A project is not a project until the Project Charter

__________ is signed

The __________ authorizes funds

for the project. Sponsor

A description of the business

need, product scope, and
strategic plan of the product, Statement of Work
service or result developed from (SOW)
initiator, sponsor or external
customer.

Enterprise
May influence the success of the Environmental
project. (company culture,
standards, regulations, Factors
marketplace conditions) (EEF)
A product, service, or result to be
evaluated by the project team Deliverables
and/or stakeholders for approval
to complete a project, process or
phase.

The authoritative guide on how

the PMP should act as a PMP Code of
professional, and how the PMP Professional
should behave with customers Conduct
and the public in general.

The day to day work that goes on Operations

in the organization.

A collection of related projects

grouped together for the benefit
Program
of an organization.
 A management process to select
the projects that should be
invested in. Specifically, it is the
selection process based on the
Portfolio
need, profitability, and Management
affordability of the proposed
projects.

Five stages of project

management which include
initiating, planning, executing,
monitoring/controlling, and Project Lifecycle
closing. Each of these stages is
called a process group due to the
set of processes that is
performed in the stage.

Assigns and determines the

authority level of the project Project Charter
manager.

A system of practices,
procedures, rules, and techniques
Methodology
used in a specific discipline.
A reference plan for components,
such as schedule, scope, and
cost, against which performance Baseline
deviations are measured. The
reference plan can be the original
or the modified plan.

A creative technique used in a

group environment to gather
ideas as candidates for a solution
to a problem or an issue without Brainstorming
any immediate evaluation of these
ideas. The evaluation and analysis
of these ideas happens later.

A planning technique to subdivide

the project scope, including Decomposition
deliverables, into smaller,
manageable tasks called work
packages.

The reference against which all

the scope deviations are
Scope Baseline
measured. It consists of the
scope statement, the WBS
Dictionary and the WBS
A technique that uses a diagram
to choose from different options
available; each option is
represented by a branch of the Decision Tree
tree. Analysis is done along each
Analysis
branch, which helps to make a
decision about which option to
choose.

The process of taking actions to

reduce or prevent the impact of a Mitigation
variation or deviation that is
expected to occur.

Formula for
Planned percent complete x
Budgeted at Complete (BAC) Planned Value
(PV)

Formula for
EV=Actual % complete x BAC
Earned Value
(EV)
 Formula for
CV=EV-AC
Cost Variance
(CV)

Formula for
SV=EV-PV
Schedule Variance
(SV)

Formula for Cost

CPI=EV/AC
Performance Index
(CPI)

Formula for Schedule

Performance Index
SPI=EV/PV
(SPI)
 Formula for
Estimate at
EAC=BAC/CPI Completion
(EAC)

Formula for
ETC=EAC-AC
Estimate to
Completion
(ETC)

Formula for
Variance at
VAC=BAC-EAC
Completion
(VAC)

Activities that must be completed

before other activities are either Dependencies
started or completed.
 Shortest path through the
network diagram. It shows the Critical Path
activities with greatest risk for
delaying the project.

A dependency that must be

Mandatory
followed in sequence. Also called Dependency
“Hard Logic”.

Best practices that dictates

activities are done in a certain Discretionary
order. Not mandatory,
recommended. Also called “Soft
Dependency
Logic”

A dependency relying on factors

outside of the project. External Dependency
 Two main types:
Crashing Duration
Fast tracking Compression

Adding resources to speed up

Crashing
activities in a project. Increases
costs.

Ignoring discretionary
dependencies and completing
activities concurrently to speed Fast Tracking
up project completion. Adds risk
to the project.

How much time an activity can be

delayed without affecting the
early start date of subsequent Free Float
dependent activities. Also called
“Free Slack”
Rules for which no formula exists. Hueristics

The delay between an activity and

Lag
the next dependent activity.

Starting an activity before its

predecessor activity has finished. Lead

How much time an activity can be

delayed without affecting the
early start date of subsequent Free Float
dependent activities. Also called
“Free Slack”
A method of diagramming project Network Diagram
activities to show sequences and
dependencies.

A network diagram where boxes

represent activities and arrows Precedence
are used to show the Diagramming
dependencies between the
Method
activities. Also called “Activity on
Node”.

The approved schedule that is

used as a basis for measuring
and reporting. Includes original Schedule Baseline
project schedule and approved
updates.

How much time an activity can be

delayed without affecting the
early start date of subsequent Free Float
dependent activities. Also called
“Free Slack”
Comparing planned vs. actual
schedule dates.
Variance Analysis

Cost Estimating
Order of Magnitude
-50 to +100%

Cost Estimating
Conceptual
-30 to +50%

Cost Estimating
-20 to +30% Preliminary Estimate
 Cost Estimating
-15 to +20%
Definitive Estimate

Cost Estimating
Control Estimate
-10 to +15%

Costs stay the same throughout Types of Costs -

project. Fixed

Costs that vary on the project. Types of Costs -

Variable
 Expenses directly billed to Types of Costs -
project. Direct

Cost shared and allocated among Types of Costs -

several or all projects. Indirect

Costs that have already been Types of Costs -

invested into the project. Sunk

Plan-Do-Check-Act Deming Cycle

 Expenses directly billed to Types of Costs -
project. Direct

A review process undertaken to

determine if a project is likely to Phase Gate
succeed; also known as the kill
point.

Anyone who is working on project Project Management

management-related activities. Team

Project team member that acts as

the communications link to senior Project Coordinator
management and has some
limited decision making abilities.
A team member who verifies that
activities are assigned and are Project Expeditor
completed. Does not have
decision making abilities.

Weak Matrix Organization

Balanced
Types
Strong

Result of the create WBS

process. Complements the WBS
by defining terms, documenting
the work packages, control
WBS Dictionary
accounts and listing who is
responsible for completion of
project activities.

(P - O) / 6 Standard Deviation
 The value at a specific point in
time in the future
FV = PV * (1+r)^n
Future Value
PV=present value (FV)
r=interest rate
n=number of periods

The value of something today Present Value

(PV)
PV= FV/ (1+r) ^ n

Employees need to be monitored

constantly to do well McGregor's
Theory X

N (N-1) / 2
Communication
Channel Formula
Employees work well when left on McGregor's
their own. Theory Y

A performance report that shows

where the project stands against Status Report
performance baselines.

An analysis that identifies the

Strengths/Weaknesses/
Opportunities/Threats) of the SWOT Analysis
project to discover project risks.

People have “Hygiene” Factors that

don't motivate but need to be
fulfilled (salary, benefits, security,
status, etc.) Herzberg's Theory
Once the Hygienes are in place, the
“Motivating” Factors (recognition,
self-actualization, etc.) will properly
motivate.
A list of low probability risks that
gets reviewed throughout the
Watchlist
project in case it starts to come
up in a higher probability.

Events that trigger a contingency

response. Risk Triggers

Risks that remain unresolved but

open to be planned for. Residual Risks

An unplanned response to a risk. Workaround

Risks that have come up as a
result of planning for risks. Secondary Risks

Add resources to make an

opportunity happen. Exploit

Increase the probability of the

opportunity to happen. Enhance

Delay or ignore the risk. Avoid

Costs are covered and a fixed fee
is designated for the seller. Cost Plus Fixed Fee

Costs are covered and a fixed fee

is designated for the seller. Cost Plus Award Fee
An award is granted conditionally
based on the seller's
performance.

Costs are covered with an

incentive based on how much
under budget the costs are (or if Cost Plus Incentive Fee
costs overrun, the buyer pays
portion of costs).

Costs and a % fee of the costs are

covered.
Cost Plus Fee
Used when soliciting a price for Invitation for Bid
completing the work of a project
from a vendor.
(IFB)

Used when soliciting a price for Request for

each individual line item or task
(more detailed than a bid).
Quotation
(RFQ)

Used when soliciting a proposal Request for Proposal

with detailed information.
(RFP)

The point in a project when the

seller takes 100% control of any
Point of Total
cost overruns. Assumption
 Added value project produces for Economic Value
a company above its cost. Added (EVA)

The degree to which a project

Definition of Quality
fulfills its requirements.

Common thoughts and trends Heuristic Estimating

that develop over time by using
hard data and estimations from
parametric estimating.

If any one “side” changes, the other

two should change as well.
The Triple Constraints
(Time, Cost, Scope) Model
 Cost

The
“Triple Constraints”
Scope Time

The next phase of the project is

Iterative Process
not planned until current phase is
completed.

Responsible, Accountable, RACI

Consult and Inform

Specific
Measurable
Attainable SMART
Realistic
Time-related
 Cost

The
“Triple Constraints”
Scope Time

Accept | Mitigate | Avoid |

Transfer | Exploit | Share | 7 Risk Responses
Enhance

(BAC - EV)/(BAC - AC) Formula for

Or To-Complete Cost
(BAC - EV)/(EAC - AC) Performance Index
(TCPI)

LS - ES
or Total Float
LF - EF