PMP 1250 Memorising Notes

In this document, there are more than 1000 useful tips and tricks which gathered from (PMI)® publications and many other resources to help who is willing to get (PMP)® certification

Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad

Mohammed Shafeea Haddad (PMP)® Number: 1987641

Want to be a (PMP)® with 1250 memorizing notes

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

Table of Contents Introduction ……….…………………..................................................................................................................... 3 Important Definitions …………………………………................................................................................................ 11 Types of Questions ………………………………....................................................................................................... 20 Frame Work ………………………………………………………………….............................................................................. 22 Integration …………………………………………………………………………………………………………………............................... 29 Project Charter ………………………………………………………………………………………………………................................... 35 Configuration ................................................................................................................................................ 36 Change Control ...…........................................................................................................................................ 37 Scope ……………………………………....................................................................................................................... 39 Time and Schedule ………………………………………………………............................................................................... 47 Cost ………………………………………………………………………………………………............................................................ 61 Earned Value …………………………………………………………………………….................................................................. 64 Quality …………………………................................................................................................................................ 76 Human Resources …………………………………………………………………………............................................................. 95 Motivation …………………………………………………………………................................................................................ 98 Conflict Management …………………………………………………............................................................................. 106 Communication ……………………………………………………………........................................................................... 108 Risk …………………………………………………………………………................................................................................. 115 Procurement ……………………………………………….............................................................................................. 133 Stakeholders ……………………………………………................................................................................................. 152 Project Manager Power ……………………………….............................................................................................. 156 Leadership Style ………………………..………………………………………………………………………………………………………….. 156 Meetings ………………………..…………………………………………………………………………………………………………………….. 158 Process Group …………………………………………….……………………………………………………………………………………….. 159 Code of Ethics ………………………………….……………………………………………………………………………………………………. 165 Comparisons ………………………………………………………………….……………………………………………………………………… 172 ITTO …………………………………………………………………………………………………………….………………………………………… 176 Passing Exam Lesson Learned ……………………………………………………………………………………………….………………. 181 References ……………………………………………………………………………………………………………………………………………. 184

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

Introduction During my preparation for (PMP)® exam, I tried my best to list the most important notes to be a useful tool for the last days general quick memorizing process. In this document, the most expected, high probability concepts and knowledge that will be tested where highlighted. These 1250 note were solicited from (PMI)® publications such as: PMBOK ® Guide 5th edition and Project Management Professional Exam Outline 2015. Also, many other notes were quoted from Rita Mulcahy's (PMP)® exam preparation 8th Edition Tricks of the Trade® and the book useful exercises. Finally, a Self-Study Notes were documented as a lessons learned from many recommended exams included but not limited to: PMstudy, Oliver Lehmann, Sean Whitaker PMP®2016 and many others. Because of the overlapping and iteration nature of projects, the reader may experiment the same titles in different areas in here. This will help the reader to comprehend the information. That is why I recommend to use this document during the last days just before the exam. Hopefully this document will be a real assistant to has the willing to gain his/her (PMP)® certification and it's subjected to be reviewed for any unintentional mistakes.

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

(PMP)®Exam Outline 2015

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

PMBOK® GUIDE 5th EDITON Project Management Process Group and Knowledge Area Mapping

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641 The 47 project management processes identified in the PMBOK ® Guide 5th edition are furthure grouped into ten seperste Knowledge Areas. A Knowledge Area represents a complete set of concepts, terms and activities that make up a profecional field or area of specialization. These ten Knowledge Area are used on most projects most of the time. Project team should utililize these ten knowledge area and othere knowledge areas, as properate, for their specific project. The Knowledge Areas are: 1- Project Intigration Management 2- Project Scope Management 3- Project Time Management 4- Project Cost Management 5- Project Quality Management 6- Project Human Resources Management 7- Project Communication Management 8- Project Risk Management 9- Project Procurement Management 10- Project Stackholder Management Each Knowledge Area within the PMBOK ® Guide 5th edition is contained in separate section. Here, the same sequence were used.

PMBOK® GUIDE 5th EDITON Differentiations between Projects' plans and Documents

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Want to be a (PMP)® with 1250 memorizing notes

Mohammed Shafeea Haddad (PMP)® Number: 1987641

Questions on the (PMP)® certification exam are designed to test your analytical abilities, application experience, and general project management knowledge. The most important and useful definitions, tips and the types of questions you will see on the exam will fall into the following:

Important Definitions 1. 2. 3. 4. 5. 6.

7.

8.

9. 10. 11.

12.

13.

14.

15.

16. 17. 18. 19.

Acceptance Criteria. A set of conditions that are met before deliverables are accepted. See also deliverable and requirement. Activity. A distinct, scheduled portion of work performed during the course of a project. Activity Code. An alphanumeric value assigned to each activity that enables classifying, sorting, and filtering. See also activity identifier and activity label. Activity Identifier. A unique alphanumeric value assigned to an activity and used to differentiate that activity from other activities. See also activity code and activity label. Activity Label. A phrase that names and describes an activity. See also activity code and activity identifier. Actual Cost (AC). The realized cost incurred for the work performed on an activity during a specific time period. See also budget at completion (BAC), earned value (EV), estimate at completion (EAC), estimate to complete (ETC), and planned value (PV). Analogous Estimating. A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. See also bottom‐up estimating, parametric estimating, program evaluation and review technique (PERT), and three‐point estimating. Apportioned Effort. An activity where effort is allotted proportionately across certain discrete efforts and not divisible into discrete efforts. [Note: Apportioned effort is one of three earned value management (EVM) types of activities used to measure work performance]. See also discrete effort and level of effort. Assumption. A factor in the planning process considered to be true, real, or certain, without proof or demonstration. Backward Pass. A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date. See also forward pass. Baseline. The approved version of a work product that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also cost baseline, performance measurement baseline, schedule baseline, and scope baseline. Bottom‐Up Estimating. A method of estimating project duration or cost by aggregating the estimates of the lower‐level components of the work breakdown structure (WBS). See also analogous estimating, parametric estimating, program evaluation and review technique (PERT), and three‐point estimating. Budget at Completion (BAC). The sum of all budgets established for the work to be performed. See also actual cost (AC), earned value (EV), estimate at completion (EAC), estimate to complete (ETC), and planned value (PV) Change Control. A process whereby modifications to documents, deliverables, or baselines associated with the project are identified, documented, approved, or rejected. See also change control board and change control system. Change Control Board. A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions. See also change control and change control system. Change Control System. A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled. See also change control and change control board. Change Request. A formal proposal to modify any document, deliverable, or baseline. Code of Accounts. A numbering system used to uniquely identify each component of the work breakdown structure. Communications Management Plan. A component of the project, program, or portfolio management plan that describes how, when, and by whom information will be administered and disseminated. See also project management plan.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 20. 21.

22. 23. 24. 25.

26. 27. 28. 29. 30. 31. 32. 33.

34. 35. 36. 37. 38. 39.

40. 41.

42.

Configuration Management System. A collection of procedures used to track project artifacts and monitor and control changes to these artifacts. Constraint. A limiting factor that affects the execution of a project, program, portfolio, or process. Contingency Plan. A document describing actions that the project team can take if predetermined trigger conditions occur. Contingency Reserve. Time or money allocated in the schedule or cost baseline for known risks with active response strategies. See also management reserve and project budget. Control Account. A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement. Corrective Action. An intentional activity that realigns the performance of the project work with the project management plan. See also preventive action. Cost Baseline. The approved version of work package cost estimates and contingency reserve that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also baseline, performance measurement baseline, schedule baseline, and scope baseline. Cost Management Plan. A component of a project or program management plan that describes how costs will be planned, structured, and controlled. See also project management plan. Cost Performance Index (CPI). A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost. See also schedule performance index (SPI). Cost Variance (CV). The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost. See also schedule variance (SV). Crashing. A schedule compression technique used to shorten the schedule duration for the least incremental cost by adding resources. See also fast tracking and schedule compression. Critical Chain Method. A schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties. Critical Path. The sequence of activities that represents the longest path through a project, which determines the shortest possible duration. See also critical path activity and critical path method. Critical Path Activity. Any activity on the critical path in a project schedule. See also critical path and critical path method. Critical Path Method. A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. See also critical path and critical path activity. Data Date. A point in time when the status of the project is recorded. Decision Tree Analysis. A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty. Decomposition. A technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts. Defect Repair. An intentional activity to modify a nonconforming product or product component. Deliverable. Any unique and verifiable product, result, or capability to perform a service that is produced to complete a process, phase, or project. Discrete Effort. An activity that can be planned and measured and that yields a specific output. [Note: Discrete effort is one of three earned value management (EVM) types of activities used to measure work performance.] See also apportioned effort and level of effort. Duration. The total number of work periods required to complete an activity or work breakdown structure component, expressed in hours, days, or weeks. See also effort. Early Finish Date. In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the data date, and any schedule constraints. See also early start date, late start date, late finish date, and schedule network analysis. Early Start Date. In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the data date, and any

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

43.

44. 45. 46. 47.

48. 49. 50. 51. 52.

53.

54.

55.

56.

57.

58. 59.

60.

schedule constraints. See also early finish date, late finish date, late start date, and schedule network analysis. Earned Value (EV). The measure of work performed expressed in terms of the budget authorized for that work. See also actual cost (AC), budget at completion, estimate at completion (EAC), estimate to complete (ETC), and planned value (PV). Earned Value Management. A methodology that combines scope, schedule, and resource measurements to assess project performance and progress. Effort. The number of labor units required to complete a schedule activity or work breakdown structure component, often expressed in hours, days, or weeks. See also duration. Enterprise Environmental Factors. Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio. Estimate at Completion (EAC). The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate to complete (ETC) and planned value (PV). Estimate to Complete (ETC). The expected cost to finish all the remaining project work. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate at completion (EAC), and planned value (PV). 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. See also crashing and schedule compression. Finish‐to‐Finish. A logical relationship in which a successor activity cannot finish until a predecessor activity has finished. See also finish‐to‐start, start‐to‐finish, start‐to‐start, and logical relationship. Finish‐to‐Start. A logical relationship in which a successor activity cannot start until a predecessor activity has finished. See also finish‐to‐finish, start‐to‐finish, start‐to‐start, and logical relationship. Fixed Formula Method. A method of estimating earned value in which a specified percentage of the budget value of a work package is assigned to the start milestone and the remaining percentage is assigned when the work package is complete. See also weighted milestone method. Forward Pass. A critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the project start date or a given point in time. See also backward pass. Free Float. The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint. See also total float, critical path, near‐critical activity, and near‐critical path. Functional Organization. An organizational structure in which staff is grouped by areas of specialization and the project manager has limited authority to assign work and apply resources. See also matrix organization and projectized organization. Gantt Chart. A bar chart of schedule information where activities are listed on the vertical axis, dates are shown on the horizontal axis, and activity durations are shown as horizontal bars placed according to start and finish dates. Human Resource Management Plan. A component of the project or program management plan that describes the roles and responsibilities, reporting relationships, and staff management. See also project management plan and staffing management plan. Issue. A threat that has occurred. See also opportunity, risk, and threat. Lag. The amount of time whereby a successor activity will be delayed with respect to a predecessor activity. See also lead. Late Finish Date. In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the project completion date, and any schedule constraints. See also early finish date, early start date, late start date, and schedule network analysis. Late Start Date. In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the project completion date, and any schedule constraints. See also early finish date, late finish date, early start date, and schedule network analysis.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 61. 62. 63.

64. 65.

66.

67. 68. 69.

70. 71. 72. 73. 74. 75. 76.

77. 78. 79.

80. 81.

82.

Lead. The amount of time whereby a successor activity can be advanced with respect to a predecessor activity. See also lag. Lessons Learned. The knowledge gained during a project which shows how project events were addressed or should be addressed in the future for the purpose of improving future performance. Level of Effort. An activity that does not produce definitive end products and is measured by the passage of time. [Note: Level of effort is one of three earned value management (EVM) types of activities used to measure work performance.] See also apportioned effort and discrete effort. Logical Relationship. A dependency between two activities or between an activity and a milestone. See also finish‐to‐finish, finish‐to‐start, start‐to‐finish, and start‐to‐start. Management Reserve. Time or money that management sets aside in addition to the schedule or cost baseline and releases for unforeseen work that is within the scope of the project. See also contingency reserve and project budget. Matrix Organization. An organizational structure in which the project manager shares authority with the functional manager temporarily to assign work and apply resources. See also functional organization and projectized organization. Milestone. A significant point or event in a project, program, or portfolio. Milestone Schedule. A type of schedule that presents milestones with planned dates. Most Likely Duration. An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance. See also optimistic duration, and pessimistic duration. Near‐ Critical Activity. An activity with a total float that is deemed to be low based on expert judgment. See also critical path, free float, near‐critical path, and total float. Near‐Critical Path. A sequence of activities with low float which, if exhausted, becomes a critical path sequence for the project. See also critical path, free float, near‐critical activity, and total float. Network Logic. All activity dependencies in a project schedule network diagram. See also early finish date, early start date, late finish date, late start date, and network path. Network Path. A sequence of activities connected by logical relationships in a project schedule network diagram. See also early finish date, early start date, late finish date, late start date, and network logic. Node. A point at which dependency lines connect on a schedule network diagram. See also precedence diagramming method (PDM) and project schedule network diagram. Opportunity. A risk that would have a positive effect on one or more project objectives. See also issue, risk, and threat. Optimistic Duration. An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance. See also most likely duration and pessimistic duration. Organizational Breakdown Structure. A hierarchical representation of the project organization, which illustrates the relationship between project activities and the organizational units that will perform those activities. See also resource breakdown structure, risk breakdown structure, and work breakdown structure (WBS). Organizational Enabler. A structural, cultural, technological, or human‐resource practice that the performing organization can use to achieve strategic objectives. See also organizational project management. Organizational Process Assets. Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. Organizational Project Management. A framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives. See also organizational enabler. Organizational Project Management Maturity. The level of an organization’s ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner. Parametric Estimating. An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. See also analogous estimating, bottom‐up estimating, program evaluation and review technique (PERT), and three‐point estimating. Path Convergence. A relationship in which a schedule activity has more than one predecessor. See also path divergence, predecessor activity, and successor activity.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 83. 84. 85.

86. 87. 88. 89. 90. 91. 92. 93. 94. 95.

96.

97. 98. 99. 100.

101. 102.

103.

Path Divergence. A relationship in which a schedule activity has more than one successor. See also path convergence, predecessor activity, and successor activity. Percent Complete. An estimate expressed as a percent of the amount of work that has been completed on an activity or a work breakdown structure component. Performance Measurement Baseline. Integrated scope, schedule, and cost baselines used for comparison to manage, measure, and control project execution. See also baseline, cost baseline, schedule baseline, and scope baseline. Performing Organization. An enterprise whose personnel are the most directly involved in doing the work of the project or program. Pessimistic Duration. An estimate of the longest activity duration that takes into account all of the known variables that could affect performance. See also most likely duration, and optimistic duration. Phase Gate. A review at the end of a phase in which a decision is made to continue to the next phase, to continue with modification, or to end a project or program. See also project phase. Planned Value (PV). The authorized budget assigned to scheduled work. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate at completion (EAC), and estimate to complete (ETC). Portfolio. Projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives. See also program and project. Portfolio Balancing. The process of optimizing the mix of portfolio components to further the strategic objectives of the organization. Portfolio Charter. A document issued by a sponsor that authorizes and specifies the portfolio structure and links the portfolio to the organization’s strategic objectives. See also program charter and project charter. Portfolio Management. The centralized management of one or more portfolios to achieve strategic objectives. See also program management and project management. Portfolio Management Plan. A document that specifies how a portfolio will be organized, monitored, and controlled. See also program management plan and project management plan. Portfolio Manager. The person or group assigned by the performing organization to establish, balance, monitor, and control portfolio components in order to achieve strategic business objectives. See also program manager and project manager. Precedence Diagramming Method. A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. See also node and project schedule network diagram. Predecessor Activity. An activity that logically comes before a dependent activity in a schedule. See also successor activity and summary activity. Preventive Action. An intentional activity that ensures the future performance of the project work is aligned with the project management plan. See also corrective action. Probability and Impact Matrix. A grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs. See also risk. Procurement Management Plan. A component of the project or program management plan that describes how a team will acquire goods and services from outside of the performing organization. See also project management plan. Product Life Cycle. The series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement. See also project life cycle. Program. A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually. See also portfolio and project. Program Charter. A document issued by a sponsor that authorizes the program management team to use organizational resources to execute the program and links the program to the organization’s strategic objectives. See also portfolio charter and project charter.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 104. Program Evaluation and Review Technique (PERT). A technique used to estimate project duration through a weighted average of optimistic, pessimistic, and most likely activity durations when there is uncertainty with the individual activity estimates. See also analogous estimating, bottom‐up estimating, parametric estimating, and three‐point estimating. 105. Program Management. The application of knowledge, skills, tools, and techniques to a program to meet the program requirements and to obtain benefits and control not available by managing projects individually. See also portfolio management and project management. 106. Program Management Office. A management structure that standardizes the program‐related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. See also project management office. 107. Program Management Plan. A document that integrates the program’s subsidiary plans and establishes the management controls and overall plan for integrating and managing the program’s individual components. See also portfolio management plan and project management plan. 108. Program Manager. The person authorized by the performing organization to lead the team or teams responsible for achieving program objectives. See also portfolio manager and project manager. 109. Progressive Elaboration. The iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available. 110. Project. A temporary endeavor undertaken to create a unique product, service, or result. See also portfolio and program. 111. Project Budget. The sum of work package cost estimates, contingency reserve, and management reserve. See also contingency reserve and management reserve. 112. Project Calendar A calendar that identifies working days and shifts that are available for scheduled activities. 113. Project Charter. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. See also portfolio charter and program charter. 114. Projectized Organization. An organizational structure in which the project manager has full authority to assign work and apply resources. See also functional organization and matrix organization. 115. Project Life Cycle. The series of phases that a project passes through from its initiation to its closure. See also product life cycle. 116. Project Management. The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. See also portfolio management and program management. 117. Project Management Office. A management structure that standardizes the project‐related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. See also program management office. 118. Project Management Plan. The document that describes how the project will be executed, monitored and controlled, and closed. See also portfolio management plan, program management plan, communications management plan, cost management plan, human resource management plan, procurement management plan, quality management plan, requirements management plan, risk management plan, schedule management plan, scope management plan, staffing management plan, and stakeholder management plan. 119. Project Manager. The person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. See also portfolio manager and program manager. 120. Project Phase. A collection of logically related project activities that culminates in the completion of one or more deliverables. See also phase gate. 121. Project Schedule. An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources. 122. Project Schedule Network Diagram. A graphical representation of the logical relationships among the project schedule activities. See also node and precedence diagramming method (PDM). 123. Project Scope. The work performed to deliver a product, service, or result with the specified features and functions. 124. Project Scope Statement. The description of the project scope, major deliverables, assumptions, and constraints. 17 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 125. Quality Management Plan. A component of the project or program management plan that describes how an organization’s quality policies will be implemented. See also project management plan. 126. Requirement. A condition or capability that is required to be present in a product, service, or result to satisfy a contract or other formally imposed specification. 127. Requirements Management Plan. A component of the project or program management plan that describes how requirements will be analyzed, documented, and managed. See also project management plan. 128. Requirements Traceability Matrix. A grid that links product requirements from their origin to the deliverables that satisfy them. 129. Residual Risk. The risk that remains after risk responses have been implemented. See also secondary risk. 130. Resource Breakdown Structure. A hierarchical representation of resources by category and type. See also organizational breakdown structure, risk breakdown structure, and work breakdown structure (WBS). 131. Resource Calendar. A calendar that identifies the working days and shifts upon which each specific resource is available. 132. Resource Leveling. A resource optimization technique in which adjustments are made to the project schedule to optimize the allocation of resources and which may affect critical path. See also resource smoothing and resource optimization technique. 133. Resource Optimization Technique. A technique in which activity start and finish dates are adjusted to balance demand for resources with the available supply. See also resource leveling and resource smoothing. 134. Resource Smoothing. A resource optimization technique in which free and total float are used without affecting the critical path. See also resource leveling and resource optimization technique. 135. Responsibility Assignment Matrix. A grid that shows the project resources assigned to each work package. 136. Risk. An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. See also issue, opportunity, and threat. 137. Risk Acceptance. A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs. See also risk avoidance, risk enhancement, risk exploiting, risk mitigation, risk sharing, and risk transference. 138. Risk Appetite. The degree of uncertainty an organization or individual is willing to accept in anticipation of a reward. See also risk threshold and risk tolerance. 139. Risk Avoidance. A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. See also risk acceptance, risk enhancement, risk exploiting, risk mitigation, risk sharing, and risk transference. 140. Risk Breakdown Structure. A hierarchical representation of risks that is organized according to risk categories. See also organizational breakdown structure, resource breakdown structure, and work breakdown structure (WBS). 141. Risk Category. A group of potential causes of risk. 142. Risk Enhancement. A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity. See also risk acceptance, risk avoidance, risk exploiting, risk mitigation, risk sharing, and risk transference. 143. Risk Exploiting. A risk response strategy whereby the project team acts to ensure that an opportunity occurs. See also risk acceptance, risk avoidance, risk enhancement, risk mitigation, risk sharing, and risk transference. 144. Risk Exposure. An aggregate measure of the potential impact of all risks at any given point in time in a project, program, or portfolio. 145. Risk Management Plan. A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed. See also project management plan. 146. Risk Mitigation. A risk response strategy whereby the project team acts to decrease the probability of occurrence or impact of a threat. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk sharing, and risk transference. 147. Risk Owner. The person responsible for monitoring the risk and for selecting and implementing an appropriate risk response strategy. 148. Risk Register. A repository in which outputs of risk management processes are recorded. 18 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 149. Risk Sharing. A risk response strategy whereby the project team allocates ownership of an opportunity to a third party who is best able to capture the benefit of that opportunity. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk mitigation, and risk transference. 150. Risk Threshold. The level of risk exposure above which risks are addressed and below which risks may be accepted. See also risk appetite and risk tolerance. 151. Risk Tolerance. The degree of uncertainty that an organization or individual is willing to withstand. See also risk appetite and risk threshold. 152. Risk Transference. A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk mitigation, and risk sharing. 153. "Deflect" is another word for "transfer." 154. Rolling Wave Planning. An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level. 155. Schedule Baseline. The approved version of a schedule model that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also baseline, cost baseline, performance measurement baseline, and scope baseline. 156. Schedule Compression. A technique used to shorten the schedule duration without reducing the project scope. See also crashing and fast tracking. 157. Schedule Management Plan. A component of the project or program management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule. See also project management plan. 158. Schedule Model. A representation of the plan for executing the project’s activities, including durations, dependencies, and other planning information, used to produce a project schedule along with other scheduling artifacts. See also schedule model analysis. 159. Schedule Model Analysis. A process used to investigate or analyze the output of the schedule model in order to optimize the schedule. See also schedule model. 160. Schedule Network Analysis. A technique to identify early and late start dates, as well as early and late finish dates, for the uncompleted portions of project activities. See also early finish date, early start date, late finish date, and late start date. 161. Schedule Performance Index (SPI). A measure of schedule efficiency expressed as the ratio of earned value to planned value. See also cost performance index (CPI). 162. Schedule Variance (SV). A measure of schedule performance expressed as the difference between the earned value and the planned value. See also cost variance (CV). 163. Scope Baseline. The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also baseline, cost baseline, performance measurement baseline, and schedule baseline. 164. Scope Creep. The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources. 165. Scope Management Plan. A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled, and validated. See also project management plan. 166. S‐Curve Analysis. A technique used to indicate performance trends by using a graph that displays cumulative costs over a specific time period. 167. Secondary Risk. A risk that arises as a direct result of implementing a risk response. See also residual risk. 168. Sponsor. An individual or a group that provides resources and support for the project, program, or portfolio, and is accountable for enabling success. See also stakeholder. 169. Staffing Management Plan. A component of the human resource plan that describes when and how team members will be acquired and how long they will be needed. See also human resource management plan. 170. Stakeholder. An individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio. See also sponsor. 19 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 171. Stakeholder Management Plan. A component of the project management plan that describes how stakeholders will be engaged in project decision making and execution. See also project management plan. 172. Start‐to‐Finish. A logical relationship in which a successor activity cannot finish until a predecessor activity has started. See also finish‐to‐finish, finish‐to‐start, start‐to‐start, and logical relationship. 173. Start‐to‐Start. A logical relationship in which a successor activity cannot start until a predecessor activity has started. See also finish‐to‐finish, finish‐to‐start, start‐to‐finish, and logical relationship. 174. Successor Activity. A dependent activity that logically comes after another activity in a schedule. See also predecessor activity and summary activity. 175. Summary Activity. A group of related schedule activities aggregated and displayed as a single activity. See also predecessor activity and successor activity. 176. Threat. A risk that would have a negative effect on one or more project objectives. See also issue, opportunity, and risk. 177. Three‐Point Estimating. A technique used to estimate cost or duration by applying an average or weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. See also analogous estimating, bottom‐up estimating, parametric estimating, and program evaluation and review technique (PERT). 178. To‐Complete Performance Index (TCPI). A measure of the cost performance that is achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget. See also actual cost (AC), budget at completion (BAC), earned value (EV), and estimate at completion (EAC). 179. Total Float. The amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint. See also free float, critical path, near‐critical activity, and near‐critical path. 180. Trend Analysis. An analytical technique uses mathematical models to forecast future outcome based on historical results. It's a method of determining the variance from a baseline of a budget, cost, schedule or scope parameter by using prior progress reporting periods' data and projecting how much that parameters' variance from baseline might be at some future point in the project if no change are made in executing the project. 181. Trigger Condition. An event or situation that indicates that a risk is about to occur. 182. Unanimity. Agreement by everyone in the group on a single course of action. 183. Validate Scope. A process of formalizing acceptance of the complete project deliverables. 184. Validation. The assurance that a product, service or system meets the needs of the customer and other identified stakeholders. It often involves acceptance and suitability with external customers. Contrast with verification. 185. Value Engineering. An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems and/or use resources more effectively. 186. Variance. A quantifiable deviation, departure or divergence away from a known baseline or expected value. 187. Variance Analysis. A technique for determining the cause and degree of difference between the baseline and actual performance. See also cost variance (CV), schedule variance (SV), and variance at completion. 188. Variance at Completion (VAC). A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion. See also budget at completion (BAC), cost variance (CV), estimate at completion (EAC), and variance analysis. 189. Variation. An actual condition that is deferent from the expected condition that is continued in the baseline plan. 190. Velocity. A measure of a team productivity rate at which the deliverables are produced, validated and accepted within predefined intervals. Velocity is a capacity planning approach frequently used to forecast future project work. 191. Voice of the Customer. A planning technique used to provide products, services and results that truly reflect customer requirement by translating those customer requirement into the appropriate technical requirement for each phase of project product development. 20 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 192. WBS Dictionary. A document that provides detailed deliverable, activity, and scheduling information about each component in the work breakdown structure. See also work breakdown structure (WBS). 193. Weighted Milestone Method. A method of estimating earned value in which the budget value of a work package is divided into measurable segments, each ending with a milestone that is assigned a weighted budget value. See also fixed formula method. 194. What‐If Scenario Analysis. The process of evaluating scenarios in order to predict their effect on project objectives. 195. Workaround. An immediate and temporary response to an issue for which a prior response had not been planned or was not effective. See also risk mitigation. 196. Work Breakdown Structure (WBS). A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. See also organizational breakdown structure, resource breakdown structure, risk breakdown structure, and WBS dictionary. 197. Work Package. The work defined at the lowest level of the work breakdown structure for which cost and duration can be estimated and managed.

Types of Questions in the Exam 198. Situational Questions: A scenario or situation will be presented to you in which must analyze the question and choose the best answer based on your experience, analysis, and knowledge. Many test takers state that the predominant percentages of questions on the exam are situational. 199. More than one right answer Questions: Frequently, a test question will have two or more correct answers; however there will always be one answer that is more correct than the others. In this situation it is usually simple to eliminate at least two of the answers. Focus your attention on what the project manager needs to do next. 200. Extraneous information Questions: (PMI)® is famous for the wordy multi-paragraph question, loaded with misdirection (red herrings) and nonessential information that has nothing to do with the actual question. When encountering such questions for the first time, read the answer set and the final paragraph first - this is usually the place where the actual question is contained. 201. Something you never heard of Questions: Don't be surprised to see a question containing something you have never seen before. The field of project management changes on a daily basis and the tools and techniques used by the project manager are expanding seemingly at a geometric rate. Take your best guess and move on. 202. Mathematical Questions: Expect to see anywhere from 5 to 10 questions involving formula computations. Earned value, PERT or questions involving standard deviation are typical computation questions. 203. Diagrams Questions: You may be asked to interpret a graph or construct a precedence diagram from instructions. On the computer at the test center, there may be a button on the screen that you can push that will bring up a graphic or some other diagram. Take advantage of all information provided. 204. Correct answer to a different question: You will sometimes see answers that may be correct statements by themselves, but do not answer the question. 205. A new approach to a known topic Questions: You will frequently see questions that will present a different point of view or skew to a known topic. These questions will test concepts but using language that is different from what you studied for the exam. Thus it is critical that the concepts be understood ahead of simple rote memorization of project management knowledge.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 206. Double negatives Questions: A number of questions are designed to be deliberately confusing ("which of the following would NOT be the least likely choice to make..."), which is another way of saying; "what would be your most likely choice". 207. Recall Questions: There will be a few fairly short questions that test your inventory of certain project management facts and knowledge areas. 208. Critical Note: Make sure you do a careful and thorough read of each question - many of the answers to exam questions turn on a single word. If you skim over or miss that key word, you will get the question wrong. Read all questions carefully. Answer what is asked! 209. Notice the phrasing of this question, "most likely NOT do." Expect to see questions worded on the exam in ways that can cause you to misinterpret them. You will also see questions about things we forget to do in the real world. "Who has time," you might say, "to determine if each problem is really solved?" One could respond with, "Who has time not to do this? Who has time to deal with the same problem twice?" The final steps of problem solving include: implement a decision, review it and confirm that the decision solved the problem. 210. The exam does not test memorization. Being a quiz kid with an eidetic memory will not help you pass the (P MP)® examination. You could memorize the PMBOK® Guide 5th edition cover to cover and easily fail the exa m. The (PMP)® exam tests your experience as a project manager as well as your understanding of project m anagement concepts, and your ability to correctly analyze situations that occur on projects. While some me morization is required it is not the focal point of the examination. 211. Answer all questions. You do not get any credit for an unanswered question. 212. If you are completely stumped by a question there are only four possible answer alternatives. You have at least a 25% chance of getting it right. If you can eliminate at least two apparently incorrect answers your chances have improved to 50-50. Always answer a question even if time is running out. 213. Fill in the blanks. With a fill-in-the-blanks type of question, sometimes the correct answer is not grammatically correct. Don't let that stop you from filling in the correct answer. 214. Look for sweeping generalizations. Frequently you will see broad generalizations and questions using terms such as; "MUST, NEVER, AWAYS, COMPLETELY" or other absolutes. 215. When referring to the project manager's actions, these terms are almost always wrong. 216. Make sure you understand (PMI)® point of view first before attempting to answer questions containing these terms. NEXT, BEST, WORST, LEAST, MOST, FIRST, LAST. On a number of exam questions you will be asked what is the BEST or FIRST action you should take regarding a specific situation. When we see questions like this, it is a tipoff that there is usually more than one correct answer. Read these questions carefully and understand what is being asked. 217. Cheerleader answers. There are a fair number of question responses that are what we call 'cheerleader' answers. Statements such as "quality is really important" or "scope verification is really time consuming" are answer choices that are guaranteed incorrect. 218. Also keep an eye out for answers in which there is some type of emotional response to a situation. Project managers manage projects with data and fact. “Touchy-feely” answers can usually be eliminated immediately from consideration.

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Frame Work 219. You should have a large project in mind when you answer questions on the exam. Think of a project that is new to the organization (it has not been done before), utilizes resources from many countries, has more than 200 people on the team, lasts longer than one year, and has a budget of over US $10 million. Regardless of whether you work on such projects, you will need to answer questions on the exam as if you do. There is a big difference between managing small and large projects. For example, on a small project, you walk over to the person you need to speak to when you have an issue to resolve. On a large project, you may have spent weeks planning communications. When there is an issue, you have to figure out who is involved and where they are located, look up their preferred method of communication and their contact information, and then communicate with them in that way. If you keep this large-project focus in mind as you read this book, you will see that the many different elements being described here as part of project management make sense, are necessary, and add value. And if the concepts make sense to you, you do not have to memorize themyou can use logic to answer questions on the exam! 220. Another thing to keep in mind for the exam is that you should assume project proposals are formally reviewed and approved by management in your organization after a comparison of all proposed projects. Projects are not selected arbitrarily or informally. 221. When answering exam questions there is a PMO in the organization, unless the questions state otherwise. Read situational questions carefully to determine if the PMO is supportive, controlling, or directive. 222. The exam typically does not identify the form of organization being discussed. When it does not specify a form, assume matrix. If you remember this, you should get a few more questions right. 223. A tight matrix has nothing to do with a matrix organization. It simply refers to "colocation;' or locating the work spaces for the project team in the same room. Because it sounds similar to the other forms of organization, it has often been used as a fourth choice for these questions on the exam. 224. You may see the term 'tight matrix' on an exam question. A tight matrix simply means that the

offices for the project team are co-located in the same room. 225. Think of enterprise environmental factors as what they really are-company culture and existing systems that the project will have to deal with or can make use of. They could also be thought of as the company "baggage" that comes with the project and is outside the control of the project team. Use this trick to more easily understand the meaning of questions or the choices on the exam, no matter how the term "enterprise environmental factors" is used. 226. Enterprise Environmental Factors. Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio. 227. Government regulations are part of enterprise environmental factors. 228. Personnel skill updates are an example of an enterprise environmental factor that may require updates as a result of the manage project team process along with inputs to the organizational performance appraisals. 229. The enterprise environmental factor (EEF) that ensures that the correct work gets done in the correct sequence is called a _work authorization system_, while the EEF that keeps track of information storage and distribution in an automated fashion for the project is called a PMIS. 230. Work Authorization system Ensures that work is done at RIGH T TIME and in proper sequence 231. Enterprise Environmental Factors_ basically describes the organization’s culture while _Organizational Process Assets__ describe how the organization does projects 2. 232. The work authorization system is a part of your company’s Enterprise Environmental Factors, and it’s generally part of any change control system. It defines how work is assigned to people. If work needs to be approved by specific managers, the work authorization system will make sure that the right people are notified when a staff member’s work assignments change. 23 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 233. Since the beginning of time, project managers have also been dealing with existing processes, procedures, and historical information. The PMBOK® Guide 5th edition calls these "organizational process assets;' and they are inputs to the majority of processes in all the project management process groups. They provide direction and guidance in planning and help the project benefit from past company experience. The trick is to think of organizational process assets as what they really are-processes, procedures, and historical information. 234. A decision tool that is best used in which the participants could become contentious is known as the Delphi technique 6. 235. Management by Objectives (MBO) is a term that was first introduced by Peter Drucker in his 1954 book 'The Practice of Management'. MBO will only work if it is supported by management. 236. OPM3™- the Organizational Project Management Maturity Model. The model was based on the Software Engineering Institute's Capability Maturity Model Integration (CMMI) for software. OPM3™ helps organizations determine their level of maturity in project management. 237. Many project managers do not understand the role of lessons learned on projects. The following graphic helps their function:

As a project manager, you need to collect and review lessons learned from similar projects before starting work on a new project. Why make the same mistakes or face the same problems others have faced? Why not benefit from others' experience? Imagine you could reach into a filing cabinet or access a database to see such data for all the projects your company has undertaken. How valuable would that be? Once your project is underway, you are required to add lessons learned to the company database (the organizational process assets). 238. Documenting lessons learned is a required project management practice. Lessons learned are both an input to and an output of projects. As an input, they help improve the current project. As an output, they help make the organization better. 239. Lessons learned are realized throughout the project and should be shared with the project team to improve the current project and with the organization as part of the Manage Communications process (see the Communications Management chapter). They are then finalized during closing. 240. Project Life Cycle  The project life cycle is sometimes referred to as the performing organization's or department's methodology for projects. This is the logical breakdown of what you need to do to produce the deliverables of the project.  There are many different types of project life cycles, depending on the type of product being developed, the industry, and the organization's preferences.  Project life cycles range from plan-driven to change-driven.  Plan-driven projects have predictive life cycles (sometimes referred to as waterfall or traditional life cycles) that require scope, schedule, and cost to be determined in detail early in the life of the project, before the work begins to produce the project deliverables. 24 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 For example, a construction project would typically be managed using a predictive approach, undergoing the life cycle phases of feasibility, planning, design, production, turnover, and startup.  Change-driven projects, on the other hand, use iterative, incremental, or adaptive (agile) life cycles, and will have varying levels of early planning for scope, schedule, and cost. (Note that the PMBOK® Guide 5th edition classifies only adaptive as change driven, though incremental and iterative can also be considered change driven.)  Incremental and iterative life cycles involve early planning of high-level scope sufficient enough to allow for preliminary estimates of time and cost; scope is developed a little more with each Iteration Incremental delivers a complete, usable portion of the product for each Iteration With iterative, the complete concept is built in successive levels of detail to create the end result. For example, a project to build a website using an incremental life cycle would involve prioritizing requirements into iterations that deliver a fully functioning portion of the website at the end of each iteration. To build the same project using an iterative life cycle would involve first creating a prototype of the entire website; the basic skeleton of the site is built, and each successive iteration adds more detail and resonance until there is a complete, fully functioning site upon delivery. Note that a project may use a combination of incremental and iterative life cycles throughout the project or for phases of the project.

241. Prototypes  Prototype is an example of progressive elaboration (change-driven and iterative project life cycle).  Prototype is a high level planning for the project and product scope.  Prototype is a risk mitigation strategy. 242. Project management methodologies often work best if they are structured around Life-cycle phases. project management in their content there is procedures and processes which have already has tailored to take these into account . Next step to make it working well to specific life cycle. 243. You are project manager for Developing a new software adopting biweekly (two weeks) work cycle duration. If you have done some deliverables and you want to reprioritize the remaining work plan, this can be done throughout Control schedule. That means time and cost is more priority comparing to scope in monitoring and controlling the project. 244. Adaptive life cycles involve fixed time and cost, and scope is broadly defined with the understanding that it will be refined as the project progresses. The customer's requirements are documented and prioritized in what's known as a backlog, which can be adjusted as the project progresses. Work is planned in quick brief 25 | P a g e

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245.

246. 247.

248. 249. 250. 251. 252. 253.

increments to allow the customer to change and reprioritize requirements within time and cost constraints. A new software development project may follow an adaptive approach, undergoing a high level feasibility, design, and planning effort, followed by short, iterative periods of detailed design, coding testing release The processes, tools and techniques, and concepts identified in PMBOK® Guide 5th edition and discussed in this book can be tailored based on the project, the organization, and various other factors, including the project life cycle. It's often useful to think in a terms of plan-driven life cycle. Just remember that these processes, tools, and techniques can be used on change-driven projects as well, and that tailoring project management practices to the situation and the needs of the project and organization is your responsibility as a project manager An input means: What do I need before I can … An output means:  What will I have when I am done with  Or, what am I trying to achieve when I am doing Moving window is another tittle of roll wave planning. Closing process for a multi-phase project will be conducted as = (number of phases + 1). Operations: are ongoing and repetitive Getting coffee from Wife is a Project, Getting Coffee from Vending Machine is OPERATION Conflicting priorities in resource assignments – is an issue in the Matrix structure Functional – FM has more power Projectized – PM has more power

254. The three basic organizational types are; functional, matrixed, and projectized. 255. The term used to describe the process of delivering more accurate estimates for time and budget as the project progresses is called progressive elaboration. 256. Clearly defined career paths and much contention for resources is an advantage and a disadvantage of a functional organization. 257. Project loyalty and the possibility of not having a job after the project completes describes an advantage and a disadvantage of a projectized organization. 258. Increased PM control and multiple bosses describe an advantage and a disadvantage of a matrixed organization. 259. A project expediter has very little decision making authority on a project whereas the project coordinator has some decision making authority. 260. The three types of matrixed organizations are referred to as: weak matrix, balanced matrix and strong matrix. 261. The three types of project lifecycles defined by PMBOK® Guide 5th edition are predictive, iterative and adaptive. 262. Three types of PMOs defined by PMBOK ® Guide 5th edition are _supportive, controlling and directive. 26 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 263. A project is temporary, unique and delivers a product, processor result. 264. Three key constraints on a project are time, cost, and scope as well as quality, resources and risk. 265. Three key characteristics of the project manager include; knowledge, performance, and personal effectiveness. 266. A program is a group of related projects. Programs

Projects

Programs have a wide scope that may have to change to meet the benefit expectations of the organization.

Projects have a narrow scope with specific deliverables

Program managers have to expect and even embrace change.

The project manager tries to keep change to a minimum.

Success is measured in terms of Return On Investment (ROI), new capabilities, benefit delivery

Success is measured by budget, on time, and products delivered to specification.

Leadership style focuses on managing relationships and conflict resolution. Program managers need to facilitate and manage the political aspects of the stakeholder relationships.

Leadership style focuses on task delivery and directive in order to meet the success criteria

Program managers manage project managers

Project managers manage technicians, specialists etc

Program managers are leaders providing vision and leadership

Project managers are a team player motivating by knowledge and skills

Program managers create high-level plans providing guidance to projects where detailed plans are created.

Project managers conduct detailed planning to manage the delivery of the products of the project.

Program managers monitor projects and ongoing work through governance structures.

Project managers monitor and control tasks and the work of producing the project’s products.

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267.

A portfolio can be a collection of projects, programs or sub-projects.

Portfolios

Programs

Portfolios business objectives change with the organisational strategy

Programs have a wide scope that may have to change to meet the benefit expectations of the organization.

Portfolio Manager continuously monitors change in the broad environment and provide direction

Program managers have to expect and even embrace change.

Success is measured by aggregate performance of portfolio components.

Success is measured in terms of Return On Investment (ROI), new capabilities, benefit delivery

Leadership focuses establishing, maintaining & communicating the overall vision

Leadership style focuses on managing relationships and conflict resolution. Program managers need to facilitate and manage the political aspects of the stakeholder relationships.

Project managers manage portfolio staff & Program Managers

Program managers manage project managers

Portfolio managers monitor and control overall value of the aggregate components of portfolio.

Program managers monitor projects and ongoing work through governance structures.

268. A PMO centralizes and co-ordinates the management of portfolios, programs and projects. 269. The project lifecycle deals with the work done to accomplish the goals of the project, while the product lifecycle deals with the lifetime of the deliverable(s). 270. The three categories of multi-phase project types are; sequential, overlapping, and iterative. 271. PMBOK ® Guide 5th edition defines how a project will tighten its estimates for budget and timeline as more is learned about the project as a progressive elaboration. 272. Dedicated and part-time project team members can exist in any of the organizational structures: functional, matrix, projectrized, or composite. 273. Functional organization in which she is managing the project will typically lack management systems to support project needs. The absence of a project-oriented system will make it difficult for her to run the project efficiently. She will need to spend considerable time managing the communications needs of the project. Communication will generally cascade upwards to the functional manager who will then communicate with other functional managers. They cascade the communication down into their departments in turn. The return communication follows the reverse path. [PMBOK ® Guide 5th edition , Page 22] 274. Project Governance is the alignment of the project objectives to the organization strategic plan. 275. You can use an expeditor form of project organization when the project cost and importance is relatively low. 276. Complex project will best fit in MATRIX org structure 277. large number of simultaneously performed projects utilize the same groups of human and other resources – is called RESOURCE POOLING 278. What is quantifiable expectation? : It’s very hard to figure out whether or not your project is successful unless you can measure that success. That’s why you need to come up with goals that have numbers attached to them which is what quantifiable means. 28 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 279. Successful project is a relative issue but a project is considered a failed one if it violated a law. 280. One way to validate the successful implementation of project management is by looking at the number and magnitude of the conflicts requiring Executive involvement. 281. Organizations that rely on products for their revenue must constantly be introducing new products into the marketplace as old products are removed. Ideally, this should be an overlapping process to maintain balanced or increasing revenue over time. The closure phase evaluates the efforts of the total system and serves as input to the conceptual phase for new projects and systems. It also has an impact on other ongoing projects with regard to identifying priorities. 282. For long spam projects, it's important to review the performance in the closing phase of the project to determine if the project should continue ( examine the business objectives 283. The best use of "collect project records" is to recall what happened on the project, good or bad. 284. 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 285. Organizations have a Project Management Office (PMO), that has clearly defined authority over the implementation of project processes. 286. You have access to historical information and that formal project management processes are followed in your organization 287. There are 47 processes spread across the ten knowledge Areas in the PMBOK ® Guide, 5th edition 288. Recurring process is defer from a project because orders are numerous and of short duration. 289. The type of organization has a direct influence on how work is accomplished on a project. A participative approach will probably not be as effective in a hierarchical organization. 290. Technical decisions are taken by functional managers even in a strong matrix. 291. When a question asks about the effect of something, be careful to know on what. 292. When you can't set priorities of big activities, it's most likely better to consider each one of them as a project. 293. In a matrix organization, each team member reports to the project manager and the functional manager. Team members may therefore be worried about who will handle their evaluations, serving multiple bosses, and/or developing commitment. Since the same fringe benefits are given to all employees no matter what work they do

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Integration Management Devel op Project Charter

Project Charter

Project SOW Busi ness Case Agreements

Devel op Project Mgt. Plan

Project Mgt. Plan

Direct & Manage Project Work

Project Documents, Deliverables, & Work Performance Data

Change Requests

Updates Reports Change Requests

Monitor & Control Project Work

Perform Integrated Change Control

Approved Change Requests

Updates Change Log Approved Change Requests

Project Management Plan Updates

Close Project or Phase

Final Product Service, or Results

294. ITTO Process Group

Process

ITTO

Inputs Initiating

Develop Project Charter Tools/Tech's Outputs

Inputs Planning

Develop Project Management Plan Tools/Tech's Outputs

Executing

Direct and Manage Project

Inputs

Value SOW Business Case Agreements Enterprise Environmental Factors Organization Process Assets Expert Judgement Facilitation Techniques Project Charter Project Charter Outputs from other processes Enterprise Environmental Factors Organization Process Assets Expert Judgement Facilitation Techniques Project Management Plan Project Mgt Plan Approved Change Requests Enterprise Environmental Factors

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Tools/Tech's

Outputs

Inputs

Monitor and Control Project Work Tools/Tech's

Outputs Monitoring/Controlling

Inputs

Perform Integrated Change Control

Tools/Tech's

Outputs

Inputs

Closing

Close Project

Tools/Tech's

Outputs

Organization Process Assets Expert Judgement PM Information Systems Meetings Deliverables Work Performance Data Change Requests PM Plan Updates Project Doc Updates Project Mgt Plan Sked Forecasts Cost Forecasts Validated Changes Work Performance Information Enterprise Environmental Factors Organization Process Assets Expert Judgement PM Information Systems Meetings Deliverables Work Performance Data Change Requests PM Plan Updates Project Doc Updates Project Mgt Plan Work Performance Reports Change Requests Enterprise Env. Factors Org. Process Assets Expert Judgement Meetings Change Control Tools Approved Change Requests Change Log PM Plan Updates Project Doc Updates Project Mgt Plan Accepted Deliverables Org. Process Assets Expert Judgement Analytical Techniques (regression and trend analysis) Meetings Final Product Service or Result Transition Organizational Process Updates

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295. Integration management involves making choices about resource allocation, trade-offs among competing objectives, and managing interdependencies among project management knowledge areas. Please refer PMBOK ® Guide 5th edition Project Integration Management PN 65. 296. Project managers ensure organizational policies are followed for the duration of the project 297. Think about integration as balancing all the processes in the knowledge areas (scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management) with each other, project management processes do no happen independently. 298. The Project manager is responsible for realistically assessing all time, budget and quality constraints and resolves any issues with the management prior to the start of project work 299. in order to complete a cost estimate, for example, the number of resource on the project, the scope being estimated, the risk reserves, etc., should be taken into account, as another example, adding a new resource to the project may require cost or schedule changes. In dealing with each situation that comes up on a project, manager is integrating the processes of a project management. 300. The exam may present questions about project selection in the following ways:  Easier questions may be direct, such as "What type of project selection technique is linear programming?" The answer is "a constrained optimization method:' the exam has not required test takers to know what "constrained optimization method" or the other project selection methods mean. Instead, just know what categories the methods fall into.  The exam may also ask more challenging questions relating to business cases and project selection methods. You need to understand that there is a selection process for a project, to know what that process is, and to know that the project must support the company's strategic goals.  The exam may use project selection concepts like internal rate of return as distracters. Such information may be provided in the question when you do not need the data to answer the question. Read the questions carefully to pick out which data is relevant. 301. There are two project selection methods :  Benefit measurement method - Murder board - Peer review - Scoring model - Economic model  Constrain optimization method - Linear Programming a (constrained optimization method) - Integer programming - Dynamic programming - Multi-Objective programming 302. 303.

Constrained Optimization is a kind of benefit selection method. Economic Model: Cost analytical techniques are:  IRR  ROI  Present Value  NPV  Discount cash flow  Depreciation  Working capital  Sunk cost

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Mohammed Shafeea Haddad (PMP)® Number: 1987641     

Low Diminishing return ( at a certain point, adding more resources will decrease the production) Opportunity cost Economic value added Cost benefit analysis Payback period

304. The cost expanded at the completion of phase is known as SUNK costs 305. BCR  Benefits are not profits, Benefits = Revenues/Costs  Benefit Cost Ratio (BCR) = Benefits (or Payback or Revenue)/ Costs Project Selection Criterion: Select project based solely on quantitative criteria. For example: select project with higher BCR. If BCR > 1 means that benefits (i.e. expected revenue) are greater than the cost. Hence, it is beneficial to do the project.

306.

307.

Example: There are two projects. Project A has an investment of $500,000 and a BCR of 2.5. Project B has an investment of $300,000 and a BCR of 1.5. Using Benefit Cost Ratio criterion, which project will you select? Answer: Project A will be selected. The fact that project B has a smaller investment than project A will not impact the selection. There are two kinds of project selection methods. Benefit measurement models, or comparative methods, are used to compare the benefits and features of projects. Mathematical models use complex formulas to determine which project has the most value to the company. You should get familiar with some of the more common comparative approaches to project selection, like murder boards, benefit-tocost ratios and peer reviews. There are two decision model in choosing project during initiation: comparative & constrained

Method Type

Examples

Notes

Benefit measurement

Scoring models, cost-

Benefit measurement is the

(comparative approach)

benefit analysis, review

most common approach.

board, economic models.

Constrained

Linear programming,

Constrained optimization

optimization

nonlinear programming,

makes use of math models

(mathematical

integer programming,

and complex criteria and is

approach)

dynamic programming,

often managed as a distinct

multi-objective

project phase.

programming. 33 | P a g e

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308. 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. 309. The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. = IRR 310. Here is a trick to understanding the topic of management plans for the exam. Know that management plans look forward in time, and that there are management plans for all the knowledge areas. There are also the following management plans:  Change management plan  Configuration management plan  Requirements management plan  Process improvement plan When taking the exam, assume the project manager has created each of these management plans. For example, if a question talks about a problem on a project, the answer might be for the project manager to look at the management plan for that aspect of the project to see how the plan says to handle such a problem. Or when the work is being done, the project manager might refer to the cost management plan to see how costs are supposed to be measured on the project. 311. The exam tests you at an expert level. So how would you like to get a sophisticated question right without studying? You need to understand the following: deviations from baselines are often due to incomplete risk identification and risk management. Therefore, if the exam asks what to do when a project deviates significantly from established baselines, the correct answer is likely the one about reviewing the project's risk management process. Many project managers do not understand that such an effort should be done. Does it make sense to you now that we've pointed it out? Baselines are mentioned frequently on the exam. Make sure you understand the concepts described here and what the project manager's attitude should be regarding the project's baselines and any changes to those baselines. 312. Please note the confusing terms. If the exam talks about monitoring and controlling project work, it may NOT be talking about the entire monitoring and controlling process group. Instead, it may just be referring to the integration management' process 313. Remember that monitoring and controlling means measuring against the project management plan. As you already know, scope may be completed on a project but the quality may not be acceptable, or the schedule might be met but at excessive costs. Monitor and Control Project Work is an integration function, because the project manager must balance the demands of the different knowledge areas to control the project. This process also involves monitoring any other performance measures that were included in the project management plan. 314. Is your project really done when the technical work is done? Not if you don't close it out! The Close Project or Phase process is one part of project closing. The other part is the Close Procurements process, described in the Procurement Management chapter. Together, these two processes are addressed in about 14 questions on the exam. 315. Watch out; people with limited project management training and experience often have difficulty with this section on the exam. Many do not seem to understand the significance of closure and what it does for both the project manager and the project. A project manager must get formal acceptance of the project and its deliverables, issue a final report that shows the project has been successful, issue the final lessons learned, and index and archive all the project records. Do you understand the importance of the items included in 34 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Rita’s Process Chart? Make sure you become familiar with all the concepts here and imagine completing these activities in the real world on large projects if you do not currently do this for your projects. 316. Be sure to remember for the exam that you always close out a project, no matter the circumstances under which it stops, is terminated, or is completed. There are financial, legal, and administrative efforts involved in closing.

Notes Note that the Close Project or Phase process involves getting the final formal acceptance of the project or phase as a whole from the customer, whereas the Validate Scope process in scope management (a monitoring and controlling process) involves getting formal acceptance from the customer for many interim deliverables. The project needs both processes. Does it make sense to you that the Close Project or Phase process is an integration management function? If not, think of the example of final performance reporting. Can you see how you would have to report on all knowledge areas? How about the example of indexing and archiving project records? Wouldn't you need to do so for records from all the knowledge areas? Take some time to think about project closing and how it applies to proper project management for large projects before you take the exam. 317. The PMIS, which is part of the environmental factors, provides access to tools, such as a scheduling software tool, a work authorization system, a configuration management system, an information collection and distribution system, or interfaces to other online automated systems. Automated gathering and reporting on key performance indicators (KPI) can be part of this system. PMBOK ® Guide - Fifth Edition, page 84 318. KPI = Key Performance Indicators (not index). Usually, this is not related to(PMP)® - it is for the organization 319. PMIS Is an EEF and includes:  Scheduling Tool ( Primavera ) Work authorization system  Information collection and distribution system  Interface to online automated system  Automated Gathering and Reporting on KPI

320. Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated and can include corrective action, preventive action, defect repair, and updates. PMBOK ® Guide - Fifth Edition, page 85 321. As the project manager you are in control of the budget, the timeline, and the resources 322. RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP 35 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 323. Expert judgment listed as a tool and technique for several processes. The meaning of expert judgment is specific to each process. In the context of the develop the project management plan process, expert judgment includes  Tailoring the process to meet the project needs  Developing technical and management details to be included in the project management plan  Determining resources and skill levels needed to perform project work  Defining the level of configuration management to apply to the project  Determining which project documents are subject to the formal change control process 324. SOW mainly includes: Business need, product scope description and strategic plan. 325. SOW is a narrative description of product or service to be delivered by the project. 326. 327. 328. 329. 330.

Templates, historical data, lessons learned, and financial databases are all Organizational Process Assets. Lesson learned leads to recommendation for changing to current practice. Plans, Baselines and Lessons learned are project deliverables Lessons learned is used in predict trends, highlight problems and identify alternatives. Any process in any knowledge area is implemented within its integrated process of the same processes group. 331. Present value does not factor in costs. There is a difference between present value and net present value. Present value tells the expected value of the project in today's dollars. Net present value is the same thing, but it subtracts the costs after calculating the present value.

Project Charter 332. The project charter does several important things: it lays out the project requirements, describes an initial summary milestone schedule, documents the business case and identifies initial risks, assumptions and constraints. But the most important thing that a project charter does is that it identifies the project manager, and assigns him or her the authority necessary to get the job done. 333. The key benefits of the project charter are; a. Identifies PM and authority level b. PM can spend money and commit resources to project 334. Projects assumptions and constrains are not included in project charter. 335. The Project Charter is the document that formalizes the project. It gives the Project Manager the authority to lead the project. It is a key input to the Define Scope process. 336. SOW or statement of work as an input to create project charter can be classified into two kinds:  Prepared by the sponsor for internal projects based on business need or market demand and so on.  Prepared by the customer for external projects such as: RFP, RFI, RFQ and so on. 337. According to the new exam outlet 2015, the project manager has nothing to do with a project selection process. His duty may start in developing the project charter. 338. If the project is already in the execution phase and a comprehensive project plan has been developed, there is No Need to project charter in this stage and this situation.

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Configuration 339. Configuration Management System. A collection of procedures used to track project artifacts and monitor and control changes to these artifacts.  By applying configuration management system along with change control processes you will achieve: - Emphasizes configuration identification. - Provide the basis for which the product configuration is defined - Configuration status accounting. - List the approved configuration identification. - Ensure the composition of the project configuration items is correct.  Configuration management describes procedures for applying technical and administrative directions and surveillance like: identifying functional and physical characteristics of an item or system controlling changes to these characteristics Performing audits to verify conformance of requirement.  Configuration status accounting captures, stores, and accesses the needed configuration information to manage products and product information effectively.  Configuration Management activities: Configuration Items identifications (the product specifications) Configuration status accounting (exam the configured items status) Configuration verification and audit (are the configured items correct? Is changing process on them correct?) 340. Why we need configuration management plan? To gather all projects documents and the last updated version of baselines. 341. What is the configuration management sys? It is the system that includes tools, processes, procedures that used in monitoring and controlling the project's documents development. 342. Configuration control on:  deliverables specifications  Process specifications 343. Change control focuses on:  Projects deliverables  Projects documents  Projects baseline 344. Applying configuration management sys along with change control process will be the basis of defining configurable items, list them, make sure the composition of the project configuration items are correct.

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Change Control

345. A trick for answering questions that ask about the process for making changes is to know that, on a high-level basis, the project manager should follow these steps: First- Evaluate the impact Evaluate (assess) the impact of the change to all aspects of the project (e.g., this change will add three weeks to the project length, require $20,000 additional funding, and have no effect on resources). Second- Identify options this can include cutting other activities, compressing the schedule by crashing or fast tracking, or looking at other options. For example, you may be able to decrease the potential effect of the change on the project by spending more time decreasing project risk, or by adding another resource to the project team. Third- Get the change request approved internally Fourth- Get customer buy-in (if required) 346. The most expensive defect type that appear in design at the end of the project. 347. Control Management System tracks the changes (not configuration management). 348. The PM can reject changes to scope and control the project budget and timeline for the benefit of the customer • 349. The PM protects the project from unnecessary changes • 350. In the event that scope changes must be made, the PM will ensure that a thorough impact assessment will be performed assessing changes to time, budget, resources, risks, quality, and customer satisfaction • 351. PM implement corrective actions for any variances 38 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 352. If there are deviations from the project management plan, that is the responsibility of the project manager, and the Project manager is responsible for correcting those deviations without issuing a change request. 353. CRs should be used only as a last resort in this instance. 354. Corrective and preventive actions do not usually affect the project baselines; only the performance against the baselines. 355. Staffing change is a kind of changes that need to perform an integration change control. 356. OPA update is no part of change control process 357. Change is inevitable. Rather than insist on a "no change" project, it would be more in the project's interest to plan for a robust change control process capable of handling any new changes. Mandating that there will be no changes will be ineffective. 358. Variance analysis is not a tool and technique of the Perform Integrated Change Control process 359. Control charts can be used to monitor any type of output variable and process performance 360. Once the project manager is assigned to the project, he should be in control. However, it is the sponsor who ultimately has the responsibility of ensuring that the project is completed successfully. [PMBOK ® Guide 5th edition , Pages 16, 17] [Project Integration Management] 361. Effective cost control is achieved by monitoring variance in projects status in order to take corrective action to minimize risks. 362. The impact of any change request reflects on project constrains which are included in project management plan, baselines and project scope statement. 363. Make sure you advise the SH who asks for a change to the impact of it before you proceed in change process. 364. The change control system must include procedures to handle changes that may be approved without prior review, for example, as the result of emergencies. 365. If an issue affects multiple stakeholder groups across the organization, it is up to the sponsor to make the decision and up to the project manager to provide the information for the decision to be made. This is an example of evaluating before making a decision. 366. It IS the project manager’s job to make sure the impact of the change on the triple constraint (time, scope and cost) is evaluated, but that impact analysis should happen BEFORE the change request is sent to the CCB. 367. Defects and corrective actions mixed up - they’re all words that sound suspiciously similar! Just remember: a defect is any deliverable that does not meet its requirements. 368. SCOPE CREEP = UNMANAGED changes to the Project SCOPE 369. Cost of changes is increased during the project lifecycle but , the most expensive changes that is in design. 370. The key outputs of Direct and Manage Project Work are work performance data, change requests and _deliverables_ 371. An action needed to bring future project performance in line with the project management plan is called a ___corrective action__ 372. Defect repair is another name for __rework__ 373. One of the critical jobs of the project manager is to _prevent______ unnecessary changes on the project 374. After analyzing the variation in performance, a change request may be needed. 375. Approved changes recommendations (corrective, preventive, defect repair) are implemented during Direct Manage Project Work. 376. Value addition, usually, is a result of implementation of change requests. 377. Just remember: a defect is any deliverable that does not meet its requirements. 378. A defect is NOT always caused by a mistake - defects can come from lots of sources, and team members’ errors only cause some defects. For example, plenty of defects are caused by equipment problems. 379. Any change in the Project Charter needs to be approved by sponsor or person who has authorized the charter

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Scope Management

Plan Scope Management

Project Charter

Scope Mgt;. Plan Reqs Mgt. Plan

Collect Requirements

Workshops Interviews Benchmarking Context Diagrams

Reqs Documentation Reqs Traceability Matrix

Define Scope

Project Scope Statement

Updates

Project Documents

Create WBS

Scope Baseline (Scope Baseline, WBS, WBS Di ctionary)

Deco mposition of Work

Validate Scope

Inspection

Change Requests

Control Scope

Accepted Deliverables

Change Requests

380. ITTO Process group

process

ITTO

Inputs Plan Scope Management Tools/Tech's

Value Project Mgt Plan Project Charter Enterprise Environmental factors Org. Process Assets Expert Judgement Meetings Scope Management Plan

Outputs

Planning

Inputs

Collect Requirements

Tools/Tech's

Requirements Management Plan Scope Mgmt Plan Requirements Mgmt Plan Stakeholder Mgmt Plan Project Charter Stakeholder Register Interviews Focus Groups Facilitated Workshops Group Creativity Group Decision Making Questionaires & Surveys Observations Prototypes

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Outputs

Inputs

Define Scope Tools/Tech's

Outputs

Inputs Create WBS Tools/Tech's Outputs

Inputs

Validate Scope

Tools/Tech's

Outputs Monitoring/Controlling

Inputs

Control Scope

Tools/Tech's

Outputs

Benchmarking Context Diagrams Document Analysis Requirements Documentation Requirements Traceability Matrix Scope Management Plan Project Charter Requirements Documentation Org. Process Assets Expert Judgement Product Analysis Alternatives Generation Facilitated Workshops Project Scope Statement Project Documents Updates Scope Mgmt Plan Proj Scope Statement Requirements Docs Enterprise Enviro Factors Org. Process Assets Decomposition Expert Judgement Scope Baseline Project Documents Updates Project Mgmt Plan Requirements Docs Req. Traceability Matrix Verified Deliverables Work Perf. Data Inspection Group Decision Making Techniques Accepted Deliverables Change Requests Work Perf. Information Project Documents Updates Project Mgmt Plan Requirements Docs Req. Traceability Matrix Work Perf. Data Org. Process Assets Variance Analysis Work Perf. Information Change Requests PM Plan Updates Proj. Doc Updates Org. Process Assets Updates

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 381. Types of requirements: requirements are what you need to achieve the project's objectives. They can be classified into:  Business Requirements  Stakeholder Requirements  Solution Requirements : which is divided to - Functional describes the product behavior - Non-functional describes the product environment to be effective like security.  Transition Requirements like training  Project Requirements: actions, process and conditions  Quality Requirements 382. The requirements traceability matrix is a table that links requirement to added value as it links to the business and project objectives. It also tracks requirements during the life cycle to help ensure that the requirements listed in the requirements document are delivered at the end of the project. 383. In collect requirement, no use for OPA. 384. Requirement documentation is an OPA, you need it before starting define scope process. 385. Requirements are classified into project and product requirements. Project requirements are regarding actions and process. 386. Requirement is not part of performance measurements. 387. The requirements traceability matrix contains a textual description of each of the product requirements, the rationale for their inclusion, respective owner, source, priority, and the current status.

388. The requirements and their schedule for the develop project team process (such as training) should be stated in the staffing management plan. 389. Control Quality Checklists are used to verify that the work of the project and its deliverables fulfill a set of requirements. 390. Inspection includes activities such as measuring, examining, and validating to determine whether work and deliverables meet requirements and product acceptance criteria. 391. Facilitated workshops are focused sessions that bring key stakeholders together to define product requirements. Workshops are considered a primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences. Because of their interactive group nature, wellfacilitated sessions can build trust, foster relationships, and improve communication among the participants, which can lead to increased stakeholder consensus. In addition, issues can be discovered earlier and resolved more quickly than in individual sessions 392. Another tool that is used during facilitated workshop is : Joint Application Design / Development JAD.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 393. Quality refers to "the degree to which a set of inherent characteristics fulfill requirements." In other words, when the customer requirements or expectations are met, quality is achieved. 394. Limitations, of any kind, are considered as constrains to the project. The project manager should propose an implementation approach to the related SH, if required. 395. Watch out for the word “task!’ What many people refer to as a “task” in the real world (Jed in some project management software) is ohm called an “activity” on the exam. PMBOK ® Guide 5th edition considers an activity to be a particular piece of work scheduled for the project. Tasks can be smaller components of work that make up that activity, but PMBOK ® Guide 5th edition only expects you to manage to the activity level. 396. There can be many references to the WBS on the exam. In short, remember the following. A WBS:  Is a graphical picture of the hierarchy of the project  Identifies all the deliverables to be completed (if it is not in the WBS, it is not part of the project)  Is the foundation upon which the project is built  Is very important  Should exist for every project  Forces you to think through all aspects of the project  Can be reused for other projects  Does NOT show dependencies 397. The previous list should help you get a few more tricky questions right on the exam. Now, would you like to get one more right? Many people confuse the terms “WBS” and “decomposition'' The best way to think of decomposition is that decomposition is what you are doing, and the WBS is the means to do it. In other words, you can decompose the project using a WBS. 398. The exam may use the term “deconstruction” instead of "decomposition'"' Both terms mean the same thing. 399. Activity definition is the process of decomposition (splitting) a deliverable into smaller more manageable parts. 400. Did you notice how we haven’t just listed the inputs for the previous answers, but have actually described them in terms of how they will be used? Whenever you think about inputs for a project management process, make sure you can describe them and explain where they come from and what they can offer the process. Similarly, make sure you also understand how outputs flow logically room each process. For the exam, this deeper understanding will omen give you more insight into situational questions, help you distinguish between relevant and extraneous data, and help you select the correct answer. Can you see how important hexing experience working on projects is for the exam, and how you can use logic to answer many questions correctly, even input questions? Now let’s try the dreaded outputs. 401. Beyond the potentially misleading name, there are a few more tricky aspects of the Validate Scope process. First, it can be done at the end of each project phase in the project life cycle (to get formal acceptance of the phase deliverables along the way) and at other points throughout the project as part of monitoring and controlling (to get formal acceptance of any deliverables that require approval in the middle of the phase or project). Therefore, you validate scope with the customer multiple times in one project. Second, the difference between the Validate Scope and the Close Project or Phase processes can also be a little tricky. Whereas the Validate Scope process results in formal acceptance by the customer of interim deliverables, remember that part of the reason for the Close Project or Phase process is to get final acceptance or sign-off from the customer for the project or phase as awhile. 402. The third tricky area is how Validate Scope relates to the Control Quality process. See the high-level diagram in figure below.

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403. Despite the number of SH in the project, you must incorporate ALL stakeholders' needs. 404. Validate scope can be in parallel with control quality. 405. The following documents are generated one from the other depending on the level of details: Project charter >>>>>> project scope statement >>>>>> WBS >>>>>> WBS dictionary. 406. Ancillary results (They include items such as project management reports and documentation) are part of deliverables that included in Project Scope statement. 407. A higher level above a work package is called a ‘control account’. PMBOK ® Guide 5th edition states a control account is a control point where scope, cost, and schedule are compared to earned value for performance measurement. While a control account can contain multiple work packages, a work package can only be associated with only one control account. 408. Code of accounts: Any numbering system that uniquely identifies each component in the WBS.

409. Chart of accounts: A list of all account names and numbers used in a company's general ledger. 410. The project’s work performance information should document and communicate the CV, SV, CPI, SPI, TCPI, and VAC for the WBS components in particular for specific work packages and control accounts. 411. There is no prescribed order which come first, validate scope or control scope. 412. Validate Scope process is normally performed after Control Quality process, but these two processes may also be performed in parallel. 413. Change to scope either controlled or uncontrolled (scope creep). 414. A team member should have flexibility at the work package level to make some changes as long as they are within the overall scope of the WBS dictionary. 44 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 415. By using decomposition, the WBS final components then represent verifiable products, service, or results. 416. WBS (100% rule) is : showing the total of the work at the lowest levels must roll up to the higher levels so that nothing is left out and no extra work is done. 417. Define Activities is the process of identifying and documenting the specific actions to be performed to produce the project deliverables. This is done after Create WBS process. Once the WBS is created, the next logical step is to define each of these activities. PMBOK ® Guide 5th Edition, pages 432 and 61 (table 3-1) 418. The WBS Dictionary always corresponds to an entry in the WBS by name and Work Package ID. So that’s the easiest way to cross reference the two. The Statement of Work describes the work that will be done. The Responsible Organization is the team or department who will do it. Schedule Milestones are any set dates that will affect the work. The Quality Requirements describe how we will know if the work has been done properly. The Resource and Cost Estimates are just a list of how many people will be needed to do the work and how much it will cost. 419. The _product___ scope are the requirements relating to the project deliverables, whereas the _project____ scope refers to the work needed to create the deliverables 420. Scope creep happens when the project’s scope is changed during verification of the product and these changes are not agreed about in the project scape statement. 421. Product scope means the features and functions of the product or service being built. Project scope means the work that’s needed to build the product. Category

In Scope

Out of Scope

Pending Discussion

Customers Business Area(s) Processes Technology Products (PBS) Product Features Functionality Geographic Region(s) Other(s)…

422. Stakeholder Analysis is one of the tools and techniques of the Scope Definition process. And that shouldn’t really be a surprise. After all, the goal of stakeholder analysis is to write down the needs of your stakeholders. And when is it most important to figure out what your stakeholders need? When you’re defining the scope of the project work! 423. There is no metric mentioned whatsoever in the PMBOK ® Guide 5th edition that measures performance against the project scope. The performance can be measured against the scope baseline but there is no metric for doing so. The question is trying to trick you. 424. Project scope is measured to the plan while product scope is measured to requirements ( traceability matrix)

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 425. Value Engineering (from Define Scope)- also called value analysis, value management, or value methodology. It began at General Electric Co. during World War II. Due to shortages of skilled labor, raw materials, and component parts, Lawrence Miles of G.E. looked for acceptable substitutes. Frequently, the substitutions often reduced costs, improved the product, or both. What started out as a constraint was turned into a systematic process which he called “value analysis”.

426. Value Engineering events are normally carried out via workshops (whose number and duration depend on the type of event, Project and issues to be addressed).

427. The Project Scope Statement includes the requirements and the work needed to deliver the requirements 428. exam questions will rarely ask you directly about scope validation, however they will use phrases such as:

 Obtaining customer sign off  Review of deliverables  QC inspection/audit  Requirements validation  Work product verification 46 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

These are all scope validation questions. 429. A work authorization system is designed to ensure that work is approved before it begins, and to ensure the work is done at the right time and in the correct sequence. Use of a work authorization system also helps to prevent scope creep as well as gold plating. 430. Product analysis in scope planning is prioritizing spoken and unspoken customer wows, wants and needs; translating these needs into technical characteristics and specification to build and deliver a quality product or service by focusing everybody toward customer satisfaction. This is called QFD. 431. Scope verification should be done – WHEN A PROJECT IS TERMINATED to determine the extent of the completion. 432. The 4/40 hour rule of thumb suggests that, when creating a WBS for a small project, you break down the work to work packages of a minimum of 4 hours and a maximum of 40 hours. Applying this rule contributes to more accurate estimates later in project planning. 433. As a project manager, you should not implement any activity that is not documented and approved. 434. "How to determine the correctness of the deliverables" refers to the Control Quality process, of which verified deliverables is an output. Do not confuse this with the Validate Scope process, which results in acceptance of deliverables. The first one is not listed in project charter. 435. Control scope is defer from scope validation that the first must be integrated with other control processes while the second is an special case of control of the scope.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

Time and Schedule Management Plan Schedule Management

Schedule Mgt. Plan

Project Charter

Scope Baseline

Define Activities

Activity List Milestone List

Exp. Judgment Deco mposition Rolling Wave Planning

Sequence Activities

Project Schedule Network Diagrams

PDM Dependencies Leads/Lags

Activity Resource Requirements RBS

Estimate Activity Resources

Exp. Judgment Bottom Up PMIS

Estimate Activity Durations

Exp. Judgment Analogo us Parametric 3 Point Reserve Anal.

Activity Duration Estimates

Develop Schedule

Critical Path Compression Resource Optimization PMIS

Schedule Baseline Project Schedule Project Calendars

Control Schedule

436. ITTO Process group

process

ITTO

Inputs Plan Schedule Management Tools/Tech's Outputs Planning Inputs

Define Activities

Tools/Tech's

Outputs

Value Project Mgt Plan Project Charter Enterprise Environmental factors Org. Process Assets Expert Judgement Analytical Techniques Meetings Schedule Management Plan Schedule Management Plan Scope Baseline Enterprise Environmental factors Org. Process Assets Decomposition Rolling Wave Planning Expert Judgement Activity List Activity Atributes Milestone List

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Schedule Forecasts

Mohammed Shafeea Haddad (PMP)® Number: 1987641

Inputs

Sequence Activities

Tools/Tech's

Outputs

Inputs

Estimate Activity Resources

Tools/Tech's

Outputs

Inputs

Estimate Activity Durations

Tools/Tech's

Outputs

Schedule Management Plan Activity List Activity Attributes Milestone List Project Scope Statement Enterprise Environmental factors Organizational Process Assets Precedence Diagramming Method (PDM) Dependency Determination Leads and Lags Project Schedule Network Diagrams Project Document Updates Schedule Management Plan Activity List Activity Attributes Resource Calendars Risk Register Activity Cost Estimates Enterprise Environmental factors Organizational Process Assets Exp. Judgement Alternative Analysis Pub’d Estimating Data Bottom-up Estimating PM Software Activity Resource Requirements Resource Breakdown Structure Project Document Updates Sked Mgmt Plan Activity List Activity Attributes Activity Resource Requirements Resource Calendars Project Scope Statement Risk Register Resource Breakdown Structure Enterprise Env factors Org. Process Assets Expert Judgment Analogous Estimating Parametric Estimating Three-point Estimating Group Decision-making Techniques Reserve Analysis Activity Duration Estimates Project Document Updates

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Inputs

Develop Schedule

Tools/Tech's

Outputs

Inputs

Monitoring/Controlling

Control Schedule

Tools/Tech's

Outputs

Sked Mgmt Plan Activity List Activity Attributes Proj Schedule Network Diagrams Activity Resource Requirements Resource Calendars Activity Duration Estimates Project Scope Statement Risk Register Proj. Staff Assignments Resource Breakdown Structure Enterprise Environmental factors Org. Process Assets Schedule Network Analysis Critical Path Method Critical Chain Method Resource Optimization Techniques Modeling Techniques Leads and Lags Schedule Compression Scheduling Tool Schedule Baseline Proj. Schedule Sked Data Proj. Calendars Proj. Mgmt Plan Updates Proj. Doc Updates PM Plan Project Schedule Work Performance Data Project Calendars Schedule Data Org. Process Assets Performance Reviews Project Management Software Resource Optimization Techniques Modeling Techniques Leads and Lags Schedule Compression Scheduling Tool Work Performance Information Schedule Forecasts Change Requests PM Plan Updates Proj. Doc Updates Organizational Process Assets Updates

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 437. We also saw the term decomposition used in the Scope Management chapter, in the Create WBS process. Carefully read exam questions using the term. If the team is decomposing work into work packages (deliverables), they are creating a WBS (part of scope management). If they are decomposing work packages into the activities required to produce them, they are in the Define Activities process. So what do you need in order to define activities? That question is all there really is to the concept of inputs.) You need your schedule management plan, created in the previous process, and the scope baseline (scope statement, WBS, and WBS dictionary) from scope management. You may also refer to organizational process assets including existing templates, historical information such as activity lists from other similar project, and any standards, such as a prescribed scheduling methodology. Involving the team in the Define Activities process helps define the activities completely and accurately and therefore makes the estimates, created later in the planning process, more accurate. 438. Things to know about estimating for the exam The next two time management processes-Estimate Activity Resources and Estimate Activity Durations-and the Estimate Costs process (see the Cost Management chapter) all involve estimating. The following are important points to understand about time and cost estimating for the exam.  Management plans provide the basis for estimating.  Estimating should be based on a WBS to improve accuracy.  Time and cost estimates are interrelated, as time estimates may impact cost, and vice versa.  Identified risks must be considered when estimating time and cost of project work.  Estimating should be done by the person doing the work whenever possible to improve accuracy.  Historical information from past projects (part of organizational process assets) is key to improving estimates.  Schedule, cost, and scope baselines should be kept and not changed except for approved project changes.  The project schedule activities should be managed to the schedule baseline for the project.  The project costs should be managed to the cost baseline for the project.  Changes are approved in integrated change control.  Estimates are more accurate if smaller-size work components are estimated.  Changes should be requested when problems with schedule, cost, scope, quality, or resources occur and cannot be solved by using time and cost reserves.  A project manager should never just accept constraints from management, but should instead the needs of the project, come up with his or her own estimates (based on input from the team members doing the work when possible), and reconcile any differences to produce realistic objectives  The project manager may periodically the estimate to complete (ETC) for the project. in order to make sure adequate time, funds, resource's, etc., are available for the project.  Plans should be revised during completion of the work as necessary with approved changes.  There is a process for creating the most accurate estimate possible.  Padding is not an acceptable project management practice.  The project manager must meet any agreed-upon estimates.  Estimates must be reviewed when they received to see if they are reasonable and to check for padding and risks.  Estimates must be kept realistic through the life of the project by reestimating and reviewing them periodically.  Estimates can be decreased by reducing or eliminating risks.  Estimates can be decreased by reducing or eliminating risks.  A project manager has a professional responsibility to provide estimates that are as accurate as feasible and to maintain the integrity of those estimates throughout the life of the project. 439. The project cost and project schedule for work can be reliably estimated at the work package, or lowest, level of the WBS using bottom-up estimating, or at the highest level using top-down estimating. 51 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 440. RAM is set based on WBS work packages level. If the question states that you to put more weight on your most likely duration or cost estimate, this is another expression for PERT. 441. When you are answering formula questions you may not see the exact answer as one of the answer choices due to different types of calculators available and different rounding calculations. The most important thing to remember is that if you do not see the exact answer to the question, you want to select the closest answer to your calculated answer because this will be the 442. For the exam, it's important to know the formula for both triangular and beta distribution and understand that if you are being asked to calculate the activity (or cost) duration, you will need to read the situation carefully to determine which formula to use. Look for language like simple or straight (triangular), or PERT or weighted (beta) that might help you choose the correct formula. You may be asked to perform calculations using the formulas or to analyze information to determine how best to deal with a situation. The exercises that follow can help you prepare for three-point estimating questions on the exam. But first, here are the formulas again, plus a new one for standard deviation: You must MEMORIZE these formulas and remember that they can be used for both time and cost estimates.

Expected Activity Duration or Cost Triangular ( )Distribution P+M+O 3

Expected Activity Duration or Cost )Beta Distribution( P+4M+O 6

Beta Activity Standard Deviation (SD)

Duration or Cost Uncertainty

P-0

P-0

Beta Activity Variance (SD) 2

6

Legend: P = Pessimistic, M = Most Likely, 0 = Optimistic Activity standard deviation is the possible range for the estimate. For example, an activity estimate of 30 hours that has a standard deviation of +/-2 could end up taking between 28 hours and 32 hours. We've listed the formula for beta activity standard deviation here. Although there is a standard deviation formula for triangular distribution, it's complicated and is unlikely to be on the exam. What you need to remember for the exam is that the greater the range created by the standard deviation calculation, the greater the risk. The exam may ask you to calculate a range for an individual activity estimate using weighted (beta) averaging. To do you need to know the beta expected activity duration (EAD) and the beta activity standard deviation (SD). you calculate the range using beta EAD +/- SD. the start of the range is beta EAD- SD, and the end of the range is beta EAD+SD. the second exercise in this section will give a chance to practice these calculations. (be aware that it is possible to calculate a range for individual activity estimates using simple (triangular) averaging, which would involve triangular EAD and the standard deviation formula for triangular distribution. but again, since the exam is unlikely to require you to perform this calculation, we haven't included it in our discussion.) If we are doing a project for the first time, and there is no previous history of similar projects to fall back on, it may make sense to use the Triangular distribution, as there is no basis to give more weight to a particular estimate. Thus, a Triangular Distribution is more suited for judgmental data estimates. These are most likely not based on a lot of experience or expertise… but are more of a guess-times.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 EXERCISE 1 Now tries this exercise. On the following charts, label the examples of each of the ten listed items by placing the item number next to be location on the chart(S). Answers Now tries this exercise. On the following charts, label the examples of each of the ten listed items by placing the item number next to be location on the chart(S). Exercise 2 Calculate the expected activity duration using triangular distribution. It is best to calculate to three decimal places and round to two decimal places when you are ready to check your answers on the exam. activity

P

M

O

47 89 48 42

27 60 44 37

14 41 39 29

activity

P

M

O

A B C D

47 89 48 42

27 60 44 37

14 41 39 29

A B C D ANSWER

expected activity duration triangular distribution

expected activity duration triangular distribution 29.333 63.333 43.666 36

Exercise 3 Complete the chart using the appropriate formulas. All estimates are in hours. activity

A B C D ANSWER

P

M

O

47 89 48 42

27 60 44 37

14 41 39 29

Activity

P

M

O

A

47

27

B

89

C D

expected activity duration Beta distribution

Beta activity standard Deviation

14

expected activity duration triangular distribution 28.167

Beta activity standard Deviation 5.500

60

41

61.667

8.000

48

44

39

43.833

1.500

42

37

29

36.500

2.167

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Range of the estimate

Range of the estimate 22.667 to 33.667, or 28.167 +/- 5.500 53.667 to 69.667, or 61.667 +/- 8.000 42.333 to 45.333, or 43.833 +/- 1.500 34.333 to 38.667, or 36.500 +/- 2.167

Mohammed Shafeea Haddad (PMP)® Number: 1987641 Please compare the answers in the "Expected Activity Duration (Beta Distribution) column above to the answers in the "Expected Activity Duration (Triangular Distribution)" column from the previous exercise. Notice that the results are not hugely different. However, if you do not select the right formula for a question that requires the calculation of expected activity duration, you could end up picking the wrong answer. 443. Please note that these exercises are provided for understanding and do not necessarily represent the complexity of questions on the exam. Most of the questions on the exam relating to three-point estimating are relatively simple and may require assessment but not calculations. Note that the formulas we've been discussing relate to activities, rather than the overall project, and that the exam concentrates on using three-point estimating to find ranges for activity duration and cost estimates. But as a project manager, you also use this information to calculate the overall project estimate and the project standard deviation to manage a project successfully. You need to consider how these ranges might affect the estimate of the overall project duration and cost. You can then use this knowledge to effectively address variations on your project. For the exam, you should be able to do simple calculations using the formulas, understand that estimates of time (or cost) should be in a range, and know the concept of three-point time (or cost) weighted estimates per activity as well as how to calculate simple and weighted average distributions. You may also see a beta or PERT total project duration used in questions not requiring calculation (e.g., the project duration is 35 months plus or minus 3 months) and need to evaluate the situation to answer the questions correctly. Remember that, just like with an activity, the greater the range for the project as a whole, the greater the risk. So why do project managers need to understand expected durations, range estimates, and standard deviations? The main purpose is to use these concepts to better control projects. These calculations help you know the potential variances on your project and determine appropriate courses of action. For example, you can use estimate ranges and standard deviation to assess risk. Looking back at the answers for the second exercise in this section, which activity has the most risks? The answer is activity B. It has the widest range and the highest standard deviation, and is therefore likely to have the greatest risk. These calculations are based on the pessimistic, optimistic, and most likely estimates for an activity the further away from the mean these estimates are, the more that could go right and wrong to affect. The activity Therefore, you can assess and compare the risk of various activities by looking at activity ranges and standard deviations. Don't forget that these concepts also apply to cost. Let's say you have estimated that a portion of your project will cost $1 million with a standard deviation of $200,000. You need to decide whether to use a fixed-price contract to outsource that piece of the project work. The standard deviation indicates there is a 40 percent range in the cost estimate for the work. Therefore, you would not likely choose a fixed-price contract, since this large standard deviation suggests there is not a firm definition of the scope of the work to be done. (See the Procurement Management chapter for information about different types of contracts.) Make sure you have a general understanding of these estimating concepts. If you are still struggling with this topic, review this section again. 444. The easiest way to find the critical path is to identify all paths through the network and add the activity durations along each path. The path with the longest duration is the critical path. Be careful that you do the exercises that follow and practice doing this manual work for the exam. People will commonly not identify all of the paths or not calculate the duration correctly and get questions wrong on the exam.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 445. "There is a start formula and a finish formula, and we always begin late:' Notice that the formula uses either two starts or two finishes and each begins with late.

start formula float = LS - ES

finish formula float= LF - EF

You determine whether to use the start or finish formula based on the information available. For example, if an exam question states that you have a late start of 30, an early start of 18, and a late finish of 34, how do you find the float? Using the previous trick, you know to subtract the two starts or the two finishes. Since you do not have two finishes, you subtract 30 - 18 to get 12. Using the Critical Path Method Now that we have discussed the basic concepts, let's look at how the critical path method works. We'll use the network diagram in figure 6. 7 as an example: To determine the earliest and latest each activity can start and the earliest and latest each activity can be completed, you need to perform a forward and backward pass through the network diagram. The "early" figures are found by calculating from the beginning of the project to the end of the project, following the dependencies in the network diagram-a forward pass through the network diagram. The "late" figures are found by moving from the end of the project, following the dependencies to the beginning of the project-a backward pass. The first activity in the diagram normally has an early start of zero. Some people, however, use 1 as the early start of the first activity. There is no right way to start calculating through network diagrams for the early and late starts; either method will get you the right answer. Just pick one method, and use it consistently. Let's start with the forward pass. You need to move through the activities from the start until you reach the end, determining the early starts and early finishes, as illustrated in figure 6.8 this example uses zero as the early start for the first activities. It is important to look at where paths converge (path convergence). To compute the early start and the early finish in a forward pass, you have to take into account all the paths that lead into that activity (see activity F and activity Gin figure 6.8). The same concept applies to the backward pass; to compute the late finish and late start you need to consider all the paths that flow backward into an activity (see activity D and activity Fin figure 6.8). In this diagram, paths converge during the forward pass at activity F and at activity G. So you need to do the forward pass on both paths leading up to activity F, calculating the early finishes for activities D (EF = 4) and A (EF = 3). You then select the later early finish of activities D and A to use as the early start for activity F, since activity F cannot start until both activities D and A are complete. Therefore, the early start of activity F is 4. You use the same process for calculating the early finish of activities E (EF = 13) and F (EF = 12) before determining the early start of activity G (ES= 13). Once you have completed the forward pass, you can begin the backward pass, computing the late finish and late start for each activity. The backward pass uses the duration of the critical path (in this case, 26) as the early finish of the last activity or activities in the network. See figure 6.9 for the late start and late finish data. Again, you need to be careful at points of convergence as you move thought the network diagram There is convergence at activity F and at activity D. You work from the end back to these by first computing the late start of activities B(LS = 22) and G (LS=13). Select the earlier late start to use for the late finish of activity F, since activity F must be finished before either activity B or G can start. 55 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Therefore, the late finish of activity F is l3. this same process should be used on activities E (LS = 4) and F (LS=5) before calculating the late finish for activity D(LF=4). Once you finish calculating the starts and finishes, you have the data required to calculate float. It's time to use those formulas. What was that trick again? "There is a start formula and a finish formula, and we always begin late." Therefore, the formulas are:

start formula float = LS - ES

finish formula float= LF - EF

The activities with zero float are on the critical path (identified by the bold arrows). See figure 6.10 for the float of each activity: The next few exercises should help you better understand these concepts. As you do the exercises, think about how knowing float helps you in managing your real-world projects. Exam questions may be substantially similar to the following exercises, or they may be more situational and wordy, without requiring you to draw a network diagram. Be prepared for both types. 446. The following are good questions to test your knowledge about critical paths, float, etc.:  Can there be more than one critical path? Yes, you can have two, three, or many critical paths.  Do you want there to be? No; it increases risk.  Can a critical path change? Yes.  Can there be negative float? Yes; it means you are behind.  How much float does the critical path have? In planning, the critical path has zero total float. During project executing, if an activity on the critical path is completed earlier or later than planned, the critical path may then have positive or negative float. Negative float on the critical path requires corrective actions or changes to the project to bring it back in line with the plan.  Does the network diagram change when the end dates changes? No, not automatically, but the project manager should investigate schedule compression options such as fast tracking and crashing the schedule to meet the new data. Then, with approved changes, the project manager should change the network diagram accordingly.  Would you have leaved the project with negative float? no; you would compress the schedule. 447. If you encounter multiple questions on the exam that require you to draw a network diagram you may be able to reuse the same network diagram to answer more than one question. Look to see if this is true before you spend time redrawing the diagram. 448. WARNING: For questions about changes to the network diagram, make sure you look for shifts to new critical paths caused by the changes to the network diagram or to activity durations. Modeling PAGE 180In creating a finalized, realistic schedule, it is helpful to ask "What if a particular factor changed on the project? Would that produce a shorter schedule?" The assumptions for each activity can change and, therefore, the activity durations can also change. One of the ways to calculate, or model, the effect of these changes is through a Monte Carlo analysis.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

449. Approximating number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process. 450. If you have two critical paths, the only right choice to affect the critical paths is by affecting the diversion activities. 451. Activity List, Activity resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK ® Guide 5th edition Page no 177 452. Monte Carlo simulation provides PROBABILITY OF ANY TASK BEING AT THE CRITICAL PATH 453. Basis of estimate may be included in activity resource requirement table. 454. Basis of estimate is a detailed form of cost estimate. 455. Cost estimate can be presented in summary of details. 456. Resource limitation is not considered when calculation CPM 457. Critical chain method is used when consider resource limitation 458. Critical chain is a critical path with limitation in resources. 459. What if scenario is a modelling technique (software like primavera) to assess each schedule scenario potential effect on the project goals 460. Project management software: make sure you realize there is no such thing as true project software. The software available can be extremely for scheduling, analyzing what if scenarios, and performing statusreporting functions, but it does not tell you how to manage a project. You cannot simply follow the software you must adapt it your needs. Software cannot do a project managers job. 461. Monte Carlo Analysis is a simulation technique to calculate the duration of the project each time with different assumptions 57 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 462. Monte Carlo Analysis This technique uses computer software to simulate the outcome of a project based on the three-point estimates (optimistic pessimistic and most likely) for each activity and the network diagram or to determine the likelihood of completing the project as scheduled. The simulation can tell you:  the probability of completing the project on any specific day  the probability of completing the project for any specific cost  the probability of any activity actually being on the critical path  the overall project risk Monte Carlo analysis is another way of putting together the details of three-point estimates into a project estimate. It is more accurate than other methods because it simulates the actual details of the project and calculates probability.

463. Schedule baseline is the approved schedule model that can't be changed without formal change request. 464. Project schedule is the ongoing updated schedule with details that will be compared to schedule baseline. 465. Schedule data are what the project schedule contains of data like activity attribute, resource histogram, milestones and cash flow. 466. Performance review is technique to control schedule. It has its tools like:  Trend analysis  Using CPM to recalculate critical paths  Critical chain method  EVM 467. Any M&C process is concerns about:  Review past performance  Determine the status now  Influence the factors that lead to changes to baselines  Any variances to the baseline?  Manage changes.  Inform SH  Control the performance in the future.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 468.

469. 470. 471.

472. 473. 474.

You manage your project team with:  Proper management style  Professional and ethical behavior.  Interpersonal skills. A group of related scheduled activities – shown as single aggregate activity for the reporting purpose is known as HAMMOCK Activity The diagramming method that allows for conditional looping is called GERT. Graphical Evaluation and Review Technique (GERT) GERT is a modification to the network diagram drawing method. It is a computer simulation technique that allows loops between activities. The easiest example is when you have an activity to design a component and then test it. After testing, the component may or may not need to be redesigned. GERT is rarely on the exam, and when it does appear, it is most often just an incorrect answer choice. There are four precedence relationships and four networking dependencies. The four possible precedence relationships in an AON network diagram are: finish-to-start, start-to-start, finish-to-finish, start-to-finish. The four types of network dependencies are known as:

 

 

Mandatory (hard logic, hard dependencies). They are maybe contractual or physical limitation. Discretionary (soft logic, preferred logic and preferential logic).They are important when applying fast tracking to the project. External this is a linking non-project activity to project activities. internal

475. The completion of a key deliverable or a phase in the project is called a __milestone 5. 476. Starting a successor activity before the predecessor is complete is called a lead, while a delay in starting a successor activity is defined as a lag. 477. Another name for the three point estimate is called PERT. The most accurate and time consuming of the estimates is called bottom-up estimating. 478. The sigma percentages are 1 Sigma = 68.26%, 2 Sigma = _95.46% and 3 Sigma _99.73_% 479. (TF) Total Float is the time an activity can be delayed without delaying the project end date. 480. The earliest you can begin an activity is called the ___early start, while the latest time in the network schedule that an activity can begin without impacting the late finish (LF) is called the __late start 12. 481. The _critical path____ in a network diagram is the longest path through the network that produces the shortest possible completion time for the project 482. The time a project can be delayed without delaying the start of a successor project is called ___project float 483. The two primary schedule compression techniques are called _crashing__andfast tracking__ 16. 484. The _montecarlo____ analysis is used to build statistical models and perform what-if analysis 17. 485. Stabilizing the number of resources working in each time period to prevent resource overallocation is known as __resource leveling_______ 18. 486. _Critical Chain_ project management accounts for limited resources, adds duration buffers, focuses on managing the time buffer and resources 19. _ 487. (FF) Free Float describes the time an activity can be delayed before delaying the early start (ES) of a successor activity or violating a schedule constraint. 488. Higher-level summary activities that occur between milestones in a bar chart are frequently called __hammock activities_______ 21. 489. In addition to various updates, a key output of the Control Schedule process is _change request_ 490. An activity that has no duration is called a__milestone or a dummy____ 491. Computing the _forward pass allows us to ascertain the critical path in the network diagram, while computing the __backward pass is used to determine areas of float or slack in the network diagram. 59 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 492. 493. 494. 495. 496. 497.

498. 499. 500. 501. 502. 503.

504.

Crashing is applying more resources to shorten the duration ELAPSED TIME is the time inclusive of NON working days Quality is the process of completing the scope to meet stated or implied needs. CRASHING =MORE COST FAST TRACK =MORE RISK Schedule data for the project schedule includes a number of items as it collects the information used to describe and control the schedule. It includes schedule milestones, schedule activities, activity attributes, assumptions and constraints. It may include resource histograms, alternate schedules, contingency reserves cash-flow projections, and order and delivery schedules. Cost baseline is not a schedule data. In sequencing activities, the project management team must determine which dependencies are external as they are usually outside of the team’s control. Leads and lags are used in: sequence activities, develop schedule and control schedule. Resource Optimization is: a tool that used in develop schedule and control schedule. The Control Schedule Process is used to reprioritize the remaining work in a project. This is done to properly allocate remaining resources based on their availability. In real world applications, the PERT estimate is simply a point estimate. In order to derive probabilities and confidence factors from this estimate, the PERT estimate is processed using the Monte Carlo analysis. This will enable the construction of a statistical model that will tie specific confidence factors to the PERT estimate. The difference between a time estimate and the schedule is that the schedule is calendar based. Weekends, holidays, resource availability, vacation days and a host of other elements go into the final schedule. A time estimate for an activity simply relays how many hours or days it may take to complete the activity. The time estimate is also called work effort.

505. Critical Path Exam Tips:

   

There can be more than one critical path The critical path can change The critical path has zero float19 A path with negative float means you are behind schedule. As the project manager, your job is to compress the schedule and eliminate negative float>

506. when figuring the float for a path, the float values for each activity are not added together. The path float consists of the highest single value of float in the specific path. 507. CCPM accounts for limited resources, adds duration buffers, and focuses on managing the time buffer and resources. With CPM, the focus is on managing float. With CCPM, the focus is on managing the buffers. You may see CCPM as a possible answer to several exam questions 508. Milestones are a deliverables oriented not a time oriented. 509. Any change in activities duration that may lead to create new critical path will increase the risks of the project. 510. In develop schedule process; resource calendar will form the project calendar based on the time estimate. 511. Basis of estimate is part of activity resource requirement. 512. Funding limit requirement could impose the project manager to extend the schedule. 513. Resource limited schedule is a realistic schedule built on the shorting in resources. 514. If there is no required end date for a project, schedule flexibility can be built into the plan, allowing for resources being removed and other such delays. 515. Milestone Duration is ZERO 516. PERT Is also a NETWORK DIAGRAM 517. Pert is Superior to CPM 518. The critical chain Method modifies the SCHEDULE to account for LIMITED RESOURCES 519. Affinity Diagram is an essential tool in creating WBS.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 520. You likely to see Idle Resources during project progress, if the project with must fix dates and little or no slack. 521. Precedence diagramming method is also called Activity-On-Node (AON). 522. The precedence diagramming method (PDM), also called activity-on-node (AON) diagramming 523. Activities that must finish in specific order should be linked with each other with a finish to finish dependency despite their starting order. 524. Rule of thumb, such as allocation of scarce resources to the critical path first, can be applied to

develop a schedule. 525. Resource Breakdown Structure (RBS) is a hierarchical representation of resources by category and type. 526. Learning curve concept is: As individuals and/or organizations get more experienced at a task, they usually become more efficient at it. The more times a task has been performed, the less time will be required for subsequent iterations 527. The 50/50 rule, or the more conservative 0/100 rule, can eliminate the necessity for the continuous determination of percent complete. After the percent complete is determined, it can be plotted against time expended. In other words, you set your rule when to consider a percentage of completion in order to apply it on the project schedule. 528. Schedule compression techniques are corrective actions to find ways to bring project activities that are behind into alignment with the project management plan. 529. Each time you analyze CPI & SPI, think first about critical path activities completion. 530. Get the approval of functional managers is critical for the detailed schedule because it means the team members are approve it. 531. Update resource requirement is an output of develop schedule. 532. Group decision technique is used as a tool in:  3 times in in planning: collect requirement, estimate duration and estimate cost  1 time in validate scope

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Cost Management

Plan Cost Management

IRR NPV ROI Opportunity $ Payback

Cost Mgt. Plan

Estimate Costs

Activity Cost Estimates Basis of Estimates

Analogo us Parametric Bottom Up 3 Point Reserve

Determine Budget

Exp. Judgment Aggregation Reserve Analysis Funding LImits

Cost Baseline Project Funding Requirements

Control Costs

Work Performance Info Cost Forecasts Change Requests Updates

Earned Value TCPI Forecasting PMIS Reserve Anal.

533. ITTO Process group

process

ITTO

Inputs Plan Cost Management Tools/Tech's Outputs

Planning

Estimate Costs

Inputs

Value Project Management Plan Project Charter Enterprise Environmental Factors Organizational Process Assets Expert Judgment Analytical Techniques Meetings Cost Management Plan Cost Mgmt Plan HR Mgmt Plan Scope Baseline Project Schedule Risk Register Enterprise Environmental Factors Organizational Process Assets

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Tools/Tech's

Outputs

Inputs

Determine Budget

Tools/Tech's

Outputs

Inputs

Tools/Tech's Monitoring/Controlling

Control Costs

Outputs

Exp. Judgment Analogous Parametric Bottom-up Estimating Three-point Estimating Reserve Analysis Cost of Quality PM Software Vendor Bid Analysis Group Decision-making Techniques Activity Cost Estimates Basis of Estimates Project Document Updates Cost Management Plan Scope Baseline Activity Cost Estimates Basis of Estimates Project Schedule Resource Calendars Risk Register Agreements Organizational Process Assets Cost Aggregation Reserve Analysis Expert Judgment Historical Relationships Funding Limit Reconciliation Cost Baseline Project Funding Requirements Project Documents Updates PM Plan Project Funding Requirements Work Performance Data Organizational Process Assets Earned Value Management Forecasting To-complete Performance Index (TCPI) Performance Reviews PM Software Reserve Analysis Work Performance Information Costs Forecasts Change Requests PM Plan Updates Project Documents Updates Organizational Process Updates

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 534. Value analysis or value engineering helps determine how to complete the project at a lower budget without any changes to the project scope. It should add value. 535. The organizational process assets that influence the Estimate Costs process include, but are not limited to:

   

Cost estimating policies Cost estimating templates Historical information Lessons learned.

536. Parametric estimating uses a statistical relationship between relevant historical data and other variables (e.g., square footage in construction) to calculate a cost estimate for project work. This technique can produce higher levels of accuracy depending upon the sophistication and underlying data built into the model 537. (Bottom-up estimating) is very accurate but will take much longer 538. Regression analysis and learning curve are the two ways to create Parametric Estimation. 539. Projects are continually re-estimated throughout the life of the project so that an accurate budget and timeline may be forecasted 540. Resource calendar will not go to estimate cost. 541. For analogous and parametric estimate, make sure that:  Parameters are quantifiable  Calculations based on precise historical information  The previous project's model can be used on any project regardless of size. 542. Judgmental forecasting methods incorporate intuitive judgement, opinions and subjective probability estimates, and are used in cases where there is lack of historical data or during completely new and unique market conditions. Examples of methods in this category are composite forecasts, surveys, delphi method, scenario building, technology forecasting and forecast by analogy. 543. Heuristic method to estimate is based on the experience like how long a seq. foot needs to be finished. 544. Heuristic mean generally accepted rule for best practice. 545. Heuristic is also referred as a rule of thumb. 546. Parametric estimate is using a heuristic method. 547. Cost budgeting is: allocating the cost estimate to individual work item. 548. Payback period ended means Cumulative Revenue and cumulative cost from Starnet became equal 549. Beta Distribution and Triangular distribution are probability distributions 550. Two forms of accelerated depreciation are known as Double Declining Balance and the sum of year digits. 551. The costs on a project that have already been expended are called _sunk costs_ 7. 552. The four categories of costs you can experience on a project are: _direct, indirect, variable, fixed. 553. Cost Breakdown Structure

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554. The tool that addresses the variance between funding limit and the planned expenditures for the project is called the funding limit reconciliation 555. Performance baseline is the collection of all project's baselines. 556. the contingency reserve and management reserve amounts are not included in earned value calculations 557. If the actual cost accede the target cost, the sharing ratio will be –ve. 558. You can't rely on SPI or CPI only to assess the project. Always look for them both.

Earned Value 559. Let's pause for a moment. You already know earned value is on the exam. Are you worried about it? Don't be. We are going to make it easier. First, think about this: How valuable would it be to KNOW how your project is really going? Could you sleep better at night? Would you be able to spend your time in more productive ways than worrying? These are the benefits of earned value. If you currently rely on hope, guesses, or a general percent complete estimate to assess how your project is faring, you probably know from experience that these methods do not tell you much, nor are they very accurate. And they may regularly result in the need to work overtime at the end of the project because of the lack of control along the way. Keep the benefits of earned value in mind as you read this section, and go through it slowly if it seems confusing. Make sure you "get it" the first time you read it. Earned value is used in performance reviews to measure project performance against the scope, schedule, and cost baselines. Please note that the earned value technique uses a combination of these three baselines, known as the performance measurement baseline. The measurements resulting from an earned value analysis of the project indicate whether there are any potential deviations from the scope, schedule, and cost baselines (the performance measurement baseline).Many project managers manage their project's performance by comparing planned to actual results. With this method, however, you could easily be on time but overspend according to your plan. Using earned value measurement is better, because it integrates cost, time, and the work done (or scope) and can be used to forecast future performance and project completion dates and costs. Using the work performance information gathered through earned value analysis, a project manager can create reports, including cost forecasts, and other communications related to the project's progress (see the 65 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Communications Management chapter for more on earned-value-related reports). Earned value measurements may also result in change requests to the project. 560. Terms to Know

Acronym

Term

PV EV

Planned Value Earned Value

AC BAC EAC ETC

Actual Cost (total cost) Budget at (the budget) Estimate at Completion Estimate to Complete Variance at Completion

VAC

Interpretation As of today, what is the estimated value of the work planned To be done? As of today, what is the estimated value of the work actually Accomplished? As of today, what is the actual cost incurred for the work Accomplished? How much did we BUDGET for the TOTAL project effort? What do we currently expect the TOTAL project to cost (a Forecast)? From this point on, how much MORE do we expect it to cost To finish the project (a forecast)? As of today, how much over or under budget do we expect to be at the end of the project?

561. Formulas and Interpretations to Memorize The exam focuses not just on calculations, but also on knowing what the numbers mean. Therefore, you should know all the following formulas. (NOTE: The c in the following table stands for "cumulative :')

Name

Formula

Interpretation

Cost Variance (CV) Schedule Variance (SV)

EV-AC EV-PV

Cost Performance Index 9 (CPI)

EV/AC

Schedule Performance Index

EV/PV

NEGATIVE is over budget; POSITIVE is Under budget. NEGATIVE is behind schedule; POSITIVE is Ahead of schedule. We are getting $ _____ worth of work out of Every $1 spent. Funds are or are not being used Efficiently. Greater than one is good; less than One is bad. We are (only) progressing at __ percent of The rate originally planned. Greater than one is Good; less one is bad. As of now, how much do we expect the total project to cost? (See formulas to the left, below.)

Estimate at Completion (EAC) NOTE: There are many ways to calculate EAC, depending On the assumptions made. Notice how the purpose of the formulas really is to create forecasts based on past performance On the project. Exam questions may require you to determine which EAC formula is appropriate; you will need to pay attention to the information provided in the question to decide Which formula to use.

AC+ Bottom-up ETC

C

BAC/CPI

AC + (BAC - EV)

This formula calculates actual costs to date plus a new estimate for the remaining works. It is used when the original estimate was fundamentally flawed. This formula is used if no variances from the BAC have occurred or you will continue at the same rate of spending (as calculated in your cumulative CPI or based on the trends that have led to the current CPI).

This formula calculates actual costs to date plus remaining budget. It is used when current variances are thought to be atypical of the future. It is essentially AC plus the remaining value of work to perform.

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C

C

AC+(BAC-EV)/( CPI x SPI )

To-Complete Performance Index (TCPI) (BAC- EV)/(BAC-AC)

This formula calculates actual to date plus the remaining budget modified by performance. It is used when current variances are thought to be typical of the future and when project schedule constraints will influence the completion of the remaining effort. So for example, it might be used when the cumulative CPI is less than one and a firm completion date Must be met. This formula divides the work remaining to be done by the money remaining to do It. It answers the question "In order to stay within budget, what rate we must meet for the Remaining work?" Greater than one is bad; less than 1 is good. How much more will the project cost?

Estimate to Complete (ETC) EAC-AC NOTE: You can determine ETC by either using the first formula listed at right or reestimating the work remaining. Variance at completion (VAC)

Reestimate the remaining work from the bottom up. Reestimate BAC-EAC

How much over or under budget will we be at the end of the project?

The CPI in the previous table is a cumulative CPI because it is using costs to date. It could be written as CPIc = EVC/ ACc with the c standing for cumulative. This cumulative formula is the same as that in the previous table, but it more dearly states that the data used is cumulative. CPI can also be calculated for costs incurred during a specific period of time (week, month, or quarter) rather than over all the time to date.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 562. 563. 564. 565. 566. 567. 568. 569. 570.

Project Percentage Complete = EV/BAC x 100. ETC=EAC-AC=budget for remaining work. TCPI=CPI=1 if the project is within the budgeting rate. When original estimates are flawed then EAC = AC + ( Bottom up or aggregated Estimation for the remaining work ) Low CPI means your estimation is flawed fundamentally and the project in atypical situation. With a CPI of 1.05, there is no reason to cut costs. The SPI of 0.893 should tell you that you need to improve schedule performance Be very careful when interpreting the SPI and CPI values. Although values greater than 1.0 are desirable, values greater than 1.5 mean the project was not properly estimated earlier. Definite cost are most accurate Cost Performance baseline is represented as S curve.

571. Multiplying the percent complete by the budget at completion, or the total budget for the project, is the simplest formula to calculate EV. 572. For EV calculations, not every WBS work package must be converted to monetary value. You can use any proper unit like: meters, liters. 573. Milestone method is used to calculate EV in long work package projects. 574. To reduce the cost of the project it would be best to reduce direct and variable costs. 575. If the project is within budgeted rate then EAC = AC + ( BAC - EV ) 576. The main output of the Control Costs process is budget forecasts 577. If senior management did not agree to revise the estimate at completion based on current performance means you will use BAC in calculating TCPI 578. TCPI is the most important indicator to the project performance. 579. At the end of the project, EV=PV 68 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 580. There are three ways to calculate EV: fixed formula ( rule 50/50 or 0/100 ), Weighted milestone and percent complete.

581. Make sure you understand and MEMORIZE the following about CV, SV, CPI, and SPI:  EV comes first in each of these formulas. Remembering this one fact alone should help you get about half the earned value questions right. (Aren't you glad you purchased this book?)  If it is a variance, the formula is EV minus something.  If it is an index, the formula is EV divided by something.  If the formula relates to cost, use AC.  If the formula relates to schedule, use PV.  For variances interpretation: negative is bad and positive is good. Thus a -200 cost variance means that you spent more than planned (over budget). A -200 schedule variance means that you are behind schedule. This also applies to VAC.  For indices interpretation: greater than one is good; less than one is bad. (Remember, this only applies to CPI and SPI; the opposite is true of TCPI)  Be careful about the negative variance sign during calculations. 582. One type of earned value question people often answer incorrectly requires that you differentiate between EAC and ETC and the other terms. Figure 7.2 may help you understand this difference. Notice that planned value (PV; what the value was expected to be at this point in the project according to the plan) and actual cost (AC; what the cost has actually been on the project prior to this point) look backward at the project. Budget at completion (BAC), estimate to complete (ETC), and estimate at completion (EAC) look forward BAC states the project's planned budget; it indicates what the end cost of the project would be if everything went according to plan. ETC and EAC forecast future performance based on what has actually occurred on the project, taking into account any variances from the plan the project has already experienced. ETC is an estimate of how much more the remaining part of the project will cost to complete. EAC indicates what the total project cost is forecasted to be.

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Are you still worried about earned value? Not for long. Read the following pages and do the exercises, you might end up appreciating earned value questions over some of the more ambiguous and confusing questions on this exam. 583. Earned Value in Action Earned value is an effective tool for measuring performance and determining the need to request changes. The following is a sample team meeting conversation on this subject: o

584. 585. 586. 587.

Ken, the project manager, calls a team meeting and says, "We are six months into this million dollar project, and my latest analysis shows a CPI of 1.2 and an SPI of 0.89. This means that we are getting 1.2 dollars for every dollar we put into the project, but only progressing at 89 percent of the rate originally planned. Let's look for options to correct this problem." o "We could remove me from the project team and replace me with someone less expensive. I must be the most expensive team member:' Ashley says. o "Not only would it sadden me to lose you, but your suggestion would improve costs, not schedule. You are the company's best network specialist. Someone else would not be as proficient as you in completing the work:' o "We could remove the purchase of the new computers from the project;' says Chris. "Or, we could just tell the customer the project will be two weeks late:' o "Canceling the new computers would save us money, not time. We need to focus on time;' Ken says. "Nor can we just change the project schedule baseline arbitrarily. That would be unethical:' o "Since we are doing well on cost, why don't we bring in another programmer from the IT department to work on this project? We can get the next two activities completed faster;' Rose suggests. o "That sounds like the most effective choice in this situation. Let's see if we can find someone who will improve performance, at the lowest cost. Thanks for your help;' Ken says. When you forecast, take in consideration the existing change requests. Cost base line does not include management reserve If you want to decrease project budget, decrease the direct and variable costs. If you want to decrease the payback period, decrease the indirect and fixed cost.

588. The best way to learn the earned value analysis technique is to use it. The following exercises are designed to give you a chance to practice both calculations AND interpretation. Earned value questions on the exam have generally required fewer calculations for each question than these exercises.

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EXERCISE 4 The cost performance index (CPI) and 1.s the schedule performance index (SPI) can be charted each month to show the project trends. Based on the diagram, what would you be more concerned about-cost or schedule - if you were taking over this project from another project manager?

Answers Since these calculations were made in the past, the data in the chart is historical data. The last, most current measurement was in the fourth quarter, which shows both SPI and CPI being above one (good). As of the fourth quarter, the SPI is lower. Therefore, the answer is schedule. An easy way to answer performance index questions that ask whether cost or schedule should concern you most is to pick the option with the lowest index.

EXERCIS 5E The Fence #1 You have a project. To build a new fence the fence is four sided as shown at left. Each side is to take one day to build, and $1,000 has been budgeted per side. The sides are planned to be completed one after the other. Today is the end of day 3. Using the following project status chart, calculate PV, EV, etc., in the spaces provided. Then check your answers. Interpretation is also important on the exam. Can you interpret what each answer means? Do the calculations to three decimal places on the exercises. On the real exam, round the results of your calculations to two decimal places when you are ready to check your answers against the choices provided. Activity

Day1

Side 1 Side 2 Side 3 Side 4

S---------F

Day 2 S--------PF

Day 3

Day 4

----F PS--S---PF PS--------PF

Status end of Day 3 Complete, spent $1,000 Complete, spent $1,200 50% done, spent $600 Not yet started

Key S = Actual Start, F = Actual Finish, PS = Planned Start, and PF = Planned Finish

What Is : 1 2 3 4 5 6 7 8 9 10 11

Calculation

Answer

Interpretation of The Answer

PV EV Ac BAC CV CPI SV SPI EAC ETC VAC

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Answers What Is :

Calculation

Answer $3,000 $2,500

We should have done worth of work. We have actually completed $3,250 worth of work.

$2,800

We have actually spent $2,800.

$4,000 -$300 $0.893

Our project budget is $4,000. We are over budget by $300. We are only getting about 89 cents out of every dollar we put into the project. We are behind schedule. We are only progressing at about 83 percent of the rate planned. We currently estimate that the total project will cost $4,479. We need to spend $1,679 to finish the project. We currently expect to be $479 over budget when the project is completed

1 2

PV EV

3

Ac

4 5 6

BAC CV CPI

$1,000 plus $1,000 Complete, complete, $2,500 $1,000 plus $1,200 plus $600 $1,000 plus $1,000 $4,000 $2,500 minus $2,800 $2,500 divided by $2,800

7 8

SV SPI

$2,500 minus $3,000 $2,500 divided by $3,000

-$500 0.833

9

EAC

$4,000 divided by $0.893

$4,479

10 11

ETC VAC

$4,4 79 minus $2,800 $4,000 minus $4,479

$1,679 -$479

Interpretation of The Answer

Notes If your answers differ, check your rending. Again, it is best to calculate to three decimal places and then round to two decimal places and then round to town decimal places when you are ready to compare your results against the choices provided on the exam. Did you select the correct EAC formula? If not, did you miss information in the question that could have guided you to the correct formula? In this example, Side 2 cost $ 1,200. Side 3 is 50 percent complete and has cost $ 600. This suggests a trend that indicates side 4 is likely to cost $ 1,200 when complete. When there is a trend and no other information to indicate the trend will not continue, it`s most appropriate to use the BAC/CPI formula.

EXERCISE 5 The Fence #2 You have a project to build a new fence. The fence is four sided as shown at left. Each side is to take one day to build, and $1,000 has been budgeted per side. Tue sides were planned to be completed one after the other, but circumstances changed on the project, and work on the sides was able to proceed in parallel. ASSUME THEREFORE THAT THE SIDES HA VE A FINISH-TO-FINISH RELATIONSHIP INSTEAD OF A FINISH-TO-START RELATIONSHIP, so more than one side can be worked on at the same time. Today is the end of day 3. Using the following project status chart, calculate PV, EV, etc., in the spaces provided. Then check your answers. Activity Side 1 Side 2 Side 3 Side 4

Day1

Day 2

Day 3

Day 4

S---------F S-----f---PF S……….

----F PS…….PF S……….

PS--------PF

Status end of Day 3 Complete, spent $1,000 Complete, spent $900 50% done, spent $600 75% done, spent $600

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Key S =Actual Start, F = Actual Finish, PS = Planned Start, and PF = Planned Finish

What Is : 1 2 3 4 5 6 7 8 9 10 11

Calculation

Answer

Interpretation of The Answer

Calculation

Answer

Interpretation of The Answer

PV EV Ac BAC CV CPI SV SPI EAC ETC VAC

Answers The Fence#2

What Is : 1 2

PV EV

$1,000 plus $1,000$1,000 Complete, complete, half done, and 75% done, or $1,000 plus $1,000 plus $500 plus $750

$3,000 $3,250

We should have done worth of work. We have actually completed $3,250 worth of work.

3

Ac

$3,100

We have actually spent $3,800

4

BAC

$4,000

Our project budget is $4,000

5 6

CV CPI

$1,000 plus $900 plus $600 plus $600 $1,000 plus $1,000 plus $1,000 plus $1,000 $3,250 minus $3, 100 $3,250 divided by $3,100

$150 $1.048

7 8

SV SPI

$3,250 minus $3,000 $3,250 divided by $3,000

1.083 0.833

9

EAC

$4,000 divided by $1.048

$3,817

10 11

ETC VAC

$3,817 minus $3, 100 $4,000 minus $3,817

$717 $183

We are over budget by $150 We are only getting about $1.05 out of every dollar we put into the project. We are behind schedule. We are only progressing at about 108 percent of the rate planned. We currently estimate that the total project will cost $3,817. We need to spend $717 to finish the project. We currently expect to be $183 under budget when the project is completed

In this example, you are looking for the value of the work that has actually been done. The finish-To-finish relationship allowed the team to work on more than one side at the same time. In this case, work is being done on both sides 3 and 4 at the same time. Since the value of each side is $1,000, we look at how much of each side is complete and apply that percent to the value. Here sides 1 and 2 are completed; thus, each receives a value of $1,000. (It doesn’t matter what it actually cost—just the value.) Side 3 is 50 percent done and receives a value of $500 (50 percent of $1,000). Side 4 is 75 percent done and receives a value of $750 (75 percent of $1,000). The earned value to date is $3,250.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Understanding the meaning of the results of each calculation is as important as knowing how to calculate them. Expect question on the exam that say thing like, (the CPI is 0.92 what should you do? you will need to interpret this and other data in the question and then determine which choice would address the issue (s) described. In this example, there are both cost and schedule problems. You may also get questions on the exam that require you to perform multiple calculations (i.e, you need to perform one calculation to come up with a result that can be used as an input for a second calculation). We have a few exercises coming up that will help you understand how to answer these questions, but it's helpful to first consider this useful tip: Here's a quick trick for finding EV when a question provides partial information. Depending on the information you're given in a question, you can reverse the formulas you know for CV, SV, CPI, or SPI so that you can isolate EV on its own side of the equation, which will make it much easier to solve For example, say a question gives you CV and AC and asks you to solve for EV. You already know that CV= EV - AC, so now you can reverse this formula by adding AC to both sides of the equation as follows:

CV=EV-AC CV + AC = EV - AC + AC CV +AC=EV Do you understand why we added AC to both sides of the equation? You're trying to isolate EV on one side of the equation. By adding AC to the right side of the equation, you cancel out the -AC, so you end up with EV on its own. But whatever you do on the right-hand side of the equation, you have to do on the left-hand side as well. (Here's a little algebra refresher: you can perform an operation like adding, subtracting, dividing, or multiplying on one side of the equation so long as you do the exact same thing on the other side as well. This allows you to manipulate an equation to make it easier to solve.) So now, to solve for EV, all you have to do is add CV and AC. Similarly, say a question gives you CPI and AC and asks you to determine EV. You already know the formula for CPI (CPI = EV I AC), but how can you isolate EV on one side of the equation? Instead of adding AC to both sides of the equation, in this case, you would multiply both sides by AC:

CPI= EV/AC CPI x AC= EV/AC x AC CPI x AC =EV You can also simply memorize the reverse formulas in the table below:

Original Formula CV=EV-AC SV=EV-PV CPI=EV/AC SPI=EV/PV

Reverse Formula to Determine EV EV=CV+AC EV=SV+PV EV=CPI× AC EV=SPI× PV

Just keep in mind that this quick trick for reversing the formula only works for ev! Although you can reverse other earned value formulas, to do so would generally require multiple steps. 74 | P a g e

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EXERCISE 6 What is EV if your CPI is your SPI is $10,000? Which reverse formula would you use?

Answers Since the question gives us the CPI and AC, we can reverse the CPI formula to get to the EV so the reverse formula would be EV = CPI x AC, or EV =x $10,000, which works out to $11,000. For this question, there was no need to use the SPI information.

EXERCISE 7 What is your SPI if your CV is $10,000, your SV is -$3,000, and your PV is $100,000?

Answers To find the SPI; you actually need to perform two calculations here. The formula for SPI is SPI — EV/PV, we know what be PV is, but we don’t know the EV. Luckily, we can figure it out using the information given in the question. We're given the 5\º and PV, so we can use the following reverse formula to determine EV. EV=SV+PV EV=-$3000+$100,000 EV=$97,000 We can then plug the PV and EV into the SPI formula as follows: SPI= EV/PV SPI=$97,000/ $100,000 SPI = .97 If your equation requires you to solve for something other than EV (for example, AC or PV), the math will be slightly more complicated, but don't worry: we've got an exercise to help you understand what to do.

EXERCISE 8 Using the information from the previous exercise, determine AC.

Answers We need to look at the information from the previous exercise to determine what formula to use to figure out AC. We know the CV is $10>000 and the EV is $97,000 (from the calculation we performed in the previous exercise). With this information, we can determine the AC' by using the formula CV= EV - AC. To do this, we first plug the information we know into the formula: CV=EV-AC $10,000 = $97,000 - AC To solve for AC, we need to get AC alone on one side of the equation. First, add AC to both sides of the equation: $10,000 + AC=$97,000-ac+ac $10,000+ac=$97,000 The —AC and +AC on the right-hand side of the equation canceled each other out. But we still need to isolate AC on the left-hand side of the equation. TG do this, we’re going to subtract $10,000 from both sides: $10,000+ac-$10,000=$97,000 Ac=$87,000

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EXERCISE 9 In the latest earned value report for your project. You see the CPI is 1.2, the SPI is 0.8, the PV is $600,000, & the SV is -$120,000. You can’t find the CV in the report, so you need to calculate it based on the information given. What is the CV?

Answers The formula for CV is CV = EV – AC. Therefore, we need to find EV and AC to calculate CV. We can do this by using one of the reverse formulas we learned earlier. Since we know the values for SPI (0.8) and PV ($600,000), we can use EV= SPI x PV (this is the reverse formula for SPI = EV/PV). EV= SPI x PV EV = 0.8 x $600,000 EV=0.8× $600,000 EV=$480,000 Now we need AC, which we can get from the EV we just determined and the CPI given in the question (1.2). The formula is CPI =EV/ ac or 1.2 =$480,000/ ac We need to isolate AC on one side of the equation to figure out what it is. Start by multiplying both sides of the equation by AC: 1.2 x AC = $480,000/ ac x AC The resulting equation is: 1.2× ac =$480,000 To get ac on its own, we need to divide both sides by 1.2: (1.2× ac)/ 1.2=$480,000/ 1.2 The resulting equation is: Ac=$480,000/ 1.2 So AC=$400,000 Now that we know the EV and the AC, we can figure out what the cv is: CV = EV-AC CV = $480,000 $400,000 CV = $80,000 The Control Costs process provides measurements that indicate how the work is progressing and that allow the project manager to create reliable forecasts and take action to control the project. This process also results in change requests, including recommended corrective or preventive actions, and updates to the project management plan and project documents. The project manager needs to make sure these changes and updates are communicated to stakeholders and the team to ensure they understand the revisions to the project and are implementing them correctly.

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Quality Management

Plan Quality Management

Cost/Benefit Cost of Quality 7 Basic Tools Benchmarking Sampling

Quality Mgt. Plan Process Improvement Plan Quality Metrics Quality Checklists

Perform Quality Assurance

Measurements Quality Audits Controls Charts Process Analysis

589.

Updates Verified Deliverables QC Measures Validated Changes

Control Quality

ITTO

Process group

process

ITTO

Inputs

Planning

Plan Quality Management

Tools/Tech's

Value PM Plan Stakeholder Register Risk Register Requirements Documentation Enterprise Environmental Factors Organizational Process Assets Cost-Benefit Analysis Cost of Quality Seven Basic Quality Tools Benchmarking Design of Experiments Statistical Sampling Additional Quality Planning Tools Meetings

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Outputs

Inputs

Executing

Perform Quality Assurance

Tools/Tech's

Outputs

Inputs

Monitoring/Controlling

Control Quality

Tools/Tech's

Outputs

590.

Quality Management Plan Process Improvement Plan Quality Metrics Quality Checklists Project Documents Updates Quality Mgmt Plan Process Improvement Plan Quality Metrics Quality Control Measurements Proj. Docs Quality Management and Control Tools Quality Audits Process Analysis Change Requests PM Plan Updates Project Documents Updates Org. Process Assets Updates PM Plan Quality Metrics Quality Checklists Work Performance Data Approved Change Requests Deliverables Project Documents Organization Process Assets Seven Basic Quality Tools Statistical Sampling Inspection Approved Change Requests Review Quality Control Measurements Validated Changes Verified Deliverables Work Performance Information Change Requests PM Plan Updates Project Documents Updates Org. Process Assets Updates

Quality for (PMI)® Quality-related questions can be confusing because many of the topics on the exam are not in the th

PMBOK ® Guide 5 edition and because (PMI)® quality philosophy may be different from that of your co

mpany. Some companies refer to what (PMI)® calls Perform Quality Assurance as quality planning. Some c ompanies believe in giving the customer extras, while PMI wants us to focus on meeting the requirement s. It is important to understand (PMI)® philosophy to answer exam questions correctly. Therefore, know t he following (PMI)®related to quality: 78 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641  The project manager should recommend improvements to the performing organization's Standards, policies, and processes. Such recommendations are expected and welcomed by management.  Quality should be considered whenever there is a change to any of the project constraints.  quality should be checked before an activity or work package is completed  The project manager must spend time trying to improve quality.  The project manager must determine metrics to be used to measure quality before the project work begins.  The project manager must put in place a plan for continually improving processes.  The project manager must make sure authorized approaches and processes are followed.  Some quality activities may be done by a quality assurance or quality control department. 591.

592.

593.

594.

How to think about quality in the project?  The customer has its own quality metrics.  We have to plan how to satisfy the customer quality metrics if it is defer from our organization quality metrics.  This plan is concern about setting the project standard and how we will ensure that we comply with it. Quality in action  We suppose to flow the project quality standards and metrics. How will know?  We are going to use continuous improvement and other quality concepts at the early beginning of the work to ensure quality conformance till we perform quality control to inspect the product and get the actual measurements.  We can't perform quality assurance without measurement from quality control. These measurements are evidences for non-conformance. Inspection is a tool and technique in:  Validate scope  Control quality  Control procurement Modern quality management complements project management. For example, both disciplines recognize the importance of:



  

Customer satisfaction. Understanding, evaluating, defining and managing expectations so that customer requirements are met. This requires a combination of conformance to requirements (the project must produce what it said it would produce) and fitness for use (the product or service must satisfy real needs). Prevention over inspection. The cost of preventing mistakes is generally much less than the cost of correcting them, as revealed by inspection. Management responsibility. Success requires the participation of all members of the team, but it remains the responsibility of management to provide the resources needed to succeed. Continuous improvement. The plan-do-check-act cycle is the basis for quality improvement. In addition, quality improvement initiatives undertaken by the performing organization, such as TQM and Six Sigma, can improve the quality of the project’s management as well as the quality of the project’s product.

595. Inspections are sometimes called reviews, product reviews, audits, and walkthroughs. In other hand, validate scope uses inspection as a tool. 596. Inspections are NOT called as Assessments 597. Inspections are called as reviews, Audits and walkthroughs 79 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 598. In Normal Distribution curve ( Bell ), each Standard Deviation represent 1 Sigma that is divided by the mean to two halves. 599. The mean in Bell curve probability is 50% of the. So, the probability of each half Sigma (+up and –down) intersects with a specified amount on the horizontal line. These amounts are divided according to 0.5 SD amount. 600. Precise means you get the same record each time you do the test. 601. Accurate means how the record is close to the correct result. 602. Run charts tell you about trends in your project by showing you what your data looks like as a line chart. 603. Continuous process improvement on the project is one of the key responsibilities of the project manager 604. Do you think you understand (PMI)® philosophy and how quality management fits into the project management process? Test yourself by doing the following exercise.

EXERCISE 10 List the specific ACTIONS required to ensure quality on the project.

Answers There is a lot of possible answers. Did you come up with these? Review the project management plan, particularly the project baselines, and relevant project documents.                         

Make Shure you know and understand the customer's definition of quality. Identify the desired levels of performance in the product and components of the product. Identify at what level you should control the project (e.g. The work package, activity, or more detailed level). Identify any quality standards and process that are applicable to the project. Identify the required level of quality for project management activities. Determine the quality standards and processes to use, when, and on what parts of the project. Set standards to reach the level of desired performance for activities and the project. Set metrics to measure quality from the customer's and the organization's perspective. Decide what you will do to make sure the processes are followed and the standards are met. Determine how you will improve the processes on the project-your process improvement plan. Test the validity of assumptions before they result in problems. Make sure team members understand what "quality" means for their work. Collect problems, errors, and complaints, and review what can be done to prevent them from reoccurring on the project. Have teams follow planned efforts to evaluate the project to look for quality improvements. Inspect work as it is being done, not after. Perform quality reviews. Measure performance against standards. Hold meetings, issue reports, measure, and perform calculations. Reassess the quality standards. Evaluate the effectiveness of the quality control system. Manage quality with the same effort as time, cost, or scope. Request changes, including corrective and preventive actions and defect repairs. Update organizational process assets with the information and data learned from process improvement and control efforts. Include quality issues in lessons learned. Feed lessons learned back into the project.

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605.

Cost of quality includes all costs incurred over the life of the product by investement in preventing nonconformance to requirement, appraising the product or service for conformance to requirement and failing to meet requirement (rework).

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606. Cost of quality can be explained through the chart below:

607. Gold Plating Gold plating refers to giving the customer extras (e.g., extra functionality, higher quality Components, extra scope, or better performance). Although you might have a policy promoting gold plating at work (such as "meeting and exceeding customers' expectations"), advanced quality thinking does not recommend this practice and neither does (PMI)®. Gold plating is often the team's impression of what is valued by the customer, and the customer might not agree. It is also a problem because so few projects provide what the customer wanted. Since most projects have difficulty meeting the project objectives all available effort should go into achieving those objectives instead of gold plating. Sometimes gold plating is not planned, but arises out of a team member's efforts to do the best he or she can. The project might not call for the best, however, just what was asked for. Therefore, the project manager must be on the lookout for team members providing extra functionality, extra work, or higher quality than is required for the project. 608. Prevention over inspection Is it better to inspect work to find problems or to prevent them in inspected IN! This concept has frequently come up on the exam.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 609. Marginal Analysis Marginal analysis refers to looking for the point where the benefits or revenue to be received from improving quality equals the incremental cost to achieve that quality this is an important concept that you probably already understand. Sometimes added attention to something such as quality does not produce added value. When that point is reached, you should stop trying to improve quality. 610. Continuous Improvement (or Kaizen) Continuous improvements involve continuously looking for small improvements in quality. These two terms ("continuous improvement" and "Kaizen") are taken to mean the same thing on the exam; however, in Japan, Kaizen means to alter (kai) and make better or improve (Zen). Kaizen is a general term, while continuous improvement is a quality movement. In the United States and most of Western Europe, improvements are thought of as big improvements. In Japan, improvements are thought of as small improvements. Continuous improvement includes improving how we handle project management in an organization. So OPM3, (PMI)® maturity model for the evolution of project management within an organization, could be used to guide how quality is planned and improved on projects. 611. Just in Time (JIT) 5 Many companies find that holding raw materials in inventory is too expensive and is unnecessary. Instead, they have their suppliers deliver raw materials just when they are needed or just before they are needed, thus decreasing inventory to close to zero. A company using JIT must achieve a high level of quality in their practices; otherwise, there will not be enough raw materials to meet production requirements because of waste and rework. A JIT system forces attention on quality. 612. Total Quality Management (TQM) 6 This philosophy encourages companies and their employees to focus on finding ways to continuously improve the quality of their products and their business practices at every level of the organization. 613. Responsibility for Quality The entire organization has responsibilities relating to quality. Therefore, read questions on this topic carefully. Determine to whom in the organization questions on the exam are referring. The project manager has the ultimate responsibility for the quality of the product of the project, but each team member must check his or her work by inspecting it him- or herself. It is not acceptable for team members to simply complete the work and then turn it over to the project manager or their manager to be checked Work should meet the project requirements, and testing should be done whenever appropriate before submitting the work. Senior management has the ultimate responsibility for quality in the organization as a whole. According to the quality expert W. Edwards Deming, 85 percent of the quality problems on a project are attributable to the management environment and the system in which the team works. That's why many organizations have quality assurance and/ or quality control departments, which are responsible for implementing organizational directives when it comes to quality. 614. Impact of Poor Quality everyone knows intuitively that spending time on quality produces value but the exam will test your knowledge about what the effects of quality efforts, or the lack thereof, are so what is the impact of poor quality? if you have poor quality, you might also have:  increased costs  Decreased profits  Low morale  Low customer satisfaction  Increased risk  Rework  Schedule delays 83 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 In contrast, increases in quality can result in increased productivity, higher morale increased customer satisfaction, increased cost and schedule effectiveness, and decreased cost risk. 615.

Understanding the difference between Plan Quality Management Perform Quality Assurance, and Control Quality One of the major challenges people have while studying is understanding, the difference between Plan Quality Management, Perform Quality Assurance, and Control Quality. This confusion can be due to the difference between what your company calls these processes and what the exam calls them. It can also be due to the confusing nature of the questions in this knowledge area.

616.

For purposes of the exam, here is a brief description of the three processes:  Plan Quality Management focuses on defining quality for the project, the product, and project management, and planning how it will be achieved.  Perform Quality Assurance is an executing process, so its focus is on the work being done on the project. Its purpose is to ensure the team is following organizational policies, standards, and Processes as planned to produce the project's deliverables. Through this evaluation the project manager can also evaluate whether the processes need to be improved or modified.  In contrast, Control Quality (a monitoring and controlling process) examines the actual deliverables produced on the project; its purpose is to ensure the deliverables are correct and meet the planned level of quality, and to find the source of problems and recommend ways to address them.

617.

The following chart is a trick for correctly answering questions about these three processes on the exam. But be aware that even if you spend a great deal of time studying this section, you may still see confusing questions about the differences between the quality management processes. Make sure you read such questions carefully.

PLAN QUALITY MANAGEMENT

PERFORM QUALITY ASSURANCE

CONTROL QUALITY

Process Group Project Planning

Project Executing

Project monitoring & Controlling

High-Level Description of What Each Process Focuses On What is quality? How will we Ensure it?

Are we following the procedures and processes as planned? Are the procedures and processes Giving us the intended results?

Are the results of our work meeting the standards?

More Detailed Description of What Each Process Focuses On

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Find existing quality practices, standards, and requirements for the product, project, and project management efforts. Create additional project specific practices, standards, and metrics. Determine the processes that will be used on the project. Determine what work you will do to meet the standards. Determine how you will measure to make sure you meet the standards.

Use measurements from quality control to assess whether processes are being followed, and whether these processes are still appropriate for the project. Perform continuous improvement to increase Efficiency and effectiveness. Determine if project activities comply with organizational and project policies, processes, and procedures-quality audit.

Measure the quality of deliverables to determine whether they meet requirements. Evaluate the root cause of quality problems. Identify the need for quality improvements (corrective or preventive action, and defect repair). Verify deliverables. Complete checklists.

Find good practices.

Update lessons learned.

Perform cost of quality, cost-benefit analysis, and other analysis work to make certain that the appropriate level of quality will be planned in.

Share good practices with others in the organization.

Submit change requests.

Balance the needs of quality with scope, cost, time, risk, resources, and customer satisfaction.

Update the project management plan and project documents.

Submit change requests.

Update the project management plan and project documents.

Create a process improvement plan and a quality management plan as part of the project management plan.

618. Remembering the following phrases about Pareto charts should help you on the exam:  Help focus attention on the most critical issues.  Prioritize potential “causes” of the problems.  Separate the critical few from the uncritical many. 619. The exam asks about Pareto diagrams in many ways and sometimes uses unfamiliar words instead of the more common phrases. Remembering the following about Pareto diagrams should help you on the exam.

Pareto diagrams   

Help focus attention on the most critical issues prioritize potential causes of the problems separate the critical few form the uncritical

620. Quality assurance deal with auditing quality requirement and results, while quality control

monitoring and record the results of executing the quality activities. 621. Histograms You have probably seen many histograms but never realized they were called histograms. A histogram displays data in the form of bars or columns. This tool helps identify which problems are worth dealing with. A typical histogram presents data in no particular order and without reference to time. As with the Pareto diagram, you can anticipate in Plan Quality management the potential problems, but then plot the results of your measurements in Control Quality on a histogram to determine the most pressing problems.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 622. Control Chart The following explanation and exercise will help you understand this tool, even if control charts are new to you. Once you understand control charts, it is generally easy to get questions about them right on the exam. Note that there's an example of a control chart in the following exercise. Control charts are SET UP in Plan Quality Management as part of the effort to define quality on the project. This involves determining in advance the mean, specification limits, and control limits (all defined later in this section). Control charts are USED in Control Quality to help determine if the results of a process are within acceptable limits. To better understand the need for control charts, imagine a door manufacturer is undertaking a project to create a new production line. To make sure the production facility will create doors that meet quality standards, it's essential to monitor the processes and output so the new production line can become an ongoing business operation. Would each door be the same exact height? Weight? Not likely. Instead there is a range, however small, that is acceptable. Each door should be within the range of normal and acceptable limits. During the Control Quality process, samples are taken and plotted on the chart (the small squares shown on the control chart in the following exercise). The control chart shows whether the samples are within those limits. A control chart can also be used to monitor things like project performance figures, such as cost and schedule variances. Most commonly, however, a control chart helps monitor production and other processes to see if the results are within acceptable limits (i.e., "in control"), or if there are any actions required (i.e., the process, results, or whatever is being measured is "out of control"). Now that we have discussed the basic concept of a control chart, let's look at some of the related terms you should know for the exam. You will see questions on this topic, but they should be fairly straightforward and, therefore, relatively easy. The following can be indicated on a control chart: 1. Upper and lower control limits 2. Mean (Average) 3. Specification Limits 4. Out of Control 5. Rule of Seven

Note: For repetitive processes, the control limits are generally set at +_3 as around aprocess mean that has been set at 0 s. 1. Upper and lower control limits17 Control limits are often shown as tow dashed lines on a control chart. These limits are the acceptable range of variation of a process's or measurements results. Control limits indicate what is stable versus unstable (out of control) in the process. Every process is expected to have some variation in its results (e.g., each door manufactured will not be exactly the same size.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 The project manager and relevant stakeholders need to analyze and evaluate what would be appropriate upper and lower control limits for the metrics or standard related to quality for this project normally this range is calculated based on +/- 3 sigma, or standard deviations, but it can go as high as +/- 6 sigma (sigma and standard deviations are discussed later in this chapter). Data points within this range are generally thought of as "in control;' excluding the rule of seven (described later in this section), and are an acceptable range of variation. Data points outside this range indicate the process is out of control. The concept of control limits is also important outside of a control chart. A project manager can have control limits for many things. How about for a work package? Is one hour late in its delivery a problem? How about one day? Such control limits help the project manager know when to take action.

2. Mean (Average) The mean is indicated by a line in the middle of the control chart. It shows the middle of the range of acceptable variation. A normal distribution curve represents the acceptable range of variance around a mean, and is likely to fall within the boundaries of the control limits.

3. Specification Limits18 While control limits represent the performing organization's standards for quality, specification limits represent the customer's expectations or contractual requirements for performance and quality on the project. Specification limits are characteristics of the measured process and are not inherent. In other words, specification limits are not calculated based on the control chart; instead, they are inputs from the customer. Therefore, they can appear either inside or outside of the control limits. To meet the customer's specification limits, the performing organization's standards for quality (control limits) must be stricter than those of the customer. Agreeing to do a project when your work does not meet the customer's quality standards adds waste and extra management to the project to sort out acceptable items. Therefore, on the exam, assume that specification limits are outside the upper and lower control limits.

4. Out of Control The process is out of a state of statistical control under either of two circumstances:  A data point falls outside of the upper or lower control limit.  There are nonrandom data points; these may be within the upper and lower control limits, such as the rule of seven (described next).  Think of "out of control" as a lack of consistency and predictability in the process or its results.

5. Rule of Seven 19 The rule of seven is a general rule, or heuristic. It refers to a group or series of nonrandom data points that total seven on one side of the mean. The rule of seven tells you that, although none of these points are outside of the control limits, they are not random and the process is out of control. The project manager should investigate this type of situation and find a cause.

6. Assignable Cause/Special Cause Variation20 An assignable cause or special cause variation Signifies that a process is out of control. If there is an assignable cause or special cause variation, it means a data point or series of data points (as discussed with the rule of seven) falls outside the control limits and requires investigation to determine the cause of the variation. The project manager could use additional tools, such as a cause and effect diagram, to try to uncover the root cause of the variation. 623. Understanding the Tools and Techniques Used in Quality Management As you have read through this chapter, have you found yourself asking questions like, "Now when are all these tools and techniques used?" or "What are the differences between the three-part of the quality management process again?" Although there are not a lot of questions on the exam on these topics, people tend to struggle with these concepts.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 624. Here is a trick: if the situation is looking forward in time, it is most likely a planning function. If it is looking back in time at project results, it is most likely part of quality control. If it is looking back in time at processes and procedures, it is most likely part of quality assurance. 625. Process improvement plan concerns about  Set process boundaries (inputs, outputs, metrics, control limits)  Process configuration: a graphical representation of the process steps  Exam the process efficiency of the Targeted process  Improve the performance of the process 626. Cost of poor quality is called rework. It may be internal or external. 627. Variance limits is decreased during the project life time. 628. Other Tools and Techniques (P: 245) WITH ILLUSTRATIONS There are several additional tools and techniques that can help you analyze data, as well as establish priorities and recommend corrective or preventive action, for Perform quality Assurance:



Affinity Diagrams ( used in collect requirement )



o

We first saw this technique in the collect requirements process. in perform quality assurance, affinity diagrams can help you organize and group the results of a root cause analysis. For example, in control quality you may have determined the cause of variance.

o

Product defects or deliverables not meeting requirements. You can then use this information in quality assurance to determine whether a change to the policies, procedures, and standards in the quality plan would address the root cause of the problems

Tree Diagrams ( create WBS, OBS or used in decision tree) o

Useful for decision analysis, tree diagrams can help you organize data, map out relationships, decompose processes to find a solution to a problem, and arrive at corrective or preventive action.

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

Process Decision Program Charts (PDPC) o o

o



Typically used in conjunction with tree diagrams, these charts let you decompose a goal into the steps required to achieve it. Each step is then reviewed for potential risk. For example, imagine that one goal of your process improvement plan is to increase the accuracy of estimates to 88 percent. Using PDPC, you can break down the steps to achieve that goal. The team might then brainstorm ideas for anything that could go wrong, and come up with contingency plans to keep things on track. This diagram contains: activities, decision points and order of processing.

Interrelationship Digraphs28 o

An interrelationship digraph allows you to see and analyze the relationships among numerous different issues. For example, in Perform Quality Assurance you may need to establish the root cause of schedule variances to determine if organizational processes need to be improved.

o

You might first gather data through analysis like (affinity, tree diagram or fish born) and then use the interrelationship digraph to identify the cause and effect relationships between the data.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 

Matrix Diagrams o o



Used for data analysis, the matrix diagram is a visual representation of the relationship between two or more sets of items. There are several different types of matrix diagrams, and the one chosen will depend on the information that needs to be conveyed.

Prioritization Matrices o

o

o

A type of matrix diagram, a prioritization matrix is useful for decision analysis about process improvement and quality management plan components (organizational policies, processes, and requirements) that may need to change. In quality assurance, you'll need to prioritize both issues and solutions for implementation. This prioritization helps focus analysis and implementation efforts on the most beneficial solutions to the most critical issues. In Perform Quality Assurance, the criteria defined in Plan Quality Management are given scores, and the issues or solutions are ranked.

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 Project Schedule Network Diagrams or Activity Network Diagrams In Perform Quality Assurance, you might use network diagrams if you're looking to improve time management processes.

629. 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 630. Jurans Quality Triology = Quality PLANNING Quality IMPROVEMENT Quality CONTROL 631. 46.UCL : Upper control limit : Is derived from Random variation 632. UTL : Upper tolerance limit is the higher of two tolerance limits 633. The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs. 634. 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 635. A process goes out of control when there are special causes of variation 636. Whenever you use any of the seven basic tools of quality to examine the results of an inspection of your product, you are performing Quality Control. If you were examining the process your company uses to build multiple projects, you would be performing Quality Assurance. 637. Quality metrics are specified in Plan Quality and used in the Perform Quality Assurance and Control Quality processes. PMBOK ® Guide – 5th Edition, page 232, figure 8-3 638. Quality Metrics: the project manager must know how the project is going and be able to determine when to request changes. The only way to effectively do this is to determine metrics in advance. 639. This means the project manager needs to think through the areas on the project that are important to measure and (in most cases) decide what measurement is acceptable. (See the previous discussion of control limits.) The following are some examples of quality metrics: a. The number of changes (to help measure the quality of the project management planning process) b. The variance related to resources utilization c. The number of items that fail inspection d. The variance of the weight of a product produced by the project compared to the planned weight e. The number of bugs found in the software that is being developed as part of the project 640. Group creativity techniques use specifically: Brainstorming, Delphi technique and mind mapping. 641. Special causes are considered unusual and preventable by process improvement, while common causes are generally normal and accepted. 642. Breakdown Structures are considered as a tree diagrams. 643. Affinity diagrams are closely related to mind mapping . 91 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 644. A scatter diagram shows the relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points are to a diagonal line, the more closely they are related 645. A comparison of project activities against a known standard is called benchmarking . 646. Weighing the cost of implementing quality against the benefit it will deliver for the project is called a costbenefit analysis. 647. The tool that is used to test multiple factors simultaneously is called design of experiments 648. 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. 649. Prevention is the lowest cost of quality, while internal is the highest cost of quality. 650. Planning costs are not related to cost of quality. 651. The tipping point where benefits or revenues received from improving quality equals the cost to achieve that quality is called a marginal analysis 7. 652. A process that establishes a financial measure of the user dissatisfaction with a product's performance as it deviates from a target value is described in Taguchi’s loss function 653. ‘Fitness for use’ was a concept pioneered by Joseph Juran. 654. The five levels of the CMMI are in order; Initial, Managed, Defined, Quantitatively managed, Optimized. 655. The amount of inventory carried in a just in time process is typically zero. 656. Six Sigma represents an accuracy of 99.999% 657. Continuous, incremental improvement in a product or process is called kaizen in Japan 658. Deming observed that at least 85% of the cost of quality (poor quality or failure costs) is management’s responsibility. 659. DMAIC (Define Measure Analyze Improve Control) is used for projects aimed at improving an existing business process. 660. DMADV (Define Measure Analyze Design Verify) is used for projects aimed at creating new product or process designs. 661. Statistical Independence states that: the probability of one event occurring does not affect the probability of another event occurring. 662. The key output of the Plan Quality process is the Quality Management Plan 663. A product that is not particularly attractive but meets your quality criteria for fitness for use can be described as low grade, but high quality. 664. The key output of Perform Quality Assurance is change requests. 665. Data that you can perform mathematical computations is called variable or continuous, whereas data that describes a label or a pass/fail scenario is described as attribute or discrete data. 666. The quality pioneer that promoted the idea of zero defects was Philip Crosby. 667. Philip Crosby considered the following to be the Absolutes of Quality Management:

   

Quality is conformance to requirements Defect prevention is preferable to quality inspection and correction Zero Defects is the quality standard Quality is measured in monetary terms

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 668. Kaoru Ishikawa created a diagram used to ferret out root causes of problems that was called the cause and effect diagram 21. 669. Cause and Effect diagrams are also called Why-Why, Fishbone, or Ishikawa Diagrams.

670. The zone test is used to determine if the data in an SPC chart is out of control even though the data points are within the control limits of the chart. 671. The pareto chart is used to identify critical issues in descending order of frequency 672. To determine if a change in ‘X’ corresponds to a change in ‘Y’ the chart that best displays this correlation is the scatter diagram 24. 673. Mutual exclusivity means that two events cannot occur in a single trial. 674. The key output of Control Quality is verified deliverables and validate approved change request. 675. The limits that are calculated on a statistical process control chart are the control limits, whereas the limits that are set by the customer are called the specification limits 2. 676. From the perspective of Quality Control, flow charts can be used to identify failing process steps and identify process improvement opportunities 677. Use DOE during the Plan Quality process to determine testing approaches and their impact on cost of quality. Use it to optimize the product or the process to drive high levels of customer satisfaction. 678. Just in time processes typically carry no inventory. 679. Quality control requires knowledge sampling and probability. 680. Control charts are used to evaluate the performance variance. 681. Standard deviation is the distance of measurement from the mean. 682. The mean represents the average of all of the data points shown on the chart, calculated simply by adding the values together and dividing by the number of values. The mean includes everything. If only the values that were within the control limits were used, it could make the mean look better than it should. 683. Quality Audits  Quality audits is a tool used in perform /quality assurance process.  Quality Audits are when your company reviews your project to see if you are following its processes. The point is to figure out if there are ways to help you be more effective by finding the stuff you are doing on your project that is inefficient or that causes defects. When you find those problem areas, you recommend corrective actions to fix them. 93 | P a g e

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684. 685.

686. 687. 688. 689.

690. 691.

692. 693. 694. 695. 696. 697. 698. 699.

700. 701. 702. 703.

Quality audit is an important process for the project because it helps the project in preventing nonadded value activities. Also conforms to confirm that the project is in compliance with the company project management procedures and policies.  Quality audit concern about identifying inefficient policies, procedures and processes.  Quality audits are also used to determine whether the project team is complying with organizational procedures and policies.  Identify good and best practice, gabs and short coming in the previous projects to increase team productivity. To Decrease confidence interval, in other words how to increase accuracy, you should increase size of sample. Confidence interval is the range of statistical values within which a result is expected to fall with a specific probability. A confidence interval (CI) is a particular kind of interval estimate of a population parameter. Instead of estimating the parameter by a single value, an interval likely to include the parameter is given. In this way, confidence intervals are used to indicate the reliability of an estimate. The smaller the confidence interval, the more accurate the measurement is. Therefore, if we want to decrease the confidence interval, i.e. we want a closer estimate, we need to increase the sample size The nominal group technique and force field analysis, a structured analysis and presentation technique lets you assess the pros and cons of various aspects of the quality management plan. Results from brainstorming session can be narrowed down and prioritized through the nominal group technique and force field analysis. Conformance to target values is defined as __accuracy while the precision of the measurement is expressed as ___standard deviation The activities such as measuring, examining, and verifying to determine whether work and deliverables met requirements and product acceptance criteria are variously referred to as inspections, audits, reviews, product reviews, and walkthroughs. Process Analysis is a tool in Perform Quality Assurance Performing a quality audit is defer from Performing a quality audit relates to determining whether you are using the right processes and whether those processes are effective, rather than improving processes. Discovering non-value activities is part of process analysis in QA. If a company which performs a project has not deployed a quality policy, you should write one for your project. Each project should has a quality policy. Statistically independent events are events that have no bearing on each other. Mutually exclusive events are events that cannot both happen at the same time. Total Quality Management stresses, among other things, that everyone contributes to the quality of the product and process. Risk audit and Procurement audit is defer from perform Quality assurance. The project manager determines the quality metrics to be used on the project Conduct Product Analysis during facilitated workshop, the tool used to capture the ‘voice of the customer’ is called quality function deployment QFD. Continuous process improvement provides an iterative means for improving the quality of all processes and is part of the definition of quality assurance. Its objective is to reduce waste and eliminate non–valueadded activities Quality Assurance provide an umbrella for continuous process improvement. Cost of quality is related to conformance and non-conformance of quality. A reactive method of problem detection and solving in which the analysis is performed after an event has occurred is called a root cause analysis. A checklist is a structured tool, usually component-specific, used to verify that a set of required steps has been performed.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 704. Statistical sampling: It is best to take a sample of a population if you believe there are not many defects, or if studying the entire population would:  Take too long  Cost too much  Be too destructive 705. The sample size and frequency of measurements in statistical sampling are determined as part of the Plan Quality Management process and the actual sampling is done in Control Quality. Keep in mind that statistical sampling can also be done for project management activities. 706. Statistical sampling: It is best to take a sample of a population if you believe there are not many defects, or if studying the entire population would:  Take too long  Cost too much  Be too destructive 707. The sample size and frequency of measurements in statistical sampling are determined as part of the Plan Quality Management process and the actual sampling is done in Control Quality. Keep in mind that statistical sampling can also be done for project management activities.

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Human Resources Management

Plan HR Management

Org Charts Job Descriptions Org. Theory

HR Mgt. Plan

Acquire Project Team

PreAssignment Acquisition Negotiation

Project Staff Assignments Resource Calendars

Develop Project Team

Training Team Building Ground Rules Recognition Rewards

Team Performance Assessments

Manage Project Team

Change Requests Updates

Observations Conversations Conflict Mgt. Performance Appraisals

708. ITTO Process Group

Process

ITTO

Value PM Plan Inputs

Activity Resource Requirements Enterprise Environmental Factors Organization Process Assets Org. Charts and Position Descriptions

Planning

Plan Human Resources

Networking Tools/Tech's

Org. Theory Expert Judgment Meetings

Outputs

Human Resources Management Plan

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HR Management Plan Inputs

Enterprise Environmental Factors Organization Process Assets Pre-assignment Negotiation

Acquire Project Team

Tools/Tech's

Acquisition Virtual Teams Multi-criteria Decision Analysis Project Staff Assignments

Outputs

Resource Calendars Project Management Plan Updates HR Management Plan

Inputs

Project Staff Assignments Resource Calendars Interpersonal Skills Training

Develop Project Team

Team-building Activities Tools/Tech's

Ground Rules Colocation

Executing

Recognition and Rewards Personnel Assessment Tools Outputs

Team Performance Assessments Enterprise Environmental Factors Updates HR Management Plan Project Staff Assignments

Inputs

Team Performance Assessments Issue Log Work Performance Reports Organizational Process Assets Observations and Conversation

Manage Project Team

Tools/Tech's

Project Performance Appraisals Conflict Management Interpersonal Skills Change Requests PM Plan Updates

Outputs

Project Document Updates Enterprise Environmental Factors Updates Organizational Process Assets Updates

709. Human resources can be divided into administrative and behavioral management topics. Most of the answers to human resource questions should come from your everyday knowledge and work experience. Though you will see a lot of different topics described in this chapter, these concepts do not amount to a lot of questions on the exam. To study, read this chapter two or three times and simply make a list of the gaps in your knowledge as you read. After a couple of passes through this chapter, you will likely remember the information well enough for the high-level questions on the exam.

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The previous table should help you understand how each part of human resource management fits into the overall project management process: 710. You should read the process name (acquire project team) as (acquire final project team.) Remember that on a properly managed project, team members need to have input into the project, including what work needs to be done, when, at what cost, what the risks may be, etc., no matter when they get involved in the project. Great project managers will invite new team members to review their part of the project for changes before they start work. People perform better when they input, rather than simply being told what to do.

The inputs to the Acquire project team process include: •

•

•

Human resource management plan: Guidelines on how team members will be added, managed, and released; roles and responsibilities; project organization charts; and the staffing management plan Enterprise environmental factors: Including who is available, whether they are collocated or geographically dispersed, whether they work well together, if want to work on the project, how much they cost, and outsourcing policies Organizational process assets: Including policies for using staff on projects and hiring procedures

Acquiring the project team involves the following: • • • • • •

Knowing which resources are reassigned to the project and confirming their availability Negotiating for the best possible resources Hiring new employees Hiring resources through the contracting process from outside the performing organization-outsourcing Understanding the possibilities and problems with using virtual teams-teams made up of people who never or rarely meet Managing the risk of resources becoming unavailable

Notes In a functional or matrix organization, managers separately evaluate employees' performance on projects as well as their day-to-day responsibilities.

711. There are two similar concepts in this chapter that can be confusing: team performance assessment and project performance appraisals. Project performance appraisals are a technique of the manage Project Team process. In this effort, the project manager collects information from team member's supervisor and adjusts the project accordingly. The focus is on the individual. In contrast, team performance assessment, a technique of the develop project team process, focuses on team performance, not the individual. Team performance assessment is done by the project manager in order to evaluate and improve the effectiveness of the team as a whole.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 712. Other Important Terms, Topics, & Theories One of the things that drives people crazy about the exam is that they see terms they do not know. You should realize the exam does have made-up terms and processes as answer choices. The following discussion of topics related to human resource management should help you get more familiar with some real terms that have been on the exam that you may not have run across previously. But remember, if you are well trained in project management and you see a term on the exam that you do not recognize, chances are it is not the right answer!

Expectancy theory Employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments will remain productive as rewards meet their expectations.

Arbitration In arbitration, a neutral party hears and resolves a dispute.

Perquisites (perks) Some employees receive special rewards, such as assigned parking spaces, corner offices, and executive dining.

Fringe Benefits These are the "standard" benefits formally given to all education benefits, insurance, and profit sharing. 713. The organizational breakdown structure (OBS) looks similar to the WBS; however, instead of being arranged according to a breakdown of project deliverables, it is arranged according to an organization's existing departments, units, or teams.

Motivation 714. Motivation Theory (Or "What People Really Want?") Were you going to skim through this topic? Caught you! If most projects are operated in a matrix environment, then one of the few things a project manager can do to gain cooperation of team members is to understand how to motivate them. This section provides answers. Why would this topic be on the exam? As you have read in this chapter, one of the best ways to gain cooperation is to give rewards. How can we reward people if we do not understand what motivates them? Questions on the exam in this area do not always directly quote motivation theorists. The questions may simply describe situations and ask you what to do. The answer might depend on understanding that the person in the situation is a Theory X manager, or that the project manager was motivating people in the wrong way. Take this section seriously, and look for practice questions that demonstrate such situations.

Here are four motivation theories you need to understand for the exam. McGregor's Theory of X and Y McGregor believed that all workers fit into one of two groups, X and Y. The exam may describe this concept in many different ways. It can be confusing to determine which answer is correct or even what the choices are saying. For those of you with strong visual memories, here is a trick to answering questions on these theories. 99 | P a g e

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Theory X Based on the picture take a guess as to what Theory X is.

Managers who accept this theory believe that people need to be watched every minute. They believe employees are incapable, avoid responsibility, and avoid work whenever possible.

Theory Y Based on the picture, take a guess as to what Theory Y is.

Managers who accept this theory believe that people are willing to work without supervision, and want to achieve. They believe employees can direct their own efforts. It`s a (PMI)® that this is indeed how team members behave, so unless directed otherwise, assume this perspective when responding to exam question.

Maslow's Hierarchy Needs Maslow's message is that people are not most motivated to work by security or money. Instead, the highest motivation is to contribute and to use their skills. Maslow Called this "self-actualization" He created a pyramid to show how are motivated and said one cannot ascend to the next level until the levels below are fulfilled.

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David McClelland's Theory of Needs (or Acquired Needs Theory) This theory states that people are most motivated by one of the three needs listed in the following table. A person falling into one category would be managed differently than a person falling into another category. The concept that individuals are motivated by the need for power, achievement and affiliation is known as achievement theory, developed by David McClelland

Primary Need Achievement Affiliation Power

Behavioral Style      

These people should be given projects that are challenging but are reachable. They like recognition. These people work best when cooperating with others. They seek approval rather than recognition. People whose need for power is socially oriented, rather than personally oriented, are effective leaders and should be allowed to manage others. These people like to organize and influence others.

Herzberg's Theory Herzberg's theory deals with hygiene factors and motivating agents. Frederick Herzberg’s Motivator-Hygiene Theory asserts that some job factors lead to satisfaction, whereas others can only prevent dissatisfaction. Hygiene factors poor hygiene factors may destroy motivation, but improving them, under most circumstances, will not improve motivation. Hygiene factors are not sufficient to motivate people.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Examples of hygiene factors are: • Working conditions • Salary • Personal life • Relationships at work • Security • status Motivating agents what motivates people is the work itself, including such things as: • Responsibility • Self- actualization • Professional growth • Recognition So the lesson here is that motivating people is best done by rewarding them and letting them grow. Giving raises is not the most effective motivator. This is generally good news for project managers, as they often do not have any influence over the pay raises of their team members. 715. Worker needs to be involved in Management Practice = OUCHI’s THEORY Z 716. Theory Z focuses on increasing employee loyalty toward the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. Theory Z was developed by Ouchi 717. As per HERZBERG base Salary is a HYGINE FACTOR 718. Organizational Theory is the theory that states that information regarding the way in which people, teams, and organizational units behavior. Effective use of this theory can shorten the amount of time, cost, and effort needed to create the human resource planning outputs. 719. Parkinson`s Law: Work expands so as to fill the time available for its completion. Some variations of this theory are "Data expands to fill the space available for storage" and "Expenditure rises to meet income." 720. Expectancy theory is the belief that increased effort will lead to increased performance i.e. if I work harder, the outcome will be better . 721. Expectancy Theory asserts that people think seriously about how much effort they should put into a task before doing it. Motivation is linked to an expectation of a favorable outcome. It is based on the concept that people choose behaviors that they believe will lead to desired rewards and outcomes. 722. Staffing management plan may be formal or informal depending on the size and the complexity of the project. 723. Only the staffing management plan helps manage people. 724. Training:  

725. 726. 727.

In planning, through staffing management plan from plan HR. In execution through team performance assessment as an output from develop project team. This kind of training is for groups.  In execution through manage project team by project performance appraisal tool. This kind of training is for individuals. Any unplanned training will be budgeted by management reserves unless you have identified it as a risk and thus you contingent it. Staffing management plan and project organization chart as output from Plan HR can be formal or informal but, Roles and responsibilities must be formal The HR plan is always formal because of Role and responsibilities part

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 728.

There are three levels of details regarding Role and Responsibilities:  Graphical Charts: in which you will be able to know only the responsibilities in the project (because the departments in the company know exactly their roles in the organization). Examples: WBS and Resource Breakdown structure  Matrix: they have more details, like: RAM and RACI  Job description: a narrative form.

729.

Keep in mind, formal training is not necessarily produce the best results in project environment. So, if you believe that you are not qualified enough to manage projects, you can't ask a training for yourself. Obtaining the efficient training for your project team is your responsibility. Efficient communication framework and training needs are performed during develop project team process. The performance of a successful project team is measured in terms of the following: Technical success according to agreed-upon project objectives (including quality levels and safety) Performance on project schedule (finished on time) Performance on project budget (finished within financial constraints) All the project team successful performance measurements are reflected in their skills and competency. The performance assessment should measures both technical achievement and interpersonal competencies The Peter Principle states, "In a hierarchy every employee tends to rise to his/her level of incompetence". Most project team members are motivated by an opportunity to grow, accomplish, and apply their professional skills to meet new challenges. Their achievements continuously promote them within an organization to a certain level until they are unable to perform The responsibility to lead the annual performance review of your team members lies with the functional manage Collective bargaining agreement is a constrain that impacts and limits the project manager ability to select project team member in a trade/labor union environment. Acquisition is an acquiring tool and technique. Usually, recognition rewards are intangible and informal. To conduct annual performance review in an organization, you need a projects performance review as an crucial input. 360-degree feedback is a performance evaluation technique. Its principal that evaluations come from various sources like: superior, peers, subordinates. Project team members’ skills can be developed as part of the project activities. Let's get through RACI; it stands for Responsible, Accountable, Consultant and Informed. This matrix links all the main staff to their tasks in the project and links each activity to its member. Each activity has only one accountable. The accountable has both responsibility and authority. By intersecting WBS with OBS you will get control account points that are used in calculating Earned Value. The Resource Breakdown Structure shows various resources, both human and mechanical needed for project. Acquisition: When the performing organization lacks the in house staff needed to complete the project, the required services can be acquired from outside sources 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". Pareto chart: Focus on critical issues to improve quality Fishbone diagram/Ishikawa: Determines how various factors linked to potential problems or effects, root cause Control chart: Determines whether or not process is stable and within set limits . Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause.

730. 731. 732. 733. 734. 735. 736. 737. 738.

739. 740. 741. 742. 743. 744. 745. 746. 747. 748. 749. 750. 751. 752. 753. 754. 755.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 756. 757. 758. 759.

760. 761. 762.

763.

764.

765. 766. 767.

Communication Management plan defines the contents of the performance reports Symbols are always used in the communications Team development with WEAK Matrix is very difficult Project schedule along with network diagram (that graphically represents the project schedule) provides the most convincing visual proof of the resource requirements in the project and shall be used during resource negotiation by Project Manager. Remember a project schedule is derived from a WBS, an effort estimate for each task, and a resource list with availability for each resource, so it is granular and most accurate. Functional Managers who control Human Resources. Resource calendar is used to show resource utilization. Resource calendar goes as input to:  Estimate activity duration  Estimate activity resource  Develop schedule  Determine budget Resource calendar came from two process:  Acquire project team by staffing management plan  Conduct procurement  Managing by walk around (MBWA) is an informal assessment technique to measure the project team effectiveness.

In acquire the final project team’. The following actions are included:  Know the pre-assigned resources  Negotiate for the best resources available  Hire new resources if it is an option  Bring on contractors/consultants when needed Understand the impact of using virtual teams (i.e. non co-located or off-shore) A key output of the Manage Project Team process is change requests. Pre-assignment. This situation can occur if the project is the result of specific persons being promised as part of a competitive proposal, if the project is dependent on the expertise of particular persons, or if some staff assignments are defined within the project charter

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 768.

769. 770. 771. 772. 773. 774. 775.

776.

777. 778. 779.

780. 781. 782. 783. 784. 785. 786. 787. 788. 789. 790. 791. 792. 793.

Project governance refers to an organization's established criteria, procedures, and guidelines intended to make sure project meet the organization's strategic goals. Project governance should drive any actions, decisions or work undertaken by the project manager, team, sponsor, and other stakeholders in relation to the project. Strategic plan is not part of OPA. Organization structure is a crucial constrain when planning for human resources. Team performance assessment addresses the effectiveness of the team as a whole, while project performance appraisals address the performance of individuals on the team 17. In most matrix organization, the functional manager who dose the performance appraisal of the project team. Develop Project Team is in the Executing process group and has the key output of Team Performance Assessment When do you gather work performance information? You do it when you’re reporting on the performance of the team - that’s why it’s a tool and technique of the Performance Reporting process. The key to a good bonus system is that it must be achievable and motivate everyone in the team to work toward it. If you are only rewarding one team member or a few people in the group, the rest of the team will not be motivated. Also, making the goals too aggressive can actually. Remember this: unless it is a very unusual circumstance, the project does not pay for training. The functional organization's responsibility to provide competent and trained resources. That’s mean, the training costs in general are indirect costs. Recognition seekers are more concerned with getting in the spotlight than with facilitating communication. Blockers reject others' viewpoints and shut down discussion. Devil's advocate - bringing up alternative viewpoints - can be either positive or negative, but it is listed in most project management literature as a destructive team role because when it is negative it is very negative! Information seekers are constructive because they ask questions to gain information. You are going to find roles and responsibilities in other plans. All those must be within the HR management plan but, have more technical details regarding their specific field. All roles and responsibilities must be clearly defined and documented for the project. The processes in the Project Human Resource Management knowledge area occur in the Planning and Executing process groups of the Project Management Lifecycle. The role that accepts the product of the project and provides financial resources for the project is the sponsor The role that sets priorities between projects and the triple constraints is performed by senior management 3. The roles and responsibility grid ( RAM ) identifies activities, documents, and other deliverables along with the person accountable for those activities The psychologist who introduced his concept of a hierarchy of needs was Abraham Maslow 8. Frederick Herzberg found that the factors causing job satisfaction (and presumably motivation) were different from that causing job dissatisfaction. He called these dissatisfiers hygiene factors Funnel Analysis: A type of interviewing technique by which we start with general or high level questions and then get into specific or particular questions. Fringe benefits are additional benefits to employee like health care. Perquisites mean bonus. According to David McClelland, there are three relevant motives or needs in work situations: the need for achievement, power, and affiliation or association Celebrating is a key management skill during adjuring.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 794.

Team building, like many parts of project management, is in part a science. The Tuchman ladder model stages of team formation and development: • Forming: People are brought together as a team. • Storming: There are disagreements as people learn to work together. • Forming: Team members begin to build good working relationships. • Performing: The team becomes efficient and works effectively together. This is the point when the project manager can give the most attention to developing individual team members. • Adjourning: The project ends, and the team is disbanded.

New teams may go through each step, while teams that have worked together before may experience a shortened version or skip some of the early steps. Team building is an ongoing activity that you should be thinking about before you even have a team, and it does not end until project closure. Project managers who feel they do not have time for team building typically are not using proper project management on their projects. Practices like properly planning a project and managing risks and quality save significant amounts of time on a project and free up the project manager to do other important things, like team-building activities. When you take the exam, assume the project manager featured in the questions has an extensive team-building plan. 795. Team-building activities can include: • Taking classes together • Milestone parties • Holiday and birthday celebrations • Outside-of-work trips • Creating the WBS • Getting everyone involved in some way in planning the project 106 | P a g e

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Conflict Management 796. When you have questions on the exam relating to conflict management, make sure you first think, "Who generally has authority over the situation described in this question?" Another good question to remember is, "What resolution of this problem would best serve the customer's interests?" The following are the main conflict resolution techniques to know for the exam. Notice that some have more than one title; you should know both. • Collaborating (Problem Solving) in this technique, the parties openly discuss differences and try to incorporate multiple viewpoints in order to lead to consensus and commitment. Collaboration leads to a win-win situation. • Compromising (Reconciling) This technique involves finding solutions that bring some degree of satisfaction to both parties. Since no party gets everything, this is lose-lose situation, Did you know that compromise is not the best choice, but rather second to collaborating? • Withdrawal (Avoidance) in this technique, the parties retreat or postpone a decision on a problem. Dealing with problems is a (PMI)®; therefore, withdrawal is not usually the BEST choice for resolving conflict, though there may be situations where it is necessary. This is lose-leave situation • Smoothing (Accommodating) This technique emphasizes agreement rather than differences of opinion. • Forcing (Directing) This technique involves pushing one viewpoint at the expense of another. It is a winlose situation. 797. Remember to look for collaborating or problem – solving choices as generally the best answers, and forcing as the worst, but realize the answer depends on the situation described. There could be situations where withdrawal is the best option. 798. Let the people involved in the conflict work it out first 799. When questions on the exam require you to solve problems, ask yourself, "What is the real problem behind the situation presented?" Here is an example: During project executing, a project manager discovers that the seller did not supply the report required by the contract for the last four weeks. What should he do? What would you do? Would you call the seller and investigate why it was late? If so, you would get the answer wrong on the exam. In a contract situation, the seller has breached the contract by not doing something required in the contract. The required legal action for a breach is to send written notification of the breach, not call the seller. You need to understand the real problem. Making sure you are solving the right problem is extremely important, because it is a significant issue for many people who take the exam, especially those who have never managed projects that are more than a few months long or who have not had formal training in project management. There can be many questions that, in a manner of speaking, describe that there is a fire and ask you what to do. You might choose the answer that amounts to "find out why there is a fire" when you should choose the choice that relates to "get out of the danger zone:' 800. conflict resolution techniques, which is an example of Enhancing personal professional competence. This means increasing your knowledge and applying it so that you can improve your ability to manage projects. 801. Any time there’s a conflict of interest, it’s your duty to disclose it to your company. After that, you should always proceed based on your company’s policies. If there are no specific policies about that, then make sure that the conflict does not affect your decisions. 802. A second notice to the team member for poor performance and it should be communicated in a formal written manner. PMBOK 5th Edition Page 287. 803. Elaboration is not one of the five conflict-resolving methods that are recognized and endorsed by the Project Management Institute (PMI)® 107 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 804. A zero-sum game (win – lose ) is where one side wins at the expense of the other. 805. The top three causes of conflict on a project are: schedule, project priority, and resources 806. (PMI)® considers confrontation as the best approach in resolving conflict while it considers forcing the worst approach. 807. In project early stage of forming, the most conflicts are about the power and authority in the matrix organization 808. Blake and Mouton have delineated five modes for handling conflicts as listed below:  Withdrawal: Retreating or withdrawal from a potential disagreement.  Smoothing: De-emphasizing or avoiding areas of differences and emphasizing areas of agreement.  Compromising: Bargaining and searching for solutions that bring some degree of satisfaction to the parties in a dispute.  Characterized by a ‘’give and take’’ attitude.  Forcing: Exerting one’s viewpoint at the potential expense of another. Often characterized by competitiveness and a win-lose situation. 809. Confrontation: Facing the conflict dire6tsctly, which involves a problem solving approach, whereby affected parties work through their disagreements. 810. You should uncover your concerns in professional manner, if your concerns didn't attract others, choose between comply with procedures or leave. 811. Egotistical refers to being self-centered. 812. Enlightened self interest refers to persons who act to further the interests of others (or the interests of the group or groups to which they belong), ultimately serving their own. 813. Ethnocentric means tending to look at the world primarily from the perspective of one's own culture.

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Communications Management

Plan Communication Management

Communciation Mgt. Plan

Req. Analysis Technology Models Methods Meetings

Manage Communications

Project Communications

Models Method Systems Reporting

Control Communications

Work Performance Information Change Requests

Exp. Judgment Systems Meetings

814. ITTO

Process group

process

ITTO

Inputs

Planning

Plan Communications Management

Tools/Tech's

Outputs Executing

Manage Communications

Inputs

value PM Plan Stakeholder Register Enterprise Environmental Factors Organizational Process Assets Comm. Requirements Analysis Comm. Technology Comm. Models Comm. Methods Meetings Communications Management Plan Project Documents Updates Comm. Mgmt Plan Work Performance Reports

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Tools/Tech's

Outputs

Inputs

Monitoring/Controlling

Control Communications

Tools/Tech's

Outputs

Enterprise Environmental Factors Org. Process Assets Comm. Technology Comm. Models Comm. Methods Info Mgmt Systems Performance Reporting Project Communications PM Plan Updates Project Documents Updates Org. Process Assets Updates PM Plan Project Communications Issue Log Work Performance Data Organizational Process Assets Information Management Systems Expert Judgment Meetings Work Performance Information Change Requests PM Plan Updates Project Documents Updates Organizational Process Assets Updates

815. Only 7 % of your message is conveyed in the words themselves, while 38 %of the message is conveyed in vocal tone and inflection and 55 % in body language 2.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 816. 817. 818. 819. 820. 821. 822. 823. 824. 825. 826.

The formula that determines the complexity of communications is expressed as [N*(N-1)]/2. The key output of the Plan Communications process is the communications management plan The three fundamental communications methods are known as interactive, push, and pull 5. Manage Communications occurs in the _executing_process of the Project Management Life cycle The process of attentively responding and verifying what the sender of a message is communicating to you is called active listening 7. The four basic types of communications are known as: formal written, formal verbal, informal written, and informal verbal 8. A project manager spends 90% of their time on communication activities. Providing information at the right time, in the right format to the right audience is called _efficient communications. Providing only and exactly the information needed is defined as _effective communications The sender who confirms the receiver's understanding of the message. Communications occur internally and externally to the core project team, vertically (up and down the levels of the organization), and horizontally (among peers). Make sure your planning includes communicating in all of the following directions.

many people forget communications between projects as if there were no other projects that could be connected, take resources, create delays, or cause other problems on the project. In order to have clear, concise communications, you need to handle communications in a structured way and choose the best type of communication for the situation. Information can be expressed in different ways-formally or informally, written or verbal. You need to decide what approach to use for each instance of communication. Make sure you understand the following chart: Communication Types Formal written Formal verbal Informal written Informal verbal

When Used Complex problems, project management plan, project charter, communicating over long distances Presentations, speeches E-mail, handwritten notes, text messages, instant messaging Meetings, conversations

827. Effective Communication The sender should encode a message carefully, determine which communication method to use to send it, and confirm that the message is understood. When encoding the message, the sender needs to be aware of the following communication factors:  Nonverbal: A significant portion of in-person communication is nonverbal (i.e., based on physical mannerisms). This is also known as body language. 111 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641  

Paralingual: Pitch and tone of voice also help to convey a spoken message. Words: The words and phrasing the sender chooses are an essential component to the message. But their can change depending on the accompanying nonverbal and Para lingual factors-or even the absence of those factors in written communication.

To confirm the message is understood, it's helpful for the sender to ask for feedback with questions like "Could you rephrase what i have said in your own words?" But it's ultimately up to the receiver to make sure she or he has received and understood the entire message the previous paragraph applies to individual interactions as well as to planning communication. It's possible to plan in not just the types of communications to be used, but also ways for the sender to confirm the receiver has interpreted the message as intended. The stakeholders would reference the communications management plan to know not only what to communicate and when, but also to understand the ground rules and requirements of how to communicate and confirm understanding. 828. Effective Listening So what should the receiver do to carefully decode the message and confirm it has been understood? The receiver should watch the speaker to pick up physical gestures and facial expressions; focus on the content of the message without judgment, distraction, or interruption; think about what to say before responding; and use active listening. Active listening means the receiver confirms he or she is listening, expresses agreement or disagreement, and asks for clarification when necessary. Even if a message is not understood, the receiver should still acknowledge the message by saying something like "I am not sure I understand. Can you explain that again?" Like the sender, the receiver needs to encode his or response carefully and keep in mind the potential effects of nonverbal (body language) and Para lingual communication when giving feedback.

829. As you read this chapter, you may be seeing many new terms. you can figure out most of these terms without memorization as long as understand the concept that communications must be planned and thought through to include all stakeholders in many countries. For example, can you guess what a push do not waste time memorizing them? Just read this chapter over once or twice, and you should understand the 112 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 concepts for the exam. 830. The only formula with the letter "N" in it on the exam is communication channels. 831. If you have a question like, "You have a team of four people; how many channels of communication are there?" simply draw the lines or channels of communication, as shown, to get six channels of communication.

Now let's use the formula to find the answer to the previous question. Calculate 4 times 3 (which is N-1) to get 12 and then divide by 2 to reach the answer, which is 6.

Now try it on your own. If you have four people on your project (including you, the project manager) and you add one more, how many more communication channels do you have? The answer is 10 of course, right? Wrong! The question asked how many more. Do you know how many people get a question wrong because they read it incorrectly? To use the trick described previously, simply draw a new person and draw lines from the new person to all the other to see that there are four more channels of communication, as shown.

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To get the answer using the formula, you would have to calculate the communication channels with a team of four and with a team of five and then subtract the difference. We already did the calculation for four people to find six channels. The calculation for five team members is 5 times 4 equals 20; 20 divided by 2 equals 1 O; 10 minus 6 equals 4. 832. Communications Management Plan The primary output of the Plan Communications Management Process is a communications management plan. A communications management plan documents how you will manage and control communications. Many people do not realize the extent of the information that must be distributed. The following is just one portion of what you might find in a communications management plan: What Needs to be Communicated

Why

Between Whom

Best Method for Communicating

Responsibility for Sending

When & How Often

Because communications are so complex, a communications management plan should be in writing for most projects. It must address the needs of all the stakeholders, and should account for any language and cultural differences on the project. The communications management plan becomes part of the project management plan. 833. Employee records should be updated by PM when he completes the tasks assigned to him 834. Individual development is the Foundation of Team development

835. Various Forms of Communication and Their Characteristics :

Written Formal Precise Transmitted through the medium of correspondence Project charter, scope statement, project plan, WBS, project status Complex issues, Contract related communications, Memos Written Informal Email, notes, letters, etc. Regular communication with team members 114 | P a g e

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Verbal Formal High degree of flexibility Use the medium of personal contact, group meetings, or telephone Presentations, speeches, Negotiations Verbal Informal Conversation with team members Project meetings Break-room or war-room conversations Non-verbal Communication About 55% of total communication Facial expressions, hand movements, tone of Annotation while speaking, etc. Non-verbal communication forms more than 55% of the total communication and is important to pay attention to while negotiations are being conducted. Please note that initial communication about performance should preferably be informal oral (e.g. face-to-face meeting). If the performance does not improve, while escalating to senior management, formal-written communication should be used. 836. Performance reporting, communication method and communication technology are tools in manage communications. 837. Communication management plan, performance reports and OPA are inputs to manage communications. 838. Issue log is input to control communication because it includes the issue owner. 839. The best description of effective listening is attending to the speaker without distractions, confirming what the speaker says, and taking note of body language. 840. Noise includes any interference or barriers that might compromise the delivery of the message in a communications model, and this is one of the biggest challenges faced by members of virtual teams. 841. The communication from responsible to accountable is in one direction. 842. The communication between accountable and consultant is in two directions. 843. The communication from consultant to Informed is in one direction.

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Risks Management Plan Risk Management

Risk Mgt. Plan

Identify Risks

Risk Register (Risks & Triggers)

Perform Qualitative Analysis

Updates Perform Quantitative Analysis

Project Documents

Updates

Plan Risk Response

Updates Control Risks

Updates

844. ITTO Process Group

Process

ITTO

Inputs Plan Risk Management

Tools/Tech's

Planning

Outputs

Identify Risks

Inputs

Value PM Plan Project Communications Project Charter Stakeholder Register Enterprise Environmental Factors Organizational Process Assets Analytical Techniques Expert Judgment Meetings Risk Management Plan Risk Mgmt Plan Cost Mgmt Plan Quality Mgmt Plan HR Mgmt Plan Scope Baseline Activity Cost Estimates

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Tools/Tech's

Outputs

Inputs

Perform Qualitative Risk Analysis Tools/Tech's

Outputs

Inputs

Perform Quantitative Analysis

Tools/Tech's

Outputs Inputs

Tools/Tech's Plan Risk Responses

Outputs

Activity Duration Estimates Stakeholder Register Project Documents Procurement Documents Enterprise Environmental Factors Organizational Process Assets Documentation Reviews Information Gathering Techniques Checklist Analysis Assumptions Analysis Diagramming Techniques SWOT Analysis Expert Judgment Risk Register Risk Management Plan Scope Baseline Risk Register Enterprise Environmental Factors Org. Process Assets Risk Probability and Impact Assessment Probability and Impact Matrix Risk Data Quality Assessment Risk Categorization Risk Urgency Assessment Expert Judgment Project Documents Updates Risk Mgmt Plan Cost Mgmt Plan Schedule Mgmt Plan Risk Register Ent. Enviro. Factors Org. Process Assets Data Gathering and Representation Techniques Quantitative Risk Analysis and Modeling Techniques Expert Judgment Project Documents Updates Risk Management Plan Risk Register Strategies for Negative Risks or Threats Stategies for Positive Risks or Opportunities Contingent Response Strategies Expert Judgment PM Plan Updates Project Documents Updates

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Inputs

Monitoring/Controlling

Control Risks

Tools/Tech's

Outputs

PM Plan Risk Register Work Performance Data Work Performance Reports Risk Reassessment Risk Audits Variance and Trend Analysis Technical Performance Measurement Reserve Analysis Meetings Work Performance Information Changes Requests PM Plan Updates Project Document Updates Organizational Process Assets Updates

845. The five Planning steps in Risk Management are, in order: Plan Risk Management, Identify Risks, Qualitative Analysis, Quantitative Analysis, and Risk Response Planning. 846. Expect the phrases "sources of risk" and "risk categories" to be used interchangeably on the exam. 847. Types of Risk In addition to risk categories, risks can be classified under two main types:  Business risk of a gain or loss. These risks are applicable to response strategies.  Pure (insurable) risk2 only a risk of loss (e.g., fire, theft, personal injury, etc.) 848. Pure risks have to be avoided by transfer response strategy like: massive fire, life, theft.

849. Risk Identification 

When you get a question about who should be involved in risk identification, the best answer is everyone! Everyone has a different perspective of the project and can provide thoughts on opportunities and threats.



Smart project managers begin looking for risks as soon as a project is first discussed. In fact, the PMBOK ® Guide 5thedition lists high-level risks as an output of the creation of the project charter in integration management. However, the major risk identification effort occurs during planning.



Because risk identification primarily occurs during project initiating and planning, the exam has often said that the major part of risk identification happens at the onset of the project. But keep in mind that smaller numbers of risks may also be identified later in the project. Risks should be continually reassessed. For the exam, understand that risk identification is done during such activities as integrated change control, when working with resources, and when dealing with project issues. Notice that an updated risk register is the main output of several of the risk management processes (for most of these processes, the PMBOK ® Guide 5th edition lists the updated risk register as the chief item under ‘‘project documents updates ‘‘. read exam questions carefully, as the risk register contains different information depending on when in the risk management process the question is referencing. For example, if the project has just started and you are in the identify risks process, the risk register will contain the identified risks and potential responses, not the response plans actually selected for the project, which come later.



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Mohammed Shafeea Haddad (PMP)® Number: 1987641 850. While the Risk Register may contain a budget for the identified risk responses, the management reserve amount is not part of the Risk Register. 851. The RBS is part of the Risk Management Plan and can be updated as part of the Perform Qualitative Risk Analysis process when new categories of risk can be added to both the risk register and the risk breakdown structure. 852.    

At the time the risk is first prepared in the risk management process, the risk register includes: List of risks List of potential responses Root causes of risks Updated risk categories

853. A tricky question on the exam might ask, "When in the risk management process are responses documented?" The answer is both during Identify Risks (as potential responses) and during Plan Risk Responses (as selected response plans)! 854.

Qualitative risk analysis can also be used to:  Compare the risk of the project to the overall risk of other projects.  Determine whether the project should be continued or terminated.  Determine whether to proceed to the Perform Quantitative Risk or Plan Risk Responses processes (depending on the needs of the project and the performing organization).

855. Many people get confused between qualitative and quantitative risk analysis. Remember that qualitative risk analysis is a subjective evaluation, even though numbers are used for the rating. In contrast, quantitative risk analysis is a more objective or numerical evaluation; the rating of each risk is based on an attempt to measure the actual probability and amount at stake (impact). Therefore, while the rating for a risk in qualitative risk analysis might be a 5, it might be stated as a$40,000 cost impact in quantitative risk analysis. As a project manager, you should always do qualitative risk analysis, but quantitative risk analysis is not required for all projects and may be skipped in favor of moving on to risk response planning. You should proceed with quantitative risk analysis only if it is worth the time and money on your project. For some projects, you may have a subset of risks identified that require further quantitative analysis. But why spend time quantitatively assessing risks for a low-priority or short-term project or when the effort will provide minimal returns? The Perform Quantitative Risk Analysis process can include a lot of calculation and analysis. Luckily, the details of these efforts are not a focus of the exam. You need to know the following actions are part of quantitative risk analysis but not how to do them beyond what is explained in this chapter:  Interviews for Further investigate data of the highest rated risks on the project.  Take these data and Perform sensitivity analysis to determine which risks have the most impact on the project.  Determine how much quantified risk the project has through expected monetary value analysis or mote Carlo analysis.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 856. You do not need to know how to perform Monte Carlo Analysis calculation for the exam. Simply know the following. Monte Carlo analysis:  Is usually done with a computer-based program because of the intricacies of the calculations  Evaluates the overall risk in the project  Determines the probability of completing the project on any specific day, or for any specific cost  Determines the probability of any activity actually being on the critical path Takes into account path convergence (places in the network diagram where many paths converge into one activity)  Translates uncertainties into impacts to the total project  Can be used to assess cost and schedule impacts  Results in a probability distribution 857. Monte Carlo analysis gives you: An indication of the risk involved in the project 858. Sensitivity Analysis are part of Quantitative Risk Analysis 859. Decision Trees Some examples of decision trees have the costs occurring only at the end of the project, while others have costs occurring early or in the middle of the project. Because a decision tree models all the possible choices to resolve an issue, costs can appear anywhere in the diagram, not just at the end. 860. On the exam, don't get confused when you look at examples of decision trees. Pay attention to the data provided in the question in order to correctly interpret the answer. 861. A decision tool that illuminates a possible path forward based on a decision made by the business and the probability of success of each decision path is called a decision tree analysis 862. Net path value in a decision tree node is (cost impact only without probability) 863. The following exercise shows a picture of a decision tree. The box represents a decision to be made, and the circles represent what can happen as a result of the decision.

EXERCISE 11 A company is trying to determine if prototyping is worthwhile on the project. They have come up with the following impacts (see the diagram) of whether the equipment works or fails. Based on the information provided in the diagram, what is the expected monetary value of each option? Which is the cheaper option-to Prototype or not to prototype?

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Answers If you just look at the setup cost of prototyping, it would seem like an unwise decision to spend money on prototyping. However, the analysis proves differently. Taking into account only the one future event of whether the equipment works or fails, the decision tree reveals that it would be cheaper to do the prototyping. The expected monetary value of prototyping is $242, 000, the expected monetary value of not prototyping is $315,000. Prototype

Do Not Prototype

35%× $120,000=$42,000 $42,000+$200,00=$242,000 70%× $450,=$315,000

EXERCISE 12 You need fly from one city to another. You can take airline A or B. Considering the data provided, which airline should you take, and what is the Expected monetary value of your decision?

Answers If you just look at the cost of the airfare, you would choose airline because it is cheaper. However, the airlines have different on-time-arrival rates. If the on-time-arrival rate for airline A is 90 percent, it must be late 10 percent of the time. Airline B is on time 70 percent of the time, and is therefore late 30 percent of the time. We have a $4,000 impact for being late. The result is that you should choose airline A, with an expected monetary value of$1,300 as shown below. (10%×$4,000)+$900 Airline A $400+$900=$1,300 (30%× $4,000)+$300 Airline B $1,200+$300=$1,500

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 864. Proving the value of project management project management saves time and money on projects. Getting your organization`s executives to understand that fact can be difficult at times. How beneficial would it be if you could prove the value of project management? Imagine you have just done the first calculation of the expected monetary value of all the risks that were assigned high ranking and priority in qualitative risk analysis or that you have completed a Monte Carlo analysis for the project. In either case, you calculate that you need a $ 98,000 contingency reserve on the project to accommodate risks. That number can be used in many ways. Let's try this example. The team moves on to the plan risk responses process and therein eliminates some risks and reduces the probability or Monte Carlo analysis is then redone, showing a revised need for only a$12,000 reserve. You have just saved $86,000 and you have not even started the project yet! Can you imagine how much value information like that would have in gaining support for project management in the real world? 865. Reserves (Contingency) having reserves for time and cost is a required part of project management. You cannot come up with a schedule or budget for the project without them. Reserves are covered in the Cost Management chapter, but let's look at them again here as well. There can be two kinds of reserves for time and cost: contingency reserves and management reserves. Contingency reserves account for "known unknowns" (or simply "know ns"); these are items you identified in risk management. Management reserves account for "unknown unknowns" (or simply "unknowns"); these are items you did not or could not identify in risk management. Projects can have both kinds of reserves. As shown in the following diagram (also in the Cost Management chapter), contingency reserves are calculated and become part of the cost baseline. Management reserves are estimated (e.g., 5 percent of the project cost), and then these reserves are added to the cost baseline to get the project budget. The project manager has control of the cost baseline and can approve use of the contingency reserves, but management approval is needed to use management reserves. Make sure you realize that reserves are not an additional cost to a project. The risk management process should result in a decrease to the project's estimated time and cost. As risks are eliminated or their probability or impact reduced, there should be a reduction to the project`s schedule and budget. Contingency reserves are allocated for the Contingency plans and fallback plans associated, accepted opportunities and threats that remain after the risk management planning processes have been completed. No matter what you do, risks will remain in the project, and there should be a time or cost allotment for them, just as cost or time is allotted to work activities on the project.

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There may be questions on the exam that ask you to calculate the contingency reserve for several risk events, which may be a combination of opportunities and threats. To do this, you must calculate the amount of each risk using the equation for expected monetary value (EMV = P x I). But think about this a minute. Can you just add all of the expected monetary value amounts of the opportunities and threats together and come up with one grand total? No! You'll need to subtract the total expected monetary value of the opportunities from the total expected monetary value of the threats. Why? 123 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Opportunities will save money and time on the project if they occur. This can reduce the cost baseline. Conversely, the threats will add cost and time to the project. Wait! We're telling you to subtract opportunities here, but didn't we tell you earlier than expected monetary value is often presented as a positive amount for opportunities and a negative amount for threats? That 'softens true when the values are depicted on something like a decision tree, so you can easily identify positive and negative outcomes and their overall effect on project costs. But here we're specifically looking to determine how much money to set aside for the contingency reserves, and threats are going to add to the contingency reserve amount, whereas opportunities will decrease it.

Name

Formula

Cost Variance (CV)

EV-AC

NEGATIVE is over budget; POSITIVE is Under budget.

interpretation

Schedule Variance (SV)

EV-PV

NEGATIVE is behind schedule; POSITIVE is Ahead of schedule.

Cost Performance Index 9 (CPI)

EV/AC

We are getting $ _____ worth of work out of Every $1 spent. Funds are or are not being used Efficiently. Greater than one is good; less than One is bad.

Schedule Performance Index

EV/PV

We are (only) progressing at __ percent of The rate originally planned. Greater than one is Good; less one is bad.

Estimate at Completion (EAC)

As of now, how much do we expect the total project to cost? (See formulas to the left, below.)

NOTE: There are many ways to calculate EAC, depending On the assumptions made. Notice how the purpose of the formulas really is to create forecasts based on past performance On the project. Exam questions may require you to determine which EAC formula is appropriate; you will need to pay attention to the information provided in the question to decide Which formula to use.

This formula calculates actual costs to date plus a new estimate for the remaining works. It is used when the original estimate was fundamentally flawed.

AC+ Bottom-up ETC

This formula is used if no variances from the BAC have occurred or you will continue at the same rate of spending (as calculated in your cumulative CPI or based on the trends that have led to the current CPI).

C

BAC/CPI

This formula calculates actual costs to date plus remaining budget. It is used when current variances are thought to be atypical of the future. It is essentially AC plus the remaining value of work to perform.

AC + (BAC - EV)

C

C

This formula calculates actual to date plus the remaining budget modified by performance.

AC+(BAC-EV)/( CPI x SPI ) It is used when current variances are thought to be typical of the future and when project schedule constraints will influence the completion of the remaining effort. So for example, it might be used when the cumulative CPI is less than one and a firm completion date Must be met.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 To-Complete Performance Index (TCPI) (BAC- EV)/(BAC-AC)

This formula divides the work remaining to be done by the money remaining to do It. It answers the question "In order to stay within budget, what rate we must meet for the Remaining work?" Greater than one is bad; less than 1 is good. How much more will the project cost?

Estimate to Complete (ETC) EAC-AC NOTE: You can determine ETC by either using the first formula listed at right or re-estimating the work remaining. Variance at completion (VAC)

Re-estimate the remaining work from the bottom up. Re-estimate BAC-EAC

How much over or under budget will we be at the end of the project?

866. Reserve analysis as a analytical technique is used in:  Planning for estimation purposes in: estimate duration, estimate cost and determine budget  M&C in: control cost and control risks. 867. A project was funded with 50$ and finished with 40$, there is a high probability that the 10$ was a contingency reserve. 868. Let's try an example of calculating a contingency reserve in the next exercise.

EXERCISE 13 Imagine you are planning of modifications to an existing product your analysis has come up with the following information. What cost contingency reserve would you use?

Project Data

Cost Contingency Reserve Calculations

There is a 30 percent probability of a delay in the receipt of parts, with a cost to the project of $9,000. There is a 20 percent probability that the parts will cost $10,000 less than expected. There is a 25 percent probability that two parts will not Fit together when installed, costing an extra $3,500. There is a 30 percent probability that the manufacture may be simpler than expected, saving $2,500. There is a 5 percent probability of a design defect, causing $5,000 of rework.

Total Cost Contingency

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Answers You use the expected monetary value calculation (EMV = P x I) to determine the contingency reserve. The answer is $1,075 for the total cost contingency reserve. See the following table for the detailed calculations.

Project Data There is a 30 percent probability of a delay in the receipt of parts, with a cost to the project of $9,000. There is a 20 percent probability that the parts will cost $10,000 less than expected. There is a 25 percent probability that two parts will not Fit together when installed, costing an extra $3,500. There is a 30 percent probability that the manufacture may be simpler than expected, saving $2,500. There is a 5 percent probability of a design defect, causing $5,000 of rework.

Total Cost Contingency

Cost Contingency Reserve Calculations 30% x $9,000 = $2,700 $9,000. Add $2,700 20% x $10,000 = $2,000 Subtract $2,000 25% x $3,500 = $875 Add $875

30% x $2,500 = $750 Subtract $750 5% x $5,000 = $250 Add $250 $1,075

Now let`s try another exercise. If the risk management process is new to you, the following exercise should help you put it all together by looking at in a chart from.

869. Flowchart of the risk process from Identify Risks through Plan risk responses

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 You are nearing the end of the plan risks responses section! But first, let`s look at the types of questions you may see in Risk area on the exam. The exam often asks questions such as: Question What do you do with noncritical risks? Answer Document them in a watch and revisit them periodically Question would you choose only one risk response strategy? Answer No, you can select a combination of choices. Question what risk management activities are done during the execution of the project? Answer watching out for watch-listed (noncritical) risks that increase in importance, and looking for new risks. Question what is the most important item to address in project team meetings? Answer Risk. Question how would risks be addressed in project meetings? Answer By asking, "What is the status of risks? .Are there any new risks? Is there any change to the order of importance?" 870. Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results. 871. Simulation involves calculating multiple project durations with different sets of activity assumptions, usually using probability distributions constructed from the three-point estimates to account for uncertainty. PMBOK ® Guide - 5th Edition, page 430 872. Life cycle costing provides the lowest long- term cost of ownership and should be used as a management decision tool, in case of alternatives 873. If you identify new risk, you should make a reserves analysis first to see if you have contingency that may cover the new risk response strategy 874. Risk benefit analysis is the other name of risk assessment 875. Residual risks are REMINING RISKS after risk responses have been implemented 876. Risk mitigation is to DECREASE THE PROBABILITY OF RISK 877. Outsourcing IS RISK TRANSFERENCE 878. Networks (diagram) identify the Activity dependencies and path convergence risks 879. Sensitivity chart displays sensitivities in DESENDING ORDER 880. Status meetings: You should either make risk management a normal part of regular project meetings or schedule meetings with a special focus on risk management to ensure that you and the team remain focused on risk management activities throughout the life of the project. The purpose of these status meetings is to examine all aspects of risk management on the project and ensure they are still appropriate and effective. Additionally, having regular meetings where risk management is a topic of discussion creates greater awareness and buy-in from team members, which in turn results in better risk management. 881. Residual risks are risks that remain even after you have planned for and implemented all of your risk response strategies. They don’t need any further analysis because you have already planned the most complete response strategy you know in dealing with the risk that came before them. 882. If a ( unknown – unknown ) risk has happened ; it's probability is 100% 883. Weather problems is considered as a ( known – unknown ) risks. 884. Defect repair might sound tempting - but it is only applicable for the issues found for the current delivery. This is also not about Quality Control - so that leaves us with only two options - Corrective or Preventive actions. Corrective actions are always preceded by nonconformity while preventive actions are never preceded by nonconformity. In this case nonconformity in the form of a lot of issues during Quality Assurance were reported. The root cause was identified to be the need of a standard checklist which was then used preventive action is always taken proactively - in the question stated there is no demonstration of any proactive steps taken - hence this is not an example of Preventive action. 885. You create the Risk Breakdown Structure in Risk management planning process not in Identify Risk Process. The RBS helps you to see how risks fit into categories so you can organize your risk analysis and response planning. 127 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 886. Sensitivity analysis helps to determine which risks have the most potential impact on the project. It helps to understand how the variations in project`s objectives correlate with variations in different uncertainties. Conversely, it examines the extent to which the uncertainty of each project element affects the objective being studied when all other uncertain elements are held at their baseline values. PMBOK ® Guide 5th edition, page 338 887. Risk avoidance involves changing the project management plan to eliminate the threat entirely. The project manager may also isolate the project objectives from the risk’s impact or change the objective that is in jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing scope. PMBOK® Guide - 5th Edition, page 344 888. Secondary risks are new risks appear after setting a certain risk response and need to be evaluated as a new risk. Or secondary risk. A risk that arises as a direct result of implementing a risk response. 889. Secondary risks are unexpected impacts of implemented risk responses. 890. Residual risks are appearing after applying a certain risk response. Can be handled first by Fall Back plan, if it isn't work, go to Work around. 891. Due to the uniqueness of the project, the project manager focuses on risk identification and risk management 892. Project managers proactively seek out additional risks, problems, and other changes to prevent future problems with the project 893. The risk categories in a project plan can be graphically represented in a tool called a risk breakdown structure 894. The tool that is used to determine where the organization's strengths and weaknesses play against each other is called a SWOT grid . 895. A risk register that measures probability, impact, and detectability is known as a FMEA 896. 897. 898. 899. 900. 901. 902. 903. 904. 905. 906. 907. 908.

A repository for all known risks on a project that identifies risk responses and owners is called a risk register . Multiplying the Impact of an event in dollars time its probability is called the expected monetary value . Three type of responses to negative risks re are known as Mitigation, transfer, and avoidance . The types of responses to positive risks are known as share, exploit, and enhance . The risk response plan that is used when the risk has been accepted is called a contingency plan A minor risk that remains after the risk response strategy has been implemented is called a residual risk whereas a risk that occurs as the result of implementing risk response strategy is called a secondary risk A fallback plan is developed when a selected risk strategy is not fully effective or if risk has a high impact. Management reserves are used to provide funding for the ‘unknown’ unknowns of a project – while contingency reserves are used to handle the known unknowns. An unplanned response to risk in which no contingency plan exists is called a workaround. A risk response that is used for both positive and negative risks is called accept. A statistical modeling tool used to create cumulative distributions and what-if scenarios is called a Monte Carlo analysis. A risk information gathering technique that collects as many ideas as possible is called brainstorming. Risk Register process flow

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909. The risk register is completed at this point and can include:  Identified risks and descriptions  Triggers  Response strategy  Specific actions taken if risk occurs  Responsible party or owner  Results from qualitative and quantitative risk analysis process  Primary and secondary responses for each risk  Residual risks that are expected to remain  Risk budget  Contingency and fallback plans  Contingency reserves for time and cost

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 910. Reserve analysis and the funds set aside for contingencies apply only to the specific risks on the project for which they were set aside. 911. Reserve analysis is a tool or technique that is specifically used to control project risk by setting aside contingency reserves that will be used to control the impact of identified risks in a project such as cost estimate uncertainty or any other identified project risk. Reserve analysis allows the project team to ensure that proper contingency funds are available to mitigate or address risks identified during the projects planning or execution that become issues 912. Reserve analysis is performed to determine if you have enough contingency to cover the remaining risks. 913. Reserve analysis is used as tool & technique in planning (estimate activity duration, estimate cost and determine budget) and in control (cost and risks). 914. Avoid and/or be aware of the following Risk Management Errors:  Risk identification is completed without knowing enough about the project.  Risk identification ends too soon, resulting in a brief list rather than an extensive list.  The processes of Identify Risks through Perform Quantitative Risk Analysis are blended, resulting in risks that are evaluated or judged as they come to light. This decreases the number of total risks identified and causes people to stop participating in risk identification.  The risks identified are general rather than specific.  Some things considered to be risks are not uncertain; they are facts, and are therefore not risks.  Whole categories (technology, cultural, marketplace, etc.) of risks are missed.  Only one method is used to identify risks rather than a combination of methods. A combination helps ensure that more risks are identified.  The first risk response strategy identified is selected without looking at other options and finding the best option or combination of options.  Risk management is not given enough attention during project executing.  Project managers do not explain the risk management process to their team during project planning. 915. Assumptions in scope statement and scope baseline identify risks. 916. In the Define Scope process, organizational process assets are required before the scope statement can be completed. These include historical records of previous projects, including their scope statements, and may also include processes and templates for creating a scope statement. 917. Issue is a risk with 100% probability 918. Any occurred risk will be added to the issue log.

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919. Risk Management plan includes :  Methodology  Roles and Responsibilities ( risk owner )  Budgeting ( contingency )  Timing ( communication )  Risk Categories (RBS).  Risk Probability and Impact (set the metrics )  Probability and impact Matrix ( templet)  Revised Stakeholder Tolerance ( EEF )  Reporting Formats ( communication)  Tracking (M&c) 920. Termination a project is an avoid risk response 921. When you pay for warranty you use a transfer risk response. 922. Perform Qualitative Risk Analysis follows Identify Risks. This is a process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.

923. Failure Mode and Effect Analysis (FMEA) is an analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and on the reliability of the product or system as a whole. [PMBOK ® Guide 5th edition , Page 540] [Project Risk Management]

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924. Each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system. For each potential failure, an estimate is made of its effect on the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects. [PMBOK ® Guide 5th edition , Page 540]. 925. Perform Quantitative Risk Analysis analyzes the effect of those risk events and assigns a numerical rating to those risks 926. Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome. [PMBOK ® Guide 5th edition, Page 324] [Project Risk Management] 927. Risk areas can include any project constraints (scope, time, cost, quality, etc.), as well as reputation, customer satisfaction, and other intangibles. 928. Documents are updated during risk management processes only in: perform qualitative risk analysis, plan risk response and control risks. 929. Delphi techniques and subject matter experts are the most appropriate to identify risk. 930. You can determine the stakeholders risk tolerance through utility function and Stakeholders risk profile analysis in order to classify them into:  Risk seeker  Risk neutral  Averse 931. Another risk category is: Overall and individual. 932. The overall risks affect the project objectives while the individual is limited to persons. 933. Risk data assessment is a tool in performing Qualitative risk analysis. 934. Risk breakdown structure is a Quantitative risk analysis tool. 935. Cutting out any risk means you avoid it. 936. Risk mitigation means taking some sort of action that will cause a risk, if it materializes, to do as little damage to your project as possible. Having team members spend time doing work to prepare for the risk is a good example of risk mitigation. 937. An example of enhancing that opportunity is taking additional actions, you increase the potential reward without reducing its probability 938. Remember that the Delphi technique is preferred when influential stakeholders can introduce bias into the risk data 132 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 939. Planning phase is LEAST Risky 940. While calculating worst case scenarios simply neglect the probability and add the negative impacts. Similarly, for calculating best case scenarios neglect the probability and add the positive impacts 941. In case the funds are not available, the project must be closed. 942. If the probability of the event happening every year is 25%. So, the probability of the event happening in the third year is also 25%. 943. Why considering networks diagram is important to risk management? The network diagram shows where activities converge from many activities to one activity or diverge from one activity to many activities. These are bottlenecks that increase the risk of the central activity. 944. Avoid means the risk is gone, so no more risk = no money in contingency. However, if you spend money to avoid - that is base budget. 945. Transfer is when you assign the risk to someone else, like insurance or outsource. In this case you pay money for insurance (in base budget - no contingency) --- or through the contract price (in base budget - no contingency) 946. Mitigation I explained earlier - you spend money to mitigate = base budget AND the revised EMV would be contingency 947. Acceptance is when you plan a response (cost of planning is base budget) but no action. Now in real life, if you have the EMV for all of these lower priority risks - the cumulative EMV will be the contingency. Some organizations approximate these based on history without details, such as allocating 5% or 10% contingency.

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Procurement Management Plan Procurement Mgt.

Seller Proposals

Exp. Judgment Make Buy Analysis

Procurement Mgt. Plan SOW RFPs Selection Criteria Make Buy Decision

Conduct Procurements

Exp. Judgment Bidder Conf. Ind. Estimates Advertising

Procurement Mgt. Plan

Selected Suppliers Agreements Resource Calendars

Control Procurements

Inspect/Audits Reporting A/P Systems Claims Admin. Records Mgt.

Work Performance Info Updates Change Requests

Close Procurements

Closed Procurements OPA Udpates

Audits Negotiations Record Mgt.

948. ITTO Process Group

Process

ITTO

Inputs Planning

Plan Procurement Management

Value PM Plan Requirements Documentation Risk Register Activity Resource Requirements Project Schedule Activity Cost Estimates Stakeholder Register Enterprise Environmental Factors Organizational Process Assets

Tools/Tech's

Make-or-buy Analysis Expert Judgment Market Research Meetings

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Outputs

Inputs

Executing

Conduct Procurements Tools/Tech's

Outputs

Inputs

Monitoring/Controlling

Control Procurements

Tools/Tech's

Outputs

Procurement Management Plan Procurement Statement of Work Procurement Documents Source Selection Criteria Make-or-buy decisions Change Requests Project Documents Updates Procurement Management Plan Procurement Documents Source Selection Criteria Seller Proposals Project Documents Make-or-buy Decisions Procurement Statement of Work Organizational Process Assets Bidder Conference Proposal Evaluation Techniques Independent Estimates Expert Judgment Advertising Analytical Techniques Procurement Negotiations Selected Sellers Agreements Resource Calendars Change Requests PM Plan Updates Project Doc. Updates PM Plan Procurement Documents Agreements Approved Change Requests Work Performance Reports Work Performance Data Contract Change Control System Procurement Performance Reviews Inspections and Audits Performance Reporting Payment Systems Claims Administration Records Management System Work Performance Info Change Requests PM Plan Updates Proj Doc Updates Org Process Assets Updates

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Inputs

Closing

Close Procurements

Tools/Tech's

Outputs

PM Plan Procurement Documents Procurement Audits Procurement Negotiations Records Management System Closed Procurements Org Process Assets Updates

949. The PMBOK ® Guide 5th edition uses the terms "agreement" and "contract:' so you need to be prepared to see both on the exam and understand what each means. Contracts can be written or verbal, but they are typically created with an external entity, and there is some exchange of goods or services for some type of compensation (usually monetary). The contract forms the legal relationship between the entities; it is mutually binding and provides the framework for how a failure by one side will be addressed and ultimately remedied in court. The broader term "agreement" generally encompasses documents or communications that outline internal or external relationships and their intentions. A contract can be considered an agreement, but an agreement wouldn't necessarily be a contract. Imagine the international division and the US division of a company want to leverage their resources to achieve a shared strategic objective; they would create an agreement but likely not a contract. Agreements can be used to express and outline the intentions of projects. The charter and the project management plans are examples of agreements that are not contracts; they are internal agreements. Some other examples of agreements are service level agreements, memos of intent, letters of intent, and letters of agreement, e-mails, and verbal agreements. So what does this mean for you? The way you communicate, escalate, and solve problems will differ depending on whether your actions are governed by a contract or an internal agreement. For example, notifying a seller of default on a contract term or condition should be done through formal written communication to create a record and ensure appropriate legal action can be taken if necessary. In comparison, for an internal agreement, failure to meet a term of the agreement might be handled in a conversation followed up by an e-mail. For the exam, understanding whether a situational question describes an internal agreement or a contract with an outside party might be critical to helping you select the right answer. In this chapter, we primarily use the term "contract;' because the procurement process is used to acquire necessary resources that are outside the project team and involve legal documents between the buyer and seller. 950. If you have little or no experience working with contracts, you should obtain from your company some sample contracts, requests for proposals, and the resulting proposals and look at them before reading on. It might also be valuable to contact your contracts, procurement, or legal department. The exam assumes that you have a close working relationship with these departments, that as a project manager you have specific involvement in the procurement process even if you do not lead that process, and that the procurement process cannot occur without your involvement. You have an opportunity to build an extremely worthwhile relationship with these other departments when you ask, "What should I know about contracts?" Plus you can improve your working relationship by explaining the project management process to them. Try it! 136 | P a g e

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951. The following should help you understand how each part of procurement management fits into the overall project management process:

The Procurement Management Process Plan Procurement Man Conduct Procurements control procurements close procurements

Done During Planning process group executing process group monitoring and controlling process group closing process group

952. Be careful to read the questions carefully to see if the situation described in the question is from the buyer's or seller's point of view. If no point of view is mentioned, assume you are the BUYER. Make sure you get your mind around being a buyer before you take this exam. The issues and impacts of many situations are completely different if you are a buyer than if you are a seller. 953. For large projects, sellers are typically going to provide the full complement of a solution, rather than augmenting a project team with additional resources. For example, on a small or medium-size project, you might add contract developers to your internal staff to do the coding, whereas a large project might outsource all of that development work to an external resource who would plan and manage all of the developers, testers, etc. Unless an exam question indicates otherwise, assume the seller is providing all of the work external to the buyer's team rather than supplying resources to supplement the team. 954. Tricks for Answering Procurement Questions Questions involving contracts, keep in mind the following general rules, especially if the answer to the question is not immediately apparent: 

Contracts require formality. What this means is that any correspondence, clarification, and notifications related to the contracts should be formal written communication, which can be followed up with verbal communication, if necessary. If any issues develop that require arbitration, mediation, or litigation, the formal written communications will be more enforceable and supportable than any verbal communications.



All product and project management requirements for the procurement work should be specifically stated in the contract.  If it is not in the contract, it can only be done if a formal change order to the contract is issued.  If it is in the contract, it must be done or a formal change order must be approved 1w both parties.  Changes to contracts must be submitted and approved in writing.  Contracts are legally binding; the seller must perform as agreed in the contract, or else face the consequences for breach of contract.  Contracts should help diminish protect risk.  Most governments back all contracts that fall within their jurisdiction by providing a court system for dispute resolution. Remembering these pointers can help you get about four more questions right!

955. NOTE to STUDENTS OUTSIDE OF THE UNITED STATES: In the past the exam has had very few references to international contracts. Be aware that government contracting specialists in the United States wrote many of the questions on the (PMP)® exam. (PMI)® process for procurement management closely follows what is done in the United States, but it is different from the way procurement is handled in other parts of the world. In many regions, the contract is an informal document and the relationship between the parties is more important than the contract. If you are not from the United States, a key trick is to take a more formal approach to the procurement process when answering 137 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 questions. The contract is most important. It must be followed, and everything provided in it must be done. Study this chapter carefully. The Project Manager's Role in Procurement You might ask yourself, "If there is a procurement manager, why a project manager would need to be involved in procurements?" This is an important question, and you must fully understand the answer before you take the exam. Here are a few more tricks to help you. 956. First, remember that it is the project manager's project. There are certain things that cannot be done effectively without the project manager. This fact is so important that a large percentage of the questions on the exam have focused on testing whether you know what you should do. Here is a quick summary. Do not memorize it; instead, make sure you understand it.  Know the procurement process so you know what will happen when and can plan for it. Understand what contract terms and conditions mean so you can read and understand contracts. This will help you plan and manage the monitoring and controlling of procurements.  Make sure the contract contains all the scope of work and all the project management requirements, such as attendance at meetings, reports, actions, and communications deemed necessary to minimize problems and miscommunications with the seller(s).  Identify risks, and incorporate mitigation and allocation of risks into the contract to decrease project risk.  Help tailor the contract to the unique needs of the project while it is being written.  Include the time required to complete the procurement process into the schedule for the project so the project schedule is realistic.  Be involved during contract negotiations to protect the relationship with the seller. A contentious negotiations process-often created when the seller feels that they have had to give up too much profit or agree to terms and condition they do not like to win the contract- can create a win/lose relationship with the procurement manager and seller. The project manager will have to manage the seller's delivery to the contract, and bad feelings on the part of the seller can create extra challenges. So it's best for the project manager to be involved to influence the negotiations for the best interests of the project.  Protect the integrity of the project and the ability to get the work done by making sure the procurement process goes as smoothly as possible.  Help make sure all the work in the contract is done, such as reporting, inspections, and legal deliverables, including the release of liens and ownership of materials, not just the technical scope.  Do not ask for something that is no in the contract without making a corresponding change to the contract.  Work with the procurement manager Lo manage necessary changes to the contract 957. The second thing to remember is that project managers must be assigned on both the buyer’s and seller’s sides before a contract is signed! Many companies Thai sell their services make a huge but common mistake by not involving the project manager in the bidding and proposal process. Instead, only marketing and sales are revolved until after the contract is signed. The project manager is then handed a project with a contract that may include unrealistic time or cost constraints. The project starts out in trouble. Not including the project manager early in the procurement process is such mistakes that the exam will test you to see if you know when the project manager should be involved, and why For example, the project manager is often uniquely capable of answering many of the technical and project management questions that arise during bidder conferences. If these questions are answered incorrectly or incompletely, there may be an inadvertent change in the specification or the scope of the contract that was never intended by the buyer. 958. Virtual conference is the alternative name of bidder conference. 959. Bidder conference is held with prospective sellers prior to the preparation of bids or proposal process. 960. There are sometimes different names for the same type of contract. This can make it very difficult to learn the contract types. So here is a trick. Start out by understanding the three main categories of contract types, as shown in the following list. Then, when the exam asks a question relating to contract type, first see if knowing which category the contract is in helps you answer the question in most cases, it does. The three broad categories of contracts are: 3 138 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641  Fixed price (FP)  Time and material (T&M)  Cost-reimbursable (CR) You must understand the contract types and be able to recognize the differences between them. Situational questions on the exam may require you to recognize that the project manager's duties and actions will vary depending on the type of contract being used. There may also be questions that require you to pick the most appropriate contract type based on a particular situation. Think through this section carefully!

961. Advantages and Disadvantages of Each Contract Type A trick on the exam is to realize that buyers must select the appropriate type of contract for what they are buying. The following exercise will test whether you really understand the different types of contracts and will help you select the appropriate type of contract on the exam. EXERCISE 14 In the following table, write the advantages and disadvantages of each form of contract from the perspective of the BUYER.

Answers There can be more answers than listed here. Did you identify and understand these?

Fixed-Price Contract Advantages

Disadvantages

This type of contract is less work for the buyer to manage.

If the seller underprices the work, they may try to make up profits by charging more than is necessary on change orders. The seller may try to not complete some of the procurement statement of work if they begin to lose money. This contract type requires more work for the buyer to write the procurement statement of work. A fixed-price contract can be more expensive than a cost-requirement statement of work is incomplete and the seller needs to add to the price for the increased risk.

The seller has a strong control costs. incentive to

Companies have experience with this type of contract. The buyer knows the total price before the work begins.

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Time And Material Contract Advantages

Disadvantages

This type of contract can be created quickly, because the statement of work may be less detailed. The contract duration is brief. This is a good choice when you are hiring "bodies;' or people to augment your staff.

There is profit for the seller in every hour or unit billed. The seller has no incentive to control costs. This contract type is appropriate only for small levels of effort on projects. This contract type requires a great deal of day-to-day oversight from the buyer.

Cost-Reimbursable Contract Advantages

Disadvantages

This contract type allows for a simpler procurement statement of work. It usually requires less work to define the scope for a cost-reimbursable contract than for a fixed-price contract. A cost-reimbursable contract is generally less costly than fixed price because the seller does not have to add as much for risk.

This contract type requires auditing the Seller's invoices. This contract type requires more work For the buyer to manage. The seller has only a moderate incentive to control costs. The total price is unknown.

EXERCISE 15 Name the most appropriate contract type Lo use in the situation PP PPIF, FPAF. FPEPA Purchase Order T&M. CR, CPF contracts. Read each situation carefully to determine Indicate only that some type of cost contract would apply, or whether the details of f cost-reimbursable (CPF or CPPC. CPFF)or fixed-price contract (FPIF, FPAF, FPEPA) should be used.

Answers The answers are below. Also try to think of other situations in which you would use each type of contract.

Situation 1 2 3 4 5 6 7

8 9 10

You need work to begin right away. You want to buy expertise in determining what needs to be done. You know exactly what needs to be done. You are buying programmers services to augment your staff for a short period. You need work done, but you don't have time to audit invoices on this work. You need to rebuild a bridge as soon as possible after a storm. The project requires a high level of expertise to complete and you want to have the best performance possible in the finished product. You need to hire a contractor to perform research and Development. The scope of work is complete, but the economy is Currently unpredictable. You are buying standard commodities.

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Type Contract To Use T&M CR FP T&M FP FPIF CPIF or CPAF

CR FPEPA Purchase order

Mohammed Shafeea Haddad (PMP)® Number: 1987641 962. Purchase order is a fixed price contract. 963. Risk & Contract Type The exam may ask questions that correlate risk with the different types of contracts. Figure 12. i shows the amount of costs risk the buyer and seller have with each contract type. Use this diagram to better understand the different contract types and to help answer questions such as: Question: who has the risk in a cost-remember sable contract-the buyer or seller? Answer: the buyer. If the costs increase, the buyer pays the added costs. Question: Answer:

who has the cost risk in a fixed-price contract--the buyer or seller? the seller. If costs increase, the seller pays the costs and makes less profit.

964. Other Terms to Know Remember, profit and costs are different. Profit is the amount of money the seller has left over after costs are paid. Be careful on the exam to read the questions carefully. Also consider the perspective. Are the questions referring to the buyer's cost or the seller's cost? The following list provides definitions of terms you should understand for the exam.  Price: this is the amount the seller charges the buyer.  Profit (fee): this is planned into the price the seller provides the buyer. Sellers usually have an acceptable profit margin in mind. However, how much profit they actually receive is based on many factors, including the contract terms and the seller's ability to manage the project.  Cost: this is how much an item costs the seller to create, develop, or purchase. A buyer's costs can include a seller's costs and profits.  Target price5: This term is often used to compare the end result (final price) with what was expected (the target price). Target price is a measure of success. Watch for similar terms. Target cost plus target fee equals target price. (Remember, we are thinking about procurements from the buyer's point of view!)  Sharing ratio6: Incentives are usually expressed as a ratio: e.g., 90/ 10. This sharing ratio describes how the cost savings or cost overrun will be shared; the first number represents the buyer portion of the ratio and the second number represents the seller portion (buyer/seller). 141 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641  Ceiling price7: this is the highest price the buyer will pay; it's a way for the buyer to encourage the seller to control costs. The ceiling price is a condition of the contract that must be agreed to by both parties before signing. Keep in mind that answers to calculations on the exam can change when a ceiling price is mentioned.  Point of total assumption (PTA) 8: this only relates to fixed price incentive fee contracts and rakes to the amount abuse which the seller bears all the loss of a cost overrun. Costs that go above the PTA are assumed to be due to mismanagement: a design statement of work should have been created to allow for fair and reasonable contract negotiations for the required work, suggesting the seller either did not estimate correctly or did not manage the work well. Sellers will sometimes monitor their actual costs against the PTA to make sure they are still receiving a profit for completing the project

Formula: Point of Total Assumption

965. The point of total assumption occurs on fixed price incentive fee contracts in which the seller assumes all additional costs for delivering a product of the project.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 966. Incentives Calculations Now that you understand the concepts it is time to work through some examples. You may see up to three questions on the exam requiring you to use these types of calculations. As you do the following exercises, notice the terms crocs “fee’ and price.’ These terms all have different meanings. As detained previously.

EXERCISE 16 Cost plus Incentive Fee Calculation In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is complete, and the buyer has agreed that the costs were, in fact, $200,000. Because the seller's costs came in lower than the estimated costs, the seller shares in the savings: 80 percent to the buyer and 20 percent to the seller. Calculate the final fee and final price. Target cost Target fee Target price Sharing ratio Actual cost

$210,000 $25,000 $235,000 80/20 $200,000

Answers Remember, you may have to calculate both the final fee and the final price for the exam.

Final Fee Final Price

$210,000 $200,000 = $10,000 $10,000 x 20% = $2,000 $25,000 target fee+ $2,000 = $27,000 fee $200,000 + $27,000 = $227,000

EXERCISE 17 Fixed Price Incentive Fee Calculation Now tries the following exercise from the seller’s perspective. In this fixed price incentive fee contract, the target cost is estimated at $150.000 and the target fee at $30,000. The project is over, and the buyer has agreed that the costs were, in fact, S2 10,000. Because the seller's costs came in higher than the target cost, the seller shares in the added cost 60 percent to the buyer and 40 percent to the seller. Calculate the final fee, the final price, and the point of total assumption. Note the ceiling price is $200.000 Target Cost Target Fee Target Price Sharing Ratio Ceiling Actual Cost

$150.000 $30.000 $180.000 60/40 $200.000 $210.000

Final Fee Final Price Point Of Total Assumption

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Answers In this case, the actual cost is higher than the target cost, so the seller receives less fee, or profit. Foisted of receiving $30,000 in fee, the seller receives only $6,000. The actual cost plus fee comes to $216,000, but this is higher than the ceiling price (the maximum amount the buyer will pay). The result is that the seller is paid $200,000 when the costs were $210,000. The seller made no profit, and in fact actually lost $10,000. The point of total assumption (the amount above which the seller bears all the loss of a cost overrun) was $183,333. The seller should have calculated the point of total assumption and used it to manage the work and costs to ensure that their costs did not exceed this amount, since the seller suffers the effects of the inability to control the project and loses money on it. Final Fee

Final Price

Point Of Total Assumption

$150,000 - $210,000 = ($60,000) overage ($60,000) x 40% = ($24,000) $30,000 + ($24,000)= $6,000 $210,000 + $6,000= $216,000 However, this amount is above the ceiling price of $200,000. Therefore, the final price (what the buyer will pay) is $200,000. [($200,000 - $180,000)/60%] + $150,000 ($20,000/0.6) + $150,000 $33,333 + $150,000 = $183,333

Imagine a question on me exam describes a scenario with a fixed price incentive fee contract where actual costs on the work to date are nearing the PTA. and there's still work left to complete. What should the seller do’ what would happen if the seller did nothing? The seller’s project manager should take the proactive approach o (planning and performing cost and schedule management activities on the contract to determine how to address this situation. This should help the project manager anticipate possible problems and find solutions before the seller loses all the profit on the work.

EXERCISE 18 Fixed Price Incentive Fee Calculation Try this one for this exercise, you are again the seller in the procurement. In this fixed price incentive fee contract, the target cost is $9,000,000 and the target fee is $850,000. The project is done, and the buyer has agreed that the costs were, in fact. $8,000.000 because the doer's costs came in lowers than the estimated costs, the seller shares in the savings: 70 percent to the buyer and 30 percent to the seller. Calculate the final fee and final price.

Target Cost Target Fee Target Price Sharing Ratio Ceiling Price Actual Cost

$9,000,000 $850,000 $9,850,000 70/30 $12,500,000 $8,000,000

Final Fee Final Price

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Answers In this case, the actual cost is lower than the target cost, so the seller receives more fee, or profit. Instead of receiving $850,000 in fee, the seller receives $300,000 more for a total of $1,150,000. The fee added to the cost totals $9,150,000. Since that is less than the ceiling price, the seller gets paid that amount. Therefore, the seller gains because of their ability to control the project. Final Fee

$9,000,000 - $8,000,000 $1,000,000 $1,000,000 x 30% $300,000 Original fee of $850,000 + $300,000 = $1,150,000 $8,000,000 + $1, 150,000 fee=$9,150,000

Final Price 967. Contracts Types

1 2

3 4

5

Question Generally, what is being bought? (Product or service) How might the costs to the buyer be stated in the contract?

9

10

Fixed Price Product As a set currency amount (e.g., $1 million)

Included in the hourly rate and may be unknown to the buyer Medium; though the costs are not fixed, they are known per unit and this contract type is used for small purchases for a limited time

Included in the price and unknown to the buyer Low; increases in costs are borne by the seller

Low; the procurement statement of work only needs to describe the performance or functional requirements, since the seller provides the expertise of how to do the work; the buyer pays all costs, so there is less need to finalize the scope IT, research and development, knowledge work; when the work has never been done before (as is often the case in these industries) the seller cannot fix a price; therefore, this is the best form to use

Low; this type traditionally has very little scope and may only describe skill sets required

High; the procurement statement of work must be complete so the seller knows exactly what work needs to be done in order to come up price to do the with an accurate price to do the work Complete scope of work is most common in the construction industry

how much negotiation is usually required to sign the contract after receipt of the sellers price?(High, medium, low, non) What level of effort and expertise will the buyer need to devote managing the seller? High, medium, low, non) How are costs billed to the buyer?

High; all estimated costs are looked at to calculate the fee to be paid

Low or none

None

High

medium

low

Actual costs as incurred, profit at project completion or apportioned, as allowed in the contract

Hourly or per- unit rate (which includes all costs and profit)

Fixed price (which includes profit) according to a payment schedule as work is completed and as allowed in the contract

How much auditing of the Seller's costs will the buyer need to do? (High, medium, low, none)

High; all costs must be audited, and there will be a large number of costs

None; there may be an audit of work hours completed against those billed, but that will take little effort

Low; since the overall contract auditing usually focuses on making sure work is completed, not looking at detailed costs and receipts

How might the profit be stated in the contract? What is the cost risk to the buyer? (High, medium, low, none)

How important is a detailed procurement statement of work? (High, medium, low, none)

6

8

Time & Material Service Hourly rate or price per unit

What industry uses this contract type most Frequently?

7

Cost Reimbursable Service (some products may be included) Costs are variable, but the fee is fixed (as a set amount or a percentage) Listed separately and known to the buyer High; increases in costs are reimbursed by the buyer

When you are hiring people for an hourly rate, you are usually hiring services such as legal, plumbing, programming, etc.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 968. In time and material contracts, the buyer bears the most risks. 969. Despite the scope of work clearness or details, T&M contracts is suitable generally in two cases: quick start and short periods 970. If you don't know or not sure how much the work needs time, efforts and material, your best contract type is T&M. 971. The Contract or seller performance evaluations that performed by the buyer, could form the basis for early termination if the contract provides for this. 972. Procurement documents should be rigid enough to get responses to the same scope of work, and flexible enough to allow sellers to interject their own good ideas and creativity. 973. Procurement performance review work rather than the product to ensure that it is comply with the contractual agreements. 974. Tricky situational questions on the exam can address procurement concepts you may not have dealt with before, such as describing the work that would need to be done to negotiate a contract when there is no competition The following exercise will help

EXERCISE 19 Test yourself what types of issues might occur in a noncompetitive procurement that would not be as significant in a competitive environment?

Answers FOR SINGLE - THERE IS A PREFERRED SELLER Scope More work will be needed to document items received without cost in the past to make sure you get them now. Only what is in the contract will be received. Scope There could be a tendency for the buyer’s organization to say, the seller knows us and we know them; we do not have to spend so much time determining our requirements and completing a procurement statement of work. They know what we want: Quality The seller may never be asked to prove they have the experience, cash flow, and manpower to complete the new work. Also, the quality of work may not consistently meet stated requirements because the seller knows they are not answer competing and may not plan and act to complete work correctly the first time at the quality levels expected. Cost it will be necessary to spend time comparing previous cost to the new cost to check if it is reasonable. Schedule now that the seller knows they have you as a longer-term customer; they may not be as responsive to your schedule requirements. Customer satisfaction Now that the seller knows they have you as a longer-term customer, they may not be as responsive to your concerns. Risk the risk can be weighted more toward the buyer unless the previous issues are investigated and addressed.

FOR SOLE SOURCE - THERE IS ONLY ONE SELLER Risk What if the seller owns a patent and goes out of business? What if the seller takes on too much business and can't complete all of the work on time? Risk if the seller owns a patent and goes bankrupt, who owns the patent? How will you get what you need from the seller? Quality you may have to take what you get rather than request a certain quality level. Cost Multiple-year agreements may be required for the purchase of items to prevent a price increase in the future. Schedule The seller has little incentive to agree to a schedule. Customer satisfaction the seller has little incentive to be concerned with the buyer's needs and desires. 146 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 Scope You may have to change the work specified in the project to "take what you can get:' rather than "ask for what you want:' Risk the overall risk may be weighted more toward the buyer unless the previous issues are investigated and resolved. Make sure you read questions on the exam carefully. They might ask what to watch out for or what needs to be negotiated in noncompetitive procurements. They may simply ask about the procurement process. Do you understand how your efforts during the procurement process are different when there are not multiple companies to go to for the goods or service? 975. Let’s look at this concept together. Some possible answers include:  The seller will have a different company culture and different procedures than the buyer’s organization.  The buyer and seller have different objectives. The seller’s objective is to generate revenue, and the buyer’s objective is to complete the work.  It is not as easy to see” problems on the project because the procurement work is being done in different location,  There is a greater reliance on reports to determine if a problem exists.  There is a greater reliance on relationships between the buyers and sellers PROJECT managers to deal with issues that are not covered in the wording of the contract. In instances in which there are many changes. It might be best to terminate the contract and start fresh through negotiating a new contract with the existing seller or finding a new seller. This is a drastic step to be done only when the existing contract no longer serves the purposes of defining .all the work, roles, and responsibilities. Realize that contracts can be terminated, as described later in this chapter. 976. Contract interpretation is based on an analysis of the intent to the parties to the contract and a few guidelines. One such guideline is that the contract supersedes any memos, conversations. Or discussions that may have occurred prior to the contract signing. Therefore, if a requirement out in the contract, it does not have to be met, even if it was agreed upon prior to signing the contract. The following is an exercise on intent.

EXERCISE 20 In each row, circle the item on the left side or the right side that would win in a dispute over contract interpretation. Contract language

Or

Contract language

Or

Contract terms and conditions Common definition Industry use of the term Special provisions

Or

A memo drafted by one of the parties describing proposed changes after the contract is signed A memo signed by both parties before the contract is signed that describes what was agreed to during negotiations Procurement statement of work

Or Or Or

The intended meaning (without supplying a definition) Common use of the term General provisions

Typed-over wording on the contract Numbers Detailed terms

Or

A handwritten comment on the contract that is also initialed

Or Or

Words General terms

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Answers The correct answers (in bold) show more clearly the intent of the parties to the contract. Contract language

Or

Contract language

Or

A memo drafted by one of the parties describing proposed changes after the contract is signed A memo signed by both parties before the contract is signed that describes what was agreed to during negotiations Procurement statement of work

Contract terms and Or conditions The answer for the previous row depends on the Order of Precedence Clause in the contract that describes which terms and conditions take precedence over the others in the event of a conflict between them. Common definition Or The intended meaning (without supplying a definition) Industry use of the term Or Common use of the term Special provisions Or General provisions Typed-over wording on the Or A handwritten comment on the contract that is also initialed contract Numbers Or Words Detailed terms Or General terms

The key outputs of the Control Procurements process are work performance information, change requests (including changes to time and cost estimates, schedule, budget, resource needs, and risk responses), and updates to the project management plan and project documents. 977. One of the things some people find confusing is the difference between the Close Project or Phase process and procurement closure, ibis often seems to come up as a question on the exam. The answer is easy. Though. If you think of project closure as closing out a project or phase and procurement closure as closing out a procurement. Depending on what choices the exam gives you, the answer could be  There may be much procurement in one project. So there can be many procurement dousers, hut Close Project or Phase only happens at the end of the project or phase. All procurements must be closed before the final project closure. Therefore, upon completion of the contract for each procurement, the project manager performs a procurement audit and closes out the procurement. When the project as a whole is completed later, the project manager performs the administrative and financial closure and other processes required to close out the project.  To make a little more confusing, there can be questions that ask about the frequency of project closure and procurement closure. Read these questions carefully, as the way the questions are written will help you select the right answer. For projects that are managed by phases, such as a design phase, testing phase, and installation phase, the Close Project or Phase process occurs at the end of each project phase. Therefore, project closure may be done at the end of each project phase and at the end of the project as a whole. Make sure you understand this for the exam. In contrast, procurement closure is done at the completion of each contract.  Procurement closure requires more record keeping and must be done more formally than is generally required for project closure, to protect the legal interests of both parties. 978. Make sure you remember these points for the exam. Now let's think about the real world. What do you think needs to be done at the end of the procurement in order to say the procurement is indeed finished? Wouldn't it be substantially similar to what needs to be done when you close out a project in the Close Project or Phase process?

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EXERCISE 21 Describe what work must be done during procurement closure.

Answers Now tries this exercise. On the following charts, label the examples of each of the ten listed items by placing the item number next to be location on the chart(S). As you read the answer, think about how similar the Close Procurements process is to the Close Project or Phase process. Procurement do sure includes all of the following:  Product validation this involves checking to see if all the work was completed correctly and satisfactorily was the product of the procurement the same as what was requested? Did the product of the procurement meet the buyer's needs?  Procurement negotiation the final settlement of all claims, invoices, and other issues may be handled through negotiations or through the dispute resolution process previously set up in the contract.  Financial closure financial closure is making final payments and completing cost records.  Procurement audit this is a review of only the procurement process. Do not think of this as an audit of costs, but as a lessons learned of the procurement processes that can help improve other procurements. Normally this is done by the procurement manager and project manager, but companies that want to improve their processes may also involve the seller. Remember, this is only talking about how the whole procurement process went. Issues that might be discussed include: How can we handle negotiations better? How can we make the bidding process? Easier for sellers? How could procurement documents be improved? 







Updates to records this involves making sure all records of the project are complete and are accessible in the records management system. This information could include whatever has been recorded to date on the project. These records will become part of the procurement file (described later in this discussion). Final contract performance reporting Think of this as creating a final report. First you need to analyze and document the success and effectiveness of the procurement and the seller, and then tum that into a final report. Lessons learned Procurement lessons learned are received from everyone involved in the project, even the seller, and become part of the lessons learned for the project. They often include a discussion of what went right, what went wrong, and what can be done better next time. Lessons learned are created as a result of the procurement audit. These then become part of the organizational process assets. Lessons learned are documented and disseminated throughout the organization. Could you imagine being able to access files from every project manager that has gone before you in your company, describing what they would do differently the next time? How valuable would that be? Thus, lessons learned provide input to help improve how the organization handles procurements in the future. Procurement file creating the procurement file involves putting all e-mails, letters, conversation records, payment receipts, reports, etc., related to the procurement into an organized file. This file will be stored for use as historical records and will help protect the project in case of arguments or legal action regarding what was done and not done on the contract. The project manager, with the help of the procurement manager, decides what documents need to be kept. The file could include: • Contract • changes (approved and rejected) • Submittals from the seller • Seller performance reports • Financial information • Inspection results • Lessons learned Other Procurement do sure could also include the following activities: • Arranging for storage of procurement records and drawings • Creating and delivering legal documents, such as release of lien documents and formal acceptance letters • Returning property used for the procurement to its owner

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 979. Here is a trick for understanding the process without memorizing the whole thing-know only the outputs! If a question describes some activity and that activity occurs after the procurement documents are created and before the contract is signed then it must be taking place as part of the Conduct Procurements process. If it is taking place after the contract is signed but before the work is substantially done, it must be occurring during the Control Procurements process. 980. Comparing proposals received from sellers done in the Conduct Procurements. 981. Make payment to seller is done in the Administer Procurements as part of control procurement. 982. For an immediate work, a letter contract may be sufficient 983. Performance Measures are done in contract Administration 984. Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE 985. T&M – has the characteristics of both Fixed and Cost reimbursement 986. Procurement Audit, Negotiated settlements and record management system are tool and Techniques of contract closeout process. 987. Records management system is using a specific set of processes and automation tools to manage contract and procurement documentation. 988. Procurement Audit, is used to identify successes to transfer the success to other procurements 989. Independent estimates are prepared to compare the cost to an estimate created 990. Solicitation is the process of obtaining quotations , bids , offer, 991. Payment bonds are specifically designed to ensure that the prime contractor provides payment of Subcontractors, laborers, and sellers of material 992. Anytime you have any communication having to do with the contract, it’s always formal written communication. 993. Project managers have a fundamental understanding of contract language 994. Several disadvantages of centralized contracting are that the procurement lead may be working on multiple projects so it may be difficult for the PM to obtain help. 995. The five elements of a contract are offer, acceptance, capacity, consideration, and legal purpose. 996. One of the key tools in the Plan Procurements process that analyzes whether to do the work in house versus having a third party provide the product or service is called a make-or-buy analysis. 997. Some advantages of decentralized contracting are that the PM has easier access to procurement expertise and that the procurement manager has more loyalty to the project. 998. The three fundamental procurement statements of work types are; performance, functional, and design. 999. Two forms of non-competitive procurement are called sole source, and single source. 1000. A non-legally binding document in which the buyer states they intend to hire the seller is called a letter of intent. 1001. Another term for a teaming agreement is called a joint venture. 1002. Networking is a type of sharing opportunities response strategy. 1003. The concept of lifecycle costing addresses the total cost of ownership of a product or service. 1004. The key output of the Conduct Procurements process is the procurement contract award and selected sellers. 1005. The prime contractor can use sub-contractors. Since the sub is contracted to the Prime and not to the buyer, the buyer has no contractual control over the sub. This is called privity. 1006. The RFP is best used for a cost reimbursable contract while the IFB or RFB is best used for a fixed price contract. 1007. The key output of the Plan Procurements process is the procurement statement of work . 1008. A bidder’s conference invites all bidders to a Q&A session in which bidders can ask clarifying questions regarding the buyers RFP. 1009. A screening system establishes minimum criteria to eliminate non-qualified vendors. 1010. Fait Accompli, deadline, missing man and limited authority are all examples of contract negotiation tactics. 1011. A weighting system is usually implemented as a grid that lists all the proposal criteria and assigns a numeric weight each of the criteria. 150 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1012. Contract closure always occurs before administrative closure when completing a project or project phase. 1013. Force majeure, assignment, escrow, time is of the essence, retainage and confidentiality are all contract elements generally grouped in a category called terms and conditions. 1014. A key output of the Control Procurements process is change requests. 1015. A contract change control system defines the process by which procurements can be modified. 1016. Technical Capability, management approach and technical approach are some of the elements that are assessed in vendor evaluation criteria. 1017. In practice, the company or person who provides services and/or goods can be called a “contractor,” “subcontractor,” “designer,” or other titles. The PMBOK ® Guide 5th edition uses only one term, “seller,” but the exam may use any of these terms to describe the seller. The company or person who purchases the services is called the “buyer.” 1018. Remember that the contract change control procedures are usually documented in the procurement agreements. 1019. Always remember that negotiation is the preferred procurement conflict resolution technique. 1020. In conduct procurement negotiations, the PM not necessarily leading. 1021. Conduct Procurement negotiations include:

  

Subjects covered may include responsibilities, authority to make changes, applicable terms, and governing law. For complex procurement items, contract negotiations can be an independent process with inputs and outputs of its own. Negotiations should clarify the structure, requirements, and other terms of the purchases

1022. Negotiated settlement` is a process of reaching final equitable settlement of all outstanding issues, claims, and disputes through negotiation. 1023. Procurement Negotiations clarify the structure, requirements, and other terms of the purchase so that mutual agreement can be reached prior to signing the contract. Procurement Negotiations is a tool and technique for the Conduct Procurement process. 1024. Procurements audit is a structured review of the procurement process originating from the Plan Procurement Management process through the Control Procurements. 1025. Early termination of contract is a special case of procurement closure that can result from mutual agreement by both parties, from the default of one party, or for convenience of the buyer if provided for in the contract. 1026. Early termination of contract cannot take place for convenience of the seller or if they cannot deliver as per the contract statement of work. 1027. The buyer can terminate the project in three cases:  Convenience; the buyer must compensate the seller for the done work and work under progress.  Contract breach; the buyer compensate the seller for the done works only.  Default; the buyer compensate the seller for the done works only. 1028. The seller can terminate the project if the buyer breaches the contract or mutually agreed upon. 1029. A contact breach means a contract clause is not met. 1030. Nonpayment is not a reason to terminate a contract. 1031. Time-and-materials contracts resemble cost-reimbursable contracts in that both are open-ended. 1032. Contract documents include: project audits, transition criteria and project performance information. 1033. If the sellers submitted wide range estimates, do your own independent estimate. 1034. The main purpose of control procurement is to ensure both parties meet their contractual obligation. 1035. OPA is updated during procurement control and closure. 1036. Procurement audit is a tool to document the contract administrative lessons learned. 1037. Contract Administration is the Monitoring & Controlling process for Procurement Management. 1038. The intent of the contract can be determined by remembering that words are more binding than numbers 151 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1039. Independent estimates provide an organization with the ability to obtain an initial estimate of the cost of the work in question. This can serve as a benchmark for proposals submitted by vendors for the same work. Independent estimates can either be created using the organization's internal staff or can be solicited from an expert outside of the organization. 1040. Procurement Selection Criterion: Select seller based solely on quantitative criteria like: assign a numerical weight to each requirement. 1041. You use analytical techniques in conduct procurement to examine the readiness and the previous performance of vendors to identify any risks areas 1042. You are the customer if procuring services from an external vendor unless stated 1043. Procurement Documents will be used to solicit proposals from prospective sellers. 1044. (Vendor bid analysis) will take long and procurement details are not stated in the question, so this is not a valid option. 1045. Weighting system is a method for quantifying qualitative data to minimize the effect of personal bias on seller selection. This is a part of the source selection criteria 1046. Alternative dispute resolution (ADR), which includes mediation and arbitration, is preferable to litigation after negotiations. 1047. Single source seller means – there is only one seller the company wants to do business with 1048. Analytical Tech is used to examine the potential vendors' previous performance. 1049. If the item is called a commodity purchase, it means that it is readily available (like purchasing paper for a copy machine). Therefore, it is unlikely a misunderstanding of the statement of work could have occurred. 1050. Contract administration means control the procurement.

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Stakeholders Management

Identify Stakeholders

Exp. Judgment Stakeholder Analysis (Power/ Interest)

Stakeholder Register

Plan Stakeholder Management

Stakeholder Mgt. Plan

Stakeholder Engagement Matrix (Unaware, Neutral, Resistance, Leading)

Manage Stakeholder Engagement

Interpersonal Skills Management Skills

Issue Log Change Requests Updates

Control Stakeholder Engagement

Work Performance Info Change Requests Updates

1051. ITTO

Process Group

Process

ITTO

Inputs Initiating

Identify Stakeholders Tools/Tech's Outputs

Planning

Plan Stakeholder Management

Inputs

Value Project Charter Procurement Documents Enterprise Environmental Factors Organizational Process Assets Stakeholder Analysis Expert Judgment Meetings Stakeholder Register PM Plan Stakeholder Register Enterprise Environmental Factors Organizational Process Assets

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Tools/Tech's

Outputs

Inputs

Executing

Manage Stakeholder Engagement

Tools/Tech's

Outputs

Inputs

Monitoring/Controlling

Control Stakeholder Engagement

Tools/Tech's

Outputs

Expert Judgment Meetings Analytical Techniques Stakeholder Management Plan Project Documents Updates Stakeholder Management Plan Communication Management Plan Change Log Organizational Process Assets Communication Methods Interpersonal Skills Management Skills Issue Log Change Requests PM Plan Updates Project Documents Updates Org. Process Assets Updates PM Plan Issue Log Work Performance Data Project Documents Information Management Systems Expert Judgment Meetings Work Performance Information Change Requests PM Plan Updates Project Documents Updates Organizational Process Assets Updates

1052. A key to your success as a project manager is how you handle stakeholder relationships. Stakeholders must be involved, and their involvement must be managed by the project manager. That involvement may range from minor to extensive, depending on the needs of the project and the performing organization. Therefore, a list of how the stakeholders can be involved may also be limited or extensive. The following are the areas the exam focuses on. If you are unable to check two or more of the following items, you should spend more time researching this topic. 1053.

How The Project Manager Should Involve Stakeholders On The Project 1 2 3 4 5 6 7 8

Determine all the stokeholds by name. Determine all of the stakeholders` requirements. determine all of the stakeholders `interest in the project Determine stakeholders` level of influence on the project. Determine stakeholders' expectations, and turn them into requirements as appropriate. Determine when stakeholders will be involved in the project and to what extent. Get stakeholders to sign off that the requirements are finalized. Assess stakeholders' knowledge and skills.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 9 10 11 12 13 14 15 16 17 18 19 20 21

Analyze the project to make sure stakeholders' needs will be met. Let stakeholders know which requirements will be met, which requirements and expectations will not be met, and why. Get and keep stakeholders involved in the project by assigning them project work, such as the role of risk response owners. Manage and influence the stakeholders' involvement. Make the best use of stakeholders' expertise. Make sure the project communicates to stakeholders what they need to know, when they need to know it. Involve stakeholders, as necessary, in change management and approval. Involve stakeholders in the creation of lessons learned. Get stakeholders' sign-off and formal acceptance during project or project phase closing. Reassess stakeholders' involvement throughout the project. Manage stakeholders' engagement and expectations. Ensure a common understanding of the work. Ask stakeholders to let you know about problems in project communications and relationships.

1054. The project stakeholders’ influence is at its maximum during the start of the project and reduces gradually as the project progresses. 1055. Focus groups bring together prequalified stakeholders and subject matter experts to learn about their expectations and attitudes about a proposed product, service, or result. 1056. Stakeholders may not be affected by the outcome but may perceive that they could be affected by the outcome. 1057. The Identify Stakeholders process is an initiating process. However, it must be periodically revisited to ensure that the project’s Stakeholder Register is always up to date. 1058. Memorize the Power/Interest Grid given in the PMBOK ® Guide 5th edition page 397. There will most certainly be questions that pertain to this grid on the exam.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1059. Remember that the first step in stakeholder conflict management is to capture the issue in the project’s issue log. 1060. A key output of Manage Stakeholder Engagement process is an issue log.

1061. Key SH unsatisfied, meet that key stakeholder 1062. Stake holder model – SALIANCE GRID 1063. The three (I's) of stakeholders are influence, involvement, and importance. 1064. The reason behind sufficient manage stakeholders engagement process is to anticipate with their concerns before it became an issues. 1065. The key and only output of the identify Stakeholders process is the stakeholder register. 3. 1066. Stakeholder engagement levels are __unaware, resistant, neutral, supportive, and leading. 4. 1067. Stakeholder current and desired level of engagement can be captured in a stakeholder engagement assessment matrix. 1068. Control stakeholder engagement has as the key output, work performance information. 6. 1069. Classes of stakeholder that include power, urgency and legitimacy is described in something called the _Salience model. 7. 1070. Interpersonal skills and management skills are both _tools and techniques of Manage Stakeholder Engagement 9. 1071. The key tool and technique of Identify Stakeholders is _stakeholder analysis. 10. 1072. The process of monitoring overall stakeholder relationships is called _Control Stakeholder Engagement. 1073. Identify Stakeholders is the process of identifying all individuals or organizations that can be positively or negatively impacted by the project. 1074. Identifying all potential stakeholders, their potential impact on the project and assessing how key stakeholders may respond to specific situations is called stakeholder analysis 1075. The stakeholder register includes all information about the stakeholder including their power, impact, and influence level on the project. 1076. Profitability is not a satisfaction factor for projects. 156 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1077. Stakeholders are engaged throughout the project 1078. Project management plans are agreed, realistic and signed off by all relevant stakeholders 1079. Project managers spend 90% of their time communicating with stakeholders to ensure everyone connected with the project knows what is going on 1080. A stakeholder is anyone who is positively or negatively impacted by the project 9. 1081. Early in the project the costs, and the chance of success are low – the risks and stakeholder influence are high 1082. Stake holder engagement process, in general, is a risk plan to ensure proper engagement of the stakeholders into the project. 1083. Arbitration and mediation are Negotiation Techniques 1084. Open subordination is much like an accommodating or smoothing style of conflict management in which negotiators are more concerned about positive relationships than about substantive outcomes. It concedes one’s position to the needs of others to maintain harmony and relationships. 1085. Achieving mutual gain during negotiations means that each party benefits by the decisions made like :  Separating inventing from deciding  Option broadening  Multiplying options by shuttling between the specific and the general

Project Manager Power 1086. The most effective type of power for a project manager is Expert power. That’s when your team respects you because they know that you know what you are talking about. Reward power, this power comes from another person liking you, respecting you, or wanting to be like you. It is the power of charisma and fame. 1087. REFERRENT power= PM’s PERSONALITY POWER 1088. The type of power that a PM can exhibit by offering perks or other benefits is called reward power 1089. Expert power of PM is essential for effective leadership. 1090. Coercive power comes from the belief that a person can punish others for noncompliance and is also known as penalty power. 1091. The halo effect is when you put someone in a position they can’t handle, just because they’re good at another job. Just because Stephen is a great programmer, that doesn’t mean he’ll be a good Project Manager. 1092. The two forms of project manager authority that PMI states are the most effective are Expert and Reward

Leadership Styles 1093. You should be aware of the following terms related to leadership and management styles. Read the following definitions two or three times so you are familiar with the terms before you see them on the exam: • Directing: This style involves telling others what to do. • Facilitating When facilitating, the project manager coordinates the input of others. • Coaching: In coaching, the manager helps others achieve their goals. • Supporting: A supporting leadership style means the project manager provides assistance along the way. 157 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 • Autocratic: This is a top-down approach where the manager has power to do whatever he or she wants. The manager may coach or delegate, but everyone does what the manager wants them to do. • Consultative: This bottom-up approach uses influence to achieve results. The manager obtains others' opinions and acts as the servant-leader for the team. • Consultative-Autocratic: In this style, the manager solicits input from team members, but retains decision-making authority for him- or herself. • Consensus: This style involves problem solving in a group, and making decisions based on group agreement. • Delegating: With a delegating style, the manager establishes goals and then gives the project team sufficient authority to complete the work. For basic project management, the manager involves the team in the planning process and assigns or delegates planning and executing work to team members. Delegating can be hard for some people, because they feel they can do the work better them. Using proper project management practices should help a project manager feel comfortable those others know what needs to be done and that the project can be successful. • Bureaucratic: This style focuses on following procedures exactly. The bureaucratic style may be appropriate for work in which details are critical or in which specific safety or other regulations must be strictly adhered to. • Charismatic: Managers energize and encourage their team in performing project work. With this style, project success may become dependent on the presence of the charismatic leader, and the team relies on the leader for motivation. • Democratic or Participative: This style involves encouraging team participation in the decision-making process. Team members "own" the decisions made by the group, which results in improved teamwork and cooperation. • Laissez-faire: The French term (laissez – faire) has been translated as meaning allow acting, allowing doing, or leaving alone. A laissez-faire manager is not directly involved in the work of the team, but Manages and consults as necessary. This style can be appropriate with a highly skilled team. • Analytical: This style depends on the manager's own technical knowledge and ability. Analytical managers often make the technical decisions for the project, which they communicate to their teams. Interview-style communication, in which the project manager asks questions to get the facts, is common with this management style. • Driver: A manager with a driver style is constantly giving directions. His or her competitive attitude drives the team to 'Nin. • Influencing: This style emphasizes teamwork, team building, and team decision making. These managers work with their teams to influence project implementation. 1094. The leadership model in which the manager of a team applies more direction to managing inexperienced employees, and then moves to a delegating approach as the team members grow in skill and capability is called situational leadership. 1095. Respect and trust are critical leadership approach throughout the phases of the projects.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1096. Given below are the different leadership styles adopted by the project manager during various phases of the project:

  

Directing during Initiating phase of the project. Facilitating and Coaching during Planning, Executing, Monitoring and Controlling phases of the project. Supportive during Closing phase, the leadership style.



Brainstorming, problem solving, and meeting management. They are used to help teams and individuals achieve agreement to accomplish the project’s objectives. 1097. Managing skills are: negotiation, time management, presenting and public speaking skills. 1098. Program Manager who initiates projects in a program. 1099. An important part of any project manager’s career is enhancing personal professional competence. This means increasing your knowledge and applying it so that you can improve your ability to manage projects. 1100. Best practice is a set of tools and tech that a project manager should master.

Meetings 1101. Planning meetings are used to create the Risk Management plan. 1102. Ground rules help you prevent problems between team members, and let you establish working conditions that everyone on the team can live with. You set up the ground rules for a project to help guide people in their interactions with each other. Make sure you discuss the ground rules with the team during the kick-off meeting! 1103. The Kick-off meeting gets all of the stakeholders together to explain how communication will go. That way, everyone knows who to talk to if things go wrong or they run into any questions. 1104. Kick off meeting - in the real world is any meeting you have to kick off something --- project, contract, company ....... but in the (PMP)®, it is usually used to refer to kicking off the executing processes 1105. Complex topics discussed in face to face meetings, while routine information can be submitted by Emails.

1106. Face to face meeting is an effective mean to resolve stakeholders expectation issues. 1107. Briefing the project status is a Formal verbal while meetings are informal verbal. 1108. There is three types of meetings : information exchange, making decisions, Brainstorming and assessment. 1109. Best practice is not to mix the meetings in one session. 1110. 1111. Ground rules define behavioral boundaries on a project, should be clearly defined and should be communicated to all team members. 1112. Ground rules should not be consistent across projects in an organization because each project has its own conditions and environment.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

Processes Groups

EXERCISE 22 Here is one more TRICK to getting more familiar processes. For each of the processes listed, in the appropriate information in columns. Note that last two columns are asking which process comes before or after within the knowledge area.

Answers As you read the answers to this exercise, notice the words (whatever needs to be done) They are repeated often and are meant to hint at all the soft, interpersonal activity required, as well as the project management and technical activity needed.

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Project management process

Knowledge area

Process group

Define Activities

Time management

Planning

Sequence Activities

Time management Procurement management

Planning

Develop Project Management I Plan

Integration management

Collect Requirements

What does it mean?

What knowledge area process comes before?

What knowledge area process comes after?

Whatever needs to be done to create an activity list from each work package Whatever needs to be done to create a network diagram Whatever needs to be done to create the procurement statements of work, procurement documents, & the procurement management plan

Plan Schedule Management

Sequence Activities

Define Activities None

Estimate Activity Resources Conduct Procurements

Planning

Whatever needs to be done to create a project management plan that is bought into, approved, realistic & formal

Develop Project Charter

Direct and Manage Project Work

Scope management

Planning

Plan Scope Management

Define Scope

Direct & Manage Project Work

Integration management

Executing

Whatever needs to be done to finalize and document detailed requirements & determine how they will be managed Producing work according to the project management plan

Develop project management plan

Monitor and control project work

Develop Schedule

Time management

Planning

Estimate activity durations

Control schedule

Perform Qualitative Risk Analysis

Risk management

Planning

Whatever needs to the be done to create about into, approved, realistic &schedule and schedule baseline Whatever needs to be done to analyze the probability & impact of potential risks to determine which risks might warrant a response or further analysis

Identify risks

Define Scope

Scope management

Planning

Collect requirements

Validate Scope

Scope management

Monitoring & controlling

Identify Stakeholders

Stakeholder management

Initiating

Conduct Procurements

Procurement management

Executing

Monitor & Control Project Work

Integration management

Monitoring & controlling

Perform Interlaid Change Control

Integration management

Monitoring & controlling

Whatever needs to be done to create the project scope statement Meeting with the customer to gain formal acceptance of interim deliverables Identifying & documenting information about the stakeholders on the project Whatever needs to be done to select a seller based on the seller responses and obtain a signed contract Whatever needs to be done to measure performance against the project management plan &request changes Whatever needs to the be done to create about the project constraints and approve or reject change requests

Perform Quantitative Risk Analysis (don't forget, however, that some projects may skip this process & go straight to Plan Risk Responses) Create WBS

Plan Procurement Management

Planning

Create WBS

Control Scope

None

Plan Stakeholder Management

Plan Procurement Management

Control Procurements

Direct and manage project work

Perform Integrated change control

Monitor and control project work

Close project or phase

If you find this exercise helpful, you may want to continue to test yourself on other processes not listed here, and review your answers against the process descriptions in this book. 161 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1113. A day in the life exercise The following exercise is one last opportunity to test yourself to see if you really understand what a project manager does.

EXERCISE 23 Many people do not practice proper project management on their real acts. Cause and the project management process or its lack of experience in properly managing large projects can affect you dramatically on the exam. This exercise is designed to help you uncover what you might be doing infector on your projects so differences between your real-world experience and the world of proper project management do not get in your way on the exam. In the following table, list which activities a project manager should spend the most, medium, and least amount of time on during a typical day once planning is complete and the team has begun working on the project.

Answers There is any number of correct answers to this question. Let`s first review what should NOT be on your "Most" list, and then we will look at what efforts a project manager should focus on during the course of a day. Think through the items listed here and identify whether you have any misconceptions about what you should be doing as a project manager. If you do, you need to clarify and fix these misconceptions before you take the exam.

Items that should NOT be on your "Most" list: • • • • •

Dealing with problems (rather than preventing them) Schedule- or schedule-management-related topics Meetings Babysitting Completing work activities

The following items should have been included in your "Most" list: • • • • • • •

Using project management tools, such as a charter, WBS, project management plan, etc. Measuring Recommending and taking corrective and preventive actions Doing risk management and implementing risk responses Coaching and mentoring Communicating Looking for possible changes

1114. Historical information is the best input for the initiation phase 1115. Reports: There are several kinds of report:  Status report determines the variance between actual performance and performance management baseline. It includes all the listed down here other reports.  Progress report: what has been accomplished  Trend report: shows the performance behavior of the project within a time period.( stable, ascending or descending)  Forecast report: predict the future performance and status of the project.  Variance report: comparing actual to baseline  Earned Value report: integrate (cost, scope and schedule) measures to project performance . 162 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1116. How to use reports?  The reports will be communicated through manage communication process in execution.  The reports will be communicated to project team and proper SH to be analyzed then feedback.  The reports will be communicated to control risks.  The reports will be communicated to control procurement  The reports will be communicated to control communications to ensure they have been communicated.  Analyzing reports (feedback) may result in change requests.  The reports will be documented in lesson learned 1117. (Work Performance Reports) is the main output of (Monitor & Control Project Work) process. So report performance is a monitoring & controlling task, BUT is also done during closure to report the performance of the project in the final report. 1118. Work performance reports are an inputs to control risks .. And are an outputs of other control processes , such as ( control scope , control schedule , ...... etc ) . 1119. Report the incorrect status to the appropriate management. Project managers are required by PMI's Code of Ethics to provide truthful and accurate information, and to report the errors and omissions of others to the appropriate management. 1120. A status report is submitted to SH all long the project even in closing. 1121. A status report describes where the project now stands – 1122. Status report is a progress report 1123. A progress report describes what has been accomplished – 1124. The biggest disadvantage of status report is it is refer to the problems after happening. By interacting with the team, watching what is going on, and listening to the team members, you will find out sooner than later what the "real" status of the project is. Reports are normally a week or two behind the actual work, causing a delay in reacting to problems. That is the biggest disadvantage of progress reports as opposed to watching what is going on, asking questions, and assisting team members. 1125. A variance report compares actuals measurements of performance to the performance baseline 9. 1126. A performance report may include: WBS element, PV, EV, AC, CV, SV, CPI, SPI. 1127. All team members must follow the company policies and report daily status(even if it means lower productivity). 1128. All status reports must be formal and detailed. 1129. You can't report your sponsor. 1130. Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s), close the contract. One important fact is that you need your team’s help when you’re writing the lessons learned. That’s why you can’t release the team until the lessons learned are documented and added to the organizational process assets. Also, the last thing you do on the project is close the contract. Remember, release the project team is no longer part of closing as per the new RDS study conducted by PMI. 1131. When performing closure on the project or a project phase _contract closure__ occurs before ___administrative closure__ 1132. The key output of Closure is the ___ final product, _service or result transition_ 1133. Administrative closure means verifying that the project is complete or terminated; contract closure means verifying that the contract terms were satisfied. When you close out a project, there are two main things you need to do: administrative closure and contract closure. Administrative closure means working with the team to make sure that all of your project’s exit criteria are met. If the project was successful, then you need to make sure you have formal acceptance from the stakeholders, and that the product meets its requirements. If the project was terminated early, you still need to store the project documents. And in both cases you need to write lessons learned! Contract closure is what you do to make sure that your contract’s terms are satisfied. If your project went well, then this means making sure that payment was made and all of the clauses of the contract were adhered to. But even if the project got terminated, there may still be some contractual obligations that need to be met. 163 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1134. When you are carrying out a project for an external customer. Most of the project's scope of work has been outsourced and distributed among many sub-contractors. The buyer role of the Direct and Manage Project Work process in this scenario will authorize the seller's work at the appropriate time. 1135. 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. 1136. The five process groups that comprise the project management lifecycle are: initiating, planning, executing, monitoring and controlling and closing. 1137. The two primary outputs of the Initiating process are the project charter and identify stakeholders. 1138. The primary goal of the planning process group is to produce the project management plan. 1139. The ten knowledge Areas of the PMBOK ® Guide, 5th edition are, in short, Integration, Scope, Time, Cost, Quality, Human Resources, Communications, Risk, Procurement, Stakeholders. 1140. Almost half of the processes that occur in the ten knowledge areas of the PMBOK ® Guide, 5th edition occur in the Planning process group. 1141. Only the Integration knowledge area has processes in all five of the process groups of the project management lifecycle. 1142. Two primary goals of the Monitoring and Control process group are to monitor and control project work and to perform integrated change control. 1143. Control means influencing the factors that create changes to the authorized baselines. 1144. Work Performance Information needs to be gathered BEFORE you start monitoring and controlling your risks. 1145. All projects, even those without a required completion date (yes, they do exist), should be planned and have a schedule, so that, among other things, the team knows what should be done by whom, and to control the project and prove project success. 1146. Project management plan importance is in directing and managing project work, the n in monitoring and controlling. 1147. The WBS is the foundation for all project management planning 1148. The scope, schedule, and cost baselines may be combined into a performance measurement baseline. It also may include technical and quality parameters. It then is used as an overall project baseline against which project execution is compared to measure and manage performance. It also is used for earned value measurements. 1149. Percentage of work completed, quality and technical performance measurements, start and finish dates of scheduled activities is known as _work performance data, whereas status of deliverables, status of change requests, forecasted estimates to completion is called _work performance information. 1150. Regression Analysis is an analytical technique tool that used in parametric estimate, M&C project work and closing project and/or phase. 1151. The project management plan is prepared by the project manager based on the inputs from the team and all the appropriate stakeholders. 1152. Engineering is primarily responsible for creating design and test specifications. 1153. Product of the Project is Actually created in EXECUTION Phase /Group 1154. PMBOK ® Guide, 5th edition process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle (PACA)

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1155. Standards are OPTIONAL , Regulations are REQUIRED 1156. The project manager is assigned during the Initiating phase of the project • 1157. Planning is a key element in all projects • 1158. The project management plan is the key document by which the project is managed • 1159. When closing a project, the project manager archives all project records • 1160. Projects are not considered complete until final acceptance has been received from the customer and the PM releases resources upon project completion. 1161. The project is of sufficient size to warrant the use of a project management plan and all subsidiary plans • 1162. You are following the formal processes as outlined by PMI, even if you don't use them in real life • 1163. When the question asks you about a document, be careful not to choose the information that is listed the document. 1164. During closing phase, schedule is top rank of conflict because any delay in execution phase will cumulative at the end. 1165. Monitoring the project continuously provide the basis to have insight into the health of the project and identify any area that need special attention. 1166. Why use expert judgement in closing? To ensure the closure is performed to appropriate standards. 1167. The process measurement data base is an organizational process asset that is used to collect and make available measurement data on processes and products 1168. No OPA update in Planning processes. 1169. As part of the initiating process group, many large or complex projects may be divided into separate phases. 1170. The purpose of the documenting process during closure is to formally transfer the deliverables to the operation group or customer. 1171. 1172. Project performance measurements are used to assess the magnitude of variation. 1173. Be careful, when the question asks to choose a list of ITTO for a certain process, make sure you choose the list that contains only the correct ITTO. Sometimes, a main item is put with wrong list to confuse you.

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(PMI)® Code of Ethics 1174. (PMI)® Code of ethics are Responsibility, respect, Fairness and honesty. 1175. Code of ethics classified to: aspirational and mandatory. The conduct covered under

the aspirational standards and conduct covered under the mandatory standards are not mutually exclusive; that is, one specific act or omission could violate both aspirational and mandatory standards 1176. Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result.      

 

  

       

 Aspirational Standards We make decisions and take actions based on the best interests of society, public safety, and the environment. We accept only those assignments that are consistent with our background, experience, skills, and qualifications. We ensure that key stakeholders receive timely and complete information regarding the gaps in our qualifications so that they may make informed decisions regarding our suitability for a particular assignment. We only bid on work that our organization is qualified to perform and we assign only qualified individuals to perform the work. We fulfill the commitments that we undertake – we do what we say we will do. When we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences. We protect proprietary or confidential information that has been entrusted to us. We uphold this Code and hold each other accountable to it  Mandatory Standards  Regulations and Legal Requirements We inform ourselves and uphold the policies, rules, regulations and laws that govern our work, professional, and volunteer activities. We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct. We do not engage in any illegal behavior, including but not limited to: theft, fraud, corruption, embezzlement, or bribery. - We do not take or abuse the property of others, including intellectual property, nor do we engage in slander or libel. We do not condone or assist others in engaging in illegal behavior. We report any illegal or unethical conduct.  Ethics Complaints We bring violations of this Code to the attention of the appropriate body for resolution. We only file ethics complaints when they are substantiated by facts. We cooperate with PMI concerning ethics violations and the collection of related information whether we are a complainant or a respondent. We also abstain from accusing others of ethical misconduct when we do not have all the facts. We pursue disciplinary action against individuals who knowingly make false allegations against others. We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1177.

Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. An environment of respect engenders trust, confidence, and performance excellence by fostering mutual cooperation—an environment where diverse perspectives and views are encouraged and valued.          

1178.

 Aspirational Standards We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful. We listen to others’ points of view, seeking to understand them. We approach directly those persons with whom we have a conflict or disagreement. We conduct ourselves in a professional manner, even when it is not reciprocated. We avoid engaging in gossip and avoid making negative remarks to undermine another person’s reputation. We also have a duty under this Code to confront others who engage in these types of behaviors.  Mandatory Standards We negotiate in good faith. We do not exercise the power of our expertise or position to influence the decisions or actions of others in order to benefit personally at their expense. We do not act in an abusive manner toward others. We respect the property rights of others.

Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self-interest, prejudice, and favoritism.   

 

 



 Aspirational Standards We demonstrate transparency in our decision-making process. We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate. We as practitioners must proactively search for potential conflicts and help each other by highlighting each other’s potential conflicts of interest and insisting that they be resolved. Research with practitioners indicated that the subject of conflicts of interest is one of the most challenging faced by our profession. One of the biggest problems practitioners report is not recognizing when we have conflicted loyalties and recognizing when we are inadvertently placing ourselves or others in a conflict-of-interest situation. We provide equal access to information to those who are authorized to have that information. We make opportunities equally available to qualified candidates. In the case of a contracting arrangement, we provide equal access to information during the bidding process.  Mandatory Standards  Conflict of Interest Situations We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders. When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed. A conflict of interest occurs when we are in a position to influence decisions or other outcomes on behalf of one party when such decisions or outcomes could affect one or more other parties with which we have competing loyalties.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641



  

1179.

For example, when we are acting as an employee, we have a duty of loyalty to our employer. When we are acting as a PMI volunteer, we have a duty of loyalty to the Project Management Institute. We must recognize these divergent interests and refrain from influencing decisions when we have a conflict of interest. Even if we believe that we can set aside our divided loyalties and make decisions impartially, we treat the appearance of a conflict of interest as a conflict of interest and follow the provisions described in the Code.

 Favoritism and Discrimination We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery. We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation. We apply the rules of the organization (employer, Project Management Institute, or other group) without favoritism or prejudice.

Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct.        

  

 Aspirational Standards We earnestly seek to understand the truth. We are truthful in our communications and in our conduct. We provide accurate information in a timely manner. We take appropriate steps to ensure that the information we are basing our decisions upon or providing to others is accurate, reliable, and timely. This includes having the courage to share bad news even when it may be poorly received. When outcomes are negative, we avoid burying information or shifting blame to others. When outcomes are positive, we avoid taking credit for the achievements of others. These provisions reinforce our commitment to be both honest and responsible. We make commitments and promises, implied or explicit, in good faith. We strive to create an environment in which others feel safe to tell the truth.  Mandatory Standards We do not engage in or condone behavior that is designed to deceive others, including but not limited to, making misleading or false statements, stating half-truths, providing information out of context or withholding information that, if known, would render our statements as misleading or incomplete. We do not engage in dishonest behavior with the intention of personal gain or at the expense of another. We must be truthful, half-truths and non-disclosures intended to mislead stakeholders are as unprofessional as affirmatively making misrepresentations. We develop credibility by providing complete and accurate information.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1180. PMI Ethical Decision-Making Framework, 2012

 Assessment: Make sure you have all the facts about the ethical dilemma and ask these questions: • Does it abide by the law? • Does it align with the (PMI)®code of ethics and Professional Conduct? • Does it agree with your employer’s and client’s code of ethics and conduct? • Does it align with your ethical values and those of the surrounding culture? If it does not abide by the law, seek legal counsel. If the answer to any other of these questions is “No”, be very cautious about moving ahead. You might make an unethical decision. Ask a trusted person if you are unsure. If the answer is “Yes”, explore your options in the next step.  Alternatives: Consider your choices by asking the following questions: • Have you listed possible alternative choices? • Have you considered pros and cons for each possible choice? If the answer to these questions is “No”, you must complete your research. If the answer is “Yes”, then move on to analyzing your candidate decision in the next step.

 Analysis: Identify your candidate decision and test its validity with these questions: • Will your candidate decision have a positive impact or prevent harm to project managers, PMI staff or volunteers, clients, your employer’s organization, other stakeholders, the environment, or future generations? • Does your candidate decision take cultural differences into account? • Looking back, will this decision seem like a good idea a year from now? • Are you free from external influence to make this decision? • Are you in a calm and unstressed state of mind? If the answer to these questions is “No”, consider taking time to test another candidate decision. If your candidate decision passes these tests with a “Yes” answer, proceed to evaluate your decision with the ethical principles in the next step.

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 Application: Apply ethical principles to your candidate decision by asking these questions: • Would your choice result in the greatest good? • Would your choice treat others as you would like to be treated? • Would your choice be fair and beneficial to all concerned? If any one of these traditional philosophical questions prompts a “No” answer, or if addressing them seems to create a new dilemma, others could view your candidate decision as a poor choice, please consider again if this is the decision that you want to make. If the answer is “Yes”, move to the next step to decide and take action.  Action: Make a decision after considering these questions: • Are you willing to accept responsibility for your decision? • Could you make your decision public and feel good about it? • Are you ready to act? If the answer to any of these questions is “No”, retrace these steps to discover a better resolution. If the answer to these questions is “Yes”, act on your decision. EXERCISE 24 Let's try to put determine what to do. it all together. Look at the following situations and determine what to do? a. Your management has told you that you will receive part of the incentive fee from the customer if you can bring the project in early. While finalizing a major deliverable, your team informs you that the deliverable meets the requirements in the contract, but will not provide the functionality the customer needs. If the deliverable is late you know the project will not be completed early. What action should you take? b. You are asked to make a copy of a magazine article and include it in the internal Training and support materials for the new software the project is creating. You see the article has a copyright notice. What is the best thing to do? c. Your company is in competition to win a major project for the government of Country x ·you are told you must make a large payment to the foreign minister In order to be considered for the project. What is the best thing to do? d. You provide a cost estimate for the project to the project sponsor. He is unhappy With the estimate, because he thinks the cost should be lower. He asks you to cut 15 percent off the project estimate. What should you do? e. In reviewing the draft of the monthly project update report published by the project management office, you notice another project manager is exaggerating His project's status. You know this project manager is being untruthful because a deliverable due to your project is estimated to be delivered in two weeks. HE is Reporting the delivery has already taken place. What do you do? f. You have three sellers bidding on some of your project work you have worked With one of the sellers (X) before and know they do excellent work the project Manager from company X calls to ask for clarification on the RFP you sent out Last week so they can better address your needs. What do you do? g. As stated in situation 5, a project manager is exaggerating his project's status. You notified him of the inaccuracy, but he still did not change his monthly Update. What do you do now? h. You and a friend from college regularly attend your alma mater's sports games Together. Your company has hired the firm your friend works for to do some Work on your project. Your friend is not in the division that is working on your Project, nor is she involved with any of the work. Your friend calls excitedly and Says that due to her efforts this year, she has gotten two tickets to the division Football game from her boss. She wants you to go with her. Should you go? i. You have been asked to do a presentation about your project's status to senior Management in your company and to the external customer. The day before the Meeting, you realize a delay in delivery of some critical materials will cause a two month delay in the critical path. You do not have time to work out a plan to 170 | P a g e

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j.

get the project back on track before the presentation. You feel sure the delay can be made up and don't want to scare the customer unnecessarily nor do you want the extra work that will be requited If you present the information now what should you do’ You have successfully guided your project team through four of five phases of Your project Testing went especially well due to a subject matter expert’s earlier Input, which helped avoid a critical threat from occurring. At the quarterly senior management review, they specifically comment about how great you are doing with the project so far, especially with testing, and congratulate you. How do you respond?

Answers The answers depend on the exact wording of the choices, but generally: a) Review the situation with the customer; review what is required in the contract. b) Ask the copyright owner for permission. c) Refuse to make the payment; it is a bribe. d) Look for options such as schedule compression, reestimating, or changing scope. e) Hold the project manager accountable by notifying him of the discrepancy and reporting accurately on your own project. f) Either provide ALL sellers the additional information or do not provide the information to the project manager from company X. g) Report the other project manager's dishonesty to both your boss and his. h) Most likely no, because this could be perceived as a conflict of interest, which must be avoided. If a similar question appears on the exam, look carefully at the answers, however. It's possible an alternative correct answer might be to disclose the situation to your boss and the sponsor and ask for permission. i) You should present the current status of the project, without downplaying or minimizing the effect of the delay. You cannot bury the bad news in an effort to avoid conflict. You need to present the information, along with your planned approach for coming up with possible solutions to the problem, and provide the customer with a timeline for when they should expect an update. j) You need to give credit to the subject matter expert and let senior management know the expert's input really helped ensure the testing process went smoothly. You cannot take credit for the good work of others, nor can you pass blame down to others. Professional and social responsibility can seem easy at first but can quickly get complicated. This is an important topic to understand, not just for the exam but also in the real world. Unethical and unprofessional behavior hurts the project, the organization, and the profession. As project managers, and especially as (PMP)® certification holders, we have a responsibility to uphold the standards of the profession and prove the value project management brings to all who benefit from successful project results 1181. Notify the project stakeholders immediately about the new risk. Once the stakeholders have been made fully aware of the circumstances and potential impacts, a plan to deal with this risk can be developed. The (PMI)®code of ethics and Professional Conduct requires project managers to provide accurate and timely project information at all times and to follow all project processes and policies. [(PMI)® Code of Ethics and Professional Conduct. 1182. Falsification of any information directly or indirectly related to all aspects of the PMI Certification Program can result in both revocation of PMI Membership and (PMP)® Certification of a candidate. 1183. As per the (PMI)® Code of Ethics and professional conduct, a project manager should always be truthful while reporting about his qualifications, experience, past performance, etc. to his potential employers, customers, etc. 1184. As per the (PMI)® Code of Ethics and professional conduct, a project manager should be accountable and should not shift responsibility of the project to another person. 171 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1185. Notifying project stakeholders and following proper procedures for dealing with budget variances is the best response. Attempting to pass off or hide an unexpected expense in another budget or in expense reports rather than following proper procedures is dishonest and unprofessional. The (PMI)® Code of Ethics requires project managers to be honest, take responsibility for errors, and follow all organizational rules and policies. [(PMI)® Code of Ethics and Professional Conduct, Page 2] 1186. You must not give wrong information to the stakeholders, so you must reschedule any meeting to give you time to fix any errors in your presentation information. 1187. Intellectual property belongs to the author of the property. If you create a presentation based on your own work, you have a right to receive credit for it. 1188. Thank the customer on behalf of the team and cite the contributions made by two of the team members. PMI's Code of Ethics and Professional Conduct requires project managers to act fairly and truthfully. Accepting the credit due to another person or failing to denote where credit is actually due is dishonest and a violation of this code. [Reference: (PMI)® Code of Ethics and Professional Conduct, 1189. The work performance information is: All about how the work is being performed. It does provide detail on what resources have been used and when. It provides information on which activities have been started and what their status is. It provides information on what costs were authorized and what costs have been incurred. 1190. Note that the work performance information is not used in identifying defects. 1191. Project management plan documents the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans. 1192. Some questions on the exam might ask you about how to operate in another country. In this case, the question is about whether or not something is a bribe. Clearly, if it’s a bribe, you can’t pay it. But is it? If a payment to a government official (or anyone else) is customary, then it’s not a bribe. You should go ahead and pay the police - as long as it’s acceptable and legal in that country. 1193. As per the (PMI)® Code of Ethics and Professional Conduct you should bring violations of the code to the attention of senior management at the company and possibly PMI. However you should get the facts together and gather evidence before taking either of those steps. 1194. When you perform project in another country always focus on culture and customs of that country. 1195. In case of conflict of interest situations, the project manager should inform senior management, and distance oneself from the conflict of interest situation, if possible. However, in this context, as the senior management insists and the project manager has to continue in the current position, appropriate documentation can help in preventing any accusation of bias in conflict of interest situations. 1196. A governmental Fee is always legal. 1197. Three reasons behind refusing or return a gift back: conflict of interest, company policy and it may be construed as a personal gain. 1198. The project manager puts the interests of the project ahead of his/her own self-interest

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Comparisons 1199. System vs Process 1200. A system is often a set of connected things or parts forming a complex whole, or a set of principles or procedures according to which something is done. A process is a series of actions or steps taken in order to achieve a particular end. ... In short, all processes are systems, but not all systems are processes 1201. Accuracy VS precision Precision is a measure of exactness... Accuracy is an assessment of correctness...Precise measurements are not necessarily accurate measurements, and accurate measurements are not necessarily precise measurements 1202. High precision measurements have little scatter

1203. Alternative Generation vs Alternative Analysis  Alternative generation is a tool used during collect requirement  Alternative analysis is to find options in estimate resources ( rent or buy, manual or automatic ) 1204. Organization Breakdown Structure VS Organization Chart  Organization Breakdown Structure hierarchically depicts the project structure in order to properly relate the work package to the performing organizational unites.  Project Organization Chart. A project organization chart is part of the human resource plan and displays project team members and their reporting structure. Depending on the project requirements, team size and their reporting hierarchy, this chart could be highly detailed or broadly framed. Please refer PMBOK ® Guide, 5th edition PN 261. 1205. Organization Breakdown Structure vs Responsibility Assignment Matrix The OBS links the organization units to the work package while RAM links the project resources to Work . 1206. Performing a quality audit VS Perform Quality Assurance  Performing a quality audit relates to determining whether you are using the right processes and whether those processes are effective.  Perform Quality Assurance is improving processes and discovering non-value activities. 1207. Validate Scope VS Control scope:  Validate scope process uses verified deliverables while control scope process uses work performance data.  Both of them are sharing the same other tools and techniques like: OPA, requirement traceability matrix, requirement documentations, expert judgements and project management plan.  Only in control scope there is an update to OPA and scope baseline. 173 | P a g e

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1208. Work Package vs planning Package: Both are component of WBS, But planning package is the lowest element at a given point of time but at later stage it will be get decomposed into work package. 1209. Assumptions vs Assumptions Analysis  Assumptions are included in project scope statement  Assumptions analysis is a tool in identifying risks. 1210. Back log is a list of deliverables and their requirement. 1211. Check list vs Check sheet vs Check list analysis  Check list is a tool in control Quality  Check sheet is a tool in plan quality  Check list analysis is a tool in identifying risks. 1212. Context diagram is used in collecting requirement 1213. Data gathering and representation technique is used as a tool in Quantitative risk analysis. 1214. Design of Experiment is a tool in identifying risks. 1215. Document analysis vs Document review  Document analysis is a tool to collect requirement  Document review is a tool in identifying risks. 1216. Facilitation technique vs Facilitation Workshop  Facilitation technique is a tool in develop both project charter and Project management plan.  Facilitation work shop is used as a tool in define scope. 1217. Historical relationships vs Historical information  A historical relationship is a mathematical way to create models for the project budget.  Historical relationships from past projects (part of organizational process assets) is key to improving estimates 1218. Design of Experiment vs Mathematical analysis vs historical relationship: all these tools are statistical and mathematical ways to create models and deferent scenarios for the project.  DOE for plan quality  Mathematical analysis for identifying risks  historical relationship for determine budget. 1219. PMIS vs Information management system vs Record management system  PMIS a tool in Direct manage projects work and M&C project work  Information management system is used in manage communication, control communication and control stakeholders.  Record management system a tool in control procurement and close procurement 1220. Interpersonal skills Vs management skills  Interpersonal skills are the ability to deal with human being: manage project team, manage SH and develop project team.  Management skills are the ability to plan, execute, M&C the project. It is used in manage SH. 1221. Modeling technique is the scheduling tool like MS Project and it is used in develop and control schedule. 1222. Performance review vs performance reporting  Performance review is a tool in control cost and schedule  Performance review is a tool in manage communication and control procurement (it is related to reporting and saving information to project SH). 1223. Personal assessment tool vs project performance appraisal tool vs team performance assessment  Personal assessment tool in develop project team  Project performance appraisal tool in manage project team  Team performance assessment is an output of develop project team and input to manage project team.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1224. Business value vs business need vs business case  Business value is the assets and the culture of the organization.  Business need is part of business case that gives the justification for the project.  Business case is a study to convince the organization to invest in the project. It includes C/B analysis. 1225. Pre-assignment VS previous assignment  Pre-assignment is a tool in acquiring project team  Previous assignment is a constrain for the project. 1226. Project requirement VS product requirement  Project requirement are: Actions, processes and conditions to be met  Product requirement are: functional and non-functional 1227. Data vs Information vs Reports  Data are raw measurements gathered from Direct Manage project work.  These data (according to specialist) go to controlling process to be analyzed to become as useful information.  This information is prepared as reports. 1228. Attribution Sampling vs Variable sampling vs statistical sampling  Attribute sampling means the sample is either accepted or not.  Variable sampling means the sample is subjected to a scale.  Statistical sampling is quality tool used in plan and control Quality by which you will determine how often and how many 1229. Communication model vs communication method vs communication technology  There is only one communication model.  Communication method is an EEF and used for formal communications only.  Communication technology is how to communicate formally or informally to ensure the sending of information. 1230. Product Scope vs Project Scope  Product scope means the features and functions of the product or service being built. Project scope means the work that’s needed to build the product.  Project scope is measured to the plan while product scope is measured to requirements ( traceability matrix) 1231. Discrete effort vs Apportioned effort vs Level of effort  Discrete Effort. An activity that appears in WBS, so, can be planned and measured and that yields a specific output.  Apportioned Effort. An activity where effort is allotted proportionately across certain discrete efforts and not divisible into discrete efforts but represented in WBS like inspection, audit activities.  An activity that does not produce definitive end products and is measured by the passage of time. These efforts can't be represented in WBS, like project management activities. Note: all of them are earned value management (EVM) types of activities used to measure work performance.

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 1232. OPA VS EEF Organizational Process assets Knowledge Base Processes and Policies Organization's process Lesson learned documents Projects file Policies Defect history Guidelines Change management PM database process Finance (labor rate, Communication travel rate) management Past project historical Recorded lesson data learned Risk register Templets

Enterprise Environmental Factors internal external Organizational Governmental structure regulations Organization's culture Political situation Organization's policies Country culture Working style

Market condition

Employee skills

Project location Infrastructure Weather conditions

Data- Information- Report cycle 1233. Data is generated from performing (Direct Managing project work ) and go to all control processes. 1234. In control processes, the data is analyzed as per specific field to generate useful information. 1235. This information is gathered in M&C project work to generate reports. 1236. The performance reports will go to:  Control risks to re-assess or identify new risks  Control procurement  Manage communications to communicate the reports  Manage team to be used in project assessment appraisal tool.

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ITTO 1237. The most used tool is analytical tools despite its name. All the analytical tools are used by expert judgement during meeting. 1238. With each change request there will be project management plan and documents update. 1239. In the table below, you will understand the important Tools and Techniques and in which processes they are used and what for. I

The tool or technique Stakeholder analysis

The process

Why to use

input

output

notes

Identify SH

To identify more SH from key SH

Project charter

SH register

Power=impact Interest=concerns Influence=involvement

2

Trend analysis Regression analysis

To solicit lesson learned To solicit lesson learned

Project documents Project documents

Lesson learned

3

Close project or phase Close project or phase

By meetings With expert judgement By meetings With expert judgement

4

Procurement audit

Close procurement

To ensure that all the processes and procedures were correct

Procurement documents and correspondences in record management sys

Verification

It's a review process

5

Record management sys

Close procurement

documents and correspondences

Record manag. Sys update

Also used in control procurement include the contract

6

P7rocurement ne8gotiation 1

Close procurement

Includes the procurement documents and correspondences To negotiate the rest payments

Invoices from payment sys

Last payment

It's also used in conduct procurement to negotiate prices

7

PMI9S

M&C project work

Monitoring and controlling the work

Projects plans, baselines, performance reports and documents

Change requests

It is include the KPI and it's an EEF. Also used in Direct & Manage project work

8

Change control tool

Perform integrated change control

To systematic the change control procedures

Change request and recommendation s

Approved, rejected or delayed changes

Through CCB

9

Market researches

Plan procurement

To figure out the market conditions, prices, availability and competency of the contractors

Market Data

Conclusions

Formally and informally

10

Make or by analysis

Plan procurement

To decide if you will make something or outsource it

Product life costs, direct and indirect costs

A decision

It uses the decision tree technique

1

Lesson learned

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Mohammed Shafeea Haddad (PMP)® Number: 1987641 11

Analytical technique-6

Plan SH

To set the desired level of engagement of each key SH

SH register

Level of engagement table

The SH engagement are: directing, supporting, neutral and resisting

12

Data gathering and representatio n technique Modeling and simulation technique

Quantitative risk analysis

To give a numerical representation for the risks Represent the project scenarios in models

Rectangular, PERT and other estimations

Rarely used

Risk data quality assessment Risk category

Qualitative risk analysis

Ensure the information is accurate To effectively identify any potential risk Rank each risk to set the kind of risk: watch list, active accepted, passive accepted and contingence

Risk register

Beta distribution for project cost estimation Sensitive, Tornado, Monte Carlo analysis and EMV ( decision tree) Risk register update

Risk register

Risk breakdown structure

Interview with expert judgement

Risk register

Risk register update

Interview with expert judgement to set the response strategy

13

14

15

Quantitative risk analysis

Qualitative risk analysis

Risk probability and impact matrix

Monte Carlo (what if scenario) is also used in Develop schedule

Interview with expert judgement

16

Risk probability and impact assessment

Qualitative risk analysis

17

Risk probability and impact matrix Risk urgency

Qualitative risk analysis

A representation for the ranked risks

Risk register

Risk register update

Interview with expert judgement

Qualitative risk analysis

To respond promptly to the urgent risks To solicit any unforeseen risks

Risk register

Risk register update

Interview with expert judgement

All project documents

Risk register update

With expert judgement

18

19

Document review

Identify risks

20

Checklist analysis

Identify risks

To solicit any unforeseen risks

RBS

Risk register update

Lowest level of RBS

21

Assumption analysis SWOT

Identify risks

Project scope statement OPA and EEF

Identify risks

Communicatio n requirement analysis

Plan communication

Put communication plan

Organization chart, SH requirements

Risk register update Risk register update Risk register update Risk strategy, appetite, tolerance, threshold Who report what to whom, why, when and how often

With expert judgement

Diagramming technique Analytical technique - 5

To solicit any unforeseen risks To solicit any unforeseen risks To solicit any unforeseen risks To put a plan for risks

22 23 24

25

Identify risks

Plan risk

Project processes and procedures All project plans

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With expert judgement Use the quality diagraming tools With expert judgement

Through meetings

Mohammed Shafeea Haddad (PMP)® Number: 1987641 26

Networking

Plan HR

Put HP plan

WBS

27

Organization theory

Plan HR

Put HP plan

WBS

28

Analytical technique

Plan cost

Put cost plan

29

Project management software- 1

Estimate cost

Project total cost estimation

Project management plan, scope statement baseline All approved costs

30

Group decision making- 1

Estimate cost

Project total cost estimation

31

Cost of quality

Estimate cost

32

Reserve analysis- 1

Estimate cost

33

Reserve analysis- 2

Determine Budget

Project total cost estimation To add contingency reserves to cost baseline To add management reserves to cost baseline

34

Cost aggregation

Determine Budget

35

Funding limit reconciliation

36

RAM, RACI, organization chart position description RAM, RACI, organization chart position description Basis of estimate

Meeting and expert judgement

Cost baseline

Also in: estimate activity resources, control schedule and control cost Also used in: validate scope and estimate activity duration

Scope, activity duration and resource requirement Cost of conformance Contingency reserves

Cost baseline

Meeting and expert judgement

Meeting and expert judgement

Cost baseline

Also used in plan quality

Cost baseline

Also used in: estimate duration and control cost

management reserves

Project budget

Meeting and expert judgement

Summation of activities costs

Cost baseline

Project approved budget

Meeting and expert judgement

Determine Budget

How much needed and when

Project budget

Project funding requirement

Meeting and expert judgement

Historical relationships

Determine Budget

Enhance the cost estimation

Project budget

Verified aggregated costs

Meeting and expert judgement

37

Alternative analysis

Estimate activity resources

Find more options to perform

Scope baseline

Buy or lean

38

Published estimate data

Estimate activity resources

Published data

Resource estimation

39

Scheduling tool

Develop schedule

To know how much efforts are needed as best practice Manually or electronically represent the project schedule

It's used when resources are in shortage or nonskilled enough With expert judgement

WBS, time duration

Schedule baseline

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Software may be used

Mohammed Shafeea Haddad (PMP)® Number: 1987641 40

Modeling technique

Develop schedule

41

Product analysis

Define scope

42

Alternative Generation

Define scope

43

Decompositio n Document analysis

Create WBS

45

Focus group

46

interview

47

Observation

48

Questioner and survey

49

Prototype

50

benchmarking

51

Observation and conversation Performance appraisal Personal assessment tool Performance reporting Interpersonal skills

44

52 53

54 55

Create more than one scenario for the project schedule Subdivide the product according to component Find more potions to produce the product

schedule baseline

Monte Carlo model

also used in quantitative risk analysis

Project charter

Product breakdown structure Defined scope

Decompose the project work Analyze the document to find requirement

Defined scope

Used with: Engineering analysis and value engineering During: Brainstorming, lateral thinking and analysis of alternatives Also used in define activity It is defer from document review in risk

Collect requirement Collect requirement Collect requirement Collect requirement

Define requirement Define requirement Go around to notice ask all SH

Needs and expectations Needs and expectations Needs and expectations Needs and expectations

Collect requirement Collect requirement Manage project team

Build a sample of the product Look at similar projects Manage the team effectively

Manage project team Develop team

Collect requirement

Project charter

Needs and expectations

WBS, WBS dictionary Requirement documentation and traceability matrix requirement

requirement

Prequalified SH and subject matter experts Prequalified SH and subject matter experts Job shadowing

requirement

If there are many SH

Needs and expectations Needs and expectations Performance assessment

requirement

Iterative methodology

requirement

It is used also in plan quality It's a project manager management skills

Assess the individuals Assess the persons

Performance assessment Persons performance

Performance appraisal assessment

help in specify unplanned training needs

Manage communication Develop team

Conduct communication Soft skills to help the team perform

Data, information and Reports issues

Communication

Also used in control procurement Also in manage SH engagement and team

requirement

Recommendatio ns or actions

Solutions

56

Conflict management

Manage team

How to solve problems

issues

Solutions

Related to human behavior

57

Management skills

Manage SH engagement

The project manager professional experience

issues

Solutions

Related to human behavior

58

Negotiation – 2

Acquisition team

Negotiate functional managers for resources

Activity resources requirement

Acquire team members

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Training

Develop team

60

Recognition and reward Multi criteria decision analysis

Develop team

62

Information management sys

control communication

63

Payments sys

Control procurement

64

Claim admin.

65

Contract change control sys

Control procurement Control procurement

66

Procurement performance review Technical performance measurement Risk audit

69

Risk reassessment

Control risks

70

Variance analysis

Control scope

71

Performance review

Control schedule

Review to monitor the schedule

72

Project management software

Control cost

73

Approved change review 7 basic quality tool Statistical sampling Process analysis

QA

61

67

68

74 75

76

Improve the team skills Rewarding good performance Select according to many 62parameters

Performance appraisal Performance appraisal Staffing plan

Non planned training rewards

W63here you store64 all commu65nication s 66 Proc67edures to pay for68 contracto69rs Solve claims

communications

Stored communication s

Also used in Control SH

Accepted deliverables

payments

To be negotiated in close procurement

Claims

solutions

A set of procedures to track changes

Procurements change requests

Control procurement

Inspect and audit procurement

Performance reports

Control risks

To identify new risks related to performance Check the validity of the risk If there is an issue need to re assess the risks Analyze the cause of variance

Performance reports

Approved, reject or delayed changes Change requests if needed Risk register update

Acquire team

Control risks

Risk register Risk register

who to acquire

Risk register update Risk register update

Planned training is listed in staffing plan. It is included in staffing plan Also used in conduct procurement to choose vendors

It is defer from project change control sys

Performance data is input and performance report is output During status reports

Project schedule data and performance reports data, information and performance reports

Change request

Trend and variance analysis

change request

Also in control cost by using analytical techniques like trend and variance analysis

A software to represent the project schedule

Estimates, actual data

Updated project schedule

Also in Control schedule Estimate cost Estimate resources

QC

Validate changes

QC

A basic quality tool Testing samples of the majority

Approved changes Processes, data procedures and Product

Change request if needed Change requests Change request and measurements Change request

QC

Analyze the process to improve it

Processes with errors

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Also are used in plan quality Also are used in plan quality to set the quality metrics

Mohammed Shafeea Haddad (PMP)® Number: 1987641 77

Quality audit

QA

78

Quality management and control tools Cost/benefit analysis

QA

Additional quality planning tools

Plan quality

79

80

Plan quality

Performed to review or inspect any process These are useful to represent any process to be easy to analyzed What is the benefit from conducting such level of quality A set of tools help to plan quality

Results of a process

Change request

Processes and procedures

Change requests

Requirements

Desired level of quality

Requirements, processes and procedures

Quality plan

These management tools are used in planning to reduce the risks It is defer from benefit/cost analysis in choosing projects

Passing exam lesson learned 1240. The real world experience is essential in putting all the information in the frame. Any one doesn't have this condition will need more time and proper training. 1241. For the books and references, there is no doubt that you need to read PMBOK® Guide 5th edition at least once effectively then start with Rita to have a deep sight how to peeper yourself to the exam. If you have enough time, read them again. 1242. After that, start solving questions. Please, don't pay attention to odd ones, it will confuse you and will mislead you. 1243. Participation in study group is important where you can share thoughts and gain more experience. You can try social media as here. 1244. Examine yourself after each stage mentioned above to measure you progress. I insist, to measure you progress not to evaluate your readiness to the exam, the real exam something can't be guessed. 1245. Four PM Study exams are the nearest in the form and style to real exam, but not exactly the same. Test yourself with them and try to score at least 70. 1246. The exam itself is not easy because of stress, but the language was clear. 1247. The questions didn't test my memorization; they tested the terminology through the deep understanding links between 74 processes. It wasn't easy, but not impossible. 1248. Any minutes you gain will help you later. 1249. During the exam, my strategy was to finish the first 100 questions within 1.5h and I succeeded. After that, I had two options: complete with the same rate or slowdown and solve the second 100 questions within 2h but, because of overexertion, I finished them 10m before the end. 1250. Eventually, studying will enhance your knowledge and any one passes the exam will gain skills. The next step will be how to gain competency.

GOOD LUCK

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Mohammed Shafeea Haddad (PMP)® Number: 1987641

(PMP)® Free Reference questions websites www.oliverlehmann.com http://www.preparepm.com/mock1.html http://www.examcentral.net/pmp/pmp-exam-questions# http://certification.about.com/od/projectmanagement/a/pmp_test_whiz.htm http://www.tutorialspoint.com/pmp-exams/pmp_mock_exams.htm http://pmhub.net/pmsuccess/Menu.htm http://www.ajithn.com/login.php http://www.passionatepm.com/free-pmp-exam-practice-test-questions http://www.free-pm-exam-questions.com/ http://free.pm-exam-simulator.com http://www.youskillup.com/course/index.php?categoryid=1 http://www.pmstudy.com/PMP-Exam-Resources/chapterTestFramework.asp http://www.hub4tech.com/project-management-professional-pmp-exam-practice-test http://pmpexamforfree.com/ http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm#providers_ http://www.pmzilla.com/pmzilla-free-pmp-tests http://www.tutorialspoint.com/pmp-exams/pmp_mock_exams.htm http://www.threon.com/de/pm-academy/pmi-pruefungsfragen/ http://www.testprepreview.com/pmp_practice.htmhttps://sites.google.com/site/pgmpguide/Home/pmp1-20 20- http://www.certchamp.com/pmp-sample-questions.jsp

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References 1. 2. 3. 4. 5. 6. 7. 8. 9.

PMBOK® Guide 5th edition PMBOK® Guide 5th edition- Errata- 2nd Printing (PMI)®code of ethics American English (PMI)® Lexicon PM Terms Ver3 project management professional exam outline 2015 (PMP)® Exam Prep Boot Camp 2013 Rita 8th Edition Sean Whitaker PMP®2016 Self-Study Notes

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