1. Project Charter – formally authorizes the existence of a project, provides high level requirements and expectations of the stakeholders, assigns project manager.
2. Three basic types of change action:
2.1 Preventive action – To avoid or reduce the probability of some negative event affecting the project. Responses to identified risks are a type of preventive action.
2.2 Corrective action – When a project is off track for either time, scope, cost or another performance metric, corrective measures are taken to get it back on track.
2.3 Defect Repair – Most expensive. Product or component needs to be repaired/reworked/replaced.
3. Forecasting – Predicting future project performance based on actual performance to date.
Three methods of forecasting:
3.1 Time series methods – Use historical data as the basis for estimating future.
Earned Value, Moving Average, Extrapolation, Linear Prediction, Trend estimation, Growth curve.
3.2 Casual/Econometric methods – Identifying the factors that might influence the variable that is being forecasted. Weather condition influencing the sale of umbrellas.
Regression analysis using linear or non-linear regression, Auto Regression Moving Average (ARMA), Econometrics.
3.3 Judgmental methods – Intuitive judgements, opinions and probability estimates.
Composite forecasts, surveys, Delphi method, scenario building, technology forecasting, forecast by analogy.
3.4 Other methods – Simulation, probabilistic forecasting, ensemble forecasting (a form of Monte Carlo analysis)
4. Cancelled/Terminated project – still need to run the Close Project process.
1. Product Scope is different from Project Scope.
2. Collecting requirements involve stakeholders’ needs.
3. Requirement Management Plan is an output of Plan Scope Management process, which provides the guidelines, methods, level of detail, etc. of the requirements collection process.
4. Requirements include constraints like work needs to be performed during non-business hours.
5. Group creativity techniques:
5.1 Brainstorming/blue-skying/Star-trekking – open forum, collect all ideas even silly ones, conclude with a nominal group technique.
5.2 Nominal group technique – after brainstorming, rank and prioritize the ideas.
5.3 The Delphi technique – A group of people respond to a questionnaire, the answers are available only to the facilitator to maintain anonimity.
5.4 Idea/Mind mapping – Identify commonalities and differences in brainstormed ideas.
5.5 Affinity diagrams – Sort or associate ideas/requirement into common classifications or categories.
6. Requirements Traceability Matrix is an output of Collect Requirements process.
7. Decomposition technique is used to create Work Breakdown Structure (WBS).
8. If it’s not in the WBS, it’s not in Scope.
9. The Scope Baseline is composed of Project Scope statement, WBS and WBS dictionary.
10. Scope verification is focused on the acceptance of the project deliverables.
1. Rolling Wave Planning – near term work is planned in detail with the later work in less detail until it’s needed.
2. Precedence Diagramming Method (PDM)
2.1 Activity on Arrow (AoA) – Only finish to start relationship between the activities is allowed. The length of the arrow represents the duration. “dummy” arrow represents that the next activity can start only after multiple previous activities have finished.
2.2 Activity on Node (AoN)
3. Float time is also called Slack.
Free float is the amount of time a scheduled activity can be delayed without delaying the early start date of the following activity.
Total float is the amount of time a schedule activity can be delayed without delaying the project finish date.
4. Critical Path is the longest path (duration) in the PDM of the project.
5. Logical relationship for activities:
5.1 Finish-to-Start (FS)
5.2 Finish-to-Finish (FF)
5.3 Start-toStart (SS)
5.4 Start-to-Finish (SF)
6. Three basic dependency types in activity sequence:
6.1 Mandatory dependency (hard logic) – A must be done before B.
6.2 Discretionary dependency (soft logic) – A should/may be done before B.
6.3 External dependency – Government, vendor, etc.
7. Lead time = overlap of activities, Lag time = gap between activities.
8. Resource Breakdown Structure (RBS) – resources grouped together in a logical manner.
9. Three primary methods of estimating:
9.1 Analogous Estimating (Top-down estimating) – Technique of creating estimates based on past experiences, fast, inexpensive, least accurate, most often used.
9.2 Parametric estimating – Technique that uses the relationship with historical data (typically numerical), higher level of accuracy, relatively less time consuming and less expensive.
Time required to build a 2000 sq. ft. house or a 8×10 wall.
9.3 Three point estimate – involves Most Likely, Optimistic and Pessimistic scenarios.
Project/Program Evaluation and Review Technique (PERT)
Beta distribution formula = (tO + 4tM + tP)/6
Standard deviation = (tP – tO)/6
10. Triangular distribution – variation of three-point distribution
(tO + tM + tP)/3
11. Two types of reserves:
11.1 Contingency reserve – set-asides or time buffers, included in the baseline calculations.
11.2 Management reserve – included in the total project reserves but not included in the baselines.
12. Schedule Compression Techniques:
12.1 Crashing – applying additional resources to an activity to get it done within the time frame.
12.2 Fast tracking – Identifying activities that can be performed in parallel to accomplish the work in a shorter period.
13. Resource Leveling – Identifying where the resources are over or under allocated, spreading them out to use them efficiently.
14. Resource Smoothing – Keeping the resource requirements within pre-determined limits.
15. Monte-Carlo Analysis (What-If Analysis or project simulation) – Various variables of schedule, budget, resource, etc. are loaded into an expensive computer software that runs thousands of what-if scenarios. It is very expensive and used for very big projects only.
1. Four categories of cost:
1.1 Direct cost – No project, no direct cost.
1.2 Indirect cost – may still exist even if there is no project.
1.3 Variable cost – might change during project.
1.4 Fixed cost – doesn’t change during project.
2. Four phases of estimation:
Stage|Estimation Type|Range of Accuracy
Initiation|Rough order of magnitude|-25% to +75%
Initiation|Order of magnitude|-25% to +35%
Planning|Budget Estimate|-10% to +25%
Planning|Definitive Estimate|-5% to +10%
3. Whether it’s time or money, always give estimates in a range. Document the sources of the estimates.
4. Contingency and Management reserves exist for cost as well.
5. Total cost = Baseline cost + Management cost
6. Contingency time added to an activity is Time Buffer. Contingency time added to the project end date is Project Buffer.
7. Vendor Bid Analysis – Analyze a vendor’s bid based on the sources of their estimation and develop our own estimate to validate vendor’s bid.
8. Earned Value Management (EVM)
Planned Value (PV), Earned Value (EV), Actual Cost (AC), Budget At Completion (BAC), Estimate At Completion (EAC), Estimate To Complete (ETC), Variance At Completion (VAC), Cost Variance (CV), Schedule Variance (SV), Cost Performance index (CPI), Schedule Performance Index (SPI), To Complete Performance Index (TCPI)
VAC = BAC – EAC
Remaining Work = BAC – EV
Remaining Funds = BAC – AC
CV = EV – AC
SV = EV – PV
CPI = EV / AC
SPI = EV / PV
EAC = BAC / CPI
EAC = AC + ETC
EAC = AC + (BAC – EV)
EAC = AC + ( (BAC – EV) / (CPI * SPI) )
ETC = EAC – AC
TCPI (original BAC) = (BAC – EV) / (BAC – AC)
TCPI (new EAC) = (BAC – EV) / (EAC – AC)