49 Project Management Processes

Initiating (2) Planning (24) Executing (10) Monitoring and Controlling (12) Closing (1)
➢ Develop project ➢ Develop project ➢ Direct and manage ➢ Monitor and control project work ➢ Close project

CAPM®/PMP® Project Management Certification All-in-One Exam Guide, Fourth Edition

Project integration charter management plan project work ➢ Perform integrated or phase
management ➢ Manage project change control
knowledge

➢ Plan scope management ➢ Validate scope

Project scope ➢ Collect requirements ➢ Control scope
management ➢ Define scope
➢ Create WBS

➢ Plan schedule management ➢ Control schedule

➢ Define activities
Project schedule
➢ Sequence activities
management
➢ Estimate activity durations
➢ Develop schedule

CAPM/PMP Memory Sheets

➢ Plan cost management ➢ Control costs
Project cost management ➢ Estimate costs
➢ Determine budget

Project quality ➢ Plan quality management ➢ Manage quality ➢ Control quality

management
➢ Plan resource management ➢ Acquire resources ➢ Control resources
Project resource
➢ Estimate activity resources ➢ Develop team
management
➢ Manage team

Project communications ➢ Plan communications ➢ Manage ➢ Monitor communications

management management communications

➢ Plan risk management ➢ Implement risk ➢ Monitor risks

➢ Identify risks responses
➢ Perform qualitative
Project risk management risk analysis
➢ Perform quantitative
risk analysis
➢ Plan risk responses

Project procurement ➢ Plan procurement ➢ Conduct ➢ Control procurements

management management procurements

Project stakeholder ➢ Identify ➢ Plan stakeholder engagement ➢ Manage stakeholder ➢ Monitor stakeholder engagement
management stakeholders engagement

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 How to Calculate Float
Complete the Forward Pass
1. The Early Start (ES) of the first task is 1. The Early Finish (EF) is a task’s ES, plus the duration, minus 1.
2. The ES of the next task(s) will be the EF for the previous activity, plus 1.
3. The EF for the next task(s) equals its ES, plus the task duration, minus 1.
4. Use caution with predecessor activities; the EF with the largest value is carried forward.
Complete the Backward Pass
1. Backward pass starts at the end of the Project Network Diagram (PND). The Late Finish (LF) for the last activity in the PND equals its EF value.
The Late Start (LS) is calculated by subtracting the duration of the activity from its LF, plus 1.
2. The next predecessor activity’s LF equals the LS of the successor activity, minus 1.
3. The LS is again calculated by subtracting the task’s duration from the task’s LF, plus 1.
Calculate Float
To calculate float, the ES is subtracted from the LS and the EF is subtracted from the LF. The following illustration shows a completed PND with the
float exposed:

Early start Duration Early finish 6 5 10 11 7 17

1 5 5
B D
6 0 10 11 0 17 18 5 22
Path duration:
A
1 0 5
F ABDF = 22
6 3 8 9 5 13
18 0 22 ACEF = 18
Late start Float Late finish C E
10 4 12 13 4 17

Scheduling Facts Task Relationships

Lag: Waiting time between activities (positive time). Finish-to-start (FS): This relationship means Task A must complete before Task B
Lead: Activities are moved closer together or overlap (negative time). can begin. This is the most common relationship.
Crashing: Adding resources to reduce the project duration. Crashing adds Start-to-start (SS): This relationship means Task A must start before Task B can start.
costs to the project. This relationship allows both activities to happen in tandem.
Fast tracking: Allows project phases to overlap to reduce the project duration. Finish-to-finish (FF): This relationship means Task A must complete before Task B
Fast tracking adds risk to the project. does. Ideally, the two tasks must finish at exactly the same time, but this is not
Free float: The amount of time an activity can be delayed without delaying the always the case.
next activity’s start date. Start-to-finish (SF): This relationship is unusual and is rarely used. It requires Task A
Total float: The amount of time an activity can be delayed without delaying the to start so that Task B may finish. It is also known as just-in-time (JIT) scheduling.
project’s end date.

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 Earned Value Management Formulas
Formula Definition Equation Indication
Planned value (PV) What the project should be worth
Earned value (EV) What the project is worth Percent complete × BAC
Actual cost (AC) What the project has spent so far
Budget at completion (BAC) What the project budget is
The difference between earned value and Positive: Under budget
Cost variance (CV) EV − AC
the actual costs Negative: Over budget
The difference between earned value and Positive: Ahead of schedule
Schedule variance (SV) EV − PV
planned value Negative: Behind schedule
Projection of being over or under budget Positive: Under budget
Variance at completion (VAC) BAC − EAC
based on current performance Negative: Over budget
Greater than 1: Under budget
Cost performance index (CPI) Shows overall cost efficiency on the project EV/AC
Less than 1: Over budget
Greater than 1: Ahead of schedule
Schedule performance index (SPI) Shows overall schedule adherence EV/PV
Less than 1: Behind schedule
Estimate at completion (EAC) Forecasts final project costs based on current
BAC/CPI
Standard formula performance

Estimate at completion (EAC) Forecasts final project costs based on current

AC + BAC − EV
Future work at planned costs formula performance

Estimate at completion (EAC) Forecasts final project costs based on current

AC + Estimate for remainder of project
Initial cost estimates flawed performance

Estimate at completion (EAC) Forecasts final project costs based on current

AC + [BAC − EV/(CPI × SPI)]
CPI and SPI affect remainder of project performance

Predicts how much more the remainder of

Estimate to complete (ETC) EAC − AC
the project will cost

To-complete performance index (TCPI) Greater than 1: Harder to complete and meet BAC
Predicts likelihood of reaching BAC (BAC − EV)/(BAC − AC)
Utilizing BAC Less than 1: Easier to complete and meet BAC

To-complete performance index (TCPI) Greater than 1: Harder to complete and meet EAC
Predicts likelihood of reaching EAC (BAC − EV)/(EAC − AC)
Utilizing EAC Less than 1: Easier to complete and meet EAC

EVM Tips
 
Always start with earned value.  
Indexes are “something” divided by “something.”  Variances can be positive or negative.
 
Variance means subtraction.  
For any index, the closer to 1 the better. You will have a few EVM questions on the exam.

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 Run Chart Control Chart Pareto Chart
5.0 Rule of seven
M... Non-random event
4.0 70 100%
Upper spec
3.0 60 80%
Control limit
2.0
Mean 50 60%
1.0

Category 1

Category 2

Category 3

Category 4

Category 5
Control limit
0.0 45 40%
3/13/2017

3/14/2017

3/15/2017

3/16/2017

3/17/2017

3/20/2017

3/21/2017

3/22/2017

3/23/2017

3/24/2017
Lower spec
Assignable cause 40 20%
Out of control
Assignable cause 35 0%

Ishikawa Chart RACI Chart

Jo Sam Mary Mike Alice
Effect:
Problem Task 1 R A C I I
to solve Task 2 A C C C R
Task 3 C C I A R
Contributing
Major causes causes Task 4 R R R A I
Task 5 I I R A C
Burndown Chart Responsible, Accountable, Consulted, Informed
Actual Ideal Only one person accountable per task
50
45
Quality Facts
Effort

40
35 Quality is a conformance to requirements and a fitness for use. It is fulfilling the project scope.
30 Grade is a category or rank given to entities having the same functional use but different technical
25 characteristics.
0 Gold plating is the process of adding extra features to drive up costs and consume the budget.
1 2 3 4 5 6 7 8 9 10 Quality assurance is a prevention-driven process to do the project work right the first time.
Days in sprint Quality control is an inspection-driven process to keep mistakes from entering the customers’ hands.
Scope creep is the addition of small, undocumented changes that bypass the scope change control
Kanban Board system. Scope creep is sometimes called project poison.
Cost of poor quality, also known as the cost of nonconformance to quality, is the cost of not achieving
To Do Design Dev Test Deploy Done! quality: rework, loss of life or limb, loss of sales.
Prevention aims to keep errors out of the process.
Inspection aims to keep errors away from customers.
Attribute sampling shows if the results conform to requirements or not.
Variable sampling shows the degree of conformity.
Tolerances demonstrate the range of acceptable results.

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 Human Resource Theories Key Project Manager Powers
Expert: The authority of the project manager comes from experience with the
Maslow’s Hierarchy of Needs technology the project focuses on.
Maslow believed that we have five needs; we’re on a quest to satisfy these Reward: The project manager has the authority to reward the project team.
needs. The needs are, from the bottom up: Formal: The project manager has been assigned by senior management and is
1. Physiological. We need air, food, clothing, and shelter. in charge of the project. Also known as positional power.
2. Safety. We need safety and security. Coercive: The project manager has the authority to discipline the project team
3. Social. We need friends, approval, and love. members. Also known as penalty power.
4. Esteem. We need respect, appreciation, and approval. Referent: The project team personally knows the project manager. Referent can
5. Self-actualization. We need personal growth, knowledge, and fulfillment. also mean the project manager refers to the person who assigned him the position.
Herzberg’s Theory of Motivation
There are hygiene agents and motivating agents. Hygiene agents are
Eight Risk Responses
expectations for employment: paycheck, insurance, safe working
Escalate: The risk (or opportunity) is outside of the project scope and is
environment. Motivating agents are motivators for employees such as
escalated to management.
bonuses, career advancement, opportunity to grow. Hygiene agents will
Avoidance: Avoid the risk.
not motivate, but their absence will de-motivate.
Mitigation: Reduce the probability or impact of the risk event.
Halo Effect Acceptance: The risk may be small, so the risk may be accepted.
All opinions are formed by one component. A great engineer doesn’t
Transference: Risk ownership is transferred to third party, usually for a fee.
always make a great project manager.
Enhance: A positive risk strategy to increase the probability/impact of the
Parkinson’s Law opportunity for the project.
Individuals allow their work to consume all of their time. Work will Exploit: A positive risk that a project wants to take advantage of.
expand to fill the amount of time allotted to it. Share: A positive risk that can be shared with the organization or other projects.
McGregor’s X and Y
Management’s perspective of employees. X people are bad, lazy, and
Risk Terms
need to be micromanaged. Y people are self-directed. Most managers
Contingency fund: An amount of money used to offset a project’s risks.
have X and Y attributes.
Secondary risks: A risk response creates another risk.
Ouchi’s Theory Z Residual risks: A risk response may create small generally accepted risks.
Workers do well if motivated. This provides participative management, Triggers: Condition, event, or warning sign that a risk is about to happen.
familial work environment, and lifelong employment. Known as Triggers generate a risk response.
Japanese management style. Positive risks: Risks with a positive impact; also called opportunities.
McClelland’s Theory of Needs Negative risks: Risks with a negative impact; also called threats.
Needs are acquired over time and are shaped by life experiences. Our Pure risks: Only offer a negative impact (injury, fire, theft, destruction).
needs are categorized as achievement, affiliation, and power. Business risks: Offer an upside or a downside.
McClelland used a Thematic Apperception Test (TAT) to determine an Qualitative analysis: Qualifies the risks for legitimacy.
individual’s needs. Quantitative analysis: Quantifies the risk exposure.
Vroom’s Expectancy Theory Utility function: A person’s or organization’s willingness to accept risk. Relative
People behave based on what they believe (expect) their behavior to to the project priority, as high-priority projects are typically risk adverse. Also
bring them. known as risk tolerance.

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 Integrated Change Control
Change requests Configuration management system
(Possible) Change control board
Scope Change management system
Cost
Integrated change control
Schedule
Scope
Contract Approved, declined, or deferred change request
Schedule
Corrective action Cost
Quality Project management plan updates
Preventive action Resources
Communications
Project policies Project document updates
Risk
Procedures Procurement
Stakeholders Change log updates

Project Procurement Procurement Terms

Contracts: An offer and consideration. Contracts are backed by the
Buyer: Sellers court system.
Statement of work Cost reimbursable contracts: Risk is with the buyer, as the buyer pays
Invitation to bid Bidder conference for cost overruns.
Request for quote Fixed price (lump-sum contracts): Risk is with the seller, as seller pays
Request for proposal SOW updates for cost overruns.
Time and materials contract: Buyer pays for the time and materials of
the vendor. Must have a not-to-exceed (NTE) clause.
Buyer Purchase order: A unilateral form of a contract.
Seller response: Letter of intent: The buyer tells the vendor they intend to do business
Bid Negotiations with them; not a binding agreement.
Quote Letter contract: Generally short-term purchase used as a stopgap or
Proposal Source selection emergency response.
Bidder conference: Vendors all meet with the buyer to discuss the
Contract details of the statement of work so they may ask questions for details.
Contract closure: Contracts are closed according to the terms of the
Contract closure contract. This includes payment and possible contract cancellation.

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