c

PMP final preparation notes

c
1. Portfolio management involves examining new projects for inclusion into
the portfolio.
2. project charter without signatures of sponsor is invalid
3. project charters are written after the project is selected
4. reviews and approvals of each phase before the next phase can begin
are called as phase exits , milestones, phase gates , decision gates,
stage-gate, or kill points .
5. stake holder identification is a continuous process
6. software maintenance ( example banking software once started to use
in bank ) is an ongoing activity and should never be part of any project
7. In the project selection method mathematical models are also called
constrained optimization methods
The other type of project selection method benefit measurement methods
Or comparative approach
8. Many Executing process outputs are inputs to the Monitoring and
Controlling processes, and several Monitoring and Controlling outputs
are inputs to the Executing processes.
9. Focus groups bring prequalified stakeholders together. Facilitated
workshops involve cross-functional stakeholders.
10. NPV measures the excess or short fall of cash flows through the project
and to some time horizon during the life of the project result, after
accounting for the cost of financing
11. Changes to the start and finish dates of activities in the schedule are
called revisions. When changes are made to the schedule that will cause
significant schedule delays, you should rebase line the schedule.
12. analogous estimating is also known as top down estimating
13. Imposed dates and key events constraints are two categories of time
constraints that should be taken into consideration when examining the
constraints input to the Schedule Development process. parametric
modeling uses a historical information available for estimating
For ex information about the rate of doing plumbing work for square feet
is considered to estimate the plumbing work for the whole building
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14. Weak matrix is also called project co coordinator organization
15. SME ±subject matter experts
16. It is the project manager¶s responsibility to present all the necessary
information to The sponsors and stakeholders so that they can make
 decisions that are in the Best interest of the project, quality, and the
timeline
17. The 

is how long it takes to recoup your investment.
It is also the referred as the time it takes to reach break-even point

18. The internal rate of return (IRR) is the interest rate that makes the net
present value of all cash flows equal zero
› 



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›   
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19. Straight-line depreciation method is A method that divides an asset¶s

cost and its expected salvage value by its expected utilization period

20. salience model is a term related with the stakeholder analysis technique
of identify stakeholders process it refers to  

›


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 have in the project

21. Working capital is the difference between current assets less current
liabilities
22. The project charter is authorized by some one external to the project
such as Sponsor, PMP, and portfolio committee. Note that the project
manager may help in preparing the project charter

23. Every project has the highest level of risk and uncertainty
at the initiation of the project. This is due to the fact that few, deliverables
have been provided and the milestones have not been met at the
beginning of a project. As milestones are met and deliverables are
provided, the risk and uncertainty decreases as you develop successes
for the project. Your risk generally decreases as you proceed from the
initiation phase to the planning phase to the executing phase and closeout

24. Sensitivity analysis is a technique that identifies the risks that will have
the greatest effect on overall project outcomes.
25. ›   › 



 
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26. the risk owner should update the PM if any midcourse action is required
on the risk he owns and also update the status of the risk he owns
27. Note the project charter is an output of initiating process group
28. The ›




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. The project
manager is chosen by project sponsor
29. project charter does not include resource assignments and time frames
30. Failing to identify a deliverable in the scope definition process does not
mean a scope change has occurred. So while defining activities if u
find that some deliverables are missing u can simply Update the WBS
 to include the missing deliverables, and define the appropriate
activities that support creating those deliverables.
But if a scope change is requested by any stakeholders then u need to
initiate the change request

31. 
› 





s ( HARD LOGIC)are those that are
@
@
  or inherent in the nature of work . discretionary
dependencies are sequencing decisions taken by team while
sequencing the activities they are also called  › 



›  ,and they may limit the scheduling options and
they must be documented and should be revisited if schedule
compression is necessary
32. the resource pool consists of the information like experience skill set
capabilities of resources
33. Quantitatively based durations estimation IS using quantity of time for
each work category ( EXAMPLE minutes per foot )
34. The project manager even though may have technical expertise to do
estimation, he should actively involve his team to make estimate ,in case
if he does estimation he should take a buy in from them
35. order of magnitude is a an estimating term used with cost estimates
36. Note the difference between @ 
 and V@
 .in pricing you add
profit in costing you just add the cost of individual items or activities or
process
37. Activity list updates happen during Activity sequencing and activity
duration estimating
38. scope planning is a term used in PMBOK 3 & it refers to collect
requirements process of PMBOK4
39. The risk management plan should address approaches, tools,
and data sources as well as roles and responsibilities, budgeting,
timing, interpretation rules, risk thresholds, reporting formats, and tracking.

40. To develop risk management plan it may not be necessary to involve

every one in the Project team , it is just sufficient to involve project
manager, selected project team members and anyone in the
organization with responsibility to manage the risk planning and
execution activities

But for identification of risks end users, SME¶s from outside the
project team and any body from team can be involved. Stake holders
from outside the project team can be involved for objective information. All
of the team members are involved with to ensure sense of responsibility
for the risks and associated risks response plans.
41. the plan risk management process should begin as project is conceived
and should be completed early during project planning so that risk
response are developed as early as possible
42. Λ› ›   

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43. Project schedule development is the discipline of determining A. The
start and finish dates for each project activity
44. The tools lie ADM (AOA ) PDM doesn¶t consider the resource
constraints they simply help in sequencing the activities . the out put of
sequence activities is project schedule n/w diagrams the actual
scheduling happens in develop schedule process with o/p as project
schedule
45.  
 
   

 

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47. the project sponsor may impose constraints like imposed dates and
major millstones they should be considered while arriving the schedule
48. A lead will allow the acceleration of successor activity where as a lag will
delay the successor activity Lead removes time from an activity where
as lag adds a time 
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49. A control account is a management point where the scope cost and
schedule are integrated and compared to the earned value
measurement Control accounts are placed at selected management
points in the WBS Each WBS may include one or more work packages,
but each of the work packages must be associated with only one work
package.
Control Account : .... A management control point can be placed at selected
management points (specific components at selected levels) of the WBS
above the work package level. These control points are used as a basis for
planning when associated work packages have not yet been planned

50. A WBS can be rolled up or collapsed to provide information at the

appropriate level

51. The cost of the WBS effort creation is not a factor considered by PMI as
a challenge to create a WBS and is assumed as part of a
Project

52. At the WBS level you can review for presence of risks and segment
them into risk events

53. Scope management plan includes how the procedures for how the
scope is approved
 54. Risk management should start as soon as you have appropriate input
and it should be repeated throughout the life of the project, since new
risks can be identified and may change the degree of risk on the project.

55. ± 

   
@ The project team members
are either risk prone (one who is ready to take risk) or risk averse(one
who feels he cant take the risks ) so in either case there are chances of
bias. So in order to neutralize these biases the risk management should
have clear cut  

   
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these definitions are decided and are the output of risk management
plan. The risk definitions are definitions consist of impact values along
with the explanations of definitions like (low impact 0.1, moderate
impact 0.2 , high impact 0.5) on the x axis and the project objectives
are in the y axis . the corresponding cell of these matrix contains the
exact definitions of the project objective having the defined impact (
Refer PMBOK 4)

56. the stakeholders risk tolerance should not be implied but should be
uncovered and refined continually.

57. !


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59. A person¶s willingness to accept risk is known as the utility function

60. when in the risk management process are responses are identified ?

Ans: as soon as a risk is identified the team may have a ready response
also i.e. d 

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 63. _ plan if available can be used (Fallback plan(s) are also risk
response plans developed as alternative plans during plan risk response
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in order to respond if the first identified
risk strategy fails.

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66. For an identified risk there might single risk response strategy or multiple
responses strategies

67. Creating prototype is an example of risk mitigation (an example of
strategy for negative risks.)
68. triggers may be discovered during the identify risk process(along
with the identified risks which is entered in the risk register) and are
›

during the monitor and control risk process

69. contingency reserves or allowances are the project funds that are held in
reserve to offset an unavoidable threat to project scope ,schedule cost or
quality it also including reserving time and resources to account for risks

70. Enhance: Increase the occurrence of a positive event.

71. Expected monetary value (EMV) =probability of occurrence X Impact

value.

72. The EMV value is used to quantify the overall project risks and not
individual risks . The sum total of EMV is used to quantify the amount of
contingency reserve required for the project.

73. you depend on a fallback plan when the primary plan doesn¶t work

74. variable costs are generally associated with the manufacture

Of a product, and vary with the volume of product produced.

75. there are 2 types of depreciation a)straight line depreciation

b) Accelerated depreciation

76. Law of diminishing return: the more you put into something the less you
get out of it. In the PMP context for an activity to complete which
requires 1 resource, If you 2 resources, still the output remains same 

77. Functional analysis related .to value engineering.

78. benefit/cost ratio( >1)or cost /benefit(<1) ratio used for the selection of
projects 
79. Product analysis is a tool and technique of Define scope.
80. In the verify scope the deliverables which are not accepted are
documented along with the reasons for non conformance

81. The Verify Scope process is where the level of detail concerning the
amount of work completed is documented(even If the subcontracted
work is cancelled)

82. In the control scope process change requests can include corrective &
preventive actions and defect repair which are routed through the
perform integrated control process.

83. Risk ranking is done in perform qualitative risk analysis,

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the same process

84. Histogram is a vertical bar chart.

85. control quality is performed before verify scope but these 2 processes
can be performed in parallel
86. Early termination... can result from a mutual agreement of the parties or
from the default of one of the parties.
87. Force Majeure : a situation that can be considered as an act of god that
ie due to unavoidable instances like fire, freak accidents where either of
the parties are not able to perform their contacting obligations . force
majeure if occurs it is considered to be neither parties fault. it is usually
resolvedby the seller receieving an extension of time of contract.

88. once a contract is signed it is legally binding unless both the parties
violate the applicable law.

89. Once a seller completes the work specified in the contract SOW it is
considered as contract is complete but . that does not mean the
contract is closed. Tricky (RITA MULACHY PAGE 406)

90. the primary object of incentive clause in a contract is to synchronize the
objectives of both the seller and buyer

91. from the buyer point of when ever there is an emergency to complete the
work as early as possible , the best way is to include incentive in the
contract so that the project gets completed early

 92. in the case of cost reimbursable contacts you need high effort to audit
the invoices

93. X theory of management, is another term used for an authoritarian
management style.

94. The responsibility assignment matrix (RAM) is used to link role assignments closely to
scope and the WBS

95. &
  

 › are an out put of communication management knowledge area

96. the existing quality policy is a part of the organizational process assets
input and is the organization¶s intended direction with regard to quality.
The existing policy may be used as is. If quality policy is not present than
the project management team should create one.

97.  




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98. Quality objectives are special characteristics for which a product is

designed and tested

99. The importance of a risk response is defined by time criticality The time criticality of a
risk-related action can increase the importance of a risk this

100. risk Quality data Assessment which is a technique used for perform qualitative
analysis also checks the understanding of the risks by project team members . it also
checks the quality and reliability of data

101. The difference between qualitative &quantitative risk analysis is Qualitative risk
analysis assesses the impact and likelihood, whereas quantitative risk analysis assesses the
consequence on specific project objectives

102. quantitative analysis focuses on the probability of achieving the cost and time
objectives

103. A risk response plan need to be agreed by all parties involved

104. risk response plan defines the actions required to reduce the threat. It doesn¶t
reduced the threat

a
 Identifying risks requiring the most attention Iis found in the perform quantitative analysis
processc
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Residual risks that are expected to remain after planned responses have
been taken, as well as those which have been deliberately accepted
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a  A statement of work requires sufficient detail for the prospective
seller to determine whether he can and wants to do the work required.
Answer B is incorrect because a contract involves pricing and timing and
sometimes performance incentivesc
c
a  A meeting with prospective vendors is called a biddingconference, or a prebid
conference.c
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aaa a responsibility assignment matrix also known as linear
responsibility chartsc
aa from the PMP aspect prototype are used in collecting requirements
and also for risk mitigation activityc
aa  Pareto s Law (80 /20 rule ) 80 % of the problems are due to 20 %
causes. It can be used to look at past problems and to determine which
problems to focus onc
aa! The knowledge that the team and stakeholders gain by actually
performing the project is known as lesson learnedc
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aa Maslow¶s Hierarchy of Needs is a pyramid of hierarchical needs,
from basic physical needs to self-actualizationc
aa herzberg motivation and hygine theory read kim heldmann page
353c

aa !
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119. Expectancy Theory asserts that people are motivated in their work with the
expectation of being rewarded
120. A contract between buyer and seller is created at what point in the procurement
process During source selection, based on evaluation criteria, procurement policies, and
supplier history
121. the purpose of contract administration is to To ensure the seller¶s performance meets
the contractual requirements
122. Workaround plans and corrective action are the output of monitor and control risks
123. whenevera sposor asks you to change scope , first tell him the impact on the schedule
and cost
124. Change requests can exist in many forms; however, they must be formal
requests, as opposed to informal requests, developed within the context of a change
control system consisting of documented procedures.

125. To assess the degree to which the project scope will change, you need to
compare the requests with WBS
126. If the cost variance and the schedule variance are the same and greater than
zero, what does this mean

The variance is favorable to the project

127. Value engg is a tool in scope planning for analyzing a design, determining its
functions, and assessing how toprovide those functions cost effectively

128. How can change requests impact the scope?

A. Either expansion or shrinking of the scope

129. Graphical Evaluation and Review techniques are similar to PERT

but have the distinct advantages of allowing for looping, branching, and
multiple project end results
130. The PERT method calculates the expected value²or weighted
average²to determine project duration.
131. the completed checklists are part of project records
132. project organization chart : graphic display of project teams and
their reporting relationships
133. Schedule limitations can shape the size of the project team but will
not influence its organizational design
134. Reserve analysis compares the amount of contingency reserves
remaining to the amount of risk remaining at any time in the project, in
order to determine if the remaining reserve is adequate.
135. contingency reserve are for residual risks (known unknown)

136. The ability of the stakeholders to influence the final characteristics

of the projects product is highest at the start and gets progressively
lower as the project continues.

137. Legitimate Power (formal power): The ability to gain support

because project personnel perceive the project manager as being
officially empowered to issue orders.

Legitimate powers are formal authority within the organization

* Reward Power: The ability to gain support because project personnel

perceive the project manager as capable of directly or indirectly dispensing
valued organizational rewards (i.e. salary, promotion, bonus, future work
assignments
* Penalty Power/coercive power: The ability to gain support because the
project personnel perceive the project manager as capable of directly or
indirectly dispensing penalties that they wish to avoid. Penalty power usually
derives from the same source as reward power, with one being a necessary
condition for the other
* Expert Power: The ability to gain support because personnel perceive the
project manager as possessing special knowledge or expertise. (that
functional personnel perceive as consider as important)
* Referent power: The ability to gain support because project personnel feel
personally attracted to the project manager or project ( also charisma of
project manager works

138. note expert and reward powers are the powers favoured PMI
PENALTY POWER is the worst choice
Reward and & penalty are powers derived from project managers
position in the companyexpert power is earned on own by project manager
139. Trend analysis involves examining project performance over time to
determine if performance is improving or deteriorating

140. Quality management can be defined as the process of ensuring

that a project meets the implied and stated needs of the project clients.

141. ±
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142. marginal analysis is a term related with the quality Where as



   is a term related with parametric estimating

143. cost of quality is divided as in below diagram

144. Prevention and appraisal costs (cost of conformance) include costs

for quality planning, quality control and quality assurance to ensure
compliance to requirements

145. /  
: the source of variation is inherent in the system

and predictable also called also called 

on a control chart
it appears as part of the random process variation and indicated by
random points.
146. 

 

 

that is not
inherent in the system is not predictable and is intermittent on a control
 chart the points beyond he control limits or non random points within the
control limits indicate it. (remember rule of 7) point



147. quality gurus :

Phillip Crosby: .
 


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Joseph M Juran: advocated top management involvement Defined

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. Juran Also proposed grades of quality

Edward Deming : quality is management problem . 85% of cost of

quality is a management problem . workers should be trained and
should be shown what acceptable quality is.

Walter schewhart: control chart author, and Plan do check act cycle.

Kaizan: improve the quality of the people first and then quality of
products or service.

148. grade : same functional use but different technical characteristics

149. Failure costs are also called cost of poor quality or cost of
nonconformance

150. to control the processes the THREE SIGMA VALUES ARE Set
within the UPPERSPECIFICATION limit and lower specification limit.

151. six sigma value are 3.4 defects per million or

+/- 6 sigma 99.99985 %
+/- 3 sigma 99.73 %
+/- 2 sigma 95.46 %
+/- 1 sigma 68.26 %

152. histogram is a vertical bar chart

153. The seven basic tools of quality are
° Run chart
° Control chart
° Pareto chart
° Flow chart
° Scatter diagram
° Cause and effect diagram
° Histogram

These are all quality control tools

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155. Number of Communication Channels increases exponentially when

number of people increase

156. generally accepted methods for translating project objectives into

tangible deliverables and requirements is also referred to as product
analysis
157. During Project Plan Execution, which area will the Project Manager
spend least time on ans :

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Life Cycle Cost
159. 0
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160. duration of the project is the length of the critical path, and not the
sum of durations for all the tasks in the project
161. ›
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 Progressive elaboration should not be confused with
scope creep.
162. Project Requirements: Describes the conditions or capabilities that
must be met or possessed by the deliverables of the project to satisfy a
contract, standard, specification, or other formally imposed documents.
163. Decomposition may not be possible for a deliverable or subproject
that will be accomplished far into the future

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165. Influencing skills, not negotiation, use power and politics to get
things accomplished .
166. The payback period is the least precise of all the cash flow
techniques, not discounted cash flow.
167. Management directives are constraints because they either restrict
or dictate the actions of the project team.

168. Cost and schedule estimates are derived from the work package
level of the WBS, not from the project scope statement.
 169. it Is your responsibility to recognize the effort of your colleagye
when he has contributed the effort towards the report generation for
management (even if you have modified the report and your colleague is
ok with it)

170. the project scope accomplishment is measured against project plan

171. Theories of human resource management plan:

172. In ›



 


 
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develop the schedule ( Monte Carlo analysis ) similarly the quantitative
risk analysis used Monte Carlo analysis

173. Expectancy theory :VICTOR VROOM

expectance of a positive outcome by mangers and motivating the resources by
the managers drive people.

BY FREDRICK HERZBERG: HYGINE AND MOTIVATION THEORY

MASLOWS THEORY: OF HIERARCHY OF NEEDS :

Basic needs:
Safety and security needs:
Social needs:
Self esteem needs:
Self actualization:

Contingency theory : combination of theory y & HYGINIC THEORY

Theory z : William ouchy loyalty towards organization

174. In customer meetings when ever a problem are raised the best
thing is to listen to the problem and gather as much as information is
available

175. Contingent response strategies identify strategies to be used if

specified risk event occur. Once these reserve strategies are identified
then it leads to the development of contingency reserve within the cost
and schedule baseline

176. while developing project schedule it is evident that contingency

reserve is planned for schedule development . this is done taking care of
 risks in the schedule. If these risks didn¶t occur then the project may
complete ahead of schedule. in such cases it is important to make a list
of risks that didn¶t occur. And report to the management why the project
was complted earlier . honesty pays

177. scope statement is an input to qualitative risk analysis

178. implied warranties are those warranties (not written warranties )

with the fitness for purpose or use

179. the ultimate purpose of risk management is to reduce uncertainty

180. EMV calculations assumes risk neutrality

181. A contact is in place only when . Both offer and acceptance has
happened

182. The order of precedence is the priority in which project documents

will govern when there are inconsistencies between them.

183. A waiver is a term applied to the relinquishing of the rights of any

party of the contract

184. adhering to the contractual requirements of the customer is the

ultimate responsibility of the project manager

185. A contract change control system is the way by which procurement

systems can be modified.

186. the cost involved with request seller responses are most of thepaid
by prospective sellers

187. The make or buy analysis considers both direct & indirect costs

188. In the case of cost reimbursable contracts the bidding efforts by the
prospective sellers are less.

189. Unit price contact is used when quality & type of work can be
defined but the quantity is unknown

190. ethnocentric means believing once culture is superior

191. change agents are anyone inside or outside organization who is

committed to change

192. accepting a gift is conflict of interest in American culture

 193. affinity diagram : grouping similar ideas together rthen allowing for
brainstorming

194. Six sigma process life cycle DMAIC

Define ,Measure, analyse improve, control

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2 A term such as bid, tender or quotation is generally used when the seller
selection decision will be based on price (as when buying commercial or
standard items), while a term such as proposal is generally used when other
considerations, such as technical skills or technical approach are paramount

PMP Notes
1. a standard is ³a document approved by a recognized body that provides for common and
repeated use, rules, guidelines, or characteristics for products, processes, or
services with which compliance is not mandatory.´

2. PDM Or activity on node(AON) use four types of relationships FS,FF,SS SF

Finish to start is the most commonly used diagram
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4. Scope creep is only common if there was poor planning for the project or an effective
change control management plan was not utilized correctly.
5.

6. project managers are not the best resource for providing estimates on daily operations
and time allocations; people doing the actual work are the best sources
7. If stakeholders requirements are discussed and scope is finalized there is less scope for
project failure or getting delayed.

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10. free float L: The amount of time a schedule activity can be delayed with out delaying the
ealy start date of a successor activity .
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12. How is a change control board used? Can there be more than one?
To approve or reject change requests according to responsibilities defined and agreed
upon by key stakeholders. Multiple CCBs may be used on large projects

13. What is the 80 hour rule?

Each task should be broken down into work packages that require no more than 80
hours to complete.

14. What is the difference between scope verification and quality control?
Scope verification is primarily concerned with acceptance of the work results; quality
control is primarily concerned with the correctness of the work results

15. Design of experiments : The use of experimentation to statistically determine which

variables will improve quality .When should scope verification occur? At the end of the
project
Design of Experiments is a statistical method that helps identify which factors
might influence specific variables. The technique is used most frequently to
the product of the project... however; it can also be applied to project
management issues, such as cost and schedule tradeoffs. For example,
senior engineers will cost more than junior engineers but can also be
expected to complete the assigned work in less time.

16. performance measurement baseline : also called project performance baseline typically
integrates scope ,cost ,schedule parameters of projectbut may also include technical
parameters
17. Does the matrix form of project organization facilitate or complicate
project team development?
It complicates team development because team members are accountable to both a
functional manager and a project manager

18. What is the expectancy theory?

It holds that people tend to be highly productive and motivated if they believe their
efforts will lead to successful results and they will be rewarded for their success

19. What is variance analysis? Comparing actual project results to planned or expected
results in terms of cost, schedule, scope, quality, and risk.

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 20. Control Thresholds: Variance thresholds for costs or other indicators (e.g.
person-days, volume or product) at designated time points over the
duration of the project can be defined to indicate the agreed amount of
variation allowed.
21. What is active listening? Listening in which the recipient is attentive and asks for
clarification of ambiguous messages

22. What is major cause of conflict with functional managers?

Schedules

23. What is the tool for used for communication planning?

Stakeholder analysis

24. What factor has the greatest effect on the project's

communication requirements? The project's organizational structure

25. What is the primary condition leading to conflict

in both the weak and strong matrix organizations?
Ambiguous jurisdictions. They exist when two or more parties have related
responsibilities, but their work boundaries and role definitions are unclear

26. When is a project considered closed? When the archive is completed. All project docs
goes into the archives; this is the last thing to create before releasing the team.

27. What is fast tracking? Compressing the schedule by overlapping activities that would
normally be done in sequence; may result in rework and increased risk; logical
Relationships are modified

28. How does resource leveling work? By using positive float available on non-critical paths,
schedule by smoothing or leveling peaks and valleys of resource utilization

29. What is lag? Required waiting time between activities

30. What are control accounts? They represent the basic level at which project performance
is measured and reported.

31. What is a reserve? A provision in the project plan to mitigate cost and/or schedule risk.
Management reserves are for ³unknown unknowns´ and contingency reserves are for
³known unknowns´.

32. Funding limit reconciliation : a tool and technique of determine budget process which
helps to match the planned needs of funding with the organizations ability to provide
funding
33. What is a known-unknown risk? Risk that can be identified as possibly happening (e.g.
Flood if a business is located in a flood zone)

34. In Statistical Process Control, the variation in a process is categorized as either

° Common (General) Cause Variation also called Chance cause

° or Special (Assignable) Cause Variation.
The common cause variation arises from a multitude of small factors that invariably effect any
process and will conform to a normal distribution, or a distribution that is closely related to the
normal distribution. The special cause variation arises from specific factors that have an
identifiable effect on the process.
Common cause variation is inherent in the process and can only be reduced by changes to
the system, and usually requires management action eg. upgrading a machine. Special
causes can often be tracked down and fixed without extensive changes to the system eg.
fixing a fault on a machine or improving the quality of raw materials.

35. The basic rule of statistical process control is:

Variation from common-cause systems should be left to chance, but special causes of
variation should be identified and eliminated.
This is Shewhart¶s original rule. However, the rule should not be misinterpreted as meaning
that variation from common causes should be ignored. Rather, common-cause variation is
explored "off-line." That is, we look for long-term process improvements to address common-
cause variation.

36. What is the Rule of Seven? If seven or more observations in a row occur on the same
side of the mean, even though within control limits, they should be investigated as an
Assignable cause.

37. What is the underlying concept of a Pareto Diagram?

A relatively small number (20%) of causes will typically produce a large
majority (80%) of the problems or defects.

38. Run chart displays the trends in a process over a period of time
39. Who is ultimately responsible for quality? The individual. The project manager has overall
responsibility
40. Lessons learned are completed by? Project team

41. You are a new project manager. It is best to rely on ?? to improve your chances of
success? Historical information
42. Note: Risk rating The probability rating and overall rating score gives a basis for overall
rating for each of the risk this risk rating is correlated to a table of the probability and
impact matrix that provides the overall risk classification for the risk(as high low and
medium) This was each risk is rated .and based upon the risk rating all the risks are
further ranked to choose further priority keeping the project objective in mind.
Note that risk can also be prioritized based upon the expected monetary value
impact or any other combination of other methods

43. You transfer the risk when you purchase an insurance

44. risk tolerances are determined in order to help the team to rank the risks
45. The low priority risks which are identified during qualitative process are kept on watch list
And are revisited during project execution stage

46. A work around is an unplanned risk response to a risk that has Occurred
47. Workaround plans9response and corrective actions are taken in monitor and control risks process

48. When you buy insurance you add the that cost to contingency reserve. You are
transferring the risk by buying the insurance.

49. Note the term qualify the risk means you need to assess the risk for qualitative analysis &
quantitative analysis.

50. when a project is deviating form the baseline ensure that you revisit the risks
management processes
 51. When ever a new risk is identified you need to analyze the risk and later qualify the risk
for the qualitative and quantitative analysis

52. If your project sponsor demands a cut in estimation ,If you as a project manager is
accurate in your estimates then provide the sponsor with your estimate with proper
supporting documents so that even you are ethical right and let management /sponsor
decide the next decision

53. All project objective should be measurable and the deliverables must be quantifiable and
the success criteria of the project must be clearly defined in the project charter.

54. Risk analysis of the project should be complete before any contract should be signed.
this is basically to have a clarity on the contract to be signed so that all clauses can be
covered in the contract to safeguard the interest of the project

55. The make or buys analysis conducted during the project procurement process should
consider the

The actual out of pocket cost to purchase the product as well as the indirect cost of
managing the procurement

56. it is better to make rather than buy If you have an idle plant, or want to have control or
you need to protect the intellectual proprietary
57.

PMI Ethics related notes:

° The rule of thumb here is not to do anything in another country that would be illegal
(or immoral) in your own country
° If you have a particular revelation inspired by reading the study
guide, then you can share that, but not the text of a book (even if paraphrased).
Obviously there are some grey areas in there, but the rule of thumb here (and in all
other responsibility areas) is: if you are not 100% sure that something is permissible,
then don¶t do it.
° Again, you need to be careful about sharing lessons learned, best practices,
researches from your own projects, because unless you own the company, you
probably don¶t own the Organizational Process Assets derived from your projects,
they belong to your employers. The approach here is to seek formal (written and
signed) permission for release of the information ± and if unsuccessful, ³no´ means
³no´.

4›

›
- not allowing for individual differences or exceptions. ³All people from
[wherever] are lazy and hard to motivate´
7

.› ± opinions based on a small sample. ³I know ALL about New Yorker¶s, I
Worked with one once´.
› 
›- Always seeing things from your perspective. µMy way is normal; their
Way is not¶
/›
 ± a feeling of disorientation when living or working in a different culture.
 58. To assess the degree to which the project scope will change, you need to compare with
Work breakdown structure(WBS)
59. note that when you re-baseline the schedule or Cost or scope you will involve only those
stakeholders whoa re required for a particular activity or WBS related & All are not
involved in this

60. 0  
WBS component below the control account


61. A code of accounts is assigned to the WBS components. 0 ›   ›is
where all the codes are contained.

62. 0 ›

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indicates that the project is ahead of
schedule. A positive cost variance indicates that the project is under budget

63. Performance reports are an input to scope change control, as are the work breakdown
structure, change requests, and the scope management plan.

64. Change requests when raised by customer and agreed by Change control board
increase the scope or decrease the scope

65. As a project manger you wish to have an effective project management plan whereby you
want to avoid changes by defining completely and correctly the baselines and project
scope. But in practicality it is you cant avoid changes

66. the perform integrated change control process allows for the effective execution and
incorporation of a change into the project plan

67. there is a great uncertainty in the initiating phase of the project

68. Lessons learned are important to document because an organization can use them to
improve future projects and the Project Management process to do that the best thing is
to use Checklists for risk identification
69. Inspections are performed during a project to certify that results are conforming to
requirements. They may also be called walkthroughs, audits, or reviews.
70. An outside party conducts a risk audit, whereas the project team conducts a risk review.
Risk reviews should be scheduled regularly
71. Scope verification differs from quality control in that scope verification is concerned with
the acceptance, and not the correctness, of the work results. Both scope verification and
quality control are necessary in a successful project
72. when ever a change is necessitated due to internal or external factors of the project the
first thing to be done is to document the change, the reasons for the change, and its
effect on the project in a change request
73. reserves are A provision in the project plan to mitigate cost or schedule risk
74. A budget update is necessary when there is a change to an approved cost baseline.
75. @   
@  
provides details on the planned budget over time
76. Firm fixed price are the most commonly used contract preferred by the buying
organization
77. In the fixed price incentive fee contract the final contract price is decided at the end
of the contract and a price ceiling is set above which the seller has to bear the
expenses
78. You are getting outside support to execute the project and you don¶t have a precise
definition of work to do which contract you go? : Go for Time & material contract.
79. Total cost of ownership includes the initial purchase price other costs expected to be
incurred during the life of the product, such as service, repair, and insurance
80. bidders conference are held prior to submitting bid or proposals to the buyer
81. Resource calendar : the quantity and availability of resources ( Equipment ,man
material) against the time is mentioned ( this term is part of Human resource
management as well as conduct procurement process)
82. contract change control system : a system which defines how changes are allowed in
the contract process

83. inspection and audits are the tools and technique of administer procurement process
done at sellers place where as procurement audits are the audits done at the buyers
place related with the processes within the buyers location to note down the lessons
learnt related with processes from plan procurements to administer procurements

84. PV, which is also BCWS stands for Budgeted cost of work scheduled (BCWS)

The actual cost (AC) is also called Actual cost of work completed (ACWP)

85. the administrative closure procedure consists of inputs a)Performance measurement

documentation b) Product documentation C. Project archives
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Project archives, project closure, and lessons learned are all outputs of administrative closure

86. Contract closeout and administrative closure are similar in that they both include
Product verification
87. the output of close procurement process is formal acceptance of Contract
documentations and lessons learned (using the procurement audit tool & technique) &
88. The goal of the procurement audit is to identify successes and failures. Through this
audit, your organization can determine which subcontractors to work with again on future
projects
89.
90. when ever a merger and acquisition happens the focus of team members in this kind
this kind of projects is information transfer
91. the output of close project process is Formal acceptance and closure
92. variance analysis is a tool & technique used in most the monitor and control process group
the processes which uses this tool & technique are
` Control scope
` Control schedule
` Control cost
` Report performance
` Monitor & control risks

*  Variance analysis involves comparing actual project results to planned or expected

results. Trend analysis involves examining project results over time to determine if
performance is improving
*-  the PMBOK describe product documentation as : Documents produced to describe the
product of the project
*  The person in charge of contract administration should let you know in writing that the
contract has been closed. If it is an internal project
*8  Schedule problems cause most conflicts in the final days of a project
*)  The PV is the originally scheduled project cost, or baseline.
98. What is the most important factor to consider when you terminate an R & D project?
Low probability of achieving technical objectives or commercializing results
99. +oligopoly :
this is were there are 


for this particular product or service
and the ›  of one supplier will have direct 
› on the other
supplier¶s prices (and even on the market itself).
 100. Gantt chart( horizontal bar chart) is used in scheduling and doesn¶t contain information of resources
101. Bar charts are vertical ( resource histogram is a vertical bar chart)
102. laissez faire : A leadership style where leader gives all the control to group and generally absent
.the leader will share the information only when asked   

 

103. both gantt chart and network diagrams show dependcnies but it is much dificutlt to read in ganttt
chart

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105.  ' *   2

Define scope :

106. The ethics code does allow for a 3›
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direct experience with. For these assignments, you have a duty to inform the key
stakeholders of your knowledge gaps so that they may make an informed decision
regarding your suitability to the project. This standard of conduct should be valuable to
your business partners. They should be made aware of it.

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 a For resource allocating On larger projects, RAMs can be

developed at various levels. For example, a high-level RAM can define
what project team or group is responsible for each component of the
WBS, while lower level RAMs are used within the group to designate
roles, responsibilities, and levels of authority for specific activities. c

  giving stakeholder extras is gold platingc

  a communication management plan can attempt to control
communications ,but the project manager needs to have open
communications with everyonec
 204. Communications Planning becomes increasingly important in a
virtual team environment. Additional time may need to be spent to set
clear expectations, develop protocols for confronting conflict, include
people in decision-making and share credit in successes.
205. When projects are run in phases It is better to have project charter for each
phase
206. The only relation ship allowed in Activity on arrow or arrow diagram method is
Finish to start
207. The critical path provided the shortest time to complete the project and not the
longest time
208. quality planning happens during the plan quality process as well as plan quality
control.
209. project risk review happens during the monitor and control risk process
210. fringe benefits are included in overhead
211. gantt charts provide schedule
212. another name for the waiting time between 2 tasks is D
the primary aim of incentive clauses in contract is to synchronize the objectives of both
seller and the buyer
213. A heuristic is a rule of thumb ex cost per length of hole dug, cosr per square feet
of space
214. communication requirements and quality standards are required before
identifying the risks related with quality
a
 indentifying the ³ potential problems´ is a quality planning activityc
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a determining right quality standards are being used: quality
assurance c
a evaluating quality against standards is is quality controlc
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a the primary purpose of network diagram is to show interdepenciesc
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organizational risks typically include time, cost, scope objectives that are
inconsistent, a lack of funding, a lack of prioritization or changing priorities,
and resource conflicts with other projects the organization has undertaken.
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