Earned Value Management

———————–
EV = BAC * % complete
EV = PV * % complete (any point during project execution)
EV=BCWP (budgeted cost of work performed)
PV=BCWS (budgeted cost of work scheduled)
AC=ACWP (actual cost of work performed)
SV = EV-PV > 0 is good
SPI = EV/PV > 1 is ahead of schedule
CV = EV-AC > 0 is good
CPI = EV/AC > 1 is under budget
PV = SV/(SPI-1)
AC = CV/(CPI-1)
——
EAC = AC+bottom-up ETC : when initial estimates are flawed
EAC = AC+(BAC-EV) : when ETC is predicted to be done at budgeted rate (ATYPICAL)
EAC = BAC/CPI : when ETC is expected at current CPI (typical)
EAC = AC+(BAC-EV)/(SPI*CPI) : at current SPI, CPI
EAC=BAC-CV ?

EAC = AC/%Complete

ETC = EAC – AC :assuming work goes as per plan

ETC = BAC – EV
VAC = BAC – EAC
%VAC = VAC/BAC * 100
TCPI = (BAC-EV)/(BAC-AC) : accepting BAC value
TCPI = work remaining/funds remaining
TCPI = (BAC-EV)/(EAC-AC) : when BAC is not sufficient and EAC is calculated
TCPI > 1 is bad
————-
Expected Monitory value: EMV=Impact*Probability
————-
Communication channels = N*(N-1)/2
7% of communication message is contained in words
38% in vocal pitch
55% in body language
Albert Mehrabian’s book “Silent Message”
————-
TEAM stages – Tuckman (Jensen) Ladder
forming
storming
norming
performing
adjourning
Future value & Present value
—————————-
FV = PV (1+r)^N : r=rate of interest, N=number of time periods
PV = FV/(1+r)^N
NPV : higher the better
NPV > 0 investment will add value, accept the project
Internal rate of return, IRR : Bigger the better
Benefit Cost Ration, BCR : Bigger the better
Payback period: Lesser the better : This is nothing but Breakeven period
Payback period=Net investment/Avg annual cash flow
————-
Probability distribution
————————
PERT: Normal: (O+M*4+P)/6
Triangular: (O+M+P)/3
SD of activity = (P-O)/6
Variance of activity = [SD]squared
————-
Float/Slack/total slack = LS-ES = LF-EF : =0 for activities on critical path
————-
Cost Of Quality, COQ = EFTW+COPQ = POC+PONC
Essential first time work
Cost of poor quality
Price of Conformance
Price of non-conformance
————-
Depreciation/Straight-line depreciation = Asset cost/Useful life
Double declining balance = 2x((Asset cost – Accumulated depreciation)/Useful life)
————-
Rough Order of Magnitude (ROM) -25% to +75%
Budget Estimate -10% to +25%
DefinitiveEstimates -5% to +10%
————-
Remember, RETURN = Net Income Before Tax (NIBT) *or* Net Income After Tax
(NIAT); & ON means ‘/’
Return on Sales, ROS = NI*T/Total Sales
Return on Assets, ROA = NI*T/Total Assets
Retrun on Investment, ROI = NI*T/Total Investment
Working Capital = Current Assets – Current Liabilities

Discounted cashflow = Cashflow * Discount factor

————-
Contract related formulas
————————-
Savings = Target cost – Actual cost
Bonus = Savings*Percentage
Contract cost = Bonus+Fees
Total cost = Actual cost + Contract cost
————-
Point of total assumption
PTA = [(Ceiling Price – Target Price)/Buyer’s Share Ratio] + Target Cost
Cost to buy = Initial cost + [#months * (monthly maintenance costs)] lifecycle cost = total
cost + maintenance and support cost for lifetime of product
————-
Normal Distribution
——————-
1 sigma = 68.26%
2 sigma = 95.46%
3 sigma = 99.73%
6 sigma = 99.999%
1 SD = 1 sigma
————-
What Five Strategic Considerations may result in authorization of a project?
(MOCkTaiLS – MOCTLS)
Market demand
Organizational need
Customer request
Technological advances
Legal requirements
Social need
————-
EVA = Net Operating Profit After Tax – Cost of Capital (Revenue – Op. Exp – Taxes) –
(Investment Capital X % Cost of Capital)
EVA: Economic Value Add Benefit Measurement – Bigger is better
Source Selection = (Weightage X Price) + (Weightage X Quality)
————-
Types of powers of PM:
Legitimate
Reward
Expert
Referent
Coersive/Punishment
————-
Motivational theories
———————
Hertzbergs highgyene-motivation
Maslow’s hierarchy of needs
McGregor Theory X, Y; / Z(assurance of permanent job position)
McClelland’s Need Theory
Victor Vroom Expectance theory
———————
Peter Principle=Halo effect
———————
range of variance on a budgetary estimate can be from -10% to +25%.

—————————————
Paul Hersey/Ken blanchard’s Situational continuum/leadership
change leadership style based on maturity of subbordinates/team.
S1: Telling; S2: Selling; S3: Participating; S4: Delegating;
system testing vs integration testing

Seven Quality Mgmt and Control tools(NP, MAP IT)

————————————————
Network diagram
PDPC
Matrix diagram
Affinity diagram
Prioritization Metrics
Interrelationship digraphs
Tree diagram
7 Basic Quality Tools (See See See, Husband and Father Playing Soccer)
——————————————————————
Check sheet
Control chart
Cause-and-effect diagram
Histogram
Flow chart
Pareto chart
Scatter diagram
type II error – beta risk
ACTIVITY ON ARROW/arrow diagramming method
McKinsey’s 7S’s – Robert H. Waterman, Jr. and Tom Peters
Hard Elements
Strategy
Structure
Systems
Soft Elements
Shared Values
Skills
Style
Staff
7 reasons of conflicts on projects
———————————-
schedule
project priorities
human resources
technical opinions and performance trade-offs
administrative procedures
persnality conflict
cost and budget
Conflict management style
————————-
withdraw/avoid
compromise
smoothen/accomodate
collaborating
confront/problem solving
force
Collaborating: win/win;
Compromising: win some/lose some; >> lose/lose
Accommodating: lose/win;
Competing: win/lose;
Avoiding: no winners/no losers
Test of Normality
Paired Comparison Analysis
opm3
managemet by objective
capability maturity model
tqm
Merrill and Reid in their employee motivation theory?
personality traits: driver, expressive, amiable, and analytical.
Joseph Juran:applied the Pareto principle to quality issues
“Juran’s Trilogy”: quality planning, quality control, and quality improvement.
W. Edwards Deming
PDCA – along with Shewart
Philips Crosby – DIRFT (4 principles)
The definition of quality is conformance to requirements (requirements meaning both
the product and the customer’s requirements)
The system of quality is prevention
The performance standard is zero defects (relative to requirements)
The measurement of quality is the price of nonconformance
Vilfredo Federico Damaso Pareto
80-20 principle
Kaoru Ishikawa
root-cause diagram: fishbone
KJ Diagram ()

William Ouchi (jap)

Theory Z, permament job offer
Genichi Taguchi
Design of experiments
F.C. Moore
“Delegation means assigning work to the others and giving them authority to do so”
Overlapping relationship
Sequential relationship
Multi-phase relationship
Iterative relationship
Predictive/plan-driven
Iterative and Incremental
Adaptive/Agile
NPV is defined as: The difference between the present value of cash inflows and the
present value of cash outflows.

critical chain methd by Eliyahu M. Goldratt

The critical path method (CPM) is a project modeling technique developed in the late
1950s by Morgan R. Walker (of DuPont) and James E. Kelley
Parkinson’s law is the adage which states that “work expands so as to fill the time
available for its completion”.
Student’s syndrom – work is done at the last moment before deadline
Group decision making criteria (BINAM)
——————————
Brainstorming
Idea/mind mapping
Nominal technique
Affinity diagrams
Multi-criteria decision analysis
Failure mode and effect analysis – FMEA
QFD – quality function deployment (type of Facilitated workshops)
Discrete, Apportioned, Level of Effort – EMV effort types

marginal analysis
lifecycle costing
deming’s 14 points?
ARMA>
zero sum processing
issue log
shannon-weaver model of communication

code of ethics: Respect, Responsibility, Honesty, Fairness >>>> Aspirational and

Mandatory

direct, indirect, fixed, variable costs

A power/interest grid is a classification model used for stakeholder analysis and

management that groups the stakeholders based on their level of authority (power) and
 their level of concern (interest) regarding project outcomes. The classification and
recommended management strategies are as follows:

 Low-power/low-interest: monitor only

 Low-power/high-interest: keep informed
 High-power/low-interest: keep satisfied
 High-power/high-interest: manage closely

The requirements traceability matrix is a grid that links product requirements from their
origin to the deliverables that satisfy them. Typical attributes used in the requirements
traceability matrix may include a unique identifier, a textual description of the
requirement, the rationale for inclusion, owner, source, priority, version, current status,
and status date. Additional attributes to ensure that the requirement has met
stakeholders' satisfaction may include stability, complexity, and acceptance criteria.

Based on the scenario described, the project team is performing the Estimate Activity
Durations process. An input to this process is the resource breakdown structure (RBS)
which is a hierarchical list of team and physical resources related by category and
resource type that is used for planning, managing, and controlling project work. Each
descending level represents an increasingly detailed description of the resource until
the information is small enough to be used in conjunction with the WBS to allow the
work to be planned, monitored, and controlled.

To answer this question, first, determine under which knowledge area the described
activities fall. With reference to sponsors and stakeholders, you may guess that it is
Stakeholder Management. However, the activities of collection, creation, distribution,
storage, and monitoring project information fall under Communications Management.

Next, determine what process group is related to these activities. Is it Planning or

Monitoring & Controlling? No, the task is not to develop the communication models in
Planning, nor is the task to identify if the planned communications artifacts and activities
have had the desired effect. Instead, the current activities are mostly collection, creation
and distribution and delivery, which take place while executing the work of the project.
An important clue is that you are distributing work performance reports, which is an
output of the Direct and Manage Project Work process in the Integration knowledge
area, in the Executing process group.

Therefore, the correct answer is that these activities fall under Manage
Communications.

Central to knowledge management is having the right processes and people with the
right knowledge. Having documents that identify the people and their capabilities are
 essential to identifying current knowledge and the gaps that may exist. Keep in mind
that the question is asking for the document that will be 'least' beneficial in this process.
The requirements documentation provides a description of how individual requirements
meet the business need for the project. Requirements documents do not identify the
people or processes needed, whereas the other options, namely the lessons learned
register, the resource breakdown structure and project team assignments are useful in
determining what is required for a knowledge management system. Therefore, of the
available choices, reading the requirements documentation would be the least beneficial
for establishing a knowledge management system for the project and is, therefore, the
best answer to the question asked.

The stakeholder register is a project document that contains all current

information about the stakeholders. The stakeholder register includes
stakeholder identification information, assessment information, and the
stakeholder classification. It is used by the project team to maintain information
about the stakeholder's expectations and interests with the project. By reviewing
the stakeholder register with the new team members, the project manager can provide
them with the information about each project stakeholder, politics surrounding the
project, and other relevant details about the project and the stakeholders that may help
the new team members to get up to speed with the overall dynamics of the project and
engage effectively with the project stakeholders.

The detailed project scope statement includes the following:

 Product scope description which progressively elaborates the characteristics of the

product, service, or result described in the project charter and requirements
documentation.
 Deliverables which describe any unique and verifiable product, result, or capability to
perform a service that is required to be produced to complete a process, phase, or
project.
 Acceptance criteria which are a set of conditions that is required to be met before
deliverables are accepted.
 Project exclusions which explicitly identify what is excluded from the project.

A resource calendar identifies the working days, shifts, start and end of normal
business hours, weekends, and public holidays when each specific resource is
available. Information on which resources are potentially available during a planned
activity period is used for estimating resource utilization. Resource calendars also
specify when and for how long identified team and physical resources will be available
during the project.
Stakeholder analysis, an example of the data analysis technique which can be used
during the Identify Stakeholder process, results in a list of stakeholders and relevant
information such as their positions in the organization, roles on the project,
expectations, attitudes, and their interest in information about the project. Therefore, of
the available choices, conducting stakeholder analysis is what the project manager
should do next.

The risk report is a project document that provides information on sources of overall
project risk as well as the summary information on individual project risks and is created
as part of the Identify Risks process.

The stakeholder engagement assessment matrix is used as a tool during the Plan
Stakeholder Engagement process and identifies key stakeholders along with their
current and desired engagement level. Classifications for stakeholder engagement may
include unaware, resistant, neutral, supportive, and leading. In this scenario, certain key
stakeholders were resistant to the project which caused the project to run behind
schedule. A stakeholder engagement assessment matrix is the best tool for identifying
resistant stakeholders with enough influence to undermine a project. In this case,
identifying the current and desired engagement levels of the key stakeholders might
have allowed the project manager to take action to address the undesirable
engagement levels and prevent the stakeholder's resistance from negatively impact the
project's performance.