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level: Level 1

Questions and Answers List

level questions: Level 1

(O + 4M + P)/6 O = Optimistic value P = Pessimistic value M = Most likely valuePERT ESTIMATE
Early start + durationEarly Finish in schedule management
Late Finish - durationLate start in schedule management
Late start - Early start (OR) Late finish - Early finishFloat / slack in schedule management
A cost buffer kept aside for unknown risks Controlled by the project sponsor It is not part of BAC but part of Project budgetManagement reserve
A cost buffer set aside for known risks Controlled by the project manager It is part of the BACContingency reserve
BAC + management reserveProject budget
Is the budget allocated by the sponsor Includes the contingency reserve Cost of resources + Contingency reserveBAC ( Budget at completion)
Direct Indirect Fixed VariableType of costs
Amount of time an activity may be delayed without impacting the project durationFloat
Adding additional resources to reduce the duration of the activityCrashing
Activities that are usually done in a sequence and done in parallel to reduce the duration of the activityFast tracking
Scope statement + WBS + WBS dictionaryScope baseline
Earned value - Planned value EV - PV +ve value indicates project is ahead of schedule -ve value indicates project is behind scheduleSchedule variance(SV)
Earned value - Actual cost EV - AC +ve value indicates project is under budget -ve value indicates project is over budgetCost variance(CV)
Earned value/Planned value EV/PV SPI > 1 indicates project is ahead of schedule SPI < 1 indicates project is behind scheduleSchedule performance index(SPI)
Dollar value of work completedEarned value(EV)
Earned value/Actual cost EV/AC CPI > 1 indicates project is ahead of schedule CPI < 1 indicates project is behind scheduleCost performance index(CPI)
Value of total work - Value of work completed BAC - EVValue of work remaining
Money required to complete remaining work (BAC-EV)/CPIEstimate to complete(ETC)
Total cost at completion BAC/CPI (OR) ETC + ACEstimate at completion(EAC)
BAC - EACVariance at completion(VAC)
Dollar value of work remaining/Dollar value of funds remaining (BAC - EV)/(BAC - AC)To complete performance index(TCPI)
Amount of risk an organization is willing to take to attain it's objective High-risk appetite (OR) Low-risk appetite Eg: I can take a HIGH RISK as I don't have obligations(more like a feeling)Risk appetite
Measurable amount of acceptable risk Eg: We can take a risk of upto $100,000( I am not to take risk upto a certain amount)Risk tolerance
Quantified limit beyond which the organization will not go Eg: We cannot take a risk of $200,000 with a 50% chance of occurring(More like a cut off) Along with amount, talks about probability as wellRisk threshold
Potential problem. May or may not happen Minimize threats and maximize opportunitiesRisk
Current problem. Has already occurred Fix it with a workaround while the root cause and permanent fix is being identifiedIssue
Subjective risk analysis Identifies impact as High, medium or lowQualitative risk analysis
Objective risk analysis Uses numerical values to identify the impactQuantitative risk analysis
Probability * Impact P*IExpected monetary value(EMV)
TEAM A Transfer Escalate Avoid Mitigate AcceptStrategies for threats
EASEE Escalate Accept Share Exploit EnchanceStrategies for opportunities
a person/organization who sells/provides the products/services Eg: Organization A provides organization B with their employees to finish a project module. Organization A --> SellerSeller
a person/organization who buys/uses the products/services Eg: Organization A provides organization B with their employees to finish a project module. Organization B --> BuyerBuyer
CODE BP C = Project CHARTER O = Organizational process assets D = Project DOCUMENTS E = Enterprise environmental factors B = BUSINESS documents P = Project management PLANPlan procurement management inputs
Fixed price (lumpsum): Used when requirements are very clear to the buyer(Detailed SOW) Time and material contract(Unit price) : Used when requirements are partially clear (Partially detailed SOW) Cost-reimbursable contracts: Used when requirements are not known (Not a detailed SOW)Contract types
Fixed Firm Price(FFP): As long as scope of work doesn't change the price of contact is fixed Fixed Price Incentive Fee(FPIF): If a performance objective benefits the buyer, the seller is given an incentive, like a bonus Eg: If the construction of a house is completed a month ahead of planned schedule, the contractor is given a bonus Fixed Price with Economic Price Adjustments(FPEPA):Fixed price contracts combined with a pay rate adjustment based on changes in economic conditions like cost of labor and material, fluctuation in currency rate conversion, inflation Eg: Airline ticket prices change as per the petroleum pricesFixed price contract variants
Cost Plus Fixed Fee(CPFF): Buyer reimburses the seller for the seller’s allowable costs plus a fixed amount of profit (fee) Example: Total cost plus 25,000 USD as a fee Cost plus incentive fee (CPIF) :Buyer reimburses the seller for the seller’s allowable costs, and the seller earns its profit if it meets defined performance criteria. If the project is completed under budget, the seller will receive 25% of the savings Cost plus award fee (CPAF): Buyer reimburses the seller for the seller’s allowable costs , but the majority of the fee is earned based only on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract Eg: If the seller completes the task by meeting or exceeding quality standards based on their performance, the buyer may give an award up to 10,000 USDCost reimbursable contract variants
Seller is paid for all costs incurred plus a percentage of these costs. Buyers often do not prefer this type of contract because the seller might artificially increase the costs to earn a higher profit. Example: Total cost plus 15% of the cost as a fee to the contractorCost Plus Percentage of Cost (CPPC)
Gathering and organizing data of the product to analyse the alternatives to see if the product can be manufactured internally(Make) or has to be procured from an external sources(Buy) Can also include analysis to rent or leaseMake or Buy Analysis
Analysis done to select the seller(vendor). 6 ways . Least cost . Qualification only . Quality based/Highest technical proposal score . Quality and cost . Single source . Fixed priceSource selection analysis
Legal agreement created with an external entityContract
There is a procurement department and the procurement manager reports organizationally to the head of the procurement department not the project managerCentralized contracting
No procurement manager. The project manager takes care of the procurement planning, conducting and controlling the procurementDecentralized contracting
Request for information (RFI) Invitation for bid (IFB) Request for Quotation (RFQ) Request for proposal(RFP)Types of Bid documents
Amount above which seller will bear all loss of cost over runs(Applicable only for Fixed price incentive fee contract) PTA = [(Ceiling price - Target price)/Buyer's share ratio]+Target costPoint of Total Assumption(PTA)
Target cost + Target feeTarget price
Actual cost + Final feeFinal price
The buyer prepares estimates to use it as a benchmark against which the vendor provided bids are validatedIndependent cost estimates
Most commonly used contract typeFixed Firm Price
When buyer and seller cannot reach an agreement, claims are raisedClaims
A situation when a contractor performs work beyond the contract requirements, without a formal order under the changes clause, either due to an informal order from, or through the fault of, the buyerConstructive change
1)ADR(Alternative dispute resolution) --> Settled outside court i) Negotiation ii) Arbitration(the 3rd party decides the outcome) iii) Mediation(the 3rd party assists with the resolution but cannot make the final decision of the outcome) 2)LitigationClaim resolution methods
Review of the work performedInspection
Review of whether the policies and procedures were followedAudit
Uncontrolled changes in the project scope, with no adjustments to time, cost and resourcesScope creep
6 Processes,3 process groups Plan scope management --> Planning Collect Requirements --> Planning Define scope --> Planning Create WBS --> Planning Validate scope --> Monitoring and control Control scope --> Monitoring and controlProcesses in Scope management
COPE C = Project Charter O = Organizational process assets P = Project management plan E = Enterprise environmental factorsInputs to Plan scope management
EDM E = Expert judgement D = Data analysis M = MeetingsTools and techniques of Plan scope management
RS R = Requirements management plan S = Scope Management planOutputs of Plan scope management
ABCDE OP A = Agreements B = Business documents C = Project Charter D = Project documents(SLA --> Stakeholder register, Lessons learned register, Assumptions log) E = Enterprise environmental factors O = Organizational process assets P = Project management plan(RSS --> Requirements management plan, Scope management plan, Stakeholder management plan)Inputs to Collect requirements process
PIECD Data(RAG) P = Prototypes I = Interpersonal and team skills E = Expert Judgement C = Context diagrams D = Decision analysis Data (RAG) = Data representation, Data analysis, Data gatheringTools and techniques of Collect requirements process
Working model of the product, before actually building it. Helps obtain early feedback of the requirementsPrototype
Measurable Consistent Traceable Testable Unambiguous Acceptable CompleteCharacteristics of a requirement
Hierarchical decomposition of the total scope of work to be carried out by the project teamWork Breakdown Structure(WBS)
Management control point where Scope, Schedule, actual cost and budget are integrated and compared to earned value for performance measurementControl account
Lowest level of work breakdown structureWork Package
Technique to determine the cause and degree of difference between the baseline and actual performanceVariance analysis
How much head start does a previous task have have before before the next task beginsLead
How long is the next task delayed after the previous task is completeLag
The labor units required to complete a schedule activity. Often expressed in hours,days or weeks. Excludes any time not related to workEffort
A method used to determine the minimum project duration and determine the amount of schedule flexibility on the logical network paths within a schedule modelcritical path method
Collection of information for describing and controlling the scheduleSchedule data
The series of phases that a project passes through from its start to its completionProject Life cycle
A collection of logically related project activities that culminates in the completion of one or more deliverablesProject phase
A review at the end of a phase in which a decision is made to continue to the next phase, to continue with modification, or to end a program or projectPhase gate
Supportive : Provide templates and other knowledge resources. Degree of control : Low Controlling : Supportive role and require compliance. Degree of control : Moderate Directive: The Project managers are assigned by and report to the PMO. Level of control : HighPMO types
All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (reworkcost of quality (COQ)