1
Q
Primary role of PM
A
Perform integration management
2
Q
Integration management
A
Pulling all the pieces of a project, i.e., knowledge areas, together into a cohesive whole
3
Q
Why is it important to know a project’s history in order to manage it effectively, and achieve aspired results?
A
- The reason a project is selected and the value it is expected to bring indicate its signifcance to the company
- The PM needs to know if the project was selected because it will establish a new area of business, if it’s being implemented to meet compliance requirements, least expensive, etc.
- The reason a project was selected can impact which constraints are most flexible, and knowing this info will influence how the PM plans and manages the project
4
Q
Benefit measurement methods
A
Comparative project selection approach. Examples include:
- Murder board (panel of people who try to shoot down a new project idea)
- Peer review
- Scoring models
- Economic measures
5
Q
Constrained optimization methods
A
Mathematical project selection approach. Examples include:
- Linear programming
- Integer programming
- Dynamic programming
- Multiobjective programming
6
Q
Return On Investment (ROI)
A
Calculation of benefits received in relation to the cost
7
Q
Present Value (PV) definition
A
- The value today of future cash flows
- Do NOT confuse with Planned Value (PV)
- If the question is discussing how the project was evluated for selection/funding, PV represents present value
8
Q
Present Value (PV) Formula
A
PV = FV / (1+r)<em>n</em>
- FV = Future Value
- r = interest rate
- n = number of time periods
9
Q
Net Present Value (NPV) Definition
A
- Present value of the total benefits (income or revenue) minus the costs over many time periods
10
Q
NPV > 1: should we invest?
A
Investment is a good choice because NPV is greater than 1
11
Q
NPV < 1: should we invest?
A
Investment is a bad choice because NPV is less than 1
12
Q
Given more than one NPV choice, how do you know which project to select?
A
Choose the NPV with the highest value
13
Q
Internal Rate of Return (IRR) Definition
A
- The percent return the company will receive for a given project
- The interest rateat which the projectrevenuesandcostsareequal
14
Q
Given more than one IRR choice, how do you know which project to select?
A
Choose the project with the highest IRR
15
Q
Payback period
A
The length of time it takes for the organization to recover its investment in a project before it starts accumulating profit
16
Q
Given more than one payback period choice, how do you know which project to select?
A
Generally speaking, go with the shorter payback period
17
Q
Cost-benefit analysis
A
- Analysis that compares the expected costs to the potential beenfits (revenue)
- The analysis results in a benefit-cost ratio, which can be expressed as a decimal or a ratio
- The ratio defined means that the benefits the project brings to the organization is X.X times the cost of the initiatives
- Also used to determine the best solution aporoach once a project is selected
18
Q
Economic Value Added (EVA)
A
- Concerned with whether the project returns to the company more value than the initiative costs
- Do NOT confuse with Earned Value Analysis (EVA), which appears frequently
- Economic Value Added rarely appears on the exam
19
Q
Opportunity cost
A
- The opportunity given up by selecting one project over another
- The opportunity cost is the value of the project not selected
20
Q
Sunk costs
A
Expended costs, i.e. costs that have already been incurred
21
Q
When should sunk costs be considered?
A
NEVER!
22
Q
Law of diminishing returns
A
After a certain point, adding more input will NOT produce a proportional increase in productivity
23
Q
Working capital
A
An organization’s current asses minus its current liabilities, i.e., the amount of money the company has available to invest
24
Q
Depreciation
A
Large assets, such as equipment, lose value over time
25
Straight line depreciation
The **same amount of depreciation** is taken **each year**
26
Accelerated depreciation
* Depreciation that occurs **faster** than **straight line**
**_Two types:_**
* **Double declining**
* **Sum of the years**
27
What is the first part of integration management?
**Developing** a **project charter**
28
Business documents
Business documents provide **critical info to the PM and team**, and include information such as:
* **Why the project was undertaken**
* **A summary of the realtionship between project objectives and strategic goals of the organization**
29
Business case
* Describes the **business need (justification)**, the **proposed solution**, and the **expected value of the change**
* Includes both **tangible and intangible costs** and **benefits** of the **proposed solution**
30
What is the thing you need in order to select a project?
A business case
31
Benefits management plan
* A document that captures the organization's **desired benefits** from a project, whether economic or intangible, and **explains how those benefits will be maximized/sustained**
* Also **defines metrics and processes** for **measuring a project's benefits**
32
Constraints
**Factors** that **limit** the team's **options**
33
Where are assumptions and constraints initially documented?
As part of the **business case**, and **highlighted in the project charter**
34
Assumptions
Things that are **assumed to be true**, but **may not** be true
35
What must occur if constraints change or assumptions are proven wrong?
**The PMP must be altered**
36
Who creates a project charter?
* **Both** the **buyer** and the **seller**
* Both charters would have **different reasons** for **working on the project**
37
What does the project charter do for the PM?
* **Clarifies/encourages understanding** of project **deliverables and milestones**
* **Defines** the **key roles and responsibilities**
* Formally **authorizes existence** of the project
* **Gives PM authority** to **spend money**
* **Gives PM authority** to **commit resources** to the project
* Provides the **objectives, high-level requirements,** and **success criteria** for the project
* **Process of creating the charter uncovers assumptions** about the project
* Project charter **links the project** to the **ongoing work** of the organization
38
Regardless of the size of the project, developing the project charter requires what actions?
* **Identify stakeholders**
* **Meet with key stakeholders** to **confirm high-level requirements, project scope, risks, assumptions, and issues**
* **Defining product scope**
* **Defining project objectives, constraints, and success criteria**
* **Documenting risks**
39
Assumption log
A list of all **assumptions and constraints**
40
Management plans
* Management plans **document the strategy and approach** for **managing the project** and **processes** related to the **knowledge areas**
* **This means there's a management plan for each knowledge area!**
41
Main points to know about management plans
* Management plans **look forward in time**
* Management plans exist for **all of the knowledge areas**
42
Project Management Plan (PMP)
* The PMP **integrates all the individual management plans** into a **cohesive whole**, creating a **centralized document** to describe **what is involved** in the project
* Also **includes** the **baselines** for the project
43
Key components of the PMP
* **Project life cycle**
* **Development approach**
* **Management reviews**
* **Project management processes that will be used**
* **Knolwedge area management plans**
* **Baselines**
* **Requirements management plan**
* **Change management plan**
* **Change control system**
* **Configuration management plan**
* **Configuration management system**
*
44
Project life cycle
The project life cycle describes the **phases of work** on a project **required to produce the deliverables**
45
Performance measurement basline
Records of **what the project had planned, scheduled, and budgeted for,** and are **used to compare** the project's **actual performance against planned performance**
46
Elements included in the scope baseline
* **The project scope statement**
* **WBS**
* **WBS dictionary**
47
Elements included in the schedule baseline
* **Agreed-upon schedule (stop and start dates for each activity)**
* **Scheduled milestones**
48
Elements included in the cost baseline
* **Time-phased cost budget (spending plan indicating how much money is approved for the project, and when the funds are required/will be available)**
49
What are project deviations often attributed to?sk
**Incomplete** **risk identification** and **risk management**
50
Requirements management plan
Defines **how requirements** will be **gathered, analyzed, prioritized, evaluated, and documented**, as well as **how the requirements** will be **managed and controlled** throughout the project
51
Change management plan
Describes **how changes will be managed and controlled,** i.e., **who's involved**, **who has authority** to **approve changes**, how the changes will be **stored and updated**, **outcomes** of changes, etc.
52
Change control system
**Standardized forms, reports, processes, procedures,** and **software** used to **track and control changes**
53
Configuration management plan
* A plan that informs the team what **version** of the scope, schedule, and other components of the PMP is the **latest**
* Defines the **naming conventions, version control system, and document storage/retrival system,** and details **how** you will **manage the changes to the documentation**
54
Project documents
Any project-related documents that are **not** part of the **PMP**
**_Examples_**
* **Assumption logs**
* **Cost and duration estimates**
* **Lessons learned register**
* **Project schedule**
* **Resource calendars**
* **Quality reports**
* **Resource requirements**
* **Requirements documentation**
55
Project Management Information System (PMIS)
**Used to help PM keep track of aspects of the project, and includes automated tools like:**
* **Scheduling software**
* **Configuration management system**
* **Shared workspaces for file storage or distribution**
* **Work authorization software**
* **Time tracking software**
* **Procurement management software**
* **Repositories for historical information**
56
What is the purpose of a work authorization system?
To make sure **work is only started** when a **formal authorization** is given
57
Outputs of the Direct and Manage Project Work process
* **New change requests**
* **Deliverables**
* **WPD**
* **Issue logs**
* **Implemented previously approved changes, preventive actions, and defect repairs**
* **PMP updates**
58
Explicit knowledge
**Fact-based,** and can be **easily communicated** through words and symbols
59
Tacit knowledge
* Includes **emotions, experience, and ability**, which are **more difficult to communicate clearly**
* **Lessons learned** fall under this category
60
Lesson learned category: **technical aspects**
What was right and wrong about how we completed the work to produce the product?
61
Lesson learned category: **project management**
How did we do with WBS creation, risk planning, etc.? What can be used in the future?
62
Lesson learned category: **management**
How did I do with comms and leadership as a PM?
63
What to do if a project activity takes longer than estimated?
* Request **corrective action** to make up for delay
* Do **NOT** ask for more time!
64
Corrective action
* Any action taken to bring **expected future project performance** **in line with the PMP** based on **actual, current deviations**
65
Preventive action
Dealing with **anticipated or possible deviations** from the **PMP**
66
Defect repair
* Another way to say **"rework"**
* May be requested when a component of the project **does not meet specifications**
67
Key focus of integrated change control
* Look at **impact** of **each change** on all **project constraints**
* **This helps to reduce risk of not fulfilling project objectives!**
68
What's necessary to have when evaluating impacts of a change?
* **A realistic PMP to measure against**
* **A complete product and project scope**
69
When should you implement changes? When is it costlier to implement changes?
* **Should implement changes** **as early as possible**
* **Much costlier to implement changes later in the project**
70
What type of project does NOT have a change control board?
Change-driven projects
71
Steps to answer questions that ask about process for making changes
1. **Evaluate the impact**
2. **Identify options**
3. **Get the change request approved internally**
4. **Get customer buy-in (if required)**
72
Detailed process for making changes
1. **Prevent the root cause of the changes**
2. **Identify the need for a change**
3. **Evaluate the impact of a change within a knowledge area**
4. **Create a change request**
5. **Perform ICC by:**
* **Assessing the change**
* **Identifying options**
* **Approving, rejecting, or derring the request**
* **Updating the status of the change in the change log**
* **Adjust the PMP, project docs, and baselines as necessary**
6. **Manage stakeholders' expectations by communicating chanegs to them**
7. **Manage the project to the revised PMP and project docs**
2 - RMC PMP Exam Prep
flashcards
Decks in class (14)
# Cards
-
Chapter 2 - Project Management Framework52
-
Chapter 3 - Project Management Processes39
-
Chapter 4 - Integration Management72
-
Chapter 5 - Scope Management46
-
Chapter 6 - Schedule Management79
-
Chapter 7 - Cost Management41
-
Chapter 8 - Quality Management57
-
Chapter 9 - Resource Management75
-
Chapter 10 - Communications Management13
-
Chapter 11 - Risk Management0
-
Chapter 12 - Procurement Management0
-
Chapter 13 - Stakeholder Management0
-
Chapter 14 - Professional and Social Responsibility0
-
Chapter 15 - The PMP Exam: Tips for Passing the Exam the First Time0
