the appropriate discount rate even though the IRR many be lower.

8.       INTERNAL RATE OF RETURN - IRR: is the discount rate when the present value of the cash inflows EQUALS the original investment

9.       IRR assumes that cash inflows are reinvested at the IRR value.

10.   IRR is the discount rate when NPV equals zero.

11.   IRR:  You should choose projects with the highest IRR value.

12.   Last stage of project closure Measure customer certification at the end of the project by capturing customer feedback.

13.   Lessons learned are professional obligation of the project Manager

14.   Mathematical models is that they use linear, dynamic, integer, nonlinear, and/or multi-objective programming in the form of algorithms—or in other words, a specific set of steps to solve a particular problem. Mathematical models are also known as Constrained optimization methods

15.   NET PRESENT VALUE - NPV: When you get a positive value for NPV, it means that the project will earn a return at least equal to or greater than the cost of capital.

16.   NPV will help u to build most precise business case

17.   On large or mega projects the integration is the responsibility of the project office

18.   Payback period ended means Cumulative Revenue and cumulative cost from Starnet became equal

19.   Releasing the resources from the project is what done as LAST ACTIVITY

20.   ROI = (Benefit – Cost)/Cost

21.   The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. = IRR

22.   The most Important criteria for project selection is REALISM

23.   The objective of lesions learned document is continuous Improvement

24.   The payback period tells us how long it will take to recoup the expense of the project, so a shorter payback period is better. 

25.   Administrative closure is COMPLETE PROJECT Closure - so it can be done only once for project (or) Phase

 

 

 

PM Responsibility

 

1.       Code of Ethics of PMI = RRFH Responsibility, respect, Fairness, honesty

2.       FORMAL, REWARD, PENALTY are powers derived from project managers position in the company.

3.       Management Skills =  Presentations skills, negotiation skills, writing and public speaking skills.

4.       Primary Responsibility of the Project Manager is 'Interact with others in a Professional Manner while completing the project'.

5.       REFERRENT power= PM’s PERSONALITY POWER

6.       The project manager's ability to influence others whose cooperation and support are crucial to the project is called: DE FACTO AUTHORITY

7.       Training the team member in GENERAL Skills is the function of the FUNCTIONAL MANAGER

 

 

PMI Ethic

 

 

1.       PMI advocates Project Objectives that follow the SMART guideline. S - Specific; M - Measurable; A - Assignable; R - Realistic; T - Timely.

 

Stake Holder

 

1.       Stake holder model – SALIANCE GRID

2.       Stakeholder Influence in the project and its deliverables is highest early in the life cycle but diminishes as the project proceeds...

 

 

Organization

 

1.       Balanced – PM and FM has equal power

2.       BALANCED MATRIX: Folks who work in a balanced matrix organization report to a PM AND a functional manager equally. 

3.       Communications are COMPLEX in Matrix organization

4.       Complex project will best fit in MATRIX org structure

5.       Conflicting priorities in resource assignments – is an issue in the Matrix structure

6.       Functional – FM has more power

7.       In a matrixed organization, the project manager doesn’t have legitimate power, because the team doesn’t directly report to the project manager.

8.       Projectized – PM has more power

9.       Strong – MATRIX – PM has more power

10.   STRONG MATRIX: Project managers have more authority than functional managers, but the team still reports to both managers.

11.   Team building is difficult in Matrix Org structure

12.   Team development with WEAK Matrix is very difficult

13.   WEAK – FM has more power

14.   Which questions the functional manager is most likely to ask : WHO WILL DO THE TASK

 

Introduction

 

1.       Getting coffee from Wife is a Project, Getting Coffee from Vending Machine is OPERATION (There are no surprises!..Thanks ARI)

2.       Operations: are ongoing and repetitive

 

Processes

 

1.       A process goes out of control when there are special causes of variation

2.       Baseline is established during the PLANNING

3.       Control Management System tracks the changes(not configuration management)

4.       Last step in Administrative closure is Release resources or Measure customer certification at the end of the project by capturing customer feedback, in order to assist in project evaluation and enhance customer relationships.

5.       Outputs of all 42 Processes will be stored in PMIS.

6.       Planning phase is LEAST Risky

7.       PMBOK Guide process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle

8.       PMIS resides in EEF (enterprise environmental factors)

9.       Product of the Project is Actually created in EXECUTION Phase /Group

10.   Report Performance focuses on performance reporting against baselines, such as scope, schedule, cost, or quality. Report Performance uses time, cost, and related work performance information.

11.   Templates and forms which are available in the organization are reusable components. Any resource that can be reused as a useful tool is part of the total methodology of project planning

12.   The best use of "collect project records" is to recall what happened on the project, good or bad.

13.   Enterprise Environmental Factors refer to external factors in the company, that may influence the project. Enterprise Environmental Factors may include cultural factors, political climate, infrastructure and other external factors within the organization that may impact the project. Enterprise Environmental Factors are input to many planning processes

 

 

Basics

 

1.       Portfolio: A portfolio is a group of projects or programs that are linked together by a business goal.

2.       Portfolios are organized around business goals and Programs are organized around a shared benefit in managing them together."

3.       Program: A program is a group of projects that are closely linked, to the point where managing them together provides some benefit

4.       Project: A project is any work that produces a specific result and is temporary. Projects always have a beginning and an end. But they are never ongoing

 

Scope Management

 

1.       100% rule comes in WBS

2.       Brain storming and Lateral Thinking are used in scope definition for ALTERNATIVES IDENTIFICATION

3.       Completion of Product scope is measured against Product Requirements.

4.       Completion of PROJECT scope is measured against the PM plan (not PRODUCT SCOPE)

5.       Completion of Project Scope is measured against the Project Management Plan.

6.       Fringe benefits are included in overhead and are part of indirect costs. 

7.       Generally, only one person is assigned Accountability for a work package, but more than one person may be responsible for performing the work on a work package

8.       If the project is cancelled/terminated before completion, Verify Scope is performed to show where the Project was in relation to the Scope when it ended.

9.       If we don't receive a final sign off from our customer; we have to escalate the issue to our Management.

10.   Product scope: means the features and functions of the product or service that you and your team are building.

11.   Project scope: is all of the work that needs to be done to make the product.

12.   RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP

13.   Requirement  Traceability Matrix helps preventing gold plating

14.   SCOPE CREEP = UNMANAGED changes to the Project SCOPE

15.   Scope verification is primarily concerned with ACCEPTANCE of deliverables. Quality control is done before scope verification.

16.   Scope verification should be done – WHEN A PROJECT IS TERMINATED to determine the extent of the completion

17.   Sponsor or Initiator can create project charter or delegate it to PM

18.   The primary difference between focus groups and facilitated workshops are that focus groups are gatherings of prequalified subject matter experts and stakeholders and facilitated workshops consist of cross-functional stakeholders who can define cross-functional requirements.

19.   The project scope management plan – will not have the project constraints and assumptions (RD, Scope statement and scope BSL – will)

20.   The Scope Statement provides the Product Description, Acceptance Criteria, Key Deliverables, Project Boundaries, Assumptions, and Constraints about the Project.

21.   The WBS doesn’t show the order of the work packages or any dependencies between them

22.   The WBS doesn’t show the order of the work packages or any dependencies between them.

23.   The work package is the LOWEST level on a WBS;

24.   Verify Scope happens at the end of each phase and the project and upon delivery of Product/Service/Result. 

25.   Verify Scope is concerned with completeness and acceptance, and Perform Quality Control is concerned with correctness.

26.   Verify Scope: The process of formalizing acceptance of the completed project deliverables. Usually performed after Perform Quality Control. 

27.   Work Authorization systems helps in preventing scope creep

28.   Progressive Elaboration involves the process of taking a project from concept to detailed design.

 

Time Management

 

1.       A group of related scheduled activities – shown as single aggregate activity for the reporting purpose is known as HAMMOCK Activity

2.       ADM’s drawback is that it can only show finish-to-start (FS) relationships

3.       An activity that consumes no time or resources and shows only a dependency = DUMMY Activity

4.       Approximating number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process. Activity List ,Activity resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK Page no 177

5.       CPM - FLOAT usage; CCM - Buffer usage.

6.       CRASHING =MORE COST

7.       Crashing is applying more resources to shorten the duration

8.       Defining activities is an iterative process performed together by the project manager and the project team member by further decomposing the WBS work packages

9.       Duration is the amount of time that an activity takes, while effort is the total number of person-hours that are expended.

10.   ELAPSED TIME is the time inclusive of NON working days

11.   FAST TRACK =MORE RISK  

12.   In order to show relationships between tasks on different node branches, ADM diagrams use dummy activities

13.   Lag means – make sure one tasks waits before it gets started

14.   Lag time causes the successor task to begin some time after its predecessor task concludes...for example, FS+1 would delay the start of the successor by 1 day.

15.   Lead means you let the task get started before its predecessor is done

16.   Lead time causes the successor task to begin before its predecessor task concludes...for example FS-2 would schedule the successor task to start before the predecessor task finish.

17.   Leads and lags are APPLIED as part of the Develop Schedule process, but then they are ADJUSTED in the process of Control Schedule.

18.   Milestone Duration is ZERO

19.   Milestone Schedule can also be called as Master Schedule.

20.   Networks (diagram) identify the Activity  dependencies and  path convergence risks

21.   Over allotted – then do resource leveling

22.   Parkinson's Law states that work will expand to fulfill the time allotted to it. (SUPER!- That’s what we do in real life right…)

23.   Path convergence is characterized by a schedule activity with more than one predecessor activity.

24.   Path Convergence: The merging or joining parallel schedule network paths into the same node in a project schedule network diagram. 

25.   Path divergence is characterized by a schedule activity with more than one successor activity.

26.   Path Divergence: Extending or generating parallel schedule network paths from the same node in a project schedule network diagram. 

27.   PERT Is also a NETWORK DIAGRAM

28.   Pert is Superior to CPM

29.   Progressive Elaboration is what happens in rolling wave planning process

30.   RDU = Remaining Duration

31.   Resource Calendars specify WHEN and HOW LONG identified project resource will be available during the project.

32.   Resource leveling can cause the original critical path to change.

33.   Resource leveling results in INCREASED PROJECT DURATION

34.   Rough order of Estimate = +-50% 

35.   Soft logic allows the project manager to make decisions based on conditions outside of the project, best practices, or guidelines.

36.   Successor Activity LS- Duration of current activity= LS of Current Activity

37.   The Arrow Diagramming Method (ADM) creates diagrams known as activity-on-arrow (AOA).

38.   The arrow diagramming method does not support finish-to-finish of relationships. 

39.   The critical chain Method modifies the  SCHEDULE to account for LIMITED RESOURCES

40.   The nodes on the AOA diagrams represent completion of the activities and have ZERO time usage

41.   The Precedence Diagramming Method (PDM) creates diagrams known as activity-on-node (AON).

42.   The primary purpose of a network diagram is to show logical relationships. 

43.   The Resource Breakdown Structure shows various resources, both human and mechanical needed for project.

44.   Triangular distribution = PERT – Relies on Optimistic, Pessimistic and Most likely estimates(in Risk rating)

45.   Resource Smoothing - Adjusting activity such that resource requirement do not exceed predefined limit. Critical path is not changed, change in completion date, activities are adjusted using free and total float. May not optimize all the resources.

 

Cost management

 

1.       Analogous is TOP DOWN

2.       Bottoms up is Accurate (When Parametric was not given)

3.       Control Account may include one or more Work Packages, each Work Package represents only one Control Account.

4.       Controlling unexpected project cost is to engage stakeholders early to prevent unnecessary and costly changes later in the project.

5.       Cost base line does not include management reserve

6.       Cost benefit: Looking at how much your quality activities will cost.

7.       Cost Performance baseline is represented as S curve

8.       Costs and staffing levels are lowest early in the life cycle, peak while the project work is underway, and then drop off as the project nears completion.

9.       CPI is considered most critical EVM Metric  

10.   Definite cost are most accurate

11.   Direct cost: include dedicated labor, material, supplies, equipment, licenses, fees, training, travel, or professional service fees - [Applied directly to THIS project]

12.   EVM does not play a major role in QUALITY MANAGEMENT PG

13.   Fixed cost: 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

14.   Independent estimates are prepared to compare  the cost  to an estimate created with 

15.   Indirect cost: Example, if a color printer is shared by several project teams, it’s difficult to definitively determine what percentage of costs each should share. [Expenses not for ONE project - these are Shared Expenses]

16.   Life Cycle Costing includes Acquisition, Operation, Maintenance, and Disposal Costs

17.   One method to determine how well the project is getting executed is using – CPI (Cost performance Index)

18.   Order of Magnitude Estimate: Rough Order of Magnitude (ROM): -50% to +50% (at Initiation) as the project moves, estimates should become more accurate, 

19.   Parametric Estimates may not scale

20.   Parametric is More Accurate

21.   Straight line depreciation formula= (Initial cost-scrap value)/life

22.   Sunk Costs: costs incurred that cannot be reversed irrespective to future events

23.   TCPI is the projection of the cost performance that must be achieved on the remaining work

24.   The cost expanded at the  completion  of phase is known as SUNK costs

25.   The final cost of the project is HIGH at the start and gets progressively LOW as the project continues

26.   The S curve is the cost performance baseline. The cost performance baseline is used to track cost performance based on the original plan plus approved changes.

27.   The To-Complete-Performance-Index (TCPI) is: The cost performance index (CPI) required in the remainder of a project to meet financial goals.

28.   Value Engineering/ Analysis: finding less costly way to do the same work. E.g. outsourcing

29.   Variable cost: 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.

30.   When original estimates are flawed then EAC = AC + ETC

31.   Zero Schedule Varience (SV) means the task is completed.

 

 

Quality Management

 

1.       12 to 20% of the sales is estimated to be the cost of NON QUALITY

2.       85% cost of quality = DEMING

3.       A statistical method that helps identify which factors may influence specific variables of a product or process under development or in production is DESIGN OF EXPERIMENTS

4.       Attribute Sampling: is binary, it either conforms to quality or it doesn’t (YES or NO). 

5.       Benchmarking is a Technique used in QUALITY PLANNING

6.       Benchmarking: means using the results of quality planning on other projects to set goals for your own.

7.       Cause & Effect/Ishikawa/Fishbone Diagram or 5 WHY Technique.

8.       Common Causes are generally acceptable.

9.       Common causes are thus generally considered as non-preventable and accepted as part of the process. 

10.   Control chart: Determines whether or not process is stable and within set limits .

11.   Control charts are graphic display of the results over a time of a process. They are used to determine if the process is "in control".

12.   Control Charts: The upper and lower control limits are set at THREE STANDARD DEVIATIONS ABOVE and BELOW MEAN.

13.   Control Limits are set at three standard deviations above and below the mean. As long as your results fall within the control limits, your process is considered to be in control. 

14.   Cost of Quality = Prevention cost + Appraisal cost + control cost

15.   Design of experiments uses experiments and 'what-if' scenarios to determine what variables are affecting quality.

16.   Design of experiments: is the list of all the kinds of tests you are going to run on your product.

17.   Dr. Genichi Taguchi developed the concept of 'Loss Function'.

18.   Engineering is primarily responsible for creating design and test specifications.

19.   Fishbone diagram/Ishikawa: Determines how various factors linked to potential problems or effects, root cause 

20.   Flow Chart: Shows HOW PROCESSES INTERRELATE.

21.   Having an allowable defect rate is an example of the cost of non-quality. Any system or process that will accept defects adds cost to the product or service.

22.   Histogram (Column Chart): It shows HOW OFTEN something occurs, or its FREQUENCY (no Ranking).

23.   Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause.  

24.   If the performing organization lacks the formal quality policy, or if project involves multiple performing organizations, The project management team, will develop the quality policy for each project.

25.   If the results fall under customer tolerance then the results are acceptable to client

26.   If you have to look/refer any plan – to respond regarding improving customer satisfaction – you need to look at QUALITY PLAN

27.   Inspection keeps errors in the product from reaching the customer. Prevention keeps errors from occurring in the process.

28.   Inspections are called as reviews, Audits and walkthroughs

29.   Inspections are NOT called as Assessments

30.   Jurans Quality Triology = Quality PLANNING Quality IMPROVEMENT Quality CONTROL

31.   Just In Time (JIT): To reduce expensive cost of holding inventory, many companies decrease inventory close to zero. A company using JIT must have high quality practices. 

32.   KAIZEN = process Improvement

33.   Low grade is OK, but Low Quality is NOT OK

34.   Marginal analysis: Spend time on improvement if it improves revenues or productivity.

35.   Measuring Quality of the product against standard is called Benchmarking

36.   Pareto chart: Focus on critical issues to improve quality 

37.   Pareto Charts (80-20 rule): This is a Histogram showing defects RANKED from GREATEST to LEAST. This rule states that 80% of the problems come from 20% of the causes. It is used to help determine the FEW ROOT CAUSES behind the MAJORITY OF THE PROBLEMS on a project.

38.   Philip corsby – said QUALITY IS FREE

39.   Philip Crosby = ZEro Defects, 

40.   Q: Optimal quality is reached at what point? A: When revenue from improvement equals the incremental costs to achieve the quality. Marginal analysis provides that optimal quality is reached when the cost of the improvements equals the incremental costs to achieve the quality.

41.   QA is typically management process

42.   Quality assurance is focused on the processes and not the quality of the deliverables. 

43.   Quality control measurements are used to reevaluate and analyze the quality standards and processes and are fed back through: Quality ASSURANCE

44.   Quality is the process of completing the scope to meet stated or implied needs.

45.   QUALITY: is defined as degree to which your project fulfills requirements. Customer satisfaction, Fitness for use, Conformance to requirements

46.   Rule of Seven: If seven or more consecutive data points fall on one side of the mean, they should be investigated. This is true even if the seven data points are within control limits.

47.   Run Chart: tell about TRENDS in the project. Shows the HISTORY and PATTERN.

48.   Scatter Diagram: It is powerful tool for SPOTTING TRENDS in Data. Scatter Diagrams are made using two variables (a dependent variable and an independent variable).

49.   Sensitivity Analysis are part of Quantitative Analysis

50.   special causes are considered preventable. For example, a backup generator failed to start up during a power failure. The failure of the backup generator can be prevented in the future through regular mechanical maintenance and operational tests.  

51.   Special Causes: considered unusual and preventable by process improvement. 

52.   Standard deviation in a chart measures PRECISION

53.   Statistical sampling for Inspection is used to reduce the cost of Quality control

54.   The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control – THIS IS DEFINITION FOR CONTROL CHARTS

55.   The BIG Four: 1. Ishikawa; 2. Deming; 3. Juran; and 4. Crosby.

56.   The Pillars of the quality are DOING It RIGHT – first time and ZERO Defects

57.   The practice of ceasing mass inspections and ending awards based on price is credited to DEMING

58.   The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs. 

59.   This is important for us to remember: quality assurance is concerned with quality processes while quality control is concerned with quality deliverables.

60.   Tolerances deal with the limits your project has set for product acceptance. 

61.   Tolerances focus on whether the product is acceptable, while Control Limits focus on whether the process itself is acceptable. (Control limit is for PROCESS)

62.   UCL : Upper control limit : Is derived from Random variation

63.   UTL : Upper tolerance limit is the higher of two tolerance limits

64.   Variable Sampling: Measures how well something conforms to quality (RANGES).

65.   W. Edwards Deming = Plan DO- check- Act + He also developed 14 activities for implementing quality

66.   Kaizen Theory - Apply continuous small improvements to reduce costs and ensure consistency.

67.   Marginal Analysis - You compare the cost of incremental improvements against the increase in revenue made from quality improvements. Optimal quality is reached when cost of improvements equals the costs to achieve quality.

 

Risk management

 

1.       Avoid, Mitigate, Transfer, Accept – are applicable for Negative Risks also

2.       Beta Distribution and Triangular distribution are probability distributions used in Risk Analysis

3.       Force Majeure Risks, such as Earthquakes, Floods, Acts of Terrorism, Etc., should be covered under Disaster Recovery Procedures instead of Risk Management.

4.       High Standard Deviation is High Risk.

5.       INFLATION – is a EXTERNAL UN Predictable RISK

6.       Monte Carlo analysis gives you:An indication of the risk involved in the project

7.       Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results

8.       Monte carlo simulation provides PROBABILITY OF ANY TASK BEING AT THE CRITICAL PATH

9.       Outsourcing IS RISK TRANSFERENCE

10.   Planning meetings are used to create the Risk Management plan.

11.   Project risk is categorized by 3 factors a) Risk event, b) risk probability) amount at stake

12.   Residual risks are REMINING RISKS after risk responses have been implemented

13.   Risk audit documents the effectiveness of the risk responses

14.   Risk Breakdown Structure (RBS): It is not breaking down the actial risks, instead, we are breaking down the CATEGORIES of risks that we will evaluate.

15.   Risk is highest early in the project since uncertainty is high about the project’s deliverables, resource needs, and work required.

16.   Risk mitigation is to DECREASE THE PROBABILITY OF RISK

17.   Risk response- fails> then contingency plan...If contingency plan fails then > Fall back plan, i.e in other words=> It can be looked at as a contingency plan for the contingency plan

18.   RISK response of eliminating a threat = RISK AVOIDANCE

19.   Risk Score: The probability and impact score for the risk. This is obtained from a formula (usually probability x impact) defined in the risk management plan and generated from the probability and impact matrix. 

20.   Sensitivity chart displays sensitivities in DESENDING ORDER

21.   The amount of tolerance a person or organization has for risks is referred to as its risk utility, 

22.   The contingency reserve is for known - unknowns, or risks that you know about and explicitly planned for and put in your risk register.

23.   The management reserve is for unknown-unknowns—things that you haven’t planned for but could impact your project. 

24.   Transfer: Transference assigns all or part of risk to a third party through outsourcing, contracts, insurance, warranties, guarantees, or performance clauses.

25.   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.

26.   "Responses to threat include -- 1.Reducing the probability of risk  2. Developing contingency plans 3. Passively accepting consequences. 4. Transferring risk"

 

Communication management

 

1.       According to Kerzner - "90% of the Project Manager's time is spent communicating"

2.       Communication Management plan defines the  contents of the performance reports

3.       Compromising: Lose-Lose method

4.       Conflict can come from seven main sources, of which the first three account for 50% . They are 1. Schedules, 2. Priorities, 3. Manpower/human resource availability, 4. Technical opinions, 5. Procedural or project administration, 6. Costs,7. Personalities (SP is first 2 and CP is last 2)

5.       Conflict is not a filter of communication—it is a communication hindrance.

6.       Confronting: It’s a Win-Win situation 

7.       Distribute Information is concerned with general project information, such as meeting minutes, issues, and correspondence. 

8.       First time feedback to a team member = Informal verbal (Face 2 Face), second time FORMAL written

9.       Meetings are always classified as INFORMAL VERBAL

10.   Non verbal communication is about 55%

11.   Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.

12.   Nonverbal communication means your gestures, facial expressions, and physical appearance while you are communicating your message.

13.   Paralingual communication is the tone and pitch of your voice when you’re talking to people. If you sound anxious or upset, that will have an impact on the way people take the news you are giving

14.   SENDER'S responsibility to make the message clear, complete, and understood 

15.   Smoothing: Lose-Yield method

16.   Symbols are always used in the communications

17.   Withdrawal: Lose-Leave method

 

HR Management

 

1.       Acquisition: When the performing organization lacks the in house staff needed to complete the project, the required services can be acquired from outside sources.

2.       As per HERZBERG base Salary is a HYGINE FACTOR

3.       BRUCE TRUKMAN Model is related to TEAMMANAGEMENT

4.       Changing Management Approach based on the team members experience = SITUATIONAL  CONTINUUM

5.       Employee records should be updated by PM when he completes the tasks assigned to him

6.       Individual development is the Foundation of Team development

7.       Laissez-faire: The leader turns nearly all control over to the group and is generally absent.

8.       large number of simultaneously performed projects utilize the same groups of human and other resources – is called RESOURCE POOLING

9.       Let the people involved in the conflict work it out first

10.   Participative leadership is most preferred leadership style

11.   Staffing Management Plan: WHEN and HOW resource will be ADDED and TAKEN OFF the team.

12.   Theory X - Autoritarion leadership style

13.   Theory Y - Autoritarion Democratic/ Laissez- faire leadership style

14.   Theory Z - Autoritarion Democratic leadership style

15.   Training for the team members is not a prerequisite – it can happen during the project also

16.   Withdrawal – has cooling off period – but the problem is not solved

17.   Withdrawal is the LEAST preferred method by PM’s

18.   Worker needs to be involved in Management Practice = OUCHI’s THEORY Z

 

Procurement Management

 

1.       Arbitration and mediation are Negotiation Techniques

2.       Comparing proposals received from sellers done in the Conduct Procurements.

3.       Contract is LEGAL relationship and project is not

4.       FIRM FIXED PRICE = Seller carries COST RISK, Buyer carries SCOPE RISK

5.       For an immediate work, a letter contract may be sufficient

6.       For cost plus contract RFP is suitable

7.       For immediate work, a letter contract may suffice. The intent of the letter contract is to allow the vendor to get to work immediately to solve the project problem.

8.       LOI is not a legal document

9.       MAKE or BUY is used for PLAN Purchases and Acquisitions 

10.   Make payment to seller is done in the Administer Procurements

11.   Output for source selection is contract

12.   Payment bonds are specifically designed to ensure that the prime contractor provides payment of Subcontractors, laborers, and sellers of material

13.   Performance Measures are done in contract Administration

14.   PM can not be a lead negotiator

15.   Probing, scratching and small bites  – are the behaviors of the contract negotiations

16.   Procurement Audit, is used to identify successes to transfer the success to other procurements

17.   Procurement Audit, Negotiated settlements and record management system are tool and Techniques of contract closeout process

18.   Procurement closure needs to happen before Project Closure. All procurements MUST be CLOSED before the project is closed.

19.   Procurement documents ensure the receipt of complete proposals

20.   Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE

21.   Seller completes the work as specified, but the buyer is not happy – then the contract is said to be COMPLETE (not closed though)

22.   Single source seller means – there is only one seller the company wants to do business with 

23.   Solicitation is the process of obtaining quotations , bids , offer, 

24.   The payment system is how your company pays its sellers.

25.   The procurement SOW might be prepared by either the buyer or the seller. Buyer might prepare the SOW and give it to the seller, who in turn rewrite it so that they can price the work properly. If the buyer does not know how to prepare a SOW or the seller would be better at creating the SOW because of their expertise about the product or service, the seller might prepare it and then give the buyer to review.

26.   The stage of the negotiation meeting – when he points of concession is identified = scratch bargaining

27.   UNILATERAL: this is a special class of contract in which the seller doesn't have to explicitly accept the offer in order for a contract to be established. This is a unilateral contract, and the best example is a purchase order (PO). 

28.   What is a constructive change? = consideration of undocumented change = A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.

29.   When you must begin work immediately without a procurement statement of work, the most appropriate choice is time and material. 

30.   Time and Material Contracts - T&M – has the characteristics of both Fixed and Cost reimbursement

31.   Cost Plus Fixed Fee Contract - CPFF - More risk for BUYER (some say T&M)

32.   Firm Fixed Price Contract - FFP - More risk for SELLER

 

Integration Management

 

1.       Administrative closure should be carried out at the completion of each phase of the project

2.       Any change in the Project Charter needs to be approved by sponsor or person who has authorized the charter

3.       BCR 1.8 means that revenue from the project is 1.8 times the cost

4.       Benefit Measurement Methods: employ various forms of analysis and comparative approaches to make project decisions. These methods include comparative approaches such as cost-benefit analysis, scoring models, and benefit contribution methods that include various cash flow techniques and economic models.

5.       Contract closure occurs before Administrative closure

6.       Historical information is the best input for the initiation phase

7.       If IRR and payback period Is given then DO THE PROJECT SELECTION ONLY BASED ON higher IRR .   An investment with a higher IRR is not necessarily better than an investment with a lower IRR. If two projects are mutually exclusive, once should choose the project with the higher NPV at the appropriate discount rate even though the IRR many be lower.

8.       INTERNAL RATE OF RETURN - IRR: is the discount rate when the present value of the cash inflows EQUALS the original investment

9.       IRR assumes that cash inflows are reinvested at the IRR value.

10.   IRR is the discount rate when NPV equals zero.

11.   IRR:  You should choose projects with the highest IRR value.

12.   Last stage of project closure Measure customer certification at the end of the project by capturing customer feedback.

13.   Lessons learned are professional obligation of the project Manager

14.   Mathematical models is that they use linear, dynamic, integer, nonlinear, and/or multi-objective programming in the form of algorithms—or in other words, a specific set of steps to solve a particular problem. Mathematical models are also known as Constrained optimization methods

15.   NET PRESENT VALUE - NPV: When you get a positive value for NPV, it means that the project will earn a return at least equal to or greater than the cost of capital.

16.   NPV will help u to build most precise business case

17.   On large or mega projects the integration is the responsibility of the project office

18.   Payback period ended means Cumulative Revenue and cumulative cost from Starnet became equal

19.   Releasing the resources from the project is what done as LAST ACTIVITY

20.   ROI = (Benefit – Cost)/Cost

21.   The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. = IRR

22.   The most Important criteria for project selection is REALISM

23.   The objective of lesions learned document is continuous Improvement

24.   The payback period tells us how long it will take to recoup the expense of the project, so a shorter payback period is better. 

25.   Administrative closure is COMPLETE PROJECT Closure - so it can be done only once for project (or) Phase

 

 

 

PM Responsibility

 

1.       Code of Ethics of PMI = RRFH Responsibility, respect, Fairness, honesty

2.       FORMAL, REWARD, PENALTY are powers derived from project managers position in the company.

3.       Management Skills =  Presentations skills, negotiation skills, writing and public speaking skills.

4.       Primary Responsibility of the Project Manager is 'Interact with others in a Professional Manner while completing the project'.

5.       REFERRENT power= PM’s PERSONALITY POWER

6.       The project manager's ability to influence others whose cooperation and support are crucial to the project is called: DE FACTO AUTHORITY

7.       Training the team member in GENERAL Skills is the function of the FUNCTIONAL MANAGER

 

 

PMI Ethic

 

 

1.       PMI advocates Project Objectives that follow the SMART guideline. S - Specific; M - Measurable; A - Assignable; R - Realistic; T - Timely.

 

Stake Holder

 

1.       Stake holder model – SALIANCE GRID

2.       Stakeholder Influence in the project and its deliverables is highest early in the life cycle but diminishes as the project proceeds...

 

 

Tousif

 

 

Regards,