Process
A ______ is a series of actions directed toward a particular result.
Executing
_____ processes include coordinating people and other resources to carry out project plans and create
the products, services, or results of the project or phase.
Executing
Which process group normally requires the most resources and time.
PRINCE2
What methodology was developed in the United Kingdom, defines 45 separate su processes and
organizes them into 8 process groups?
Business case
What output is often completed before initiating a project?
Planning
A work breakdown structure, project schedule, and cost estimates are outputs of the _____ process
Intergration
Initiating involves developing a project charter, which is part of the project ______ management
knowledge area.
Monitoring and Controlling
______ involves measuring progress toward project objectives and taking corrective actions
The project has unclear up-front requirements
What is NOT a typical reason that project teams would use a predictive approach versus an agile
approach to managing a project?
Templates
Many people use _____ to have a standard format for preparing various project management
documents.
Agile methods
An approach to managing projects that includes an iterative workflow and incremental delivery of
software in short iterations.
Artifact
A useful object created by people
Burndown chart
A chart that shows the cumulative work remaining in a sprint on a day-to-day basis
Closing processes
Formalizing acceptance of the project or project phase and ending it efficiently
Daily scrum
A Short meeting in which the team shares progress and challenges
Executing processes
Coordinating people and other resources to carry out the project plans and create products services or
results of the project or projects phase
Initiating process
Defining and authorizing a project or projects phase
Kick off meeting
Meeting held at the beginning of the project stakeholders can meet each other review the goals of the
project and discuss future plans
Methodology
Description of how things should be done
Monitoring and controlling processes
Regularly measuring and monitoring progress to make sure the project team meets the project
objectives
Planning processes
Devising and maintaining a workable scheme to ensure the project addresses the organizations needs
Process
A series of actions directed toward a particular result
Product backlog
A single list of features prioritized by business value
Product owner
The person responsible for the business value of the project and for deciding what work to do and in
what order when using scrum method
Project management process groups
The progression of project activities from initiation to planning executing monitoring and controlling and
closing
Projects in controlled environments
(PRINCE2) A project management methodology developed in the United Kingdom that defines 45
separate subprocesses and organizes these into 8 process groups
Rational unified process framework
(RUP) on iterative software development process that focuses on team productivity and delivers
software best practices to all team members
ScrumMaster
A person who ensures that the team is productive, facilitates the daily scrum, enables close cooperation
Across all roles and functions, and removes barriers that prevent the team from being effective.
Scrum team or development team
Cross functional team of 5 to 9 people who organize themselves and the work to produce the desired
results for each Sprint
Six sigma methodologies
DMAIC (define, measure, analyze, improve, and control) is used to improve an existing business process,
and DMADV (define, measure, analyze, design, and verify) is used to create new product or process
designs
Sprint
A set period of time normally 2 to 4 weeks during which specific work must be completed and made
ready to review using scum methods
Sprint backlog
The highest priority items from the product backlog to be completed in the sprint
Stakeholder register
A document that includes details related to the identified project stakeholders
Standard
Best practice for what should be done
User stories
Short description written by customers of that they need a system to do for them
Project management process groups
Initiating, planning, executing, monitoring and controlling, closing
Knowledge areas
integration
scope
time
cost
quality
human resources
communications
risk
procurement
stakeholder
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Describe the importance of Communications Planning.
Communications Planning is the key to project success. It involves determining who needs information,
when, and in what format, and the frequency of the communication.
Describe Resource Planning.
Resource Planning determines what resources are needed for the project, including human, equipment,
and material.
Describe a RAM
A RAM is a resource assignment matrix that shows the WBS identifier, the type of resource required,
and the number of resources for each skill set. An RACI chart is a type of RAM that describes the
resources and their level of responsibility, including responsible, accountable, consult, or inform.
Describe the two components of Human Resources Planning.
The two components are organizational planning and staff acquisition.
Be able to describe make-or-buy analysis.
Make-or-buy analysis is performed in order to determine the cost-effectiveness of either making or
buying the goods and services you need for the project.
Be able to name the types of contracts.
The contract types include fixed-price, cost-reimbursable, and time and materials.
Bidder conference
A meeting held by the buyer with potential vendors during the procurement process to allow vendors to
ask questions and get clarification on the project.
Communications Planning
Determines the communication needs of the stakeholders, when and how the information will be
received, and who will receive the information.
Contract
A legally binding document that describes the work that will be performed, how the work will be
compensated, and any penalties for noncompliance.
Cost-reimbursable contract
Provides the seller with payment for all costs incurred to deliver or produce the product or service
requested.
Equipment
Resources such as servers, specialized test equipment, or additional PCs that are required for a project.
One of the categories of project resources. It includes test tools, servers, PCs, or other related items
required to complete the project.
Fixed-price contract
A contract that states a fixed fee for the work that the vendor will perform.
Formal communications
Planned communications such as project kickoff meetings, team status meetings, written status reports,
or team-building sessions.
Human resources
The people with the background and skills to complete the tasks on the project schedule.
Human Resources Planning
Defining team member roles and responsibilities, establishing an appropriate structure for team
reporting, securing the right team members, and bringing them on the project as needed for the
appropriate length of time.
Informal communications
Unplanned or ad hoc communications, including phone calls, emails, conversations in the hallway, or
impromptu meetings.
Lines of communication
A mathematical formula that determines the number of lines of communication between participants in
a meeting. The formula is n (n - 1) / 2, where n represents the number of participants.
Make-or-buy analysis
Determines the cost effectiveness of producing goods or services in-house vs. procuring them from
outside the organization.
Materials
A catchall category of project resources that includes software, utility requirements such as electricity or
water, any supplies needed for the project, or other consumable goods.
Organizational planning
The process of addressing factors that may impact how to manage a project team, defining roles and
responsibilities for project team members, identifying how the project team will be organized, and
documenting a staffing management plan.
Procurement planning
The process of identifying what goods or services will be purchased from outside the organization. It
uses make-or-buy analysis to determine whether goods or services should be purchased outside the
organization or produced internally.
RACI chart
A type of responsibility assignment matrix that describes the resources needed for the task and their
role for that task using the following descriptors: responsible, accountable, consult, or inform.
Resource Planning
A process that defines and documents all the resources needed and the quantity of resources needed to
perform project activities, including human, material, and equipment resources.
Resource pool description
A listing of all the job titles within a company or department with a brief description of the job. It may
also identify the number of people currently employed in each job title.
Resource requirements
A document containing a description of the resources needed from all three resource types for work
package items from the WBS.
Responsibility assignment matrix (RAM)
A resource chart that defines the WBS identifier, the resource type needed for the WBS element, and
the quantity of resources needed for the task. A WBS is displayed in chart form.
Sender / Message / Receiver model:
What affects the sender?
(A) Knowing what the entire point of the communication is. (B) Understanding that people think in
either words or pictures. (C) The thoughts to be communicated should be expressed in signs or symbols,
and these thoughts have to be adapted to the intended or targeted audience.
Sender / Message / Receiver model:
What affects the message?
(A) The characteristics of the medium selected for transmission of the information must be known. (B)
The context in we want the receiver to interact with the information must be understood. (C) Any
potential interference in the process of delivering the message must be considered.
Sender / Message / Receiver model:
What affects the receiver?
The receiver is bringing a whole load of baggage to the communication interaction, such as need
fulfillment, expectations, and past experience.
Variables for the reception of any mediated information. (1) level of ego involvement; (2) previous
knowledge level; (3) tolerance for ambiguity; (4) tolerance for dissonance; (5) behavioral learning versus
vicarious learning; (6) value agreement with the communication versus value disagreement; and (7)
existence of a rhetorical vision
Sole source
A requirement that a product or service must be obtained from a single vendor in government work;
also includes justification.
Solicitation
Obtaining bids and proposals from vendors in response to RFPs and similar procurement documents
prepared during the solicitation planning process.
Staff acquisition process
Obtaining human resources and assigning them to the project. Human resources may come from inside
or outside the organization.
Staffing management plan
Documents when and how human resources will be added to and released from the project team and
what they will be working on while they are part of the team.
Statement of work (SOW)
The statement of work (SOW) details the goods or services you want to procure. In many respects it's
similar to the project scope statement, except that it focuses on the work being procured. It contains the
project description, major deliverables, success criteria, assumptions, and constraints.
Time and materials contract
A type of contract where the buyer and the seller agree on a unit rate, such as the hourly rate for a
programmer. The total cost is unknown and will depend on the amount of time spent to produce the
product.
Describe the Activity Sequencing process.
Activity Sequencing is the process of identifying dependency relationships between the project activities
and scheduling activities in the proper order.
Activity Definition
Takes the work packages from your WBS and breaks them down into assignable tasks.
Name the two major relationships between dependent tasks.
1 A predecessor is a task that exists on a path with another task and occurs before the task in question.
2 A successor is a task that exists on a common path with another task and occurs after the task in
question.
Name the four types of logical relationships.
The four types of logical relationships are finish-to-start, start-to-start, start-to-finish, and finish-tofinish.
Know and understand the five most commonly used techniques to estimate activity duration.
1 Expert judgment relies on the knowledge of someone familiar with the tasks.
2 Analogous or top-down estimating bases the estimate on similar activities from a previous project.
3 Parametric estimates are quantitatively based estimates that typically calculate the rate times
quantity.
4 Three-point estimates use the most likely, optimistic, and pessimistic estimates to determine an
average estimate.
5 PERT uses the same estimates as the three-point estimating technique, but it calculates an expected
value or weighted average estimate.
Define the purpose of CPM.
CPM calculates the longest path in the project. This path controls the finish date of the project. Any
delay to a critical path task will delay the completion date of the project.
Explain a network diagram.
A network diagram is used in Activity Sequencing to depict project activities and the interrelationships
and dependencies among these activities.
Name the two most common ways project schedules are displayed.
Project schedules are typically displayed as milestone charts or Gantt charts; a Gantt chart is a type of
bar chart.
Activity definition
Identifying the activities of the project that need to be performed to produce the product or service of
the project.
Activity Duration
Assessing the number of work periods needed to complete the project activities. Work periods are
usually expressed in hours or days. Large projects might express duration in weeks or months.
Activity Duration estimating is obtained using analogous (also called top-down) estimating, parametric
estimating, expert judgment, three-point estimates, and PERT.
Activity list
A list of all the activities required to complete the work of the project that also includes an identifier
code and the WBS code it's associated with. Activities are broken down from the work package level of
the WBS.
Activity Sequencing
Activity Sequencing looks at dependencies between tasks. These dependencies can be mandatory,
discretionary, or external. A dependent task is either a successor or a predecessor of a linked task.
Analogous estimating
An estimating technique that uses the actual duration of a similar, completed activity to determine the
duration of the current activity. This is also called top-down estimating.
Backward pass
Calculating late start and late finish dates by starting at the end of a network diagram and working back
through each path until reaching the start of the network diagram. This is part of critical path method
(CPM), which is a mathematical technique to develop the project schedule.
Crashing
This is a schedule compression technique that adds resources to the project to reduce the time it takes
to complete the project.
Critical path
The longest path through the project. Activities with zero float are considered critical path tasks.
Critical path method (CPM)
A schedule development method that determines a single early and late start date, early and late finish
date, and the float for each activity on the project.
Dependencies
The relationship between project activities.
Dependency relationships
The type of dependency between two activities and the specific relationship between the activities.
Discretionary dependency
A type of dependency that the project manager and project team choose to impose on the project
schedule, such as the use of an established corporate practice.
Document control process
Defines how revisions are made, the version numbering system, and the placement of the version
number and revision date.
Duration compression
The use of techniques (such as fast-tracking or crashing) to shorten a project schedule to meet a
mandated completion date or resolve schedule slippage.
Early finish
The earliest date an activity may finish as logically constrained by the network diagram.
Early start
The earliest date an activity may start as logically constrained by the network diagram.
Expected value
Finish-to-start is the most common logical relationship.
Expert judgment
Expert Judgment refers to a technique in which judgment is made based upon a specific set of criteria
and/or expertise that has been acquired in a specific knowledge area, or product area, a particular
discipline, an industry, etc.
External dependency
A type of dependency where a relationship between a project task and a factor outside the project, such
as weather conditions, drives the scheduling of that task.
Fast tracking
A schedule compression technique in which activities or phases normally done in sequence are
performed in parallel for at least a portion of their duration.
Finish-to-finish
A project task relationship in which the finish of the successor task is dependent on the finish of the
predecessor task.
Finish-to-start
A project task relationship in which the successor task cannot begin until the predecessor task has
completed.
Float time
The amount of time the early start of a task may be delayed without delaying the finish date of the
project. Also known as slack time.
Forward pass
The process of working from the left to the right of a network diagram in order to calculate early start
and early finish dates for each activity.
Iterative process
Any process that is repeated more than once. The five process groups are repeated throughout the
project's life because of change requests, responses to change, corrective action, and so on.
Late finish
The latest date an activity can complete without impacting the project end date.
Late start
The latest date an activity can start without impacting the project end date.
Logical relationships
The dependency relationships that may exist between tasks. The four types of logical relationships are
finish-to-start, start-to-start, start-to-finish, and finish-to-finish.
* Finish-to-start is the most common logical relationship.
Mandatory dependency
A type of dependency where the relationship between two tasks is created by the type of work the
project requires.
Mathematical analysis
Calculating theoretical early and late start and finish dates for all project activities.
Network diagram
A depiction of project activities and the interrelationships between these activities.
Parametric estimating
A quantitatively based estimating technique that is typically calculated by multiplying rate times
quantity.
Precedence diagramming method (PDM)
A network diagramming method that places activities on nodes, which connect to dependent activities
using arrows. Also known as activity on node.
Predecessor
A task on the network diagram that occurs before another task.
Preliminary investigation
An investigation at project request time to determine the costs and benefits of the project, as well as
examine alternatives to the proposed solution in order to determine the feasibility of carrying out the
project.
Program evaluation and review technique (PERT)
Calculates the expected value, or weighted average, of critical path tasks to determine project duration
by using three estimates: most likely, pessimistic, and optimistic. The PERT calculation is (optimistic +
pessimistic + (4 × most likely)) / 6.
Project execution
Carrying out the project plan. Activities are clarified, the work is authorized to begin, resources are
committed and assigned to activities, and the product or service of the project is created. The largest
portion of the project budget will be spent during this process.
Project schedule
Determines the start and finish dates for project activities and assigns resources to the activities.
Quantitatively based durations
A duration estimate obtained by applying a productivity rate of the resource performing the task.
Schedule baseline
The final, approved project schedule that is used during project execution to monitor project progress.
Schedule development
Calculating and preparing the schedule of project activities, which becomes the schedule baseline. It
determines activity start and finish dates, finalizes activity sequences and durations, and determines
activity duration estimates.
Sequencing
Putting the project activities in the order in which they will take place.
Slack time
The amount of time allowed to delay the early start of a task without delaying the finish date of the
project. This is also known as float time.
Start-to-finish
A task relationship where the finish of the successor task is dependent on the start of its predecessor.
Start-to-start
A project task relationship where the start of the successor task depends on the start of the predecessor
task.
Successor
A task on the network diagram that occurs after another task.
Three-point estimates
Used in management and information systems applications for the construction of an approximate
probability distribution representing the outcome of future events, based on very limited information.
While the distribution used for the approximation might be a normal distribution, this is not always so
and, for example a triangular distribution might be used, depending on the application.
In three-point estimation, three figures are produced initially for every distribution that is required,
based on prior experience or best-guesses:
a = the best-case estimate
m = the most likely estimate
b = the worst-case estimate
These are then combined to yield either a full probability distribution, for later combination with
distributions obtained similarly for other variables, or summary descriptors of the distribution, such as
the mean, standard deviation or percentage points of the distribution. The accuracy attributed to the
results derived can be no better than the accuracy inherent in the 3 initial points, and there are clear
dangers in using an assumed form for an underlying distribution that itself has little basis.
Top-down estimating
An estimating technique that uses actual durations from similar activities on a previous project. This is
also referred to as analogous estimating.
Actual (AC)
The total of direct and indirect costs incurred in accomplishing work on an activity during a given period
Analogous Estimates
A cost-estimating technique that uses the actual cost of a previous similar project as the basis for
estimating the cost of the current project; also called top-down estimates
Baseline
The original project plan plus approved changes
Bottom-up estimate
A cost-estimating technique based on estimating individual work items and summing them to get a
project total
Budget at completion (BAC)
The original total budget for a project
Budgetary estimate
A cost estimate used to allocate money into an organization's budget
Cash flow analysis
A method for determining the estimated annual costs and benefits for a project
Contingency Reserves
Dollar amounts included in a cost estimate to allow for future situations that may be partially planed for
(sometimes called know unknowns) and that are included in the project cost baseline
Cost baseline
A time-phased budget that project managers use to measure and monitor cost performance
Cost performance index (CPI)
The ratio of earned value to actual cost; can be used to estimate the projected cost to complete the
project
Cost variance (CV)
The earned value minus the actual cost
Definitive Estimate
A cost estimate that provides an accurate estimate of project costs
Direct costs
Costs that can be directly related to creating the products and services of the project
Earned Value (EV)
An estimate of the value of the physical work actually completed
Earned value management (EVM)
A project performance measurement technique that integrates scope, time and cost date
Estimate at completion (EAC)
An estimate of what it will cost to complete the project based on performance to date
Indirect costs
Costs that are not directly related to the products or services of the project, but are indirectly related to
performing the project
Intangible Costs or benefits
Costs or benefits that are difficult to measure in monetary terms
Known unknowns
Dollar amounts included in a cost estimate to allow for future situations that may be partially planned
for (sometimes called contingency reserves) and that are included in the project cost baseline
Learning curve theory
A theory that when many items are produced repetitively, the unit cost of those items normally
decreases in a regular pattern as more units are produced
Life cycle costing
The total cost of ownership, or development plus support costs, for a project
Management Reserves
Dollar amounts included in a cost estimate to allow for future situations that are unpredictable
(sometimes called unknown unknowns)
Overrun
The additional percentage or dollar amount by which actual costs exceed estimates
Parametric Estimating
A cost estimating technique that uses project characteristics (parameters) in a mathematical model to
estimate project costs
Planned Value (PV)
The portion of the approved total cost estimate planned to be spent on an activity during a given period
Profit margin
The ration between revenues and profits
Profits
Revenues minus expenses
Project Cost management
The processes required to ensure that the project is completed within the approved budget
Rate of performance (RP)
The ratio of actual work completed to the percentage of work planned to have been completed at any
given time during the life of the project or activity
Reserves
Dollar amounts included in a cost estimate to mitigate cost risk by allowing for future situations that are
difficult to predict
Rough order of magnitude (ROM) estimate
A cost estimate prepared very early in the life of a project to provide a rough idea of what a project will
cost
Schedule performance index (SPI)
The ratio of earned value to planned value; can be used to estimate the projected time to complete a
project
Schedule Variance (SV)
The earned value minus the planned value
Sunk cost
Money that has been spent in the past
Tangible costs or benefits
Costs or benefits that can be easily measured in dollars
Top-down estimates
A cost-estimating technique that uses the actual cost of a previous, similar project as the basis for
estimating the cost of the current project; also called analogous estimates
Unknown unknowns
Dollar amounts included in a cost estimate to allow for future situations that are upredictable
(sometimes called management reserves)
1. Accountants usually define _________________ as a resource sacrificed or foregone to
achieve a specific objective or something given up in exchange.
a. money
b. liability
c. trade
d. cost
d. cost
2. What is the main goal of project cost management?
a. to complete a project for as little cost as possible
b. to complete a project within an approved budget
c. to provide truthful and accurate cost information on projects
d. to ensure that an organization's money is used wisely
b. to complete a project within an approved budget
3. Which of the following is not an output of the project cost management process called estimating
costs, according to the PMBOK® Guide?
a. activity cost estimates
b. a cost baseline
c. basis of estimates
d. project documents updates
b. a cost baseline
4. If a company loses $5 for every $100 in revenue for a certain product, what is the profit
margin for that product?
a. ~5 percent
b. 5 percent
c. ~$5
d. $5
a. ~5 percent
5. _________________ reserves allow for future situations that are unpredictable.
a. Contingency
b. Financial
c. Management
d. Baseline
c. Management
6. You are preparing a cost estimate for a building based on its location, purpose, number of
square feet, and other characteristics. What cost-estimating technique are you using?
a. parametric
b. analogous
c. bottom-up
d. top-down
a. parametric
7. _________________ involves allocating the project cost estimate to individual material
resources or work items over time.
a. Reserve analysis
b. Life cycle costing
c. Project cost budgeting
d. Earned value analysis
a. parametric
8. __________________ is a project performance measurement technique that integrates
scope, time, and cost data.
a. Reserve analysis
b. Life cycle costing
c. Project cost budgeting
d. Earned value management
d. Earned value management
9. If the actual cost for a WBS item is $1,500 and its earned value is $2,000, what is its cost
variance, and is it under or over budget?
a. The cost variance is ~$500, which is over budget.
b. The cost variance is ~$500, which is under budget.
c. The cost variance is $500, which is over budget.
d. The cost variance is $500, which is under budget.
d. The cost variance is $500, which is under budget.
10. If a project is halfway completed, its schedule performance index is 110 percent, and its
cost performance index is 95 percent, how is it progressing?
a. It is ahead of schedule and under budget.
b. It is ahead of schedule and over budget.
c. It is behind schedule and under budget.
d. It is behind schedule and over budget.
b. It is ahead of schedule and over budget.
Cost Estimating
The process of estimating what you will spend on all your project resources
Cost estimates
The input for developing the project budget
3 Cost-Estimating Techniques
Analogous (aka top-down)
Parametric
Bottom-up
Analogous estimating
(Aka top-down or order-of-magnitude estimating) a cost-estimating technique that uses historical data
from past projects along with expert judgement to create a big-picture estimate. Typically done during
the early stages of scope planning when there isn't a lot of detail on the project
Parametric estimating
A cost-estimating technique that often uses quantity of work multiplied by the rate
Bottom-up estimating
The most precise but also time consuming cost-estimating technique, this assigns a cost estimate to
each work package on the project
Work effort
(Aka person-hour estimate) the total time it will take for a person to complete the task if they do
nothing else from the time they start until the task is complete
Requires rate for each resource
Cost Budgeting
The process of aggregating all the cost estimates and establishing a cost baseline for the project
Cost baseline
The total expected cost for the project
Contingency reserve
A certain amount of money set aside to cover costs resulting from possible adverse events on the
project
Management reserve
An amount of money set aside by upper management to cover future situations that can't be predicted.
Project managers need approval from upper management to touch this fund. Not included as part of the
project budget
Quality Planning
The process of identifying quality standards that are applicable to your project and determining how
your project will meet these standards
4 Common Quality Tools and Techniques
Cost-benefit analysis
Benchmarking
Flowcharting
Assessing cost of quality
Cost-benefit analysis
Compares the cost to produce the product or service to the financial gain the organization stands to
make as a result of executing the project
Benchmarking
A quality technique that uses results from similar activities as a means of comparison
Flowcharting
Uses diagrams that depict the relationship of various elements in the project
Context zero
The starting point/level of a data flow diagram (DFD)
Cost of quality
The total cost of all the work required to assure the project meets the quality standards
3 Types of Costs of Quality
Prevention
Appraisal
Failure
Prevention costs
Costs of keeping defects out of the hands of customers
Appraisal costs
Costs that include the activities performed to examine the product or process and make certain the
quality requirements are being met
Failure costs
Costs of activities needed if the product fails (aka cost of poor quality)
Internal failure costs
Results when the customer requirements are not satisfied but the product is still in the control of the
organization (ex: corrective action, rework, scrapping, and downtime)
External failure costs
Occur when the product has reached the customers and they determine it doesn't meet their
requirements (ex: inspections at customer site, returns, and customer service costs)
Quality management plan
Describes how the project team will carry out the quality policy. It documents the outputs from the
quality activities that were performed, the procedures used to complete the quality activities, and the
resources required. This will be the basis for performing quality control the project is in execution
3 Quality Standard Measurements
Quality metrics
Quality checklists
Exit criteria
Quality metric
A standard of measurement that specifically defines what will be measured and how it will be measured
Quality checklists
A tool that lists a series of steps that must be taken to complete an activity or process
Exit criteria
Tests at the completion of a project or phase to ensure the quality of the project or phases
Risk
A potential future event that can have either negative or positive impacts on the project
Risk Planning
Deals with how areas of uncertainty in a project are managed
3 Major Components of Risk Planning
- identifying the potential risks to the project
- analyzing the potential impact of each risk
- developing an appropriate response for those risks with the greatest probability and impact
Risk Identification
The process of determining and documenting the potential risks that could occur on a project
Risk list
Includes an identification number, risk name, risk description, and risk owner
Risk owner
The person responsible for monitoring the project to determine whether the potential for this risk is
high and then implementing the risk response plan should it occur
Risk analysis
The process of identifying those risks that have the greatest possibility of occurring and the greatest
impact to the project if they do occur
Qualitative Risk Analysis
Uses a subjective approach to determine the likelihood that a risk will actually occur and impact a
project if it does occur, and also involves prioritizing the risks according to their effect on the project
Quantitative Risk Analysis
Uses a more complex mathematical approach to numerically analyze the probability that a risk will occur
4 Types of Quantitative Risk Analyzing
Sensitivity analysis
Decision tree analysis
Simulation using the Monte Carlo technique
Interviewing
Probability
The likelihood that a risk event will occur
Impact
The amount of damage or opportunity the risk poses to the project if it occurs
Risk score
Found by multiplying the probability by the impact
Risk Response Planning
The process of reviewing the risk analysis and determining what, if any, action should be taken to reduce
negative impacts and take advantage of opportunities as a result of a risk event occurring
4 Strategies for Negative Risks
Avoid
Transfer
Mitigate
Accept
Avoid
Avoiding the risk altogether or eliminating the cause of the risk event
Transfer
Moving the liability for the risk to a third party by purchasing insurance, performance bonds, etc.
Mitigate
Reducing the impact or the probability of the risk
Accept
Choosing to accept the consequences of the risk
3 Strategies for Positive Risks
Exploit
Share
Enhance
Exploit
Looking for opportunities to take advantage of positive impacts
Share
Assigning the risk to a third party who is best able to bring about the oppurtunity
Enhance
Monitoring the probability or impact of the risk event to assure benefits are realized
Contingency planning
Planning alternatives to deal with risks should they occur
Risk register
A more comprehensive risk list
Risk trigger
A sign or a precursor signaling that a risk event is about to occur
Transition plan
Describes how the transition of the final product or service will be transitioned to the organization
3 Common Causes of Variance
Random variances
Known or predictable variances
Variances always present in the process
The Formula for EAC
AC + ETC
Describe what occurs when performing administrative closure procedures
Project documents are gathered and centralized, a post-project review is performed, and the final
project close out report is created
Expert judgement
Task estimating by using people who are familiar with the tasks
Project
a temporary endeavor undertaken to create a unique product, service, or result"
Name 5 Project Attributes
o Has a unique purpose
o Is temporary
o Is developed using progressive elaboration
o Requires resources, often from various areas
o Should have a primary customer or sponsor
Triple Constraint
Successful project management means meeting all three goals (scope, time, and cost) - and satisfying
the project's sponsor!
Project Management
the application of knowledge, skills, tools and techniques to project activities to meet project
requirements"
Project Stakeholders:
are the people involved in or affected by project activities.
Name 6 types of stockholders
o The project sponsor
o The project manager
o The project team
o Support staff
o Customers
o Users
o Suppliers
o Opponents to the project
How can Project Success be Measured
o The project met scope, time, and cost goals
o The project satisfied the customer/sponsor
o The results of the project met its main objective, such as making or saving a certain amount of money,
providing a good return on investment, or simply making the sponsors happy.
best practice
an optimal way recognized by industry to achieve a stated goal or objective
o critical path
the longest path through a network diagram that determines the earliest completion of a project
o enterprise or portfolio project management software
software that integrates information from multiple projects to show the status of active, approved, and
future projects across an entire organization
o ethics
a set of principles that guide our decision making based on personal values of what is "right" and
"wrong"
o Gantt chart
a standard format for displaying project schedule information by listing project activities and their
corresponding start and finish dates in a calendar format
o leader —
a person who focuses on long-term goals and big-picture objectives, while inspiring people to reach
those goals
o manager
a person who deals with the day-to-day details of meeting specific goals
o program
a group of projects managed in a coordinated way to obtain benefits and control not available from
managing them individually
o program manager
a person who provides leadership and direction for the project managers heading the projects within
the program
o project manager
the person responsible for working with the project sponsor, the project team, and the other people
involved in a project to meet project goals
o Project Management Institute (PMI)
international professional society for project managers
o project management knowledge areas
project integration management, scope, time, cost, quality, human resource, communications, risk, and
procurement management
o Project Management Office (PMO)
an organizational group responsible for coordinating the project management functions throughout an
organization
o Project Management Professional (PMP)
certification provided by PMI that requires documenting project experience and education, agreeing to
follow the PMI code of ethics, and passing a comprehensive exam
o project management tools and techniques
methods available to assist project managers and their teams; some popular tools in the time
management knowledge area include Gantt charts, network diagrams, and critical path analysis
o project sponsor
the person who provides the direction and funding for a project
o project portfolio management —
when organizations group and manage projects as a portfolio of investments that contribute to the
entire enterprise's success
balanced scorecard
a methodology that converts an organization's value drivers to a series of defined metrics
baseline
the approved project management plan plus approved changes
business service management (bsm) tools
tools that help track the execution of business process flows and expose how the state of supporting IT
systems and resources affects end to end business process performance in real time
capitalization rate
the rate used in discounting future cash flow; also called the discount rate or opportunity cost of capital
cash flow
benefits minus costs or income minus expenses
change control board (ccb)
a formal group of people responsible for approving or rejecting changes on a project
change control system
a formal documented process that describes when and how official project documents may be changed
configuration management
a process that ensures that the descriptions of a project's products are correct and complete
cost of capital
the return available by investing capital elsewhere
directives
new requirements imposed by management, government, or some external influence
discount factor
a multiplier for each year based on the discount rate and year
discount rate
the rate used in discounting future cash flow; also called the capitalization rate or opportunity cost of
capital
integrated change control
identifying, evaluating, and managing changes throughout project life cycle
interface managment
identifying and managing the points of interaction between various elements of a project
internal rate of return (irr)
the discount rate that results in an NPV of zero for a project
mind mapping
a technique that uses branches radiating from a core idea to structure thoughts and ideas
net present value (NPV) analysis
a method of calculating the expected net monetary gain or loss from a project by discounting all
expected future cash inflows and outflows to the present point in time
opportunities
changes to improve an organization
opportunity cost of capital
the rate used in discounting future cash flow; also called the capitalization rate or discount rate
organizational process assets
formal and informal plans, policies, procedures, guidelines, information systems, financial systems,
management systems, lessons learned, and historical information that can influence a project's success
payback period
the amount of time needed to recoup the total dollars invested in a project, in terms of net cash inflows
problems
undesirable situations that prevent an organization from achieving its goals
project charter
a document that formally recognizes the existence of a project and provides direction on the project's
objectives and management
project integration management
processes that coordinate all project management knowledge areas throughout a project's life, including
developing the project charter, developing the preliminary project scope statement, developing the
project management plan, direction and managing the project monitoring and controlling the project
providing integrated change control, and closing the project
project management plan
a document used to coordinate all project planning documents and guide project execution and control
required rate or return
the minimum acceptable rate of return on an investment
return on investment
a method for determining the financial value of a project; the ROI is the result of subtracting the project
costs from the benefits and then dividing by the costs
strategic planning
determining long term objectives by analyzing the strengths and weaknesses of an organization,
studying opportunities and threats in the business environment, predicting future trends, and projecting
the need for new products and services
SWOT analysis
analyzing strengths, weaknesses , opportunities and threats; used to aid in strategic planning
weighted scoring model
a technique that provides a systemic process for selecting projects based on numerous criteria.
what is the last step in the four stage planning process for selecting IT projects?
resource allocation
which of the following items are normally included in a project charter?
name of the project manager, budget information, stakeholder signatures
which of the following are suggestions for performing integrated change control?
use good configuration management, establish a formal change control system, view project mgmt as a
process of constant communication and negotiation
what are the processes involved with project integration management
developing the project charter, developing the project management plan, closing the project or phase
A ____ is a series of actions directed toward a particular result
Process
Name some best practice for new product development project
aligning projects and resource with business strategy, focusing on customer needs in identifying
projects, assigning project managers to lead projects
if estimates for total discounted benefits for a project are $120,000 and total discounted costs are
$100,000, what is the estimated ROI?
20 percent
__________ processes included coordinating people and other resources to carry out project plans and
create the products, services, or results of the project or phase. The this process requires the most time
and resources.
Executing
What methodology was developed in the United Kingdom, defines 45 separate sub processes, and
organizes them into eight process groups?
Prince2
Which of the outputs Isi often completed before initiating a project ?
Business Case
A work breakdown structure, project schedule, and cost estimates are outputs of the ____ process
Planning
Initiating involves developing a project charter, which is part of the project ____ management
knowledge area.
Integration
______ involves measuring progress toward project objectives and taking corrective actions.
Monitoring and conotrolling
Which of the following is not typical reason that project teams would use a predictive approach versus
an agile approach to managing a project
The project has unclear up front requirements
Many people use ____ too have a standard format for preparing various project management
documents.
Templates
adaptive software developmet
a software development approach used when requirements cannot be clearly expressed early in the life
cycle
agile
quick and coordinated in movement; a method based on iterative and incremental development, in
which requirements and solutions evolve through collaboration
agile software development
a method for software development that uses new approaches, focusing on close collaboration between
programming teams and business experts
champion
a senior manager who acts as a key proponent for a project
deliverable
a product or service, such as a technical report, a training session, a piece of hardware, or a segment of
software code, produced or provided as part of a project
executive steering committee
a group of senio executives from various parts of the organization who regularly review important
corporate projects and issues
functional organization structure
an organizational structure that groups people by functional areas such as IT, manufacturing,
engineering, and human resources
human resources frame
a frame that focuses on producing harmony between the needs of the organization and the needs of
people
IT governance
the authority and control for key IT activities in organizations, including IT infrastructure, IT use and
project management
kill point
a management review that should occur after each project phase t o determine if projects should be
continued, redirected, or terminated; also called a phase exit
matrix organizational structure
an organizational structure in which employees are assigned both to functional and project managers
offshoring
outsourcing from another country
organizational culture
a set of shared assumptions, values, and behaviors that characterize the functioning of an organization
outsourcing
an organization's acquisition of goods and services from an outside source
phase exit
a management review that should occur after each project phase to determine if projects should be
continued, redirected, or terminated; also called a kill point
political frame
a frame that addresses organizational and personal politics
politics
competition between groups or individuals for power and leadership
predictive life cycle
a software development approach used when the scope of the project can be articulated clearly and the
schedule and cost can be predicted accurately
project acquisition
the last two phases in a project (implementation and close out) that focus on delivering the actual work
project feasibility
the first two phases in a project (concept and development) that focus on planning
project life cycle
a collection of project phases, such as concept, development, implementation, and close out
project organizational structure
an organizational structure that groups people by major projects
scrum
the leading agile development methodology for completing projects with a complex, innovative scope of
work
structural frame
a frame that deals with how the organization is structured (usually depicted in an organizational chart)
and focuses on different groups' roles and responsibilities to meet the goals and policies set by top
management
symbolic frame
a frame that focuses on the symbols, meanings, and culture of an organization
systems
sets of interacting components working within an environment to fulfill some purpose
system analysis
a problem solving approach that requires defining the scope of the system to be studied, and then
dividing it into component parts for identifying and evaluating its problems, opportunities, constraints
and needs
systems approach
a holistic and analytical approach to solving complex problems that includes using a system philosophy,
systems analysis and systems management
systems management
addressing the business, technological and organizational issues associated wit creating, maintaining,
and modifying a system
systems philosophy
an overall model for thinking about things as systems
systems thinking
a holistic view of an organization to effectively handle complex situations
virtual team
a group of people who work together despite time and space boundaries
what is the three sphere model for systems management?
business, technology, organization
which frame of organization addresses how meetings are run, employee dress codes, and expected
work hours?
symbolic
personnel in a ______ organization structure often report to two of more bosses
matrix
project work is most successful in an organizational culture where all of the following characteristics are
important except _____
control
A _____ is a product or service, such as a technical report, a training session, or hardware, produced or
provided as part of a project
deliverable
True or false: a product life cycle is the same as a project life cycle
false
which of the following terms describes a framework of the phases involved in developing information
systems?
systems development life cycle
the nature of IT projects is different from projects in many other industries because they are very _____
diverse
what term describes an organization's acquisition of goods and services from an outside source in
another country?
offshoring
____ is the leading agile development method
scrum
adaptive software development (ASD)
a software development approach used when requirements cannot be clearly expressed early in the life
cycle
agile
method based on iterative and incremental development, in which requirements and solutions evolve
through collaboration
agile software development
a method for software development that uses new approaches, focusing on close collaboration between
programming teams and business experts
champion
a senior manager who acts as a key proponent for a project
deliverable
a product or service such as technical reports, produced or provided as part of a product
executive steering committee
a group of senior executives from various parts of the organization who regularly review important
corporate projects and issues
functional organizational structure
groups ppl by functional aras such as IT, manufacturing, engineering, and HR
HR frame
frame that focuses on producing harmony between the needs of the organization and the needs of
people