For example what can be the reduction in the defect, how much of network downtime can be reduced, how much of wastage or scrapping of the raw materials can reduced etc… We know that as the quality increases the cost also increases. But in the end we need to see is it worth for the investment so as to get the benefit.
Cost Benefit Analysis technique is used under the process Plan Quality Management.
To calculate TCPI first we need to calculate the EVM and then based on AC, EV, we can calculate TCPI. TCPI is calculated under two conditions one with original budget and the second with new budget.
TCPI=(BAC-EV)/(BAC-AC)—With planned budget
TCPI=(BAC-EV)/(EAC-AC)—With new budget
The ratio should be ideally 1. If it greater than 1, then difficult to complete and if less than 1 easier to complete.
TCPI is used as a technique under the process Control Costs.
EAC is nothing but how much money required to complete the entire project. This is as good as new BAC which is Budget At Completion.
ETC is how much more money required to complete the remaining work.
VAC is what is difference between or the variance between original budget and the new budget. This can be surplus or deficit.
Here are different formulas used to calculate EAC, ETC and VAC
.
ETC=EAC-AC
VAC=BAC-EAC
There are four different variants to calculate EAC
1. EAC=BAC/CPI—This is used if the current variances or the rate of spending of money remains same
2. EAC=AC+BAC-EV—This is used if the estimation has become abnormal for the work so far it is carried out and the remaining work will continue at the same budgeted rate.
3. EAC=AC+ETC— This is used when the estimation for the remaining work no longer exists and the new estimation to be carried out for the remaining work. ETC is nothing but remaining work which can be derived using bottom up estimation.
4. EAC=AC+((BAC-EV)/SPI*CPI)—This is used considering both the schedule and cost which can influence the remaining work.
To calculate the forecasting first we need to complete the Earned Value Management where we can obtain the parameters AC, PV, EV, SV, CV, SPI and CPI.
Forecasting technique is used under the process Control Costs.
Planned Value (PV) is the amount of work that should be done as on day
Earned Value (EV) is the amount of work that has been accomplished as on day
Actual Cost (AC) is the cost which is incurred as on day to accomplish the work.
Using these parameters one can calculate the variances namely schedule variance (SV) and cost variance (CV) and the performance indices Schedule Performance Index (SPI) and Cost Performance Index (CPI).
SV= EV-PV, CV=EV-AC, SPI=EV/PV and CPI=EV/AC.
Ideally SV & CV should be zero and SPI & CPI should be 1.
If SV is negative then the project behind the schedule and if SV is positive then the project is ahead of the schedule. Similarly, if SPI is less than 1, then the project behind the schedule and if SPI is greater than 1, then the project is ahead of the schedule.
If CV is negative then the project over budget and if CV is positive then the project is under the budget. Similarly, if CPI is less than 1, then the project over budget and if CPI is greater than 1, then the project is under the budget.
Earned Value Management technique is used under the process Control Costs.
Funding Limit Reconciliation technique is used under the process Determine Budget.
For example the cost for a particular resource with particular skills set is so much of dollar. Or per square feet with specific material will cost $X, etc… These parameters can be used to develop or predict the project budget.
Historical Relationship technique is used under the process Determine Budget.
Cost Aggregation technique is used under the process Determine Budget.
Vendor Bid Analysis is used under the process Estimate Costs process.
Examples for cost of conformance are training, testing, documentation, reviews, etc.. which help in preventing the defects.
Examples for cost of non-conformance are rework, wastages or scrapping of materials, warranty cost, business loss.
Cost of Quality technique is used under the processes Estimate Costs and Plan Quality Management.
Project Management Software tool is used under the processes Estimate Activity Resources, Estimate Costs, Control Schedule and Control Costs processes.
Performance Reviews can be carried out using Trend analysis, Critical path method, Critical chain method and Earned value management.
Performance Reviews used under the processes Control Schedule and Control Costs.
Scheduling Tool is used as a technique under the processes Develop Schedule and Control Schedule.
Crashing is nothing but adding the resources. The impact is it increases the cost and or risk.
Fast tracking is carrying out activities in parallel. But this technique results in quality reduction, rework and increases the risk.
Crashing and Fast tracking should be applied to critical path activities. Then only it makes sense.
Schedule Compression technique is used under the processes Develop Schedule and Control Schedule.
What-If Scenario Analysis is used to evaluate the different scenarios to see the effect on project objectives like schedule. For example what happens if a particular resource is not available, what happens if a vendor is not going to deliver the raw materials on time, what happens if a particular work package postponed to later date… The outcome can be used to assess and take future action like parking the contingency.
Simulation is used to get the probability distribution using different techniques like PERT. The most widely used tool is called Monte Carlo analysis.
Modeling Techniques is used under the processes Develop Schedule process, Control Schedule and Perform Quantitative Risk Analysis.
Resource leveling is used based on the availability of resources, resource usage. This will ensure full utilization of the resources. The result of the resource leveling usually is critical path changes.
Resource smoothing adjusts activities in such a way resources do not exceed predefined resource limits. This will not impact critical path but the activities in the non-critical path may be delayed by consuming the total float.
Resource Optimization Techniques is used under the processes Develop Schedule process and Control Schedule.
Critical Chain Method is used in Develop Schedule process.
1. Draw the network diagram based on the dependencies of the activities.
2. Find the number of the paths from the network diagram. Number of paths means the paths which are traversing from start of the project to the end of the project.
3. Find the duration of each path by adding the duration of all the activities from the respective path.
4. The highest duration path is the critical path. And this itself is the duration of the project.
After finding the critical path one can find the total float or slack. Total float is nothing but how much an activity can be delayed without affecting the overall schedule of the project or the immediate start of the successor activity. How to calculate the total float? You need to follow two steps. One is forward pass and the second is backward pass. Forward pass is moving from start of the project by adding the duration of each of the activity and backward pass is moving from end of the project to the start of the project by subtracting the duration of each activity. After carrying out these steps you will find four values Early Start (ES), Early Finish (EF), Late Start (LS) and Late Finish (LF).
EF=ES + duration of the activity LS=LF - duration of the activity
Calculate total float using the formula
Total Float=LS-ES or LF-EF
The critical path activities will be always having zero total float whereas non critical path activities will be having float.
Critical Path method is used in Develop Schedule process.
Schedule Network Analysis is used under Develop Schedule process.
Contingency reserve can be derived based on quantitative risk analysis or based on standard deviation method or using organizational practices by putting some percentages.
Management reserve will be under management control and again this is derived based on unforeseen things which may happen to the project considering experience, historical data, contract terms and conditions, enterprise environmental factors, etc…
Reserve Analysis technique is used under the processes Estimate Activity Duration, Estimate Costs, Control Costs and Control Risks.
(P+4M+O)/6 which is Beta distribution or (P+M+O)/3 which is Triangular distribution.
Beta distribution is the weighted average which is also called as PERT (Program Evaluation and Review Technique).
Under the PERT one can derive the standard deviation and variance.Standard Deviation for an activity is (P-O)/6 and Variance is Standard deviation Square.
Three Point Estimating technique is used under the processes Estimate Activity Duration and Estimate Costs.
Parametric Estimating technique is used under processes Estimate Activity Duration, Estimate Costs processes.
Analogous Estimating technique is used under processes Estimate Activity Duration, Estimate Costs processes.
Bottom-Up Estimating is the most accurate estimation technique but is time consuming.
Bottom-Up Estimating technique is used under the processes Estimate Activity Resources and Estimate Costs.
For example, for a particular human resource with specific skill and experience what he/she may charge in a specific country?
Published estimating Data is the technique used under the process Estimate Activity Resources process.
Alternative Analysis is the technique used under the process Estimate Activity Resources process.
Suppose you want to reach office 9 in the morning. Every day it may take about an hour to reach. So usually you start at 8 in the morning. But let us you know that tomorrow there is a blockage of road due to some rally in the usual route, you need to take alternative route. But it takes more time. So what you do? Instead of starting at 8 in the morning, you plan to start at may be 7.30 in the morning. This half an hour is called lead. You are advancing an activity.
Lag is waiting period between two activities. Once you construct ground floor, you need to wait for two days before starting the first floor. This waiting period which is 2 days is called lag.
Lead and Lag technique is used under processes like Sequence Activities, Develop Schedule and Control Schedule processes.
Mandatory: It is the used when it is inherent to the nature. For example construction of the wall depends on finishing of the foundation. You can’t think of the other way. This is also called as hard logic.
Discretionary: In the situation there are some activities which can be carried out either way based on the logistics availability or based on the best practices. It is based on the preference. This is also called as preferred or soft logic. For example if you want to provide the training to the operation team about the project, the training can happen after the transition or before the transition. The training can be imparted based on the logistics availability and the people.
External: This is nothing but where you are dependent on the external environment or element where you don’t have any control. For example, approval from the government organization or materials from the vendor.
Internal: Here the dependency is within the project. For example funding, resource availability, etc…
Dependency Determination technique is used under the process Sequence Activities.
There are four types of relationships used when constructing schedule model using Precedence Diagramming Method.
Finish to Start (FS): Starting of an activity depends on the finishing of the previous activity. For example starting of the second shift depends on finishing of the first shift.
Start to Start (SS): Starting of an activity depends on the starting of the other activity. Here two activities run in parallel. For example starting of the training depends on starting of the assembly of the delegates. Here I am assuming trainer need not to wait for all the delegates to come. Even one delegate is enough to start the training.
Finish to Finish (FF): Finishing of an activity depends on finishing of the other activity. Again here two activities run in parallel. For example finishing of project closing depends on finishing of lessons learned documentation. Lessons learned activity might have started earlier itself, but by the time project closing finishes lessons learned should finish or at the same time.
Start to Finish (SF): Finishing of an activity depends on starting of the other activity. For example the finishing of first shift depends on starting of the second shift.
SF is very rarely used and FS is frequently used.
Also AOA is outdated. AOA can’t use all the four types of relationships. It can use only FS relationship whereas AON uses all the four types of relationships.
Precedence Diagramming Method technique is used under the process Sequence Activities.
Rolling Wave Planning technique is used under Define Activities process.
Variance Analysis technique is used under the process Control Scope process.
Inspection is used as technique under Control Quality and Validate Scope processes. Also it is used under Control Procurement process with technique name as Inspections and Audits. But in general Inspection to be carried out throughout the project as part of Monitoring and Controlling process group as per the plan.
Now the question is what is the meaning of manage? Manage means one should be able to estimate for schedule, cost and track the same. So the level of decomposition differs from project to project based on complexity in terms of effort. Typically 8/80 rule is used in general. The meaning of this is no work package should be less than 8 hours and no work package should be greater than 80 hours. So divide the scope in such a way that the work package should be in the range of 8 hours to 80 hours.
Decomposition can be done using box type or using tools like MS Project. Engineering projects uses ISO standards for decomposition. It is organization specific.
Decomposition technique is used under two processes. One in Create WBS and the other is Define Activities.
Alternative Generations technique is used under process Define Scope.
Product Analysis technique is used under process Define Scope.
Document Analysis technique is used under process Collect Requirements.
For example, as an user (Actor) I want to know my Body Mass Index (BMI). I will provide the input, to system which can be a simulator, the height and weight. The system throws the output which is BMI. Using this BMI, I will decide what action should be taken. Either increase weight or decrease weight.
Context Diagrams is used under the processes Collect Requirements.
Benchmarking technique is used under the processes Collect Requirements and Plan Quality Management.
This technique is very much suitable in Agile environment in the software development industry.
Prototypes technique is used under the process Collect Requirements.
This is also called as “Job shadowing”
Observations technique is used under the process Collect Requirements.
Questionnaires and Surveys technique is used under the process Collect Requirements.
There are different ways how one can arrive at the decision. The methods followed will be in the order Unanimity, Majority, Plurality and Dictatorship.
Unanimity is nothing but all the stakeholders agrees for a particular action or requirement. Before applying unanimity, better to apply the anonymous. Anonymous is collecting the requirements from all the stakeholders in a different forum individually in secret. Anonymous is also called as Delhi technique. Once Delphi technique is achieved then unanimity becomes easier.
If unanimity is not working go for Majority. Majority is nothing but where more than 50% of the people are agreeing for the requirement.
Next is Plurality. When Majority is not achieved largest blocks in the group decides which is similar to elections in democratic countries.
Dictatorship is one individual makes the decision on the behalf of the group. This is used when none of the above helps.
Group Decision Making Technique is used under the processes Collect requirements, Validate Scope, Estimate Activity Durations and Estimate Costs processes.
Brainstorming is generating ideas. One idea generates another idea. Here just the ideas or the requirements will be collected and no voting is carried out.
Nominal Group Technique is the extension of Brainstorming. Here voting is used which helps in further brainstorming and also prioritization.
Idea or the Mind mapping is just a graphical representation of all the ideas which helps in understanding commonality and differences and can results in further ideas.
Affinity diagram helps in groups the ideas under different buckets so that this can help in further analysis.
Multi decision analysis is extension of all the above techniques which helps in analyzing from the risk angle.
Group Creativity Technique is used under the process Collect Requirements.
For example Join Application development(JAD) will be used where the SME from different function and the development team will be participating to gather and exchange of information.
Facilitated Workshops techniques is used under the process Collect requirements, Define Scope processes.
This technique is used under the process Collect Requirements process.
This technique is used for the process Collect Requirements process under Scope Management Knowledge area.
This tool is used for the process Perform Integrated change control.
Examples of analytical technique include root cause analysis, regression analysis, FMEA, EVM, Variance analysis, trend analysis, etc…
Some of the processes that use this technique include Monitor and Control Project Work, Close Project or Phase, Plan Schedule management, Plan Cost Management.
This tool is used under different processes like Direct and Manage project work, Monitor and Control Project Work.
This technique is used under processes like Identify stakeholders, Direct and Manage project work, Monitor and Control Project Work, Perform Integrated Change Control, Close Project or Phase, etc..
Using this technique one can also develop salience model. It uses three parameters power, urgency and legitimacy. This results in eight different types of stakeholders like demand, discretionary, dangerous, etc...
Stakeholder Analysis technique is used under process Identify Stakeholders process and results in Stakeholder register which is a project document.
For example the process "Develop project charter" uses inputs like business case, agreement, SOW, EEF, OPA. SME's uses these input/s to develop or provide guideline to develop the project charter which documents reasoning for starting the project, high level budget, high level risks, etc...
Please find the below link to download. This may be useful.
Resource leveling is used when the resource is over utilized. For example if a resource is allocated for 16 hours in a day for an activity, after the resource leveling he will be allocated for only 8 hours on day 1 and rest 8 hours for day 2. The impact here is extension of the schedule.
Resource smoothing is used typically when the resource is allocated for multiple activities and who can work only a few hours on a particular day or an activity. For example a resource is allocated for 4 hours for an activity and 4 hours for another activity, that resource will be used for non-critical path activity where we are having floats. Hence there will be no impact on the schedule and may impact the free float or total float.
Resource leveling is one of the features under MS Project which you can experience it.
Work performance data is the raw date which is being collected as part of measurements. Data is the output of executing. For example Planned Value, Earned Value and Actual Cost are Work performance data.
Work performance information is the processed data which will be the output of every control processes like control schedule, control cost, etc...For example Schedule Variance, Cost Variance are the Work performance information.
Work performance reports is the report which is used for project communication to stakeholders. The stakeholders are interested in reports and not the data. For example dashboard which indicates the status like Red, Green, Amber are the Work performance reports.
This concept has been introduced from Data-Information-Konwledge-Wisdom (DIKW) model. This is part of ITIL(Information technology Infrastructure Library)syllabus.
Control Quality is to check the correctness of the deliverables which is the output of executing. This process is used to check the correctness of the Product. This is like internal testing. One of the technique is Inspection which means Testing, audit, review, walkthrough...If this Inspection is through then we can move towards Validate Scope process.The output of Control Quality process is Verified deliverables.The verified deliverables will be fed as an input to Validate scope process.
Validate scope is formalizing the acceptance of the deliverables. Who is going to accept the deliverable? Yes, Customer. Before calling the Customer we need to check is the deliverable working as per the requirements or not? That is why Control Quality will be performed before Validate Scope process. Validate Scope is something like User Acceptance Testing(UAT). Here too we are having Inspection as one of the techniques. The output of Validate scope is Accepted deliverables. Then we proceed for closing.
Domain 1---Initiating the Project
3 tasks added – task 2, task 7, task 8
Domain 2---Planning the Project
1 task added – task 13
Domain 3---Executing the Project
2 tasks added – task 6, task 7
Domain 4---Monitoring and controlling the project
2 tasks added – task 6, task 7
There is no addition of tasks under Closing process group/domain.
Here is the list.
Initiating
# Identify key deliverables based on the business requirements, in order to manage customer expectations and direct the achievement of project goals.
# Conduct benefit analysis with stakeholders (including sponsor, customer, subject matter experts), in order to validate project alignment with organizational strategy and expected business value.
# Inform stakeholders of the approved project charter, in order to ensure common understanding of the key deliverables, milestones, and their roles and responsibilities.
Planning
# Develop the stakeholder management plan by analyzing needs, interests, and potential impact, in order to effectively manage stakeholders' expectations and engage them in project decisions.
Executing
# Manage the flow of information by following the communications plan, in order to keep stakeholders engaged and informed.
# Maintain stakeholder relationships by following the stakeholder management plan, in order to receive continued support and manage expectations.
Monitoring & Controlling
# Capture, analyze, and manage lessons learned using lessons learned management techniques, in order to enable continuous improvement.
# Monitor procurement activities according to the procurement plan, in order to verify compliance with project objectives.
Please refer to the following links to get the details for the information and to find the difference between existing and proposed examination content outline.
http://www.pmi.org/certification/exam-changes/pmp.aspx
http://www.pmi.org/~/media/PDF/Certifications/pmp-certification-exam-outline.ashx
http://www.pmi.org/Certification/Pr...ons/PMP Examination Content Outline_2010.ashx
The following tables provides the change in the percentage of questions in each of the process group and the changes in the exam content outline from the previous one.
This is latest update from PMI. Update: The PMP exam update has moved to 11 January 2016 to allow all stakeholders adequate time to prepare for this change. The current examination content outline remains till 11th Jan 2016 and the new examination content outline published during June 2015 will be effective from 12 Jan 2016.
