Term |
Practice |
Definition |
Delphi technique |
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Gathering input separately from multiple experts, then compiling it and resending it for review to the same experts. This allows for objective submission and review of ideas. |
Watchlist |
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non-critical risks documented during qualitative risk analysis for later review (during monitoring and controlling) |
Issue Log |
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Risks that have been realized are documented here and provide a recourse to stakeholders when they cannot be handled immediately. |
SWOT |
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Strengths, Weaknesses, Opportunities, and Threats analysis of project |
Business Risk
Pure risk |
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A venture’s gain or loss (e.g. the iPhone)
An insurable risk of a loss (e.g. fire, theft, etc.) |
Scope Baseline |
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Part of the PMP composed of: project scope statement, WBS, WBS Dictionary. Completed during Create WBS |
Grade |
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raiting given to items with same functional use (features) but different quality requirements. (a hammer rated for professional use vs. just home) Quality is how well a hammer of grade n works. |
Ishikawa diagram |
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a.k.a Fishbone diagram and cause and effect diagram. Allows a backward look at a problem/symptom to determine root cause. |
Pareto Chart |
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Histogram (bar chart) organized by results to prioritize most critical to help identify root cause |
PERT |
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Program Evaluation and Review Technique / 3 point estimate.EAD = ( P + 4M + O ) / 6 |
PDM / AON |
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Precedence diagramming method (most common) a.k.a activity on node uses boxes and arrows to show relationships like Finish to Start. |
GERT |
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PDM + activity looping |
ADM |
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Arrow diagramming method uses circle nodes and records durations on the arrows. A dotted line arrow has zero duration. |
Parametric Estimating
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Uses historical/other parameters to plot forecasts of activity durations, cost, scope, etc. Data can be evaluated via scatter diagram or learning curve. |
FPIF |
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Fixed price incentive fee. Performance incentive is specified in contract. FPIF successive target contract allows for multiple incentive levels. |
FPAF |
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Fixed price award fee. Same as FPIF except award is set in advance. |
FPEPA |
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Fixed price economic price adjustment addresses uncertain future economic conditions. e.g. pricing could be tied to US CPI. |
PO Contract |
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Normally signed by just the buyer, used for simple commodities, they become contracts when they are ‘accepted’ by ‘performance’ e.g. seller ships purchased equipment. |
T&M Contract |
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Payment is on a per time or per item basis, so it is useful when effort level is not defined at contract signing. Has FP element (the hourly or per item price) and CR element in the open ended volume. Best for low cost, short-term contracts. Caps can be set. |
Unit Price Contract
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Same as time and materials. |
CR |
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Cost reimbursable is useful when scope is uncertain. Buyer incurs more risk because he relies on seller’s accounting of costs to be paid. |
CPF / CPPC
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Cost plus fee / Cost plus percentage of costs is bad for buyers and not allowed for US federal contracts. Sellers are not incented to offer value. They profit from higher pricing. |
CPFF |
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Cost plus fixed fee provides some incentive for seller to offer value as they do not profit from higher pricing. |
CPIF |
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Cost plus incentive fee allows an incentive to be paid over costs based on performance. The seller often shares cost savings or overruns with the buyer in an 80 / 20 ratio. |
CPAF |
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Cost plus award fee is same as CPIF but there is no penalty, just an predetermined award. Since it is awarded subjectively, a board is often used, making the process cost high |
3 Point Estimate |
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Program Evaluation and Review Technique.e.g. EAD is ( P + 4M + O ) / 6 |
Fast tracking |
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Doing critical paths in parallel that were originally sequenced. (multiple tracks) |
Crashing |
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Adding resources to a critical path at increased cost. (crashes the budget too) |
Checklist |
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A list of things to inspect. A quality checklist is an output of Plan Quality. |
Work authorization system |
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Project manager’s system to approve the start of work packages. |
Straight line depreciation |
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The same amount is deducted from the value each period. |
Change Management Plan
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Controls changes to the project due to deviation from planned baselines. It is composed of change control procedures, approvals, board creation, meeting plans, and tools used. |
Change Control System |
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Standardized processes, tools and OPAs like forms and software to track project changes. |
Configuration Management Plan |
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Defines how to manage the specifications of the deliverables and control the changes to them. |
Configuration Management System
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Tools, documentation, and defined processes to track and verify conformance of the deliverable to the requirements. |
Corrective Action |
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Brings variance in line with the PMP performance baselines. |
Preventative Action |
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Address predicted, potential variance from PMP performance baselines. |
Requirements management plan
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How requirements will be controlled. |
Process improvement plan
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How the project processes will be improved. |
Constrained optimization
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A mathematical approach to project selection. Methods includes linear, integer, dynamic, and multi-objective programming. |
Benefit measurement
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A comparative approach to project selection. Methods includes murder board, peer review, scoring models, and economic models. |
Present value
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The value today of future cash. The present value is less, assuming a positive interest rate. |
IRR |
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Internal rate of return. This calculation includes others like BCR, so if when it is an option and positive, it is the best choice. |
Marginal analysis
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Determines when the benefit of quality improvements equal expenses incurred to make them, after which the return is not worthwhile. |
Conformance Analysis
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Tracking how close to the baseline ( e.g. to product requirements) the project is. |
Design Of Experiments
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Statistical experimentation that simultaneously changes all important variables for a faster, more accurate identification of the most critical. |
Operational work
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Ongoing, non-project work |
Project objectives
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The goals of project, created in the charter and later refined in planning. They determine completion of the project. More on Rita p24 |
Constraints |
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Beginning with the charter, time, risk, cost, scope, quality, etc. are prioritized and managed by the PM for their affects on each other. |
Projectized |
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An organization type structured by projects. Functional is the opposite and matrix a mix. |
Project coordinator
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This is the project role between PM and project expediter, where the position has some authority of a PM. |
Analogous estimating
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A ‘top down’ method of predicting project time or cost, often based on previous data of similar projects. Sometimes provided by management as an expectation or cap on project. Accurate to +/- 50% |
Critical Chain Method
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A scheduling approach that considers resource availability. The schedule is adjusted to level resource requirements, by starting each as late as possible. (not as common on exam as critical path method) |
Product life cycle
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May include many project life cycles during its phases of conception, growth, maturity, decline, and withdrawal. |
Project life cycle
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Also has stages, depending on industry, like design, code, test. Differentiate this and above from Product Management Process. |
Product Scope
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Requirements of the project deliverable. (specifications, features, etc) |
Project Scope
|
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The work that will be done on the project. |
Nominal Group Technique
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A group’s ranking of ideas, usually those generated in same brainstorming meeting. |
Product life cycle |
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Everything needed to do the work. |
Project Scope Statement
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States the common interpretation of the project work. Can describe what is in and out of the product. Helps gain project buy in. |
Variance
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Quantifiable deviation from a known baseline. |
Process Improvement Plan
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A required part of project management is to plan in efforts to improve efficiency of the methods, not just effectiveness of the product. |
Trigger |
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Indicator that a risk has occurred or is about to. (warning sign) |
Deming (method)
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Plan, Do, Check, Act. He planned in quality vs. inspecting for it later. |
Staffing Management Plan
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Part of HR Plan (and so part of the PMP) describes how HR requirements will be met.(acquisition timing, resource calendars, etc) |
Program Management
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Centralized, coordinated direction of projects to achieve strategic goals. (Space Program) |
Portfolio Management |
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Projects or programs related with by an overall strategic business goal.(NASA) |
Management by Objectives
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Emphasis on realistic goal setting techniques, aligning with organizational strategy, monitoring variance, and corrective actions. |
Projectized Organization
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Opposite of functional org. Staff is structured into project specific silos. |
Weighted Scoring Model
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Factors are rated and compared toward a decision (vs. forecasting variables to predict as in constrained optimization) |
Present Value
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Amount of money needed to day in order to have a certain amount in the future. |
Expected Present Value |
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Present value analysis that considers to the opportunity being calculated. |
PMIS |
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Project management information system |
Rolling Wave
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Planning for near-term items in detail and future items at high level. |
Definitive Estimating
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Based on analysis of scope, risk, quality, etc. |
Control Account
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A level of the WBS management can use to capture cost, scope, EV, variance, etc. (How much will the solid rocket boosters cost?) |
Lag and Lead |
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A lag is a delay between one activity’s end and the next’s start. A lead is the opposite, where the next activity may start before the previous ends. |
Free Float
Total Float
Project Float |
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Buffer before activity delays next activity.(LF-EF)
Buffer before project is delayed.
Buffer before project delay impacts customer. |
Slack |
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Same as float |
Logic Bar Chart
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Same as Gantt chart. Tracks activity durations and dependencies. |
ConvergenceBurst
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Network diagram arrows come together from multiple predecessors.Network diagram arrows fork to multiple successors. |
1 Sigma
2 Sigma
3 Sigma
6 Sigma |
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68.26%
95.46%
99.97%
99.99985% |
Weighted Milestone
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? Has to do with 2 or more? reporting periods. Mentioned in the depreciation section. |
Chart of Accounts
|
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Account list used by accounting to track costs of projects or parts of project. |
S Curve
|
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Graph of earned value, planned value, and actual costs over time. |
Cost Funnel
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Early estimates have a wide range (+/- 50% / ROM) an later, definitive estimates have a tighter (+/- 5%) range. |
What-if Scenario Analysis
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Used with a schedule network analysis to test the implications of adverse conditions and ramifications on the project. Monte Carlo simulation is a common method. |
Control Limit
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Area on a control chart composed of 3 standard deviations from the mean. |
Specification Limit
|
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Area on a control chart composed of that indicates the customer’s requirements. |
Total Quality Management
|
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Deming’s approach to proactively improve quality with a focus on detailed statistical analysis. |
Precision vs. Accuracy
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Precision is the consistency of the result, whereas accuracy is the nearness to the target result. |
Quality Metric |
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An operational definition describing something in detail and how to measure it. (see comment 6 for more info) |
Probability
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The likelihood that something will happen. Exam totals probabilities as 1.0 or 100%. |
Population Testing
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You test the entire batch (e.g. all airliners) vs. sample testing where you determine some % of the batch to test (e.g. M&M’s) |
Variable |
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A generic characteristic of the product that is unknown, like weight, that will be measured by the QC process |
Attribute |
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The measurement of the variable. |
Rule of 7
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If 7 consecutive data points appear on one side of the mean, the process is out of control. |
Assignable Cause
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An anomaly on a control chart whose reason of failure requires investigation. Also called special cause. |
RACI Chart
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(R)esponsibility, (A)ccountability, (C)onsult, (I)nform chart uses R, A, C, and I to indicate roles in a table format with people on one axis and project area on the other. |
RAM Chart
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Responsibility Assignment Matrix: chart uses (P)rimary and (S)econdary tags to label roles in a table format with people on one axis and project area on the other. |
Herzberg Theory
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Hygiene (job attributes like supervision, peers, salary) affects job dissatisfaction and satisfaction is driven by ‘motivators’ such as professional growth and recognition. |
McGregor’s Theory
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Theory of X and Y is that managers use one of 2 methods to categorize workers: theory X states that workers are inherently lazy and avoid work and theory Y that workers may be ambitious and self-motivated. |
Project Manager Powers
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Formal/Legit, Reward, Penalty, Expert, Referent. Reward-based and expert power are best options. |
McClelland Theory of Needs |
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Achievement, affiliation, or power drive worker motivation |
Conflict Sources |
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Fall in this order of frequency: Scheduling problems, scarce resources, personal workstyle, technical direction, methodology details, cost, personality. |
Paralingual |
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Voice characteristics like pitch and tone. |
Status Report
Progress Report
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Reflects current status.
Reflects accomplishments during a specified time period. |
Communication Model / Components |
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Sender, message and Receiver |
Communication Types
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Formal Written: Contract changes, Performance issue escalation.
Informal Written: Emailing a meeting invitation.
Informal Verbal: Discuss performance problem with team member.
Formal Verbal: Presentations to mngt, hosting a bidder conference. |
Bid Peddling
Bid Shopping
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Using existing bid details to solicit additional bids.
Using existing lowest bid to solicit additional, lower bids. |
Risk Register
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Lists risks, risk owners, triggers, responses, and risk analysis results. |
Secondary Risk
Residual Risk
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New risks created by initial risk responses
Risk remaining after the risk response. |
Workaround
|
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Real-time contingency response to an issue, used in monitoring and controlling. Also referred to as ‘winging it’ |
Risk Response Options
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Opportunities can be shared, exploited, or enhanced. Threats can be avoided, transferred, or mitigated. (S.E.E. the A.T.M.) |
3 S.O.W. Types
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Performance, functional, and Design. |
Contract Requirements |
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Capacity, Consideration, Offer, Legal Purpose, Acceptance. (C.C.O.L.A) |
Cost Management Plan
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Specifications for currency used, estimates’ level of accuracy (level of the WBS used), reporting formats, cost performance measurement rules, to include direct and/or indirect costs, and control thresholds. |
3 Estimate Ranges |
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R.O.M. is +/- 50%
Budget Estimate is -10% to +25%
Definitive Estimate is +/- 10% or some use -5% to +10% |
50 / 50 Rule
20 / 80 Rule
0 / 100 Rule |
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50% of project is considered complete at start and 50% at finish.
20% of project is considered complete at start and 80% at finish.
No progress credit is given until activity is finished. |
Special Conditions |
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These are added to address considerations not already in the term and conditions |
Negotiation Tactics
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Attacks, personal insults, good guy/bad guy, deadline, limited authority, missing man, fair and reasonable, delay, extreme demands, withdrawal, and fait accompli (an established fact). |
Conflict Resolution Techniques |
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In order of preference: confronting/problem solving, compromising, withdrawal, smoothing, collaborating, and forcing. |
Scope Verification
Product Verification
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Customer acceptance of the product.
Properly completing the product work. |
Change Requests types output Monitoring and Controlling
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Corrective action, preventative action, and defect repairs |
Change Process steps
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Evaluate the impact, create options, get internal approval, and get customer buy-in. |
Scope Management Plan
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How will the project scope be planned, defined, executed, measured, verified, and controlled? |
Focus Group
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A specific group of expertise discuss product ideas via a moderator. |
Facilitated Workshop
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A variety of perspectives are combined to discuss the product and build consensus. |
Nominal Group Technique
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Brainstorming ideas are recorded and ranked. |
Affinity Diagrams
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Requirements are sorted into like categories to better identify what may be missing. |
Plurality Technique
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In group decision making making, this method chooses the option with the most support, in the event there is no majority choice. Other GDMT methods are consensus, majority, dictatorship and unanimity. |
Balancing Stakeholder Requirements |
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Prioritizing project requirements and evaluating scope, cost, etc to meet everyone’s competing needs. |
Product Analysis
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Work may be needed during collect requirements to define the product being requested. |
Schedule Management Plan
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Denotes management of project schedule, baseline and handling changes, tools used, and methods to track performance and variance. |
Schedule Baseline
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The schedule baseline is the agreed upon schedule for the project. It’s created via iterations during planning and part of the PMP. |
Value Analysis / Value Engineering
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Improving the cost effectiveness of how you get the work done. |
Management Reserves
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The project funding allotment minus (what is budgeted) and the cost baseline (what is needed). Accounts for unforeseen expenses. |
Powers of the PM |
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Formal/legitimate, Reward, Penalty, Expert, and Referent. The fist 3 are official. The last 2 are earned. |
Risk Management Plan
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Components include risk methodologies, roles and responsibilities, budgeting, timing, categories, probability and impact definitions, stakeholder tolerances, reporting formats and tracking/auditing. |
Risk Categories
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These can be general, like internal/external, specific like lack of available materials, or team expertise, or source-based like schedule, cost, etc. |
Risk Register Updates
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Include prioritized, quantified risk list, contingency time and cost reserves, confidence levels of time and cost estimates, probability of objectives, and risk trends across updates, contingency responses, . |
Procurement Documentation
|
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The procurement S.O.W., proposed contract term and conditions, and information for sellers (project background, bid procedures/guidelines/forms, source selection criteria, and pricing forms) |
Special Provisions
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Contract changes to address a particular project’s risks, requirements, legal, or other issues. |
Privity |
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A contractual oblication |
Force Majeure
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Legally, and act of God event, such as an earthquake. |
Fait accompli
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A foregone conclusion in a contract, e.g. we’ll need to budget for safety measures. |
Constructive Changes
|
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Things a buyer does that interfere with the seller’s ability to meet the contractual obligations. At that point the seller may file a claim. |
Records Management System |
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Documents that need to be managed according to a particular project’s specific needs. These can range from just the important formal docs like contracts to all written communications like emails and meeting notes. |
Known Unknowns
Unknown Unknows |
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Risks are unknowns, so this is just another way of saying “known risks and unknown risks”. Known risks are identifiable things like design delays and handled by contingency reserves. Unknown risks are not identifiable and handled by management reserves. |
Human Resources Plan
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Components include: roles and responsibilities, org charts and staffing management plan |
Standard Deviation
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The amount of range, sigma or exactitude in an estimate. |
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