PMP Training - Key Reference Notes

Key notes for use in review the day prior to test day

Integration

·        Integrated Change Control – Evaluate (always first), Identify Options, Approval (internal, customer)       

Scope

·        Scope Baseline – Project scope statement, WBS, WBS Dictionary

Time (Schedule)

·        Schedule Baseline – Start and stop dates for each activity

·        Float (Slack) – LS – ES or LF – EF

·        Crash: increases cost, shortens time by increasing resources on an activity, law of diminishing returns

·        Fast-Track: increases risk, shortens time by performing critical path activities simultaneously (0 float); often requires rework

·        Critical Chain Method – includes buffers in-between activities

·        Always advise of impact of change first

·        Know how to draw a network diagram and determine length of critical path

·        Estimate Types (for cost and time)

o   Analogous – top down (faster, less accurate)

o   Bottom Up – (takes longer, more accurate)

o   Parametric – relationship between two variables (units per hour)

o   3 Point/PERT – Optimistic, Pessimistic, Most Likely (gives risk assessment)

§  Weighted/Beta: (P + 4M + O) / 6

§  Simple/Triangular: (P + M + O) / 3

§  Standard Deviation/Range: (P-O) / 6; EAD + SD

o   Heuristics – Rule of thumb (ex: design is always 15% of time)

Cost

·        Cost Baseline – Time-phased cost budget (funds the project manager has to manage; incl. contingency reserves)

·        Earned Value Calculations (understand and practice, but no need to memorize formulas)

o   Earned Value (EV) = Actual % Complete * Budget at Completion (BAC)

o   Planned Value (PV) = Planned % Complete * Budget at Completion (BAC)

o   Actual Cost (AC) = Amount spent so far

o   Cost Variance (CV) = EV – AC (+ is good)

o   Schedule Variance (SV) = EV – PV (+ is good)

o   Cost Performance Index (CPI) = EV / AC (>1 is good)

o   Schedule Performance Index (SPI) = EV / PV (>1 is good)

o   Estimate at Completion (EAC) = BAC/CPI (standard; varies if rate is expected to change)

o   Estimate to Completion (ETC) = EAC – AC

o   Variance at Completion (VAC) = BAC – EAC

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

·        Value Analysis – how can decrease cost while maintaining scope

·        Reserves (includes cost and time)

o   Contingency – known unknowns; calculated

o   Management – unknown unknowns, lump sum

·        Accuracy of Estimates

o   Rough Order of Magnitude – (initiating) -25% to +75%

o   Budget – (planning) -10% to +25%

o   Definitive – (as progresses) +/- 10%

Quality

·        Quality is about meeting requirements

·        Prevention over Inspection

·        Quality Assurance (Executing Process) – evaluate methods/“overall”

·        Quality Control (Monitoring & Controlling Process) – evaluate deliverables

·        Quality Audit (Executing) – evaluate compliance and effectiveness

·        Process Analysis (Executing) – evaluate how to improve process

·        Quality Diagramming Methods (7 Basic Tools) *know which is used when

o   Cause and Effect Diagram (Fishbone, Ishikawa) – root cause analysis 

o   Flow Chart – process map

o   Checksheet – count of issues during inspection

o   Pareto Diagram – issues by frequency (high to low); where to focus efforts

o   Histogram – Same as Pareto but not in order

o   Control Chart – specification limits, control limits, where data points are

o   Scatter Diagram – two variables to detect if there is correlation

·        Design of Experiments (DOE) – determine which variables improve quality (fast, accurate)

·        Gold plating – should be avoided. Rarely what customer wants; focus on delivering requirements

Human Resources (People/Teams)

·        Sources of Conflict (in order of frequency) – Schedule, priorities, resources, technical opinions, procedures, cost, personalities

·        Motivation Models

o   Tucker Model – Forming, Storming, Norming, Performing, Adjourning

o   McGregor’s Theory –

§  X – people avoid work, watch them

§  Y – people want to achieve, direct themselves

o   Maslow’s Hierarchy – (in order of need) Psychological, safety, social, esteem, self-actualization

o   Herzberg’s Theory – basic working conditions are required but not a motivator; what motivates people is responsibility, growth, recognition, and self-actualization

Communications

·        Communication Channels – [N (N – 1)]/2 *know this formula

Risk

·        Risk Audit (Monitoring & Controlling Process) – evaluate process and effectiveness of responses

·        Information-Gathering Techniques

o   Brainstorming – collaborative/building upon each other’s ideas

o   Delphi – achieve consensus among experts

o   Interviewing – ask stakeholders

o   Root Cause Analysis

·        Qualitative – levels of probability; impact

·        Quantitative – #s

·        Determining Quantitative Probability and Impact

o   Any info gathering technique +

o   Sensitivity Analysis – compare potential impacts (ex: tornado diagram)

o   Expected Monetary Value (EMV) = Probability * Impact

o   Monte Carlo – simulation to determine likelihood of particular cost and schedule outcomes

·        Responses Threat (Opportunity)

o   Avoid (Exploit) – eliminate cause

o   Mitigate (Enhance) – reduce probability, lessen risk

o   Transfer (Share) – deflect, allocate

o   Accept – do nothing (active acceptance – create contingency plan)

·        Workaround – how to respond when risk occurs that had no response planned

Procurement

·        Procurement Audit (Closing Process) – evaluate how can improve in future

·        Contract Types *Known when to use which type

o   Fixed Price (FP) – Risk on seller, well-defined specifications, less management required

o   Time and Material (T&M) – Risk on buyer, uncertain scope, quick start, management required

o   Cost Reimbursement (CR) – Risk on buyer, expertise utilized, audits required

·        Items to Negotiate (in order) – Scope, Schedule, Price

·        Procurement manager is only one who can change contract