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Flashcards For Passing thePMf>® and CAPM®Exams
Fifth Edition
© Copyright 2005Rita Mulcahy, PMP
RMC Publications, Inc.
All Rights Reserved.No part of this publication may becopied or reproduced in any formwhatsoever, stored in a retrieval
system, or transmitted in any formwithout the prior written permission of
the author.
ISBN 1-932735-01-1Library of Congress Control Number:
2005905459Printed in the U.S.A.
For more information see:E-mail: [email protected]
Web: www.rmcproject.comPhone: 952.846.4484
2
WARNING: This is not astand-alone product! You will needother review materials in order to passthe PMP or CAPM exam. We make nowarranties or representations that useof these materials will result inpassage of either exam. This book isdesigned to work with the book PMPExam Prep 5th Edition by RitaMulcahy, PMP, available atwww.rmcproject.com. If you arestudying for the PMP exam, use thechapter references on each Hot Topicsflashcard to find further information inthe PMP Exam Prep Book.
"PMP", "PMBOK" and "CAPM" are marks of the Project
Management Institute, Inc. RMC Project Management,Inc. has been reviewed and approved as a provider of
project management training by the Project ManagementInstitute (PMI). As a PMI Registered Education Provider
(R.E.P.) RMC Project Management has agreed to abide byPMI-established quality assurance criteria.
3
Table of Contents
Introduction 3
How To Use This Book 5
About Us 6
RMC Products 7Framework 9Integration 43Scope 87
Time 127
Cost 193Quality 263Human Resources 353Communications 403Risk 443
Procurement 517Professional and Social Responsibility
623
4
How To Use This Book: Thisbook has been updated for thePMBOK® Guide - Third Edition,designed as a portable reference to theHot Topics on the PMP and CAPMexams, to be used to improve testtaking speed and information recall.Note that the Professional and SocialResponsibility chapter is not coveredin the CAPM exam.
Read the front of each page and see ifyou can recall the items on the back ofthe page and know what they mean. Ifstudying for the PMP exam, HotTopics you are unfamiliar with shouldbe reviewed in the book PMP ExamPrep, 5th Edition and the PMBOK®Guide. An audio version of Hot Topicsis also available on CD-ROM.
5
About UsRita Mulcahy, PMP,is an internationallyrecognized expertin projectmanagement and asought afterspeaker, trainer and author. She hassix project management books andproducts to her credit, and was aContributor and Reviewer to thePMBOK® Guide - Third Edition.Rita has spoken at PMI's annualproject management symposium tostanding room only crowds and hasbeen asked to present encores for anunheard of four years!RMC Project Management, Inc.provides Tricks of the Trade" forproject management, PMP examprep and advanced projectmanagement training.
See us at www.rmcproject.com.
6
See the rest of our PMP andCAPM Exam Prep products
at www.rmcproject.com.
The Book PM? Exam Prep,j'h Edition
This is the onlyaccelerated guideto the PMP exam,and is currentlyused in more than40 countries. ThisCourse in a Book"contains reviewmaterial, exercises,
activities, games, and insider tips, andcan decrease study time to only about120 hours.
7
PM FASTrack® ExamSimulation Software
Based on a psychometric review with morethan 1,300 questions in six testing modes.
Take A Course:
Project Management Tricks of theTrade® - A three-day PM course coveringthe project management process using PMIterminology with real-world applications.
The PMP Exam Prep CourseThis two-day accelerated learning course isdesigned to help you prepare for the PMPExam with the most understanding of projectmanagement and the least amount of study!Study less than 40 hours after taking thecourse! This course includes the PMP ExamPrep System.
8
...
What is the definition of aproject?
9
• Temporary
• Unique
• Progressivelyelaborated
See the Framework Chapter
10
What is the definition of aprogram?
11
A group of interrelatedprojects, managed in acoordinated way
See the Framework Chapter
12
What is a product lifecycle?
13
The cycle of a product'slife from conception towithdrawal
See the Framework Chapter
14
What is a project lifecycle?
15
What you need to do toDO the work
It varies by industry andtype of project
See the Framework Chapter
16
What is the projectmanagement process?
17
What you need to do toMANAGE the work
• Initiating
• Planning
• Executing
• Monitoring andcontrolling
• Closing
See the Framework Chapter
18
What is a projectmanagement office?
19
A department thatcentralizes themanagement of projects
The PMO providestemplates and guidelines,shares lessons learnedbetween projects and isrepresented on the changecontrol board
See the Framework Chapter
20
- - - -What is a constraint?
21
Anything that limits theteam's options
These include:
• Imposed milestone dates
• Cash flow requirements
• Resources available
See the Framework Chapter
22
What are the componentsof the "triple constraint"?
What is it used for?
23
• Cost
• Time
• Scope
• Quality
• Risk
• Customer satisfaction
It is used to help evaluatecompeting demandsSee the Framework Chapter
24
Who are stakeholders?
25
Anyone whose interests maybe positively or negativelyimpacted by the project,including:
• Project manager• Customer• Sponsor• Performing organization• Team• Funding sources• End user• Society• PMO
See the Framework Chapter
26
What should we do withstakeholders?
27
• Identify all stakeholders
• Determine all of theirrequirements
• Determine all of theirexpectations
• Communicate with them
• Manage their influence
See the Framework Chapter
28
- - - - --- --- - "'-" - -What are three primaryforms of organization?
29
• Functional
• Projectized
• Matrix
See the Framework Chapter
30
What is a functionalorganization?
31
The company isgrouped by areas ofspecialization (e.g.,accounting, marketing)
See the Framework Chapter
32
- - .--.. .--.. .--.. .--.. - - - -What is a proj ectizedorganization?
33
The company is groupedby project
The team has nodepartment to go to atproject end
The project manager hastotal control of theresources
See the Framework Chapter
34
What is a matrixorganization?
35
A blend of functional andprojectized organizationwhere the team membershave two bosses
See the Framework Chapter
36
- - - - - - ~ - - -What is a strong matrixorganization?
37
A matrix organizationwhere the balance ofpower rests with theproject manager instead ofthe functional manager
See the Framework Chapter
38
What is a weak matrixorganization?
39
A matrix organizationwhere the balance of powerrests with the functionalmanager instead of theproject manager
Project management rolesinclude:
• Project expediter
• Project coordinator
See the Framework Chapter
40
What is a balanced matrixorganization?
41
An organization wherepower is equally balancedbetween project managersand functional managers
This is the preferred formof matrix
See the Framework Chapter
42
What is the process ofintegration management?
43
• Develop projectcharter
• Develop preliminaryproject scope statement
• Develop projectmanagement plan
• Direct and manageproject execution
• Monitor and controlproject work
• Integrated changecontrol
• Close project
See the Integration Chapter
44
What are the methods toselect a project?
45
• Benefit measurement(comparative)
• Constrainedoptimization(mathematical)
See the Integration Chapter
46
What is develop projectmanagement plan?
What is its output?
47
The process of creating aproject management planthat is bought into,approved, realistic andformal
Output: The projectmanagement plan
See the Integration Chapter
48
What is the preliminaryproject scope statement?
49
Created with input from thesponsor, it is the firstattempt to determine theproject scope
What must be done toaccomplish the projectobjectives
See the Integration Chapter
50
What are key outputs ofdirect and manage projectexecution?
51
• Deliverables
• Requested changes
• Implemented changerequests, correctiveand preventive actionsand defect repair
See the Integration Chapter
52
What are key outputs ofmonitor and controlproject work?
53
• Recommendedcorrective actions,preventive actions anddefect repair
• Requested changes
• Forecasts
See the Integration Chapter
54
What are key outputs ofintegrated change control?
55
• Approved changerequests, correctiveactions, preventiveactions and defectrepair
• Rejected changerequests
• Validated defect repair
• Deliverables
See the Integration Chapter
56
What are key outputs of closeproject?
57
• Administrative and contractclosure procedures
• Final product
• Formal acceptance
• Project files
• Project closure documents
• Organizational processassets updates
See the Integration Chapter
58
Explain the projectmanager's role asintegrator.
59
Making sure all the piecesof the project are properlycoordinated and puttogether into one cohesivewhole
See the Integration Chapter
60
What are baselines?
61
Parts of project managementplan used to measureperformance against
Includes:
• Schedule baseline• Scope baseline• Cost baseline• Quality baseline• Performance measurement
baselines
Can change with approvedchanges
See the Integration Chapter
62
What is the proj ectstatement of work?
63
Describes need, productscope and how project fitsinto the strategic plan
Created by thecustomer/sponsor prior to thebeginning of the project
Is later refined into thepreliminary and project scopestatementsSee the Integration Chapter
64
What is a workauthorization system?
65
A formal procedure forsanctioning project workto ensure work is done atthe right time, and in theproper sequence
See the Integration Chapter
66
- - - - - - - - - -What is configurationmanagement?
67
Making sure everyoneknows what version of thescope, schedule and othercomponents of the projectmanagement plan are thelatest versions
See the Integration Chapter
68
- - - - - - - - - -What is a change controlsystem?
69
A system of formalprocedures, set up in advance,defining how projectdeliverables anddocumentation are controlled,changed and approved
See the Integration Chapter
70
- - - - - - - - - -What are enterpriseenvironmental factors?
When are they used?
71
Company culture andexisting systems that theproject will have to dealwith or can make use of
Used throughout theproject managementprocess
See the Integration Chapter
72
What are organizationalprocess assets?
When are they used?
73
• Company processes andprocedures
• Historical information
• Lessons learned
Used throughout theproject managementprocess
See the Integration Chapter
74
What is historicalinformation?
75
Records of past projectsused to plan and managefuture projects
Records of current projectto become part oforganizational processassets
See the Integration Chapter
76
What is a projectmanagement informationsystem?
77
The manual andautomated system tosubmit and track changes,and monitor and controlproject activities
See the Integration Chapter
78
-- -- -- -- -- - -- - - -What is a change controlboard?
Who may be on it?
79
A group of people thatapproves or rejectschanges
May include:
• Project manager
• Customer
• Outside experts
• Sponsor
• Others
See the Integration Chapter
80
What are change requests?
When are they approved?
81
Fonnal requests to changeparts of the project afterthe project managementplan is approved
They are approved inintegrated change control
See the Integration Chapter
82
- - - - - - - - - -What are preventive actions?
83
Actions taken to deal withanticipated or possibledeviations from theperformance baselines
See the Integration Chapter
84
- - - - - - - ~ ~ ~
What are corrective actions?
85
Actions taken to bringexpected future projectperformance in line withthe project managementplan
See the Integration Chapter
86
- - - - - - - - - -What is a project charter?
How does it help the project?
87
A document issued by thesponsor during projectinitiating that:
• Formally recognizesthe existence of theproject
• Gives the projectmanager authority
• Documents thebusiness need,justification, customerrequirements and theproduct or service tosatisfy thoserequirements
See the Scope Chapter
88
What is the process ofscope management?
89
• Scope planning
• Scope definition
• Create WBS
• Scope verification
• Scope control
See the Scope Chapter
90
- - - -- - --- ....." -- - -What is the key output ofscope planning?
91
Project scope managementplan
See the Scope Chapter
92
What are the key outputsof scope definition?
93
• Project scopestatement
• Requested changes
See the Scope Chapter
94
- - - - .......... - .......... .......... ......, -What are the key outputs ofcreate WBS?
95
• Workbreakdown structure(WBS)
• WBS dictionary
• Scope baseline
• Requested changes
See the Scope Chapter
96
What are the key outputsof scope verification?
97
• Customer formalacceptance of projectdeliverables
• Requested changes
See the Scope Chapter
98
........... ........... - - - - - - - -What are the key outputsof scope control?
99
• Accepted deliverables
• Requested changes
• Recommendedcorrective actions
See the Scope Chapter
100
What is the definition ofscope management?
101
• Doing all the work,and only the work,included in the project
• Determining if work isincluded in the projector not
See the Scope Chapter
102
- - - - - - - - - -What is a scopemanagement plan?
103
Part of the projectmanagement plan
A plan for how scope willbe planned, executed andcontrolled
See the Scope Chapter
104
What is a project scopestatement?
What are the key itemsincluded?
105
A written description ofthe project deliverablesand the work required tocreate those deliverables
It includes:• Project objectives• Product scope• Project requirements• Project boundaries• Project deliverables• Product acceptance
criteria• Project constraints and
assumptionsSee the Scope Chapter
106
-- - -Stakeholder analysis is partof which scope managementprocess?
107
Stakeholder analysis occursduring the process of scopedefinition.
See the Scope Chapter
108
Product analysis ispart of which scopemanagement process?
109
Product analysis occursduring the process ofscope definition.
See the Scope Chapter
110
- -- -- - - - - - -- --What is a work breakdownstructure (WBS)?
What is it used for inplanning?
111
Created during proj ectplanning by the team andused to define ordecompose the proj ect intosmaller, more manageablepieces
Used to help determineproj ect staffing,estimating, scheduling andrisk management
See the Scope Chapter
112
What do work breakdownstructures show?
113
• Hierarchy
• Interrelationships
• Work packages
• Control account
• Numbering system
See the Scope Chapter
114
- - - - - - - - - -What is scopedecomposition?
115
Subdividing the majordeliverables into smaller,more manageablecomponents
See the Scope Chapter
116
~ ~ ........ - - ........ - ......" - -What is a WBSdictionary?
117
A description of the workto be done for each workpackage
See the Scope Chapter
118
- - - - - - - - - -How are work packagesdifferent from activities?
119
Activities are generatedfrom each work package
Work packages are shownin a WBS
Activities are shown in anactivity list and networkdiagram
See the Scope Chapter
120
- - - - - - - - - -What is scopeverifi cation?
When is it done?
121
The process of formalizingacceptance of the projectscope by thestakeholders/customer
It is done during projectmonitoring and controllingand at the end of eachphase of the project lifecycle
See the Scope Chapter
122
- --- - _. -~ "'-- - '''-- -What is the differencebetween product scopeand project scope?
123
Product scope isrequirements
Project scope is the projectmanagement work neededto accomplish the productscope
See the Scope Chapter
124
........................ _-'----""--"-What makes up the scopebaseline?
125
• Scope statement
• WBS
• WBS dictionary
See the Scope Chapter
126
What is the process oftime management?
127
• Schedule managementplanning
• Activity definition
• Activity sequencing
• Activity resourceestimating
• Activity durationestimating
• Schedule development
• Schedule controlSee the Time Chapter
128
What is the key output ofschedule managementplanning?
129
A schedule managementplan
See the Time Chapter
130
What is the key output ofactivity definition?
131
Activity list
See the Time Chapter
132
- - - - - - - - ....." -What is the key output ofactivity sequencing?
133
Network diagram
See the Time Chapter
134
- - - "'- - - - - ......" -What is the key output ofactivity resourceestimating?
135
Activity resourcerequirements
See the Time Chapter
136
- - - - - - - - - -What is the key output ofactivity durationestimating?
137
Activity duration estimates
See the Time Chapter
138
- - - - - - - - - -What is scheduledevelopment?
What are its key outputs?
139
The actions and toolsnecessary to create abought into, approved,realistic and formal projectschedule
Outputs:
• Project schedule
• Schedule baseline
• Requested changes
See the Time Chapter
140
---------'-----
What are key outputs ofschedule control?
141
• Schedule updates
• Performancemeasurements
• Recommendedcorrective actions
• Requested changes
See the Time Chapter
142
~ -- -- -- -- -- - -- - --
How is an AOA diagramdifferent from a AONdiagram?
143
An AOA diagram has onlyfinish-to-start relationships
An AON diagram can havefour relationships betweenactivities
See the Time Chapter
144
- - --- - - - - - - ~
What are mandatorydependencies anddiscretionarydependencies?
145
Mandatory: One activityMUST be done after orbefore anotherMay also be called hardlogicDiscretionary: When youPREFER activities to beaccomplished in a certainorderMay also be called:
• Preferred• Preferential• Soft logic
See the Time Chapter
146
- - -- - - --- --- --- --- ....."
What are externaldependencies?
147
Based on the needs of aparty OUTSIDE theproject
See the Time Chapter
148
What is a resourcebreakdown structure?
149
A hierarchical list of identifiedresources by category
See the Time Chapter
150
What is a schedule model?
Why is it used?
151
A tool to perform schedulenetwork analysis
See the Time Chapter
152
----------
What is the critical path?
How does it help theproject?
153
The longest path in thenetwork diagram that tellsyou the shortest time inwhich the project can becompleted
Tells the project managerwhere to focus his time
Helps to shorten the lengthof the project
See the Time Chapter
154
- - - - - - -- -- -- -What is the near-criticalpath?
155
The path closest in lengthto the critical path
See the Time Chapter
156
- - - - - - -Define lag.
157
Waiting time inserted intothe schedule
See the Time Chapter
158
Define total float and theformula for total float.
159
The amount of time anactivity can be delayedwithout delaying theproject
Formula:
Late start - Early startORLate finish - Early finish
See the Time Chapter
160
Define free float andproject float.
161
Free Float: The amount oftime an activity can bedelayed without delaying theearly start date of itssuccessor
Project Float: The amount oftime the project can bedelayed without affecting aproject's required due date
The desired project end dateless the actual end date.
See the Time Chapter
162
- - - - - - - -.-. ......, ......,
What are the methods tocompress a schedule?
163
• Crashing
• Fast tracking
• Re-estimating
See the Time Chapter
164
- - ""-" - ""-" - ""-" - ""-" ""-"
What is crashing?
165
Schedule compressionthrough analyzing cost andschedule trade-offs toobtain the greatestcompression for the leastcost while maintainingscope
See the Time Chapter
166
- - - - - - - - - -What is fast tracking?
167
Schedule compression bydoing more critical pathactivities in parallel
See the Time Chapter
168
~ ~ - - - - - - - ......"
What is the critical chainmethod?
169
A schedule networkanalysis tool that makesuse of buffers
See the Time Chapter
170
""--'" ""--'" ""--'" ""--'" ""--'" - - - - -What is re-estimating?
171
Decreasing project and/oractivity cost byeliminating the risks inactivities
See the Time Chapter
172
- - - - - - - - - -What is resource leveling?
173
Keeping the amount ofresources used for eachtime period constant, thusaffecting the projectduration
See the Time Chapter
174
What is a schedulemanagement plan?
175
Part of the projectmanagement plan
A plan for how theschedule will be planned,executed and controlled
See the Time Chapter
176
What is the schedulebaseline?
177
Approved schedule withany approved changes, usedto measure project scheduleperformance
See the Time Chapter
178
What are the main toolsfor displaying a schedule?
179
• Network diagrams
• Bar charts
• Milestone charts
• Flowcharts
See the Time Chapter
180
- - - - - - ......."" ......."" ......."" -What do networkdiagrams show?
181
• Interdependenciesbetween activities
• How project activitieswill flow frombeginning to end
• When estimates areadded
• May also be used tofind the critical path
See the Time Chapter
182
What do simple bar chartsshow?
183
Project schedule or projectstatus
See the Time Chapter
184
What do milestone chartsshow?
185
High-level project status
See the Time Chapter
186
What do flowcharts show?
187
Work flow or process flowthrough a system
See the Time Chapter
188
What is a Monte Carloanalysis?
189
A schedule networkanalysis technique
Used to simulate theproject to determine howlikely you are to get theproject completed by anyspecific date or for anyspecific cost
Also used in quantitativerisk analysis to determinean overall level of risk onthe project
See the Time Chapter
190
- - - - - --- - - --- -What are the followingrules?
50/50 rule
20/80 rule
0/100 rule
191
Methods of progressreporting
50 percent of the effort isreported complete (20percent or 0 percent) whenan activity begins
The balance (50 percent,80 percent or 100 percent)is recorded only when anactivity is finished
See the Time Chapter
192
--' - -- - - - - -What is the process of costmanagement?
193
• Cost managementplanning
• Cost estimating
• Cost budgeting
• Cost control
See the Cost Chapter
194
What is a key output ofcost managementplanning?
195
Cost management plan
See the Cost Chapter
196
What are key outputs ofcost estimating?
197
• Activity cost estimates
• Requested changes
See the Cost Chapter
198
What are key outputs ofcost budgeting?
199
• Cost baseline
• Funding requirements
• Requested changes
See the Cost Chapter
200
~ ~ ~ - - - - - - -What are key outputs ofcost control?
201
• Requested changes
• Performancemeasurements
• Recommendedcorrective actions
• Forecasted completion
See the Cost Chapter
202
N arne some inputs toestimating.
203
• Project scope statement• Work breakdown
structure• Network diagram• Schedule and
management plan• Enterprise
environmental factors• Organizational process
assets• Resource pool• Project management
effort• Risk management plan
and register• Project objectives
See the Cost Chapter
204
- - - -- -- - - - ....." ....."
What is a costmanagement plan?
205
Part of the projectmanagement plan
How cost will be planned,executed and controlled
See the Cost Chapter
206
What are the mainapproaches to cost orschedule estimating?
207
• Analogous estimating
• Bottom-up estimating(cost only)
• Parametric estimating
• Three-point estimates
• One-time estimates
See the Cost Chapter
208
- - - - - - - - - -What is analogousestimating?
209
Top-down estimating thatlooks at the past to predictthe future
"The last three projectscost $25,000, or took sixmonths, and so should thisone"
See the Cost Chapter
210
- _._"--_ .......... _-What is bottom-upestimating?
211
Estimating based on thedetails of the project, e.g.,from the bottom of thework breakdown structure
See the Cost Chapter
212
What is parametricestimating?
213
Extrapolating fromhistorical information toestimate costs, e.g., costper line of code, hours perinstallation
See the Cost Chapter
214
What is earned valueanalysis?
215
A method of measuringproject performance thatlooks at the value earnedfor work accomplished
Can be used to predictfuture cost performanceand project completiondates
See the Cost Chapter
216
What is the range for anorder of magnitudeestimate?
217
-50 percent to +100percent from actual
See the Cost Chapter
218
What is the differencebetween a cost budget anda cost baseline?
219
Cost budget addsmanagement reserve tothe cost baseline
See the Cost Chapter
220
What is the formula forcost variance?
221
EY -AC=CY
See the Cost Chapter
222
What is the formula forschedule variance?
223
EV - PV= SV
See the Cost Chapter
224
- - - - - - - - - -What is the formula forcost performance index?
225
EV / AC = CPI
See the Cost Chapter
226
- - - - - - - - --- -What is the formula forschedule performanceindex?
227
EV / PV = SPI
See the Cost Chapter
228
-'-------"What are the formulas forestimate at completion?
229
• BAC / CPI = EACor
• AC + ETC
• AC + BAC - EV
• AC + (BAC - EV)CPI
See the Cost Chapter
230
- - - - - - - - -....- ...,.
What is the formula forestimate to complete?
231
EAC -AC = ETC
See the Cost Chapter
232
- - - - - - - - - ......,
What is the formula forvariance at completion?
233
BAC - EAC = VAC
See the Cost Chapter
234
-- -- - - - - - - - -Define present value.
235
The value today of futurecash flows
PV= FV(1 + r)n
See the Cost Chapter
236
- - - - - - - - - -Define net present value.
237
The value in today'sdollars of some futurecosts and expenses
For cost, the lower thenumber the better
For revenue, the higher thenumber the better
See the Cost Chapter
238
... WI' WI' WI' ...
- - - - - - - - - -Define internal rate ofreturn.
239
The rate an investment inthe project will return
The higher the number thebetter
The rate at which aproject's inflows andoutflows are equal
See the Cost Chapter
240
- - - - - - - - - -Define payback period.
241
The number of timeperiods to recover theinvestment
A lower number is betterthan a higher one
See the Cost Chapter
242
- - - - - - - - - -Define benefit cost ratio.
243
BenefitCost
The higher the number thebetter
See the Cost Chapter
244
--'--'-""'-'- - - - -Define opportunity cost.
245
The opportunity given upby selecting one projectover another
See the Cost Chapter
246
- --- - - - - - - ....., -What are sunk costs?
247
Expended costs
See the Cost Chapter
248
Define the law ofdiminishing returns.
249
The more you put into theeffort, the less you get outof it
See the Cost Chapter
250
- - - - - - - - - -Define working capital.
251
Current assets minuscurrent liabilities
The amount of fundsavailable to spend onprojects
See the Cost Chapter
252
--- - - - - - - - -- -Describe a variable costand a fixed costchargeable to the project.
253
Variable Cost: A cost thatvaries with the amount ofwork done on the project
Fixed Cost: A cost thatdoes not vary with theamount of work done onthe project
See the Cost Chapter
254
- ~ ~ - - --- - - - -Describe a direct cost andan indirect cost chargeableto the project.
255
Direct Cost: A costdirectly attributable to theproject
Indirect Cost: Overhead
See the Cost Chapter
256
- - - - - - - - - -What are different types ofdepreciation?
257
Straight LineDepreciation: Depreciatesame amount each timeperiod
Accelerated Depreciation:Depreciate an amountgreater than straight lineeach time period
See the Cost Chapter
258
- - - - - - - - - -What does life cyclecosting mean?
259
Considering the futurecost of operating andmaintaining the project ordeliverable over its lifewhen planning andmanaging the project
See the Cost Chapter
260
- - - - - - - - - -What is value analysis?
261
Finding a less costly wayof doing essentially thesame work
See the Cost Chapter
262
---'--------What is the process ofquality management?
263
• Quality planning
• Quality assurance
• Quality control
See the Quality Chapter
264
- - - - - -- - - - --What are key outputs ofquality planning?
265
• Quality managementplan
• Quality metrics
• Quality baseline
• Process improvementplan
See the Quality Chapter
266
What are key outputs ofperform quality assurance?
267
• Requested changes
• Recommendedcorrective actions
See the Quality Chapter
268
What are key outputs ofperform quality control?
269
• Quality controlmeasurements
• Validated defect repair
• Requested changes
• Recommendedcorrective andpreventive actions anddefect repair
See the Quality Chapter
270
-.-... -.-... - - - - - - - -What does gold platingmean?
271
Adding extra items andservices that do notnecessarily contributeadded value or quality tocustomer deliverables
See the Quality Chapter
272
What is marginal analysis?
273
An analysis to determinewhen optimal quality isreached
An analysis to determinethe point whereincremental revenue fromimprovement equals theincremental cost to secureit
See the Quality Chapter
274
- - - - - - - - - -What is a qualitymanagement plan?
275
Part of the projectmanagement plan
A plan for how the projectmanagement team willimplement the performingorganization's qualitypolicy
See the Quality Chapter
276
- - - - - - - - - -What is a processimprovement plan?
277
A plan for analyzingprocesses used on theproject to decreasedefects, save time andmoney and increasecustomer satisfaction
See the Quality Chapter
278
- - - - - - - - - -What is the qualitybaseline?
What is it used for?
279
The project's qualityobjectives
One of the baselines usedto measure performanceagainst
See the Quality Chapter
280
-_._------....-._----What are quality metrics?
281
Specific measures ofquality to be used on theproject in qualityassurance and qualitycontrol
See the Quality Chapter
282
"----------What does continuousimprovement mean?
283
The never-endingenhancement of aproduct/service throughsmall, continuousenhancements
See the Quality Chapter
284
~ -- -- -- - - - - - -How much inventory ismaintained in a just intime environment?
How does this affectattention to quality?
285
Little inventory ismaintained
It forces attention toquality
See the Quality Chapter
286
........... _-----
What does ISO 9000stand for?
- -..-'
287
One of the InternationalOrganization forStandardization (ISO)international qualitystandards that asks, "Doyou have a qualitystandard, and are youfollowing it?"
See the Quality Chapter
288
-- -- - - - -- - - - -What is the definition oftotal quality management?
289
A comprehensivemanagement philosophyof encouraging the findingof ways to continuouslyimprove the quality ofbusiness practices,products or services
See the Quality Chapter
290
- - - - - --- - '- - -What does the phraseprevention over inspectionmean?
291
The cost of avoiding orpreventing mistakes isalways much less than thecost of correcting them
See the Quality Chapter
292
- - - - - - --- - --- -What does mutuallyexclusive mean?
293
Two events that cannotoccur in a single trial
For example, you can'troll a 5 and a 6 on one die
See the Quality Chapter
294
- - - - - - - - - -What does statisticalindependence mean?
295
The probability of "B"occurring does not dependon "A" occurring
For example, the outcomeof a second dice roll is notinfluenced by (dependenton) the outcome of thefirst roll
See the Quality Chapter
296
- - - - - - - - - -What is a normaldistribution curve?
297
Symmetric bell-shapedfrequency distributioncurve
The most commonprobability distribution
See the Quality Chapter
298
"- - -- .- -------
What do three sigma andsix sigma refer to?
299
Often used as qualitystandards.Three Sigma: +/- Threestandard deviations fromthe distribution meanunder which 99.73% of allitems are acceptable
Six Sigma: +/- Sixstandard deviations fromthe mean under which99.999998% of all itemsare acceptableA higher quality standardthan three sigmaSee the Quality Chapter
300
--- --- - - --- - - - - -What is the differencebetween a population anda sample?
301
Population: The totalnumber of individualmembers, items orelements comprising auniquely defined group
For example: All women
Sample: A subset ofpopulation members
For example: Women overthe age of 30 in England
See the Quality Chapter
302
"-'" -- -- -- -- - - - - -Who has responsibility forquality on a project?
303
The project manager isultimately responsible, butthe team members mustinspect their own work
See the Quality Chapter
304
What are the impacts ofpoor quality?
305
• Higher costs
• Increased rework
• Lower morale
• Lower customersatisfaction
• Increased risk
See the Quality Chapter
306
........................
- - - - - - - - - -Name costs ofconformance and costs ofnonconformance.
Which costs should begreater?
What does cost ofnonconformance mean?
Provide examples.
307
Costs of conformance:• Quality training• Studies• Surveys
The costs of conformanceshould be less than thecosts of nonconformance.Costs of nonconformance:
• Rework• Scrap• Inventory costs• Warranty costs
Costs of nonconformanceare associated with poorquality.See the Quality Chapter
308
- - - - - - - - - -What is the purpose ofquality planning?
309
• Find existing qualitystandards andprocesses
• Create additionalproject specificprocesses andstandards
• Determine what workyou will do to meetthose standards
• Determine how youwill measure
• Create quality plan
See the Quality Chapter
310
- - - - - - - - - -Name some of the toolsused in quality planning.
311
• Benchmarking
• Cost-benefit analysis
• Design of experiments
• Cost of quality
See the Quality Chapter
312
- - - - - - - - - -Define benchmarking.
313
Comparing your companyor department'sperformance to those ofother companies
See the Quality Chapter
314
-- -- --
Define cost-benefitanalysis.
- -
315
Comparing the costs of aneffort to the benefits ofthat effort
See the Quality Chapter
316
~ - -- - - - - - - -What is a design ofexperiments?
317
A statistical method forchanging importantvariables to determinewhat combination willimprove overall quality
See the Quality Chapter
318
What is the purpose ofquality assurance?
319
• Making sure allprocesses are used onthe project andperforming continuousprocess improvement
• Determine if activitiescomply with processes
• Continuousimprovement
• Identify improvementsthe company needs tomake
• Recommend changes
See the Quality Chapter
320
What are some of theactivities in qualityassurance?
321
• Process analysis
• Quality audits
See the Quality Chapter
322
~ ~ ~ - - ~ - - - -What are quality audits?
323
Structured reviews ofquality activities thatidentify lessons learned
See the Quality Chapter
324
What is the purpose ofquality control?
325
• Measure specificproj ect results againstquality standards
• Make changes toquality baseline
• Identify root causesand qualityimprovements
• Recommend correctiveand preventive actions,changes, and defectrepair
• Validate deliverables
See the Quality Chapter
326
Name the quality controltools.
327
• Cause and effectdiagram
• Flowchart
• Histogram
• Pareto chart
• Run chart
• Scatter diagram
• Control chart
See the Quality Chapter
328
---.... - - - - - - - - ....",
What is defect repair?
329
Rework when a componentof the project does not meetspecifications
Discovered during qualitycontrol, formed into changerequests during monitor andcontrol project work, andapproved or rejected duringintegrated change control
See the Quality Chapter
330
- - - ------
What is a cause and effect(fishbone) diagram?
Why is it used?
331
Creative way to look atthe causes or potentialcauses of a problem
Used to explore the futureor the past
Also called a fishbone orIshikawa diagram
Maybe used in qualityplanning or control
See the Quality Chapter
332
- -- -- -- --What is a checklist?
-'
333
A list of items to inspector a picture of an item thatis marked to showlocations of defects foundduring inspection
See the Quality Chapter
334
- -- -- -- -- -- -- -- - "-""
What does a Pareto chartshow?
Why is it used?
335
Graphically prioritizescauses of processproblems (by frequency ofoccurrence) to help focusattention on the mostcritical issues affectingquality
See the Quality Chapter
336
- - - - - - - - - -What is the 80/20 rule?
337
80 percent of processproblems are caused by 20percent of the causes
See the Quality Chapter
338
- - - - - - - - - -What is statisticalsampling?
339
Inspecting by choosingonly part of a population(a sample) to test
See the Quality Chapter
340
- - - - - - - - - -What is a control chart?
341
Specialized trend chartdocumenting whether ameasured process is in orout of statistical control
See the Quality Chapter
342
......... ......... - - - - - - - -What are control limits?
343
The acceptable range ofvariation on a controlchart
See the Quality Chapter
344
- - - - - - - - - -What are the specificationlimits on a control chart?
345
Customer's measuresdefining acceptableproduct/servicecharacteristics andtolerances
See the Quality Chapter
346
- - - - - - - - - -What does out of controlmean?
347
The process is performingneither consistently norpredictably, due to theexistence of assignablecauses
See the Quality Chapter
348
What does the rule ofseven mean?
349
Seven consecutive datapoints appearing on acontrol chart on one sideof the mean, suggestingthat the process is out ofstatistical control
See the Quality Chapter
350
What is a special cause?
351
A data point on a controlchart or rule of sevenindicating that themeasured process is out ofstatistical control and thatthe cause(s) of the eventmust be investigated
See the Quality Chapter
352
- -- -- -- - - - -- - -What is the process ofhuman resourcemanagement?
353
• Human resourceplanning
• Acquire project team
• Develop project team
• Manage project team
See the Human Resources Chapter
354
-- -- -- --- --- --- - -- - '-'"
What are key outputs ofhuman resource planning?
355
• Roles andresponsibilities
• Staffing managementplan
• Project organizationalchart
See the Human Resources Chapter
356
- - - - - - - - - ----
What are key outputs ofacquire project team?
357
• Project staff (team)assignment
• Resource availability
See the Human Resources Chapter
358
- - - - - - - - -- --What is a key output ofdevelop project team?
359
Team performanceassessment: Evaluatingteam effectiveness
See the Human Resources Chapter
360
- - - - - - - - - -What are key outputs ofmanage project team?
361
• Requested changes
• Recommendedpreventive andcorrective actions
See the Human Resources Chapter
362
- - - - - - - - - -Describe the roles andresponsibilities of all thepeople involved in aproject.
363
This topic cannot besummarized here, but it iscritical to understand whodoes what on the exam.
See the Human ResourcesChapter in PMP Exam Prepfor more on this topic.
See the Human Resources Chapter
364
- - - - - - - - - -
Define sponsor.
365
• Provides informationfor preliminary projectscope statement
• Issues the charter
• Provides funding
• May dictate dates
• Approves projectmanagement plan
• Agrees to the changecontrol board
• Is involved in risk
See the Human Resources Chapter
366
-- - -- --Describe the team's role.
367
• Create the workbreakdown structureand help with projectmanagement planning
• Estimate activities
• Complete activities
• Help control and closeout the project
• Held accountable forassigned activities
See the Human Resources Chapter
368
- -- -- -- - -- -- -- -- --Define the role of thestakeholders.
369
They may help:
• Plan the project
• Approve changes
• Identify constraints
• Perform the riskmanagement process
See the Human Resources Chapter
370
Define the role offunctional managers.
371
Resource managers:
• Participate in planning
• Approve final projectmanagement plan
• Approve final schedule
• Assist with problemsrelated to team memberperformance
See the Human Resources Chapter
372
---- ---- - - - - - - - -What are the key elementsin a staffing managementplan?
373
When and how humanresource requirementswill be met
• Recognition andrewards
• Staff acquisition
• Timetable
• Release criteria
• Training needs
See the Human Resources Chapter
374
What must a proj ectmanager do in order todevelop the project team?
375
• Hold team buildingactivities throughoutthe project life
• Obtain and providetraining where needed
• Establish ground rules
• Create and giverecognition andrewards
• Place team members inthe same location(co-location)
See the Human Resources Chapter
376
- - - - - - -
What must a projectmanager do to manage aproject team?
377
• Observe
• Use an issue log
• Keep in touch
• Complete projectperformance appraisals
• Actively look for andhelp resolve conflictsthat the team cannotresolve on their own
See the Human Resources Chapter
378
- - - - - - - - - -What is a teamperformance assessment?
379
An assessment by theproject manager ofproject teameffectiveness
See the Human Resources Chapter
380
- - - - - - - - - -Narne the powers of theproject manager.
381
• Formal
• Reward
• Penalty
• Expert
• Referent
See the Human Resources Chapter
382
- - - - - - - - - -Narne the differentleadership styles a projectmanager may choose touse.
383
• Directing
• Facilitating
• Coaching
• Supportive
• Autocratic
• Consultative
• Consensus
See the Human Resources Chapter
384
Name the most commonsources of conflict onprojects.
385
• Schedules
• Priorities
• Resources
• Technical opinions
NOT personalities
See the Human Resources Chapter
386
-- -- -- - - - - - -- -N arne conflict resolutiontechniques.
387
• Problem solving(confronting)
• Compromise
• Withdrawal(avoidance)
• Smoothing
• Forcing
See the Human Resources Chapter
388
- - - - - - - - - -Define problem solving.
Define compromising.
389
Problem Solving: Solvingthe real problem(Win-win)
Compromising: Makingall parties somewhathappy(Lose-lose)
See the Human Resources Chapter
390
- - - - - - - - - -Define withdrawal.
Define smoothing.
Define forcing.
391
Withdrawal: Postponing aproject decision oravoiding addressing theproblem
Smoothing: Emphasizingagreement rather thandifferences of opinion
Forcing: Do it my way
See the Human Resources Chapter
392
- - - - - - - - - -What are the projectmanager's human resourceresponsibilities?
393
• Create a team directory• Negotiate for best
resources• Create project-related
job descriptions forteam members
• Make sure teammembers obtainneeded training
• Create reward systems• Create a staffing
management plan
See the Human Resources Chapter
394
........ - - - ........ - - - - -What is a projectperformance appraisal?
395
An evaluation ofindividual team membereffectiveness
See the Human Resources Chapter
396
- - - - - - - - - -What is Maslow's theory?
397
People are motivatedaccording to hierarchy:
• Self-actualization
• Esteem
• Social
• Safety
• Physiological
See the Human Resources Chapter
398
- - - - - - - - - -What did McGregordescribe?
399
Theory X: Managers whoaccept this theory believethat people need to bewatched every second
Theory Y: Managers whoaccept this theory believethat people want toachieve and can workwithout supervision
See the Human Resources Chapter
400
-- -- --- - --What did Herzbergdescribe?
401
• Hygiene factors
• Motivating agents
See the Human Resources Chapter
402
- - - - -- - -- - - -Why is releasing resourcesthe last activity in closure?
403
The team and otherresources are needed tocomplete closure
See the Communications Chapter
404
- - - - - - - - --- -What is a kickoff meeting?
When does it occur?
405
A meeting of all parties tothe project (projectstakeholders, sellers, etc.) tomake sure everyone is "onthe same page"
It is held at the end of theplanning process group.
See the Communications Chapter
406
-- -- - - - - - -- - -What is the process ofcommunicationsmanagement?
407
• Communicationsplanning
• Informationdistribution
• Performance reporting
• Manage stakeholders
See the Communications Chapter
408
- - - - - - - - - -What is the key output ofcommunications planning?
409
Communicationsmanagement plan
See the Communications Chapter
410
- - - - - - - - - -What are key outputs ofinformation distribution?
411
• Team and stakeholdershave the informationthey need
• Requested changes
See the Communications Chapter
412
- - - - - - - - - -
What are key outputs ofperformance reporting?
413
• Stakeholders knowhow the project isperforming
• Performance reports
• Forecasts
• Requested changes
• Recommendedcorrective actions
See the Communications Chapter
414
- - - - - - - - - -What are key outputs ofmanage stakeholders?
415
• Resolved issues
• Approved changerequests
• Approved correctiveactions
See the Communications Chapter
416
- - - - - - - - - -Define communicationsplanning.
417
Determining theinformation andcommunication needs ofstakeholders
See the Communications Chapter
418
- - - - "-What is a communicationsmanagement plan?
419
Part of the projectmanagement plan
A formal plan thatdescribes what will becommunicated andreceived from whom,when, and how often
See the Communications Chapter
420
--- -- --- '-'" - - - ......", -
Describe the informationdistribution requirementson projects.
421
Implementing thecommunicationsmanagement plan
Creating reports including:
• Lessons learned• Performance reports
See the CommunicationsChapter in PMP Exam Prepfor more on this topic.
See the Communications Chapter
422
-- -- - -- -- -- -- -- -..-' -..-'
Describe thecommunications modeland its components.
423
Messages are encoded, transmitted and unencoded, andmust include attention to:
• Nonverbalcommunication
• Paralingual• Active listening• Effective listening• Feedback
See the Communications Chapter
424
- -- -- -- -- - -How much ofcommunication isnonverbal?
425
About 55 percent
See the Communications Chapter
426
- -- -- - - - - - - -What does paralingualmean?
427
Pitch and tone of voice
See the Communications Chapter
428
~ ~ - ~ - - - - - -Name communicationsmethods.
429
• Formal
• Informal
• Written
• Verbal
See the Communications Chapter
430
- - -------
How much time do projectmanagers spendcommunicating?
431
90 percent
See the Communications Chapter
432
'-"" -- -- -- -- -- - -- - -
Name communicationblockers.
433
• Noise
• Distance
• Improper encoding
• "That was a bad idea"
• Hostility
• Language
• Culture
See the Communications Chapter
434
------- -- -- -- -- --Describe the rules foreffective meetings.
435
• Set a time limit• Schedule in advance• Create an agenda with
team input• Distribute agenda in
advance• Lead meeting with a
set of rules
See the CommunicationsChapter in PMP Exam Prepfor more on this topic.
See the Communications Chapter
436
What is the formula forcommunication channels?
437
[N (N-I)] /2
See the Communications Chapter
438
- -- -- -- - - - ....."
What is an issue log?
439
Documents project issues,persons responsible forresolving issues and targetresolution dates
See the Communications Chapter
440
- -- -- - - -- - - -- -What are lessons learned?
What do we do withthem?
441
What went right, wrong,and could be donedifferently
Used in planning a projectand are generated by theproject to be used by otherprojects in the future
See the Communications Chapter
442
- - - - - - - - - -What is the process of riskmanagement?
443
• Risk managementplanning
• Risk identification
• Qualitative riskanalysis
• Quantitative riskanalysis
• Risk response planning
• Risk monitoring andcontrol
See the Risk Chapter
444
- ----- -- ------
What is the key output ofrisk managementplanning?
445
Risk management plan
See the Risk Chapter
446
- - - - - --- - - - -What are key outputs ofrisk identification?
447
• Risks
• Risk register
See the Risk Chapter
448
- - - - - - - - - -What are key outputs ofqualitative risk analysisadded to the risk register?
449
• List of risks
• Ranked risks bycategory
• Watchlist
See the Risk Chapter
450
------ - - -What are key outputs ofquantitative risk analysisadded to the risk register?
451
• Probability ofachieving the cost andtime objectives
• Prioritized list ofquantified risks
See the Risk Chapter
452
--What are key outputs ofrisk response planning?
--
453
• Risk response plans• Contingency plans• Triggers• Reserves for time and
cost• Fallback plans• Contracts• Revised project
management plan• Residual risks• Secondary risks
See the Risk Chapter
454
What are key outputs ofrisk monitoring andcontrol?
455
• Requested changes
• Recommendedpreventive andcorrective actions
• Updates to the riskregister
• Risk audits
• Periodic risk reviews
• Risks closed
See the Risk Chapter
456
-- -- -- -- - '-
Define risks.
457
Events that can affect aproject for better or worse
Threats and opportunities
See the Risk Chapter
458
- - - - -- -- -- - -- -Describe key things oneneeds to know about eachrisk.
459
• Probability
• Impact
• Timing
• Frequency
See the Risk Chapter
460
- - - - - - - - - -Someone who is riskaverse IS:
461
Unwilling to take risks
See the Risk Chapter
462
- - - - - - - - - -What is risk tolerance?
463
Amount of risk acceptable
See the Risk Chapter
464
- - - - - - - - -Narne the inputs to therisk management process.
465
• Organizational processassets
• Enterpriseenvironmental factors
• Project charter
• Project scopestatement
• Proj ect scopemanagement plan
• Staffing plans
• WBS• Network diagram
• Cost and timeestimates
See the Risk Chapter
466
- - - - - - - - -What are risk categories?
467
Lists of common sourcesof risk, including:
• Technical
• Project management
• Schedule
• Cost
• Others
See the Risk Chapter
468
- -- -- '-- -' -- - -- --What are riskidentification techniques?
469
• Documentationreviews
• Brainstorming• Delphi Technique• Root cause
identification• Interviewing• SWOT• Checklists• Assumptions analysis• Diagramming
techniques
See the Risk Chapter
470
-- --- -- -- '-' -- - - - -What are the types ofrisks?
471
• Business
• Pure
See the Risk Chapter
472
--'""-"---------What are risk triggers?
473
Early warning signs that arisk event is about tooccur
See the Risk Chapter
474
-- "'--' -- -- -- -- - - -- "-"'
What is assumptionsanalysis?
When is it done?
475
Explores the validity ofproject assumptions toidentify new risks in riskidentification
See the Risk Chapter
476
-- - -- - - - - - - -What is risk data qualityassessment?
When is it done?
477
• Reviewing how wellunderstood is the risk
• A method to testreliability of riskinformation collected
• It is done duringqualitative riskanalysis
See the Risk Chapter
478
-- -- -- - - - - - - -What is a probability andimpact matrix?
479
The company's scale todetermine which riskscontinue through the riskmanagement process
See the Risk Chapter
480
- -- - - - - - - - -What is the formula forexpected monetary value?
481
Probability times impact
See the Risk Chapter
482
- - - - - - - - -What is a decision tree?
483
A model of a decision tobe made which includesthe probabilities andimpacts of future events tohelp make a decisiontoday
See the Risk Chapter
484
- - - - - - - -Who is a risk responseowner?
485
The person assigned toexecute risk responses foreach critical risk
See the Risk Chapter
486
--- '-- -- -' "-- - '-'-- -- - -N arne and define the riskresponse strategies forthreats.
487
Avoid: Eliminate a specificthreat by eliminating thecause
Mitigate; Reduce theprobabIlIty or Impact
Accept:PassIve - Do nothingIf it happens, it happens.
Active - Developcontingency plans
Transfer: Make anotherparty responsible for a risk
May include: outsourcing,InsuranceJ warranties,bonds ana guaranteesSee the Risk Chapter
488
Narne and define the riskresponse strategies foropportunities.
489
Exploit: Enhance theopportunity
Share: Allocate ownershipto a third party
Enhance: IncreaseprobabIhty or impacts
Accept:PassIve - Do nothingIf it happens, it happens
Active - Developcontingency plans
See the Risk Chapter
490
--- -- - - - - - - -What are residual risks?
491
Risks that remain after riskresponse planning:
• Risks for whichcontingency andfallback plans havebeen created
• Risks which have beenaccepted
Outputs of risk responseplanning
See the Risk Chapter
492
--- - - - - - - - -What are secondary risks?
493
New risks created by riskresponse strategies
Outputs of risk responseplanning
See the Risk Chapter
494
-- -- - - - -
How does buyinginsurance relate to riskresponse planning?
- -
495
It exchanges an unknownrisk for a known risk
It is a method to decreaseproject risk
It is an output of riskresponse planning
See the Risk Chapter
496
------ -
What do contracts have todo with risk responseplanning?
497
A contract helps allocateand mitigate risks
A risk analysis is donebefore a contract is signed
Contracts are outputs ofrisk response planning
See the Risk Chapter
498
- - -- - - - - - -What are contingencyplans?
499
Planned responses to risks
Outputs of risk responseplanning
See the Risk Chapter
500
.............................
- - - - - - - - - -
What are fallback plans?
501
Actions that will be takenif the contingency plan isnot effective
Outputs of risk responseplanning
See the Risk Chapter
502
-- -- -- -- -- -- -- - - -What does a revisedproject management planhave to do with riskmanagement?
503
The components of theproject management planwill need to be updatedbased on the results of riskplanning
It is an output of riskresponse planning
See the Risk Chapter
504
What are reserves?
505
Time or cost added to theproject to account for risk
Also referred to as:
• ~anagementreserve
• Contingency reserve
Reserves are outputs ofrisk response planning
See the Risk Chapter
506
What is a contingencyreserve?
507
Time or cost allocated tocover known unknowns
Included in cost baseline
See the Risk Chapter
508
What is a managementreserve?
509
Time or cost allocated tocover unknown unknowns
Included in cost budget
See the Risk Chapter
510
--- -- -- -- - -- - -- --What are riskreassessments?
When do they occur?
511
Identification of newrisks
They occur during riskmonitoring and control
See the Risk Chapter
512
- --- --- - - - - -- - -What is reserve analysis?
When is it done?
513
• Determining reserves
• Managing the reservesand making sure theamount remaining isadequate
It is done during riskresponse planning,monitoring andcontrolling, activityduration estimating, costbudgeting and costcontrol
See the Risk Chapter
514
- -- - - - --- - - - -What are risk responseaudits?
515
Examining anddocumenting theeffectiveness of the riskresponse and the riskresponse owner
See the Risk Chapter
516
- - -- -- - '-' - - - -What is the process ofprocurement management?
517
• Plan purchases andacquisitions
• Plan contracting
• Request sellerresponses
• Select sellers
• Contractadministration
• Contract closureSee the Procurement Chapter
518
- - -- -- -- -- -- -- -- --Narne the inputs to theprocurement managementprocess.
519
• Enterpriseenvironmental factors
• Organizational processassets
• WBS• Risk register• Proj ect scope
statement• Project schedule• Cost estimate for
contracted work• Cost baseline for the
project
See the Procurement Chapter
520
- -------
What are key outputs ofplan purchases andacquisitions?
521
• Procurementmanagement plan
• Contract statement ofwork
• Requested changes
See the Procurement Chapter
522
What are key outputs ofplan contracting?
523
• Procurementdocuments
• Evaluation criteria
See the Procurement Chapter
524
-
What are key outputs ofrequest seller responses?
525
• Procurementdocuments
• Proposals
See the Procurement Chapter
526
"'--" -- - -- - - - - -What are key outputs ofselect sellers?
527
• Contract signed
• Contract managementplan
• Requested changes
See the Procurement Chapter
528
-- --- -- -- - - - - - -What are key outputs ofcontract administration?
529
• Substantial completion
• Requested changes
• Recommendedcorrective actions
See the Procurement Chapter
530
-- - -...- -...- - - - - - -What are key outputs ofcontract closure?
531
• Product verification
• Financial closure
• Update and indexrecords
• Performance reporting
• Procurement audits
• Lessons learned
• Formal acceptance
See the Procurement Chapter
532
- -- - - - - - - -What is a contractmanagement plan?
533
A plan for how eachcontract will beadministered
See the Procurement Chapter
534
- - - - - - - - -What is a procurementmanagement plan?
535
Part of the projectmanagement plan
Describes howprocurements will beplanned, executed andcontrolled
See the Procurement Chapter
536
~ WI' WI' ...
- ------
What is required for alegal contract?
537
• Offer
• Acceptance
• Consideration
• Legal capacity
• Legal purpose
See the Procurement Chapter
538
- - - - - - - - -What is a contract?
539
May include all of thefollowing:
• Legal terms
• Business terms
• Contract statement ofwork
• Marketing literature
• Drawings
See the Procurement Chapter
540
Describe the projectmanager's role inprocurement.
541
• Understand theprocurement process
• Make sure the workdescribed in thecontract is complete
• Be involved in thewhole contractingprocess
• Help tailor the contractto the project
• Incorporate mitigationand allocation of risksinto the contract
See the Procurement Chapter
542
------Name the advantages ofcentralized contracting.
543
• Increased expertise incontracting
• Standardized practices
• Clear career path
See the Procurement Chapter
544
- - - -
Narne the disadvantages ofcentralized contracting.
545
• One person works onmany projects
• May be difficult toobtain contracting helpwhen needed
See the Procurement Chapter
546
------
Narne the advantages ofdecentralized contracting.
547
• Easier access tocontracting expertise
• More loyalty to theproject
• More focused contractexpenence
See the Procurement Chapter
548
-- -- --- - - -- - --- -- -
Name the disadvantages ofdecentralized contracting.
549
• No home for thecontracts person afterthe project
• Less focus onimproving contractingexpertise
• Inefficient use ofresources
• Little standardizationof contractingprocesses from oneproject to the next
See the Procurement Chapter
550
-- -- - -- -- - -- -- -
What does make-or-buyrefer to?
551
Analyzing whether theperforming organizationshould do the work or buythe services/supplies fromoutside the organization
See the Procurement Chapter
552
- - - - -
What are the main typesof contracts?
553
• Cost reimbursable
• Fixed price
• Time and material
• Purchase order
See the Procurement Chapter
554
- --
What is a costreimbursable contract?
555
All costs are reimbursed
See the Procurement Chapter
556
What is a cost plus fixedfee contract?
557
All costs are reimbursed
The fee is fixed at acertain monetary amount
See the Procurement Chapter
558
What is a cost pluspercentage of costcontract?
559
All costs are reimbursed,plus a specific percentageof costs as fee or profit
See the Procurement Chapter
560
What is a cost plusincentive fee contract?
561
Costs are reimbursed plusan incentive, usually anadditional fee, forexceeding performancecriteria that have beendetermined in advance
See the Procurement Chapter
562
-- -- --- -- - - -- -- -- --What is a time andmaterial contract?
563
Usually a fixed hourly rateor a fixed cost per item,plus a reimbursablecomponent for expenses ormaterials
See the Procurement Chapter
564
-------
What is a fixed pricecontract?
565
There is only one fee foraccomplishing all thework
See the Procurement Chapter
566
- - - - - - - - - -What is a fixed price plusincentive fee contract?
567
Total price is fixed, but anadditional amount may bepaid for exceedingperformance criteriadetermined in advance
See the Procurement Chapter
568
- -- -- - - -What is a fixed priceeconomic price adjustmentcontract?
- -
569
A fixed price contract withan allowable adjustmentfor price increase, due tocost increases in later timeperiods
See the Procurement Chapter
570
-- -- - - - - - -
Describe how contractadministration efforts willbe different with eachcontract form.
571
This critical conceptcannot be summarizedhere.
See the ProcurementChapter in PMP Exam Prepfor more on this topic.
See the Procurement Chapter
572
- - -
What is a purchase order?
- -
573
A unilateral contract
See the Procurement Chapter
574
What are incentives?
What might they be usedfor?
575
Help bring the seller'sobjectives in line with thebuyer's
Incentives for:
• Time
• Cost
• Quality
• Scope
See the Procurement Chapter
576
Who has the cost risk in acost reimbursablecontract?
In a fixed price contract?
577
Risk in a costreimbursable contract isborne by the buyer
Risk in a fixed pricecontract is borne by theseller
See the Procurement Chapter
578
--- -- -- - - -- - -- --Name the types of contractstatements of work.
579
• Performance
• Functional/detailed
• Design
See the Procurement Chapter
580
-- --- - - - - - - -What are procurementdocuments?
581
• Request for proposal(RFP)
• Invitation for bid(IFB)
• Request for quotation(RFQ)
See the Procurement Chapter
582
- -- -- -- - - - - - -What are standard contractterms and conditions?
What are specialprovisions?
583
Standard Contract Termsand Provisions: Terms andconditions which are usedfor all contracts within thecompany
Special Provisions: Termsand conditions created forthe unique needs of theproject
Created with the input ofthe project manager
See the Procurement Chapter
584
--- --- - -- - - -- - - -Name common terms andconditions that may be ina contract.
585
Please review the long listof terms and conditionsand what they mean inPMP Exam Prep,Procurement Chapter.
See the Procurement Chapter
586
- - - - - - - - - -
What is a letter of intent?
587
A letter from the buyer,without legal binding,saying the buyer intends tohire the seller
See the Procurement Chapter
588
- - - - - - - -
What does privity refer to?
589
Contractual relationshipsbetween two or morecompanies
See the Procurement Chapter
590
------
What does non-competitiveprocurement mean?
591
Work awarded to a singlesource or sole sourcewithout competition
See the Procurement Chapter
592
When are evaluationcriteria created and used?
What do they refer to?
593
Created during plancontracting
Rationale that the buyerwill use to weight or scoresuppliers' proposals
Used during select sellersto pick a supplier
See the Procurement Chapter
594
What is a bidderconference?
What should be watchedout for?
595
A meeting withprospective sellers tomake sure all understandthe procurement and havea chance to ask questions
Watch for:
• Collusion
• Sellers not askingquestions
• All questions andanswers are distributedto all
See the Procurement Chapter
596
-------What is a qualifiedseller list?
597
A list of sellers who havebeen pre-approved
See the Procurement Chapter
598
- '--"'" -------
What are the objectives ofnegotiation?
599
• Obtain a fair andreasonable price
• Develop a goodrelationship with theother side
See the Procurement Chapter
600
- -------
Name some negotiationtactics.
601
• Attacks• Personal insults
• Good guy/Bad guy• Deadline• Lying• Limited authority
• Missing man
• Delay• Extreme demands• Withdrawal• Fait accompli
See the Procurement Chapter
602
- -- - - - - - - -Name some of the projectmanager's activities duringcontract administration.
603
• Review invoices
• Integrated changecontrol
• Interpret the contract
• Monitor performanceagainst the contract
• Risk management
Please see the long list inPMP Exam Prep,Procurement Chapter.
See the Procurement Chapter
604
- ------
Why might there beconflict between thecontract administrator andthe project manager?
605
The contract administratoris the only one with thepower to change thecontract (including theproject scope)
See the Procurement Chapter
606
-'
What is a contract changecontrol system?
607
A system created tomodify the contract and tocontrol changes to thecontract
See the Procurement Chapter
608
-- --- - - -
What must be done for allcontract changes?
609
They must be formallydocumented
See the Procurement Chapter
610
What is the purpose of abuyer-conductedperformance review?
611
Identify seller's successesor failures, and allow thebuyer to rate the seller'sability to perform
See the Procurement Chapter
612
-- -- --Define claimsadministration.
-- --
613
Managing contestedchanges and constructivechanges (claims) requestedby the seller
See the Procurement Chapter
614
- - -- ---
What is the key function ofa records managementsystem?
615
Maintain an index ofcontract documentationand records to assist inretrieval
Part of the projectmanagement informationsystem
See the Procurement Chapter
616
-- - -
Name the guidelines forinterpreting what is or isnot included in thecontract.
--
617
See the ProcurementChapter in PMP Exam Prepfor more on this topic.
See the Procurement Chapter
618
- ------
What is the purpose ofcontract closure in theprocurement managementprocess?
619
• Perform a procurementaudit
• Complete the workdone under contract
See the Procurement Chapter
620
- -
What is a procurementaudit?
- - -
621
Structured review of theprocurement process anddetermination of lessonslearned to help otherprocurements
See the Procurement Chapter
622
- -" -
What does professionaland social responsibilitymean?
623
• Ensure individualintegrity
• Contribute to theproject managementknowledge base
• Enhance personalprofessionalcompetence
• Promote interactionamong stakeholders
For the PMP exam, makesure you read the extensiveinformation on this topic inPMP Exam Prep, ProfResponsibility Chapter.See the Prof. Responsibility Chapter
624
What does "ensureindividual integrity" mean?
625
• Follow PMI's code ofprofessional conduct
• Tell the truth in reports• Follow copyright and
other laws• Treat others with
respect• Report violations• Do not put personal
gain over project needs• Do not give or take
bribes
See the Prof. Responsibility Chapter
626
What does "contribute tothe project managementknowledge base" mean?
627
• Share lessons learned
• Write articles
• Mentor others
• Perform research onbest practices
See the Prof. Responsibility Chapter
628
-- "--' -- -- -- -- -- -- --
What does "enhancepersonal professionalcompetence" mean?
629
• Understand your ownstrengths andweaknesses
• Continue to learn
• Look for new practices
See the Prof. Responsibility Chapter
630
- - -- --
What does "balancestakeholders' interests"mean?
-- --
631
Part of "promote interactionamong stakeholders", itmeans:
• Work to get clear andcomplete projectobjectives and projectrequirements
• Understandstakeholders' interests
• Recommendapproaches that strivefor fair resolution
See the Prof. Responsibility Chapter
632
-- -- -- - -- -- -- -- -- --What does "interact withteam and stakeholders in aprofessional andcooperative manner"mean?
633
Part of "promote interactionamong stakeholders", itmeans:
• Respect culturaldifferences
• Understand others'needs
• Follow practices in othercountries, as long asthey do not violate laws
• Provide others withproject charter, scheduleand project managementplan they need to dotheir work
See the Prof. Responsibility Chapter
634
-- -- -- -- --Notes:
Notes:
- - - - - -
Notes:
Notes:
- -Notes:
Notes:'
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