Pmp session 5

PMP & CAPM Exam Preparation

February 26, 2013

Sessions

1. About the exam2. Integration & Scope Management3. Time & Cost Management4. Quality & HR Management5. Communication & Risk

Management6. Procurement Management

Last Session Key point

• Process groups: IPEMCC• 9 Knowledge Area: ISTiCoQuHurCoRiP• Project Integration Management– DevPC.PMP.DirManPex.MoConPW.PerICC.CloPP

• Project Scope Management– CoDeWoBVCon

Last Session Key point – cont’d

• Project Time Management (DeSeReDDevCon)• Project Cost Management (EsCDeBCon)• Project Quality Management (PlanQAQC)• Project Human Resources (Plan ADM)

Project Communication Management

• IdS Plan DisInt ManSEx RepPer– Ensure timely and appropriate generation,

collection, distribution, storage, retrieval, and ultimate disposition of project information

– To create bridge between diverse stakeholders involved in a project

– To connect various culture and organizational backgrounds, different level of expertise, and various perspective and interests in the project and its outcome


• Communication activity potential dimensions:– Internal and external– Formal and informal– Vertical and horizontal– Official and unofficial– Written and Verbal / non-verbal


• Communication skills


• Identify Stakeholders


• Identify Stakeholders– Positive and negative stakeholders– To analyze their level of interest, expectation,

importance and influence


• Identify Stakeholders – I– PC– Procurement documents– EEF– OPA


• Identify Stakeholders – TT– Stakeholder analysis• Identify all stakeholders and their roles• Identify their potential impact on project

– Power/interest grid– Power/influence grid– Influence/impact grid– Salience model

• Assess how they react to possible situations


• Identify Stakeholders – TT– Stakeholder analysis (cont’d)• Power/interest grid


• Identify Stakeholders – TT– Expert judgment


• Identify Stakeholders – O– Stakeholder register• Identification information• Assessment information• Stakeholder classification

– Stakeholder management strategy


• Plan Communication– To define communication needs and approach– To answer: who needs the information, when they

expect to have it, and how it will be given to them– To avoid: delay in message delivery, incorrect

audience, and lack of communication with important stakeholders

– To achieve: Effective and Efficient communication (to provide only the required information in the right time, right format, and with right impact)


• Plan Communication


• Plan Communication – I – Stakeholder register– Stakeholder management strategy– EEF– OPA


• Plan Communication – TT– Communication requirement analysis• Total number of communication channel:

[N (N-1)] / 2• Organization chart, stakeholder responsibility,

internal/external information needs

– Communication technology• Urgency (how frequent/regular?)• Availability (is it there?)• Expected project staffing (are they familiar with it?)• Duration and project environment (is it preferred?)


• Plan Communication – TT (cont’d)– Communication models


• Plan Communication – TT (cont’d)– Communication models• Encode

– To translate ideas into message

• Message and feedback– Output of the encoding process

• Noise– Interference with message transmission and understanding of

the message (e.g.: distance, unfamiliar technology, lack of background information)

• Decode – To translate the message back to meaningful thoughts/ideas


• Plan Communication – TT (cont’d)– Communication models (cont’d)• Sender is responsible to make the information as clear

and complete as possible • Receiver is responsible to ensure delivery time, confirm

the delivery and content, understand the content and acknowledge the understanding


• Plan Communication – TT (cont’d)– Communication methods• Interactive

– The most efficient way to ensure parties understanding– Two or more parties performing multidirectional information

exchange

• Push– Sent to specific recipients who need to know the information– E.g.: letters, memos, reports, emails, faxes, voice mails

• Pull– Usually very large information volumes for large audiences– E.g.: intranet, e-learning, knowledge repositories


• Plan Communication – O– Communication management plan


• Plan Communication – O– PD U


• Distribute Information


• Distribute Information – I– PMP– Performance reports• Estimate to complete• Project performance• Baseline performance

– OPA


• Distribute Information – TT– Communication method– Information distribution tools


• Distribute Information – O– Stakeholders notification– Project reports– Project presentations– Project record– Feedback from stakeholders– Lessons learned documentation


• Manage Stakeholders Expectation– To increase the likelihood of the project

acceptance by negotiating and influencing their desire to achieve / maintain project goals

– Address concerns for anticipation of future problems

– Clarifying and resolving issues– To help the stakeholders understand the project

benefits and risks


• Manage Stakeholders Expectation


• Manage Stakeholders Expectation – I – Stakeholder register– Stakeholder management strategy– PMP– Issue log– Change log– OPA


• Manage Stakeholders Expectation – TT– Communication method– Interpersonal skills• Building trusts, resolve conflict, active listening, and

overcome resistance

– Management skills• Presentation skills, negotiating, writing skills, public

speaking skill


• Manage Stakeholders Expectation – O– OPA U– CR– PMP U– PD U


• Report Performance– A process of collecting and distributing

performance information, including status reports, progress measurements, and forecasts

– Pay attention to audience level, format, and detail of information content

– More elaborate reports may include:• Analysis of past performance, current status of risks

and issues• Work completed, next actions• Summary of changes


• Report Performance


• Report Performance – I – PMP– WPI• Deliverables status, schedule progress, costs incurred

– WPM• Planned vs actual report of

– Schedule performance– Cost performance– Technical performance


• Report Performance – I (cont’d)– Budget forecasts– OPA


• Report Performance – TT– Variance analysis• Verify deliverables completeness• Determine variances• Determine impacts of the variances


• Report Performance – TT (cont’d)– Forecasting methods• Time series (historical data)• Causal / econometric methods (understand relationship

between the cause and the influenced variable)– E.g.: regression analysis using linear regression or non-linear

regression, autoagressive moving average (ARMA), and econometrics


• Report Performance – TT (cont’d)– Forecasting methods (cont’d)• Judgmental methods

– Intuitive judgments, probabilistic estimates, delphi method, scenario building, technology forecasting

• Other methods– Simulations, ensemble forecasting


• Report Performance – TT (cont’d)– Communication methods– Reporting systems


• Report Performance – O– Performance reports• Status and progress information• Variances analysis• Earned-value analysis• Forecast data• Level of detail required by stakeholders• Format: bar chart, S-curve, histograms, tables


• Report Performance – O (cont’d)– Performance reports


• Report Performance – O (cont’d)– OPA U– CR

Project Risk Management

• PlanR IdR QQ Rp MC


• Project risk always in the future• Risk is an uncertain events that if it occurs, has

an effect of at least one project objective• Project risk origins from uncertainty in present• Known risks is identified risks• Unknown risks can’t be managed proactively

which leads to contingency plan• Occurred risk in present can also be

considered an issue


• Risk tolerance is degree of risk acceptance– E.g.: accepting a fast tracked schedule is a risk

taken to achieve reward created by earlier completion

– Risk attitude is driven by perception, tolerance, and bias

– Risk response will reflect the organization’s perceived balance of risk taking and risk avoidance


• Plan Risk Management


• Plan Risk Management – I– Project scope statement– Cost management plan– Schedule management plan– Communication management plan– EEF– OPA


• Plan Risk Management – TT– Planning meetings and analysis• Create risk contingency plan• Assign risk management responsibility


• Plan Risk Management – O– Risk management plan• Methodology• Roles and responsibility• Budgeting• Timing• Risk categories• Definitions of probability and impact• Probability and impact matrix• Revised stakeholders’ tolerance• Reporting format and tracking


• Identify Risks


• Identify Risks – I– Risk management plan– Activity cost estimate– Activity duration estimate– Scope baseline– Stakeholder register– Cost management plan– Schedule management plan– Quality management plan


• Identify Risks – I (cont’d)– Project documents– EEF– OPA

(Risk, Scope, Time, Communication, Quality)


• Identify Risks – TT– Documentation review– Information gathering techniques• Brainstorming, deplhi technique, interviewing, root

cause analysis

– Checklist analysis– Assumption analysis


• Identify Risks – TT (cont’d)– Diagramming techniques• Cause and effect diagram (ishikawa)• System or process flow chart (relational graph)• Influence diagram (causal, influences, time ordering of

events, and other relationship among variables and outcomes)

– SWOT analysis– Expert judgment


• Identify Risks – O– Risk register• List of identified risks• List of potential responses


• Perform Qualitative Risk Analysis– To prioritize risks for further analysis or action by

assessing and combining their probability of occurrence and impact

– Establishing levels of probability and impact can reduce influence of bias

– A form of rapid and cost-effective means of establishing priorities for Plan Risk Response and lays the foundation of Perform Quantitative Risk Analysis


• Perform Qualitative Risk Analysis


• Perform Qualitative Risk Analysis – I – Risk register– Risk management plan– Project scope statement– OPA


• Perform Qualitative Risk Analysis – TT– Risk probability and impact assessment– Probability and impact matrix


• Perform Qualitative Risk Analysis – TT (cont’d)– Risk data quality assessment– Risk categorization– Risk urgency assessment– Expert judgment


• Perform Qualitative Risk Analysis – O– Risk register updates– Relative ranking or priority list of project risks– Risks grouped by categories– Cause of risk or project areas requiring particular

attention– List of risks requiring response in the near term– List of risks for additional analysis and response– Watch list of low priority risks– Trends in qualitative risk analysis results


• Perform Quantitative Risk Analysis– Numerically analyzing the effect of identified risks– Performed on prioritized risks by Perform

Qualitative Risk Analysis– May be use to assign numerical ratings to

individual risks– Should be repeated after Plan Risk Responses as

well as Monitor and Control Risks


• Perform Quantitative Risk Analysis


• Perform Quantitative Risk Analysis – I – Risk register– Risk management plan– Cost management plan– Schedule management plan– OPA


• Perform Quantitative Risk Analysis – TT– Data gathering and representation techniques• Interviewing• Probability distributions


• Perform Quantitative Risk Analysis – TT (cont’d)– Quantitative risk analysis and modeling techniques• Sensitivity analysis (most potential impact, comparing

relative importance and impact of variables that have high degree of uncertainty to those that are more stable)


• Perform Quantitative Risk Analysis – TT (cont’d)– Quantitative risk analysis and modeling techniques• Expected monetary value analysis (EMV)

– Positive values = opportunity– Negative values = threat

• Modeling and simulations• Expert judgment


• Perform Quantitative Risk Analysis – O– Risk register updates– Probabilistic analysis of the project– Probability of achieving cost and time objectives– Prioritized list of quantified risks– Trends in quantitative risk analysis results


• Plan Risk Response– To develop options and actions to enhance

opportunities and to reduce threats to project objectives

– Must be:• Appropriate to the significance of the risk• Cost effective• Realistic• Agreed by parties involved• Has responsible party/person


• Plan Risk Response


• Plan Risk Response – I – Risk register– Risk management plan


• Plan Risk Response – TT– Strategies for threats (negative risks) ATMA• Avoid, Transfer, Mitigate , Accept

– Strategies for opportunities (positive risks) SEEA• Share, Enhance, Exploit, Accept

– Contingent response strategies– Expert judgment


• Plan Risk Response – O– Risk register update– Risk-related contract decisions– PMP U– PD U


• Monitor and Control Risks– Implementing risk response plans– Tracking identified risks– Monitor residual risks– Identifying new risks– Evaluate risks process effectiveness– To determine validity of project assumptions– To enforce risk management policies– To monitor contingency reserves


• Monitor and Control Risks


• Monitor and Control Risks – I – Risk register– PMP– WPI– Performance reports


• Monitor and Control Risks – TT– Risk assessments– Risk audits– Variance and trend analysis– Technical performance measurements– Reserve analysis (compare remaining reserves to

the amount of outstanding risks)– Status meetings


• Monitor and Control Risks – O– Risk register update– OPA U– CR– PMP U– PD U

Sample Questions

1. Which of the following is a false statement about project risks?

A. A risk arises out of uncertainty.B. A risk can only have a negative effect on a project.C. Identified risks are usually listed in a document

called the risk register.D. Risks can be categorized by developing a risk

breakdown structure (RBS).

Sample Questions

2. The risk register is not an input to which of the following processes?

A. Identify RisksB. Perform Qualitative Risk AnalysisC. Perform Quantitative Risk AnalysisD. Plan Risk Responses

Sample Questions

3. Which of the following is not an information-gathering technique used in the risk identification process?

A. BrainstormingB. Delphi techniqueC. SWOT analysisD. Web browsing

Sample Questions

4. Which of the following statements about risk analysis is false?

A. Quantitative risk analysis can only be performed on risks on which a qualitative risk analysis has already been performed.

B. Qualitative risk analysis is usually performed before quantitative risk analysis.

C. An updated risk register is the output of both qualitative risk analysis and quantitative risk analysis.

D. The risk register is an input to both qualitative risk analysis and quantitative risk analysis.

Sample Questions

5. You are managing a project to set up data servers to support a website for an enterprise customer. The location for the servers has been chosen close to the customer due to their requirements. However, this location is prone to natural disasters, such as hurricanes and flooding. You have decided to install some extra servers in another city that will act as backup if a disaster happens. This is an example of which of the following?

A. Risk avoidanceB. Risk mitigationC. Risk acceptanceD. Risk transfer

Sample Questions

6. The risk management team of a software project has decided that due to the lack of adequate talent in your company, development of a specific part of the system is under high risk, so they have decided to outsource it. This is an example of which of the following?

A. Risk avoidanceB. Risk mitigationC. Risk acceptanceD. Risk transfer

Sample Questions

7. You are in the process of evaluating the probability and impact of a risk by assigning numbers, such as expected monetary value. This is an example of which of the following?

A. Monte Carlo simulationB. Qualitative risk analysisC. Quantitative risk analysisD. Risk response planning

Sample Questions

8. Consider the following figure. Assume that the risk has a 50% probability of occurrence. If the risk does occur, it could have a positive or a negative impact equivalent to $200,000 or $50,000, respectively, with the probabilities shown in the figure. What is the EMV for the positive impact?

A. $80,000B. $200,000C. $50,000D. $40,000

Sample Questions

9. Consider the following figure. Assume that the risk has a 50% probability of occurrence. If the risk does occur, it could have a positive or a negative impact equivalent to $200,000 or $50,000, respectively, with the probabilities shown in the figure. What is the EMV for the risk?

A. $25,000B. $55,000C. $110,000D. $50,000

Sample Questions

10. Which of the following is a correct statement about secondary risks?

A. These are the residual risks.B. These are the risks that have medium or low priority.C. These are the risks that will be avoided.D. These are the risks that can result from responses to the

identified risks.

Sample Questions

11. Which of the following is not a valid risk response?A. Risk acceptanceB. Risk sharingC. Risk mitigationD. Risk rejection

Sample Questions

12. Which of the following is a valid statement about SWOT?A. It is an analysis technique to identify risks.B. It refers to the analysis of scope, work, options, and timing.C. It is a technique used to plan a risk response.D. It is a technique used to perform quantitative risk analysis.

Sample Questions

13. Which of the following is not an output of the qualitative risk analysis?

A. A prioritized list of risks for a given project objective based on the probability and impact matrix of the objective

B. A watch list of low-priority risksC. A list of risks prioritized based on the total effect of each risk

on the overall project objectivesD. A list of trends in the analysis results

Sample Questions

14. Which of the following is not an output of quantitative risk analysis?

A. Probability of meeting the project objectives, such as cost and schedule

B. A list of risks prioritized based on the total effect of each risk on the overall project objectives

C. A list of trends in the analysis resultsD. Decision about a risk-related contractual agreement

Sample Questions

15. Which of the following is not an input to identifying stakeholders?

A. Project charterB. ContractC. Approved project scheduleD. Stakeholder register template

Sample Questions

16. You are trying to understand the message sent to you by one of your team member who lives on the other side of the globe. The team member has used lots of local phrases and acronyms that you are trying to understand. According to the basic communication model, what are you dealing with here?

A. Noise and decodingB. Encoding and feedbackC. Message and feedbackD. Broken English

Sample Questions

17. Which of the following is not an output of communication planning?

A. Methods of communicationB. Communication constraintsC. Frequency of reporting the project statusD. Stakeholder management strategy

Pmp session 5

Documents

Transcript of Pmp session 5