There are loads of terms and concepts to learn when it comes to project management and particularly for PMP. You will not be asked to derive definitions in the PMP© exam as its a multiple choice but being able to identify what a term or concept is used in relation to. This will help you use the process of elimination for questions that you don’t know an answer for.
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After I did my initial studying and started taking exams I created the below study notes which I would revise before each exam and then add new concepts I might have mixed up during the practice exam. I recommend you to also write out any terms or concepts you might not be clear with or got wrong in a practice exam so you can revise and improve your knowledge in the area.
Initiation Terms & Concepts | |
| Process | A package of inputs, tools and outputs |
| Phase | A group of logically related activities which produce deliverables at the end of the phase. Following represent end of a phase… > Kill Point > Stage Gate > Milestone > Phase Review > Phase Gate |
| Phase-to-Phase Relationship | Sequential: Finish-to-Start Overlapping: Schedule Compression ie. Fast tracking Parallel |
| Project | Temporary endeavour Create unique product/service Defined time period |
| Program | Group of coordinated projects towards a common goal |
| Portfolio | Group of programs/projects to achieve organizational strategic goals |
| Why Projects? | > Market Demand > Organizational Need > Customer Request > Technological Advance > Legal Requirements > Support org strategic plan |
| Progressive Elaboration | Analysis and estimation can be more accurate and elaborated as project progresses. (Rolling Wave Planning) |
Project Management | |
| Project Management | The application of knowledge, skills, tools & techniques to project activities to meet the project requirements |
| Project Management Team | Subset of project team. Responsible for all activities, referred to as core, executive or leadership team. |
| PMBOK | Framework/Standard but not a methodology |
| PRINCE | Projects IN Controlled Environments |
| Competing Constraints | Time, Cost, Scope, Quality, Risk, Resources |
| Project Management Office (PMO) | > Standardizes Governance > Provides Training > Shares Tools > Templates > Resources |
| Project Reports | Formal and informal project reports which describe… > Status > Lessons Learned > Issue Logs > Closure Reports > Outputs from knowledge areas |
| Enterprise Environmental Factors | May enhance or constrain project management processes and may have a positive or negative impact on outcome. |
| Organizational Project Management (OPM) | > Strategy execution framework utilizing portfolios, programs and projects and organizational enabling practices (technology, culture etc.) > Linking management principles with strategy and advance capabilities |
| Management by Objective (MBO) | Process of defining objectives within an organization so that management and employees agree to objectives and understand what they need to do in the organization in order to achieve them |
| Project Lifecycle | Initiating, Planning, Executing, Closing > Predictive: (Waterfall) Scope, Time, Cost determined early in project > Iterative: (Incremental) Repeat the phases until exit criteria are met > Adaptive: (Agile) High change rate each iteration very short 2-4 weeks |
| Product Lifecycle | Development, Production, Adoption & Growth, Maturity, Decline, End of Life Each phase within product lifecycle may include all project process groups |
| PMI Approach | Sexism, Racism or any discrimination never accepted Adhere to local customs including paying bribe if deemed necessary and acceptable |
Project Manager | |
| PM May Report To | > Functional Manager > Program Manager > PMO Manager > Operation Manager > Senior Management (Must be consulted for changes to high level constraints) |
| Interpersonal Skills | > Communication > Leadership – Autocratic: Makes decisions themselves – Directing: Instructs people on tasks when/how – Laissez Faire: Does not interfere – Democratic: Guides but doesn’t interfere – Delegating: Delegates tasks – Coaching: Instructs – Discussing: Two-way communication – Facilitating: Coordinates inputs from several sources – Supportive: Positive assistance and encouragement – Participatory: Involves others – Task-orientated: Enforces tasks – Assertive: Confronts issues > Motivation > Influence > Negotiation > Trust Building > Political and Cultural Awareness |
| Interpersonal Influences | > Legitimate Power: Official empowered > Reward Power: Salary, Bonuses > Penalty Power: Punishment > Expert Power: Knowledge *Best Power > Referent Power: Personally attracted – friend of CEO |
| PM Responsibility | > 90% of time on communication with stakeholders > Leader of project irrespective of authority > Should consider every process if applicable for project > Identifies and document conflicts of project objectives with organization strategy as early as possible > Involves team members in planning process |
Organization Types | |||
| Projectized | Project manager has ultimate authority over project | ||
| Matrix | > Strong: PM has authority > Balanced: Share authority > Weak: Functional Manager has authority, PM considered Expeditor > Multiple Bosses so more complex | ||
| Functional Organization | > Project Manager has little authority > Project Expeditor – No Authority > Project Coordinator – Little Authority | ||
| Composite | Combination of different types | ||
| Project Based Organization (PBO) | > Conduct majority of work via projects over functional approaches > Departments with functional organizations > Matrix Organizations > Projectized Organizations | ||
| Tight Matrix | Is when team collocated and nothing to do with organization type | ||
Other Important Terms | |||
| Project Charter | > Officially creates project > Formally assigns PM > Contains external constraints and assumptions > Includes high level milestone schedule | ||
| Project Management Plan | > Collection of subsidiary plans > Formal, written communication > Approved by sponsor | ||
| Project Scope Statement | > Progressively Elaborated | ||
| Making Changes | > Authority to Approve Changes: The Scope Mgmt. Plan is the document that specifies how changes to the scope will be managed > Changing Scope to Avoid Risk: After risk has been qualified, quantified should it mean changing scope > Work Authorization: Defines when and how work is to be completed | ||
| Perform Integrated Change Control | > Have change control meetings > Output change request status updates | ||
| Cost-reimbursable | Pays costs for materials and services and fee on top of it | ||
| Standard Deviation | > Used to measure diversity > P-O/6> Standard Deviation for entire path Square standard deviation to get variance Square root sum of variance | ||
| Six Sigma | > Six Sigma = Mean +/- Standard Deviation > 1 Sigma = 68% 2 Sigma = 95% 6 Sigma = 99.97% | ||
| Quality Management Theory | Planning for quality must be emphasized | ||
| Stakeholders | > Can be effected positively/negatively by a project 1. Power/Interest Grid: Level of authority and concern 2. Power/Influence Grid: Level of authority and involvement 3. Influence/Impact Grid: Level of involvement and effect of changes 4. Salience Model: Power/Urgency/Legitimacy > Stakeholder Register: Identification, Requirements, expectations, Influence, Classification | ||
| Customer Satisfaction | Ensure product team build meets customer requirements. Profitable project does not mean customer satisfaction | ||
| Conflict | > Direct confrontation is best policy Blake & Mouton 5 Modes for Handling Conflicts 1. Withdrawal – Retreat 2. Smoothing – Deemphasize Source of Conflict 3. Compromise – Bargain usually lose-lose 4. Forcing – Choose one viewpoint 5. Confrontation – Facing the conflict directly | ||
| Conflicts Occur | 1. Schedules 2. Priorities 3. Resources 4. Technical 5. Procedures 6. Personality 7. Costs | ||
| Unresolved Issues | Lead to a major source of conflict | ||
| Estimating | > Analogous Estimating: Top down estimating > Parametric Estimating: Statistical relationship between historical data and other variables > Bottom Up Estimating: Most detailed estimation by calculating per work package and takes the longest | ||
| Control Communications | Process of monitoring and controlling communications throughout project lifecycle | ||
| Communication Type | > Formal Written: Contracts > Informal Written: Email > Formal Verbal: Speeches > Informal Written: 1 to 1 meeting | ||
| McClelland’s Three Need Theory | Achievement, Power Affiliation | ||
| Product Analysis | > Product Breakdown > Systems Analysis > Requirements Analysis > Systems Engineering > Value Engineering > Value Analysis | ||
| Depreciation | Decrease in value over time. 2 types…. 1. Straight Line Deprecation: Same amount every year 2. Accelerated Depreciation: A) Double Declining Balance (Fastest type of depreciation) B) Sum of Years Digits (Add up years ie.3 years 1+2+3=6 then calculate year by year 3/6 x Asset Cost. Year 2 would be 2/6 x Asset Cost | ||
| Opportunity Cost | Cost of passing up on best option A = 15,000 B = 10,000 C = 5,000 you choose A the opportunity cost would be 10,000 | ||
| Failure Costs | > Rework products > Components > Process non-compliant > Cost of work and waste > Loss of reputation | ||
| Lifecycle Costs | Not responsibility of project includes… > Direct and indirect > Periodic or continuing | ||
| Configuration Management Activities | It is the basis of project communication and controlling changes that affect the project, such as requirements or design change. > Formal identifies and documents physical and functional characteristic of the Configurable Items > Controls changes to the characteristics of Configurable Items > Record the history of changes done on configurable items > Support the audit of these Configurable Items to verify conformance to the requirement | ||
| Attribute Sampling | Binary either conforms or not | ||
| Variable Sampling | Continuous process that measures against degree of conformity | ||
| Analytical Financial Techniques | > Payback Period > ROI > IRR > Discounted Cash flow > Net Present Value | ||
| DMAIC | Define Measure Analyse Improve Control | ||
| Administrative Closure | Final completion and closure of project | ||
| Contract Closure | Closed upon reaching end of contract | ||
| Independent Estimates | Check proposed pricing by procuring organization by asking reliable source for price to use as base | ||
| Design of Experiments | Identifies which variables have most influence on quality outcome | ||
| Contingency Reserves | Known unknowns | ||
| Management Reserve | Unknown unknowns Cost Baseline = Contingency & Cost Estimates Project Budget = Cost Baseline & Reserve | ||
| Cost Performance Baseline | This is the BUDGET | ||
| Special Cause | Unusual & preventable ie.preditcable | ||
| Common/Normal Causes | Accepted causes that are determined to happen so infrequently are considered random | ||
| Code of Accounts | Unique lettering system used in WBS | ||
| Journey to Ailbhe | Organization takes actions to contradict to what they really want ie. People agree to org goals but personally disagree | ||
| Constructive Change | A undocumented change recommended by a party | ||
| Total Point of Assumption | Where seller bears all the loses of additional cost overrun only in fixed price incentive fee contracts! | ||
| Closing Process | 1. Get formal acceptance 2. Close contracts 3. Write lessons learned 4. Release the team | ||
| Administer Procurement | Other name for monitor and control procurement | ||
| Records Mgmt. System | Used in procurement process to store contracts and any related documents | ||
| Active Risk Response | Establish contingency reserve including amount of time and money to handle | ||
| Residual Risk | Risk that occurs after all risk responses have been implemented | ||
| Secondary Risk | Risk that occurs as a result of implementing a risk response | ||
| Risk Analysis | Qualitative means judgement Quantitative means numbers | ||
| Risk Breakdown Structure | Created in Plan Risk Management to categorize risks | ||
| Kaizen | Means improvement | ||
| Rough Order of Magnitude | Range is -50% to +50% | ||
| Staffing Management Plan | Includes…. > Rewards and recognition > Training requirements > Release plan | ||
| Kick-off Meeting | Happens start of each phase | ||
| Project Selection Methods | 1. Benefit Measurement Model – Comparative Approach > Scoring Models > Cost-benefit Analysis > Review/Murder Board > Economic Models 2. Constrained Optimization – Mathematical Approach > Linear Programming > Nonlinear Programming > Integer Programming > Dynamic Programming > Multi-objective Programming | ||
| Geert Hofstede – Cultural Dimensions | > Power Sharing > Uncertainty Avoidance > Individualism > Masculinity-femininity > Time Orientation | ||
| CSOW | Contract statement of Work | ||
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