Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
439 Cards in this Set
- Front
- Back
- 3rd side (hint)
Project Characteristics
|
Temporary, Unique and Produces a result
|
|
|
Operations Characteristics
|
Ongoing, Repetitive and Sustains business
|
|
|
Program Characteristics
|
Multiple projects that are managed together
|
Shares resources across projects (budget, personnel)
|
|
Portfolio Characteristics
|
Manages all projects, programs and operations toward a strategic goal
|
|
|
Project Life Cycle
|
Defines the project from beginning to end, connected by various phases
|
Common, more generic group of phases includes Initiating, Planning, Executing, Monitoring & Controlling, and Closing
|
|
Project Management Process Groups
|
Initiating,
Planning, Executing, Monitoring & Controlling, and Closing |
Consists of 42 processes
|
|
Initiating Process Group: Purpose
|
Authorize, start and define a new project or phase
|
|
|
Initiating Process Group: Processes
|
1. Develop Project Charter; and
2. Identify Stakeholders |
|
|
Planning Process Group: Purpose
|
Define the project objectives and to develop the course of action required to attain those objectives
|
|
|
Planning Process Group: Processes
|
1. Develop Project Management Plan;
2. Collect Requirements; 3. Define Scope; 4. Create WBS; 5. Define Activities; 6. Sequence Activities; 7. Estimate Activity Resources; 8. Estimate Activity Durations; 9. Develop Schedule; 10. Esimate Costs; 11. Determine Budget; 12. Plan Quality; 13. Develop Human Resources Plan; 14. Plan Communications; 15. Plan Risk Management; 16. Identify Risks; 17. Perform Qualitative Risk Analysis; 18. Perform Quantitative Risk Analysis; 19. Plan Risk Response; and 20. Plan Procurements |
|
|
Executing Process Group: Purpose
|
Complete the work defined in the project management plan.
|
|
|
Executing Process Group: Processes
|
1. Direct and Manage Project Execution;
2. Perform Quality Assurance; 3. Acquire Project Team; 4. Develop Project Team; 5. Manage Project Team; 6. Distribute Information; 7. Manage Stakeholder Expectations; and 8. Conduct Procurements |
|
|
Monitoring & Controlling Process Group: Purpose
|
Track, review and regulate the project performance, and identify any necessary changes
|
|
|
Monitoring & Controlling Process Group: Processes
|
1. Monitor and Control Project Work;
2. Perform Integrated Change Control; 3. Verify Scope; 4. Control Scope; 5. Control Schedule; 6. Control Costs; 7. Perform Quality Control; 8. Report Performance; 9. Monitor and Control Risks; and 10. Administer Procurements |
|
|
Closing Process Group: Purpose
|
Finalize all activities in order to formally complete the project, phase or a contract
|
|
|
Closing Process Group: Processes
|
1. Close Project or Phase; and
2. Close Procurements |
|
|
Triple Constraints
|
Time, Cost and Scope
|
|
|
Expanded Constraints Model
|
Triple Constraints Model (Time, Cost and Scope), plus Quality, Risk and Resoucres
|
|
|
External Factors
|
Environmental,
Industry, Economic Situation, Human & Healthy Safety, Legal, Consumers, and Competition |
|
|
Internal Factors
|
Technology, Project Stakeholders, Organization's Structure & Culture
|
|
|
Organizational Structures: Types
|
Functional (Traditional), Projectized, and Matrix
|
|
|
Functional Organizational Structure
|
Company divided into departments, and each department is led by a functional/department manager, who reports to the president or CEO.
|
Traditional structure; structured as a hierarchy
|
|
Functional Organizational Structure: Advantages
|
Clear reporting structure, Room for advancement, and Stable
|
|
|
Functional Organizational Structure: Disadvantages
|
Limited authority for project managers; Minimal room for growth; Limited resources; and Project team is focused on their specialty, not the project
|
|
|
Projectized Organizational Structure
|
Revolves around the projects it manages, and the project managers are the ones with the authority, reporting directly to the CEO.
|
Opposite of Functional Organizational Structure
|
|
Projectized Organizational Structure: Advantages
|
High authority for the project manager;
Efficiency in project management; and Project loyalty |
|
|
Projectized Organizational Structure: Disadvantages
|
Unstable;
Resource inefficiencies; and Lack of in-house expertise |
|
|
Matrix Organizational Structure
|
Blend of Functional and Projectized Organizational Structures; Project staff report to both a functional manager and a project manager
|
|
|
Matrix Organizational Structure: Types
|
Weak Matrix (leans toward Functional);
Balanced Matrix (balanced blend of Functional and Projectized); and Strong Matrix (leans toward Projectized) |
|
|
Matrix Organizational Structure: Advantages
|
Weak: Project coordination and better project communication;
Balanced: Efficient project management and strong project communication; Strong: Efficient project communication and staff not disbanded after project |
|
|
Matrix Organizational Structure: Disadvantages
|
Dual reporting relationship; Complex management; and Potential conflict between management
|
|
|
Project Management Knowledge Areas
|
Integration,
Scope, Time, Cost, Quality, Human Resource, Communication, Risk, and Procurement |
|
|
Primary Types of Communication
|
Formal Written,
Informal Written, Formal Verbal, Informal Verbal, and Nonverbal |
|
|
Stakeholder Register
|
Contains Identification Information, Assessment Information, and Stakeholder Classification
|
|
|
Identify Stakeholders Process
|
1. Identify stakeholders and information about stakeholders;
2. Identify the potential impact or support of each stakeholder; 3. Assess stakeholder reactions and responses given various scenarios. |
|
|
Stakeholders
|
Person or organization that is actively involved in the project, or whose inerests may be positively or negatively affected by execution or completion of the project.
|
May exert influence over the project and its deliverables.
|
|
Identify Stakeholders: Outputs
|
1. Stakeholder register, and
2. Stakeholder management strategy |
|
|
Plan Communications: Inputs
|
1. Stakeholder register;
2. Stakeholder management strategy; 3. Organizational Process Assests (OPAs); and 4. Enterprise Environmental Factors (EEFs) |
|
|
Communication Channels Formula
|
N (N-1) / 2, where N = Total stakeholders within the project
|
|
|
Plan Communications: Tools and Techniques
|
1. Communication requirements analysis;
2. Communication technology; 3. Communication models; and 4. Communication methods |
|
|
Plan Communications: Outputs
|
1. Communications management plan; and
2. Project document updates |
|
|
Communication Technology Factors
|
Availability,
Urgency, and Project logistics (staffing, duration and environment) |
|
|
Communication Models
|
Sender Encodes Message > Receiver Decodes Message > Receiver Encodes Message > Sender Decodes Message; Must pass through noise
|
|
|
Sender
|
Responsible for confirming the information has been understood correctly and making sure the information is clear and complete
|
|
|
Receiver
|
Responsible for making sure the information is understood correctly and received in its entirety
|
|
|
Encode
|
To pass on thoughts or ideas in a way that can be understood by others
|
|
|
Decode
|
To receive the message and translate it back into meaningful thoughts
|
|
|
Message
|
Information being encoded and then decoded between the sender and receiver
|
|
|
Medium
|
The method used to convey the message
|
|
|
Noise
|
Anything interfering with etting or receiving the message
|
|
|
Communication Methods
|
Interactive, Push and Pull
|
|
|
Interactive Communication
|
Between 2 or more individuals (i.e., meetings, conference calls, phone calls)
|
|
|
Push Communication
|
From one individual to another (i.e., letters, email, fax, voicemail)
|
|
|
Pull Communication
|
For large audiences that need access information at their discretion (i.e., online learning, intranet, knowledge hub)
|
|
|
Communication Management Plan: Contents
|
1. Stakeholder communicatin requirements;
2. Info to be communicated; 3. Communication guidelines; 4. Frequency; 5. Escalation process; 6. Responsibility; 7. Recipients; 8. Communication methods used; 9. Resources; 10. Communication constraints; 11. Communicaiton flow chart; 12. Glossary of terms; and 13. Method for updating and refining |
|
|
Distribute Information Process: Methods
|
Meetings, Hard-copy documents, Manual filing systems, Fax, Email, Voicemail, Telephone, Video/Web conferencing
|
|
|
Manage Stakeholder Expectations: Skill Types
|
Interpersonal Skills ("soft skills"), Management Skills, and Communication Methods
|
|
|
Report Performance Process
|
Compares actual project progress with planned progress, reporting deviations and submitting corrective or preventative actions
|
Monitoring and Controlling phase of the project
|
|
Report Performance Process: Performance Report Components
|
Actual Performance,
Planned Performance and Tools/Techniques to generate reports |
|
|
Report Performance Process: Tools and Techniques
|
Variance Analysis;
Forecasting Methods; and Communications Methods |
|
|
Utility Theory
|
Formalizes the subjective views of stakeholders, and impacts level of satisfaction one gets out of risk
|
Communication Theory
Glossary Term |
|
Organizational Theory
|
Provides insight into the ways people, team and organizational units behave
|
Communication Theory, used as a technique of the human resource planning process.
|
|
General Management: Components
|
Communication skills,
Management skills, Interpersonal skills, Leadership styles, Conflict management, and Motivators |
|
|
Interpersonal Skills
|
Empathy,
Influence, Creativity, and Group Facilitation |
"Soft Skills"
|
|
Leadership Styles
|
1. Directing (telling others what to do);
2. Facilitating (coordinating ideas/inputs of others); 3. Coaching (instructing others); 4. Supporting (providing assistance); 5. Autocratic (decisions based on individual making the decision); 6. Consultative (ideas of others are encouraged); and 7. Consensus (decisions reached as a group) |
|
|
Conflict Management: Reasons for Conflict
|
1. Schedule;
2. Varying priorities; 3. Resources; 4. Technical beliefs; 5. Administrative procedures; 6. Cost; 7. Personality |
Project Schedule is the most common source of conflict
|
|
Conflict Management: Resolution Techniques
|
1. Confronting/Problem Solving;
2. Compromising; 3. Withdrawal/Avoiding; 4. Smoothing/Accommodating; 5. Forcing; 6. Collaborating |
|
|
Confronting/Problem Solving
|
Conflict dealt with head on and resolved
|
Considered the "best" resolution technique option
|
|
Compromising
|
Finding a solution bringing level of satisfaction to people involved
|
|
|
Withdrawal/Avoiding
|
Retreating from the issue, and therefore no opportunity for resolution
|
|
|
Smoothing/Accommodating
|
Agreement is emphasized to deal with differences of opinion
|
|
|
Forcing
|
Decision is pushed, even at the expense of others
|
|
|
Collaborating
|
Multiple viewpoints are incorporated, based on different perspectives
|
|
|
Conflict Management: Types of Power
|
1. Formal (Based on person's position);
2. Reward (Reward for doing something); 3. Penalty/Coercive (punish for doing something); 4. Expert (Based on knowledge); 5. Referent (Based on another's authority) |
Best Power: Reward, Expert; Worst Power: Penalty
|
|
Motivation and Management Techniques
|
1. Herzberg's Theory of Motivation;
2. Maslow's Hierarchy of Needs; 3. Expectancy Theory; and 4. Theory of X and Y |
|
|
Herzberg's Theory of Motivation
|
A motivational theory developed by Frederick Herzberg
Multiple job motivating factors and hygiene factors that affect people's attitude at work. |
Glossary Terms
|
|
Hygiene Factors
|
Factors that if absent, would result in job dissatisfaction, such as: working conditions, safety, salary, job security and supervision
|
Herzberg's Theory of Motivation
|
|
Motivators
|
Factors that could result in job satisfaction, such as: recognition, responsibility and work challenges
|
Herzberg's Theory of Motivation
|
|
Maslow's Hierarchy of Needs
|
Developed by Abraham Maslow; must meet basic set of needs before reaching higher achievement
|
Glossary Term
|
|
Maslow's Hierarchy of Needs: Pyramid Levels (bottom to top)
|
1. Physiological (food, water, shelter, breathing, sleeping);
2. Safety (health, property, employment and resource safety); 3. Love/Belonging (friendship, family and intimacy); 4. Esteem (self-esteem, confidence, respect, achievement); and 5. Self-actualization (morality, problem-solving, creativity, acceptance of facts, lack of prejudice) |
|
|
Expectancy Theory
|
Developed by Victor Vroom; states that employees will place more effort into better performance if it leads to valued rewards
|
Assumption: Behavior is based on conscious choices (i.e., skills, experience, ability, knowledge and personality)
Glossary Terms |
|
Theory of X and Y
|
Developed by Douglas McGregor; revolves around two different types of attitudes toward work (Theory X and Theory Y)
|
|
|
Theory X
|
Management functions with the belief employees are inerently lazy and avoid work whenever possible
|
McGregor's Theory of X and Y
|
|
Theory Y
|
Management functions with the belief employees may be ambitious, self-motivated, and empowered and anxious to take on greater responsibility.
|
McGregor's Theory of X and Y
|
|
Communicating With Stakeholders: Communication Factors
|
Risk Attitudes
Psychological Factors Stakeholder Needs & Interests |
|
|
Risk Attitudes
|
Risk Averse (uncomfortable with risk);
Risk Tolerant (unconcerned about risk, surprised when realized); Risk Seeking (looks for risk, views it as a challenge) Risk Neutral (embraces risk, view as opportunity) |
|
|
Psychological Factors
|
Threatened level of comfort in unfamiliar territory
Level of personal control Emotional obstacles |
|
|
Risk Tolerance
|
The degree or volume of risk, an organizaiton or individual will withstand
|
|
|
Stakeholder Risk Tolerance: Inputs
|
Utilize enterprise environmental factors (EEFs)
Utilize organizaitonal process assets (OPAs) |
|
|
Identify Risks Process: Inputs
|
1. Risk Management Plan
2. Activity Cost Estimates 3. Activity Duration Estimates 4. Scope Baseline 5. Stakeholder Register 6. Cost Management Plan 7. Schedule Management Plan 8. Quality Management Plan 9. Project Documents 10. Organizational Process Assets (OPAs) 11. Enterprise Environmental Factors (EEFs) |
|
|
Identify Risks Process: Tools and Techniques
|
1. Documentation Reviews
2. Information Gathering Techniques 3. Checklist Analysis 4. Assumptions Analysis 5. Diagramming Techniques 6. SWOT Analysis 7. Expert Judgment |
|
|
Identify Risks Process: Outputs
|
1. Risk Register
|
|
|
Assumption
|
Factors, for planning purposes, that are considered to be true, real or certain without proof or demonstration
|
|
|
Project Risk Management Processes
|
1. Plan Risk Management
2. Identify Risks 3. Perform Qualitative Risk Analysis 4. Perform Quantitative Risk Analysis 5. Plan Risk Responses 6. Monitor and Control Risks |
|
|
Enterprise Environmental Factors (EEFs)
|
External environmental factors and internal organizational environmental factors that surround or influence the project's success.
|
Glossary Terms
|
|
Organizational Process Assets (OPAs)
|
Any/all process assets from any/all of the organizations involved with the project that can be used to influence project success
Assets include: formal and informal plans; policies, procedures and guidelines; existing project files; existing project process controls; risk templates; historical information; and Lessons Learned |
Glossary Term
|
|
Scope Baseline: Components
|
Project Scope Statement
Work Breakdown Structure (WBS) WBS Dictionary |
|
|
Work Breakdown Structure (WBS)
|
Hierarchial decomposition of the deliverable-oriented project work to be executed by the project team to accomplish project objectives and create the required deliverables
Decomposes deliverables into smaller, more manageable pieces that defines and organizes the total scope of the project |
Glossary Term
|
|
WBS Dictionary: Components
|
Description of work
Responsible organization Schedule Milestones Associated schedule activities Resources required Cost estimates Quality requirements Acceptance criteria Technical references Contract information |
|
|
Activity Cost Estimates
|
Quantitative assessment of what activities will cost, represented as a range
|
|
|
Activity Duration Estimates
|
Assessment of the estimated duration of activities, represented as a range
|
|
|
Activity Duration Estimating Techniques
|
1. Analagous (using actual cost from previous projects)
2. Parametric (historical data and other information to calculate estimates) 3. Bottom-up (estimate cost of individual work packages, roll up to higher levels for reporting) |
|
|
Project Documents: Examples
|
Assumptions Log
Work Performance Reports Earned Value Reports Network Diagrams Other Project Information |
|
|
Diagramming Techniques
|
Cause and Effect diagrams
System of Process Flow charts Influence diagrams |
Device: "CSI"
|
|
Information Gathering Techniques
|
Brainstorming
Interviews Root Cause Analysis Delphi Technique |
Utilize RBS as starting point
Interviewing is a primary source of risk identification gathering Device: "BIRD" |
|
SWOT Analysis
|
Information gathering technique examines the project fromn the perspective of each project's strengths, weaknesses, opportunities and threats to increase the breadth of the risks considered by risk management
|
Glossary Term
|
|
7 Basic Tools of Quality
|
Cause and Effect Diagrams
Control Charts Flow Charts / Flowcharting Histograms Pareto Charts Run Charts Scatter Diagrams |
Tools and techniques of the Perform Quality Control process, within the Project Quality Management Knowledge Area.
|
|
Rule / Run of 7
|
When 7 consecutive plots fall on one side of the mean
Used with Control Charts Can signal a risk, or identify an existing issue |
|
|
Trend of 7
|
When 7 consecutive plots follow a trend up or down the mean
Control Chart Signals there may be something influencing the results Can signal a risk or identify an existing issue |
|
|
Pareto Rule
|
Also known as the 80/20 rule, where the top 20% of the causes identified, represent 80% of the problems
|
|
|
Run Charts
|
Shows pattern of variation over time
|
|
|
Scatter Diagram
|
Shows the pattern of relationships between two different variables
|
|
|
Plan Risk Management Process: Inputs
|
1. Project Scope Statement
2. Cost Management Plan 3. Schedule Management Plan 4. Communications Management Plan 5. Enterprise Environmental Factors (EEFs) 6. Organization Process Assets (OPAs) |
|
|
Plan Risk Management Process: Tools and Techniques
|
1. Planning Meetings and Analysis
|
|
|
Plan Risk Management Process: Outputs
|
1. Risk Management Plan
|
|
|
Perform Qualitative Risk Analysis: Inputs
|
1. Risk Register
2. Risk Management Plan 3. Project Scope Statement 4. Organizational Process Assets (OPAs) |
|
|
Perform Qualitative Risk Analysis: Tools and Techniques
|
1. Risk Probability and Impact Assessment
2. Risk Probability and Impact Matrix 3. Risk Data Quality 4. Risk Categorization 5. Risk Urgency Assessment 6. Expert Judgment |
|
|
Perform Qualitative Risk Analysis: Outputs
|
Risk Register Updates
|
|
|
Steps in Performing Analysis
|
1. Assess Risks (assign rating)
2. Prioritize Risks (combine probability and impact) 3. Quantify Risks (individual risks as needed; project risk) |
|
|
Qualitative Risk Analysis: Characteristics
|
1. Addresses individual risks descriptively
2. Assesses the discrete probability of occurrence and impact on objectives if it does occur 3. Prioritizes individual risks for subsequent treatment 4. Adds to risk register 5. Leads to quantitative risk analysis |
|
|
Quantitative Risk Analysis: Characteristics
|
1. Predicts likely project outcomes based on combined effects of risks
2. Uses probability distributions to characterize the risk's probability and impact 3. Uses project model 4. Uses a quantitative methid, requires specialized tools 5. Estimates likelihood of meeting targets and contingency needed to achieve desired level of comfort 6. Identifies risks with greatest effect on overall project risk |
|
|
Risk Categorization: Characteristics
|
Group risks by source, and area of the project affected by risk
Consider utilizing RBS, WBS |
Perform Qualitative Risk Analysis
|
|
Risk Urgency Assessment: Characteristics
|
Determine level of urgency in addressing risks
Priority Indicators include: Time to execute a risk response, Symptoms & warning signs, and Risk rating |
Perform Qualitative Risk Analysis
|
|
Risk Register Updates: Elements
|
1. Prioritized list of risks
2. Risks grouped by categories 3. Risks requiring near-term response 4. Risks requiring additional analysis and response 5. Watchlist 6. Qualitative trends |
Perform Qualitative Risk Analysis
|
|
Qualitative Risk Analysis: Success Factors
|
1. Agreement of Approach (rating and prioritizing risks)
2. Consensus among stakeholders (agreement on srtategies, definitions, and approach) 3. Agreement of definitions (agreement and understanding of what constitutes a high, medium and low risk) |
|
|
Perform Quantitative Risk Analysis: Inputs
|
1. Risk Register
2. Risk Management Plan 3. Cost Management Plan 4. Schedule Management Plan 5. Organizational Process Assets (OPAs) |
|
|
Perform Quantitative Risk Analysis: Tools and Techniques
|
1. Data Gathering Representation Techniques
2. Quantitative Risk Analysis and Modeling Techniques 3. Expert Judgment |
|
|
Perform Quantitative Risk Analysis: Outputs
|
1. Risk Register Updates
|
|
|
Data Gathering and Representation Techniques
|
1. Interviewing
2. Probability distributions |
Perform Quantitative Risk Analysis
|
|
Quantitative Risk Analysis and Modeling Techniques
|
1. Sensitivity Analysis
2. Expected Monetary Value (includes Decision Tree analysis) 3. Modeling and simulation (Monte Carlo technique) |
Perform Quantitative Risk Analysis
|
|
Steps in quantifying risks
|
1. Gather Information (interviews, expert judgment)
2. Display Information (probability distributions, expert judgment) 3. Perform Additional Analysis (EMV/Decision Tree Analysis; Sensitivity Analysis/Tornado Diagrams; Modeling & Simulation/Monte Carlo Technique; Expert Judgment) |
Perform Quantitative Risk Analysis
|
|
Perform Quantitative Risk Analysis: Interviewing
|
1. Quantify the probability and impact of risks on project objectives
2. Gathers 3-point estimates (pessimistic, most likely and optimistic estimates) 3. Use Formulas for 3-Point Estimate, Standard Deviation and Variance |
Perform Quantitative Risk Analysis
|
|
3-Point Estimate Formulas
|
1. Simple Average: (O + P + ML) / 3
2. PERT: (O + 4ML + P) / 6 where O is Optimistic, ML is Most Likely and P is Pessimistic estimate |
Perform Quantitative Risk Analysis
|
|
Standard Deviation Formula
|
(P - O) / 6
where O is Optimistic and P is Pessimistic estimate |
Perform Quantitative Risk Analysis
|
|
Variance Calculation
|
Used during interviewing within the Perform Quantitative Risk Analysis process
Formula: [(P - O) / 6]² where O is Optimistic and P is Pessimistic estimate |
Glossary Term
|
|
Probability Distributions
|
1. Beta distributions (continuous distribution)
2. Triangular distributions (continuous distribution) 3. Uniform distributions (continuous distribution) 4. Normal distributions (continuous distribution) 5. Lognormal distributions (continuous distribution) 6. Discrete distributions (discrete distribution) |
Perform Quantitative Risk Analysis
|
|
Continuous vs. Discrete Distribution
|
Continuous probability distributions show uncertainty in VALUES, Discrete distributions show uncertainty in EVENTS
|
Perform Quantitative Risk Analysis
|
|
Beta Distributions
|
Describes the uncertainty of variables
Continuous distribution Uses PERT data Values range from 0 to 1 Most frequently USED (along with Triangular Distribution) |
Perform Quantitative Risk Analysis
|
|
Triangular Distributions
|
Based on 3-Point Estimates
Most frequently USED (along with Beta Distribution) |
Perform Quantitative Risk Analysis
|
|
Standard Deviation
|
Used during interviewing witin Perform Quantitative Risk Analysis process
Signified by character σ (Sigma) Formula: (P - O) / 6 In Normal Distribution: 1 Sigma = 68.00% 2 Sigma = 95.50% 3 Sigma = 99.73% 6 Sigma = 99.999% |
Glossary Term
|
|
Normal Distribution
|
Uses standard deviation from the mean (3-Point or PERT)
Typically used for variables that cluster around the mean Most widely RECOGNIZED distribution. |
Perform Quantitative Risk Analysis
|
|
Lognormal distribution
|
Uses mean (3-Point, PERT) and standard deviation
Results positively skewed |
Perform Quantitative Risk Analysis
|
|
Expert Judgment
|
Utilizes knowledge of internal and external SMEs to validate the data and techniques used
|
Perform Quantitative Risk Analysis
Glossary Terms |
|
Sensitivity Analysis
|
Determines which risks have the most potential impact on the project
Utilizes "What-If" scenarios Utilizes Tornado Diagram; listing high to low degrees of certainty |
Perform Quantitative Risk Analysis
|
|
Expected Monetary Values (EMV) Analysis
|
A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen.
A common use of EMV is Decision Tree Analysis Positive values = opportunities Negative values = threats Formula: EMV = Probability x Impact (P x I), where Probability is shown as %, and Impact in Dollars |
Perform Quantitative Risk Analysis
Glossary Terms |
|
Decision Tree Analysis
|
Part of EMV Technique
Shows potential choices within a scenario, and its implications Incorporates the cost of each available choice and probability of the scenario Utilizes EMV to solve the decision tree |
Perform Quantitative Risk Analysis
|
|
Perform Quantitative Risk Analysis Process: Risk Register Updates
|
1. Probabilistic analysis of the project
2. Probability of achieving cost and time objectives 3. Prioritized list of quantified risks 4. Quantitative trends |
Perform Quantitative Risk Analysis
|
|
Modeling and Simulation
|
1. Translates uncertainties into potential impact on project objectives
2. Uncertainties are specified at a detailed level of the project 3. Typically performed using the Monte Carlo technique 4. Examples of using modeling and simulation include: calculate probable cost and value of the project & probable time to complete the project; determine which activities likely on the critical path; performing cost-benefit analysiswen deciding on a response |
Perform Quantitative Risk Analysis
|
|
Monte Carlo Technique
|
1. Computes the project model many times using a software program
2. Randomizes values from a probability distribution function 3. Results in the calculation of a probability distribution (S-shaped curve that widens as probability increases) |
Perform Quantitative Risk Analysis
|
|
Perform Quantitative Risk Analysis Process: Success Factors
|
1. Perform After Identifying and Assessing Risks
2. Use An Appropriate Project Model 3. Collect High-Quality Risk Data 4. Identify and Eliminate Bias 5. Derive Overall Project Risk 6. Recognize Interrelationships Between Risks |
|
|
Plan Risk Responses: Inputs
|
1. Risk Register
2. Risk Management Plan |
|
|
Plan Risk Responses: Tools and Techniques
|
1. Strategies for negative risks or threats
2. Strategies for positive risks or opportunities 3. Contingent response strategies 4. Expert judgment |
|
|
Plan Risk Responses: Outputs
|
1. Risk Register updates
2. Risk-related contract decisions 3. Project management plan updates 4. Project document updates |
|
|
Risk Response Strategies: Negative Risks
|
1. Mitigate (reduce probability and/or impact of the risk)
2. Avoid (remove possibility of the risk from occurring by altering the project) 3. Transfer (shift impact to a 3rd party) 4. Accept (Passive: do nothing; Active: add contingency reserve such as time, funds and resources to prepare for the risk) |
Plan Risk Responses Process
Device: Negative: "MAT" Accept |
|
Risk Response Strategies: Positive Risks
|
1. Share (utilizing 3rd party to ensure the organization can take advantage of the opportunity)
2. Exploit (making sure positive risk occurs) 3. Enhance (identifying and maximizing the factors resulting in the risk occurring) 4. Accept (Passive: do nothing; Active: add contingency reserve such as time, funds and resources to prepare for the risk); same as negative |
Plan Risk Responses Process
Device: Positive: "SEE" Accept |
|
Contingent Response Strategies
|
Created for certain risks where a response plan can be developed in advance that are connected to a trigger or symptom.
Example of a Risk Trigger is missing a schedule milestone |
Plan Risk Responses Process
|
|
Types of Reserves
|
1. Contingent Reserves (accounts for known risks, included as part of the project budget and schedule); funds owned by Project Manager
2. Management Reserves (accounts for unknown-unknown risks, as part of the project budget); funds owned by Management |
Plan Risk Response Process
|
|
Cost Performance Baseline
|
Also known as Project Budget
Cost Estimates + Contingency Reserves |
Plan Risk Response Process
|
|
Project Funding Requirements
|
Cost Performance Baseline + Management Reserves
|
Plan Risk Response Process
|
|
Fallback Plan
|
Secondary Plan, for use if initial plan is ineffective ("Plan B")
Initial plan can be a contingency plan |
Plan Risk Responses Process
|
|
Residual Risks
|
A risk that remains after risk responses have been implemented
|
Plan Risk Response Process
|
|
Secondary Risks
|
A risk that arises as a direct result if implementing a risk response
|
Plan Risk Response Process
|
|
Plan Risk Responses: Risk Register Updates
|
1. Agreed upon response strategies
2. Specific actions ti implement the response strategies 3. Risk symptoms and warning signs 4. Required budget and schedule activities for response implementation 5. Contingency plans and their triggers 6. Contingency reserves 7. Fallback plans 8. Residual risks 9. Secondary risks |
|
|
Plan Risk Response Process: Success Factors
|
1. Ensure open and appropriate communication
2. Clearly define risk-related roles and responsibilities 3. Integrate responses into project management plan 4. Plan for resoucres, budget, and schedule activities needed 5. Address interaction between risks and responses 6. Develop appropriate responses 7. Address both positive and negative risks |
|
|
Monitor and Control Risks: Inputs
|
1. Risk Register
2. Project Management Plan 3. Work Performance Information 4. Performance Reports |
|
|
Monitor and Control Risks: Tools and Techniques
|
1. Risk Reassessment
2. Risk Audits 3. Variance and Trend Analysis 4. Technical Performance Measurement 5. Reserve Analysis 6. Status Meetings |
|
|
Monitor and Control Risks: Outputs
|
1. Risk Register Updates
2. Change Requests 3. Organization Process Assets (OPAs) Updates 4. Project Management Plan Updates 5. Project Document Updates |
|
|
Risk Assessment
|
Reassessment of existing risks
Identification of new risks Agenda item of project status meetings |
Monitor and Control Risks Process
|
|
Risk Audits
|
Examine and document the effectiveness of risk responses and risk management processes
|
Monitor and Control Risks Process
|
|
Variance and Trend Analysis
|
Monitors project performance to forecast potential risks
Utilizes performance reports and work performance information Utilizes Earned Value Management (EVM) Analysis (Status: CPI, CV, SPI, SV; Forecast: EAC, ETC, VAC, TCPI) |
Monitor and Control Risks Process
|
|
Earned Value Management
|
Technique used when performing risk management monitoring and controlling activities
Most commonly used method to measuring project performance |
Monitor and Control Risks Process
|
|
Earned Value (EV)
|
The value of the work performed in terms of the approved budget
Also known as Budgeted Cost of Work Performed (BCWP) |
Monitor and Control Risks Process; EVM
|
|
Planned Value (PV)
|
The authorized budet that has been assigned to the work being evaluated
Also known as Budgeted Cost of Work Scheduled (BCWS) Total PV is known as the Performance Measurement Baseline (PMB) or Budget at Completion (BAC) |
Monitor and Control Risks Process; EVM
|
|
Actual Cost (AC)
|
The total cost incurred to perform the work (actual funds spent)
Also known as Actual Cost of Work Performed (ACWP) |
Monitor and Control Risks Process; EVM
|
|
Schedule Variance (SV)
|
Measurement of schedule performance versus the schedule baseline
Formula: SV = EV - PV SV = 0 when project is complete Positive value: ahead of schedule Negative value: behind schedule |
Monitor and Control Risks Process; EVM
Glossary Term |
|
Schedule Performance Index (SPI)
|
Measure of progress achieved versus progress planned; schedule efficiency
Formula: SPI = EV / PV SPI = 1: On schedule SPI > 1: Ahead of schedule SPI < 1: Behind Schedule |
Monitor and Control Risks Process; EVM
Glossary Term |
|
Cost Variance (CV)
|
Measurement of cost performance
Formula: CV = EV - AC Positive value: under budget Negative value: over budget |
Monitor and Control Risks Process; EVM
|
|
Cost Performance Index (CPI)
|
Measure of the work completed versus actual cost
Most critical EVM metric, since it measures cost efficiency Formula: CPI = EV / AC CPI = 1: On budget CPI > 1: Under Budget CPI < 1: Over Budget |
Monitor and Control Risks Process; EVM
|
|
Estimate at Completion (EAC)
|
An estimate of the total cost of a schedule activity, a WBS component, or project when the defined scope of the work will be completed, based on current performance
Formula: EAC = BAC / CPI Also known as Latest Revised Estimate (LRE) |
Monitor and Control Risks Process; EVM
|
|
Estimate to Complete (ETC)
|
An estimate of the cost of the remaining work to be completed for a scheduled activity, WBS component or the project.
Formula: ETC = (BAC - EV) / CPI or ETC = EAC - AC |
Monitor and Control Risks Process; EVM
Glossary Term |
|
Variance at Completion (VAC)
|
An estimate of how much more or less the project is expected to cost in comparison to the BAC
Formula: VAC = BAC - EAC |
Monitor and Control Risks Process; EVM
|
|
To-Complete Performance Index (TCPI)
|
The rate at which the remaining work must be performed, in order to finish at the BAC or EAC
Ratio of "remianing work" to "funds remaining" Formulas: 1. TCPI = (BAC - EV) / (BAC - AC) 2. TCPI = (BAC - EV) / (EAC - AC) |
Monitor and Control Risks Process; EVM
Glossary Term |
|
Technical Perfomance Measurement
|
Compares actual tecnical accomplishments to planned
Determines deviations to help forecast the degree of success in accomplishing the project's scope Deviations may be risks |
Monitor and Control Risks Process
|
|
Reserve Analysis
|
Compares the amount of contingency reserve remining to the risks remaining
Is the risk reserve sufficient? |
Monitor and Control Risks Process
|
|
Workarounds
|
Unplanned response to a negative risk that has occurred
|
Monitor and Control Risks Process
|
|
Monitor and Control Risks: Risk Register Updates
|
1. Outcomes of Risk Assessments, Risk Audits and Risk Reviews
2. Actual Outcomes of Project Risks and Risk Responses |
|
|
Monitor and Control Risks: Ciritcal Success Factors
|
1. Integrate Risk Monitoring and Controlling eforts with project M&C efforts
2. Monitor Risk Triggers Regularly 3. Address Risks Regularly to Promote Risk Awareness |
|
|
Accept
|
A risk response strategy that is used for both negaitve and positive risks.
|
See passive acceptive and active acceptance; Glossary Term
|
|
Active Acceptance
|
A risk response strategy where a contingency reserve is added to deal with the risk if it occurs.
|
Glossary Term
|
|
Actual Cost (AC)
|
Total costs actually incurred and recocorded in accomplishing work performed during a given time period for a schedule activity or work breakdown structure component.
|
Glossary Term
|
|
Analagous Estimating
|
An estimating technique that uses the values of parameters such as scope, cost, budget and duration, or measures of scale such as size, weight and complexity from a previous, similar activity as the basis for estimating the same parameter or measure for a future activity
|
Glossary Term
|
|
Assumptions
|
Factors that, for planning purposes, are considered to be true, real or certain without proof or demonstration.
|
Glossary Term
|
|
Assumptions Analysis
|
A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.
|
Glossary Term
|
|
Autocratic
|
A leadership style, where one person makes a decision.
|
Glossary Term
|
|
Avoid
|
A risk response planning technique for a threat that creates changes to the project management plan that are meant to either eliminate the risk or to protect the project objectives from its impact.
|
Glossary Term
|
|
Baseline
|
An approved plan for a project, plus or minus approved changes.
It is compared to actual performance to determine of performance is within acceptable variance thresholds. Usually used with a modifier (e.g., cost performance baseline, schedule baseline, performance measurement baseline, technical baseline) |
Glossary Term
|
|
Basic Model of Communication
|
The exchange between a sender and a receiver of information.
The concept of the model is to communicate effectively. |
Glossary Term
|
|
Bottom-Up Estimating
|
A method of estimating a component of work.
The work is decomposed into more detail. An estimate is prepared of what is needed to meet the requirements of each of the lower, more detailed pieces of work and these estimates are then aggregated into a total quantity for the component of work. The accuracy of bottom-up estimating is driven by the size and complexity of the work identified at the lower levels |
Glossary Term
|
|
Business Risk
|
Risk that can result in gain or loss
|
Glossary Term
|
|
Cause and Effect Diagrams
|
A diagramming technique that is a tool and technique of the Identify Risks process.
It identifies causes of rosk, which helps identify additional risks. This leads to the development of better and more efficient risk responses. Also known as Ishikawa or Fishbone diagrams, and is considered to be one of the 7 basic tools of quality |
Glossary Term
|
|
Change Request
|
Requests to expand or reduce the rpoject scope, modify policies, processes, plans or procedures, modify costs or budgets, or revise schedules.
|
Glossary Term
|
|
Checklist Analysis
|
A tool and technique of the Identify Risks process.
It results in the creationof risk checklists, which are used to make sure that all items within the project have been considered. Typically uses historical information and the RBS to create the checklists. |
Glossary Term
|
|
Closing
|
Those processes performed to finalize all activities across all Project Management Process Groups to formally close the project or phase.
|
Glossary Term
|
|
Coaching
|
A leadership style, which involves placing an emphasis on instructing others.
|
Glossary Term
|
|
Code of Accounts
|
Any numbering system used to uniquely identify each component of the WBS
|
Glossary Term
|
|
Common Cause
|
A source of variation that is inherent in the system and predictable.
On a control chart, it appears as part of the random process variation, and is indicated by a random pattern of points within the control limits. Also referred to as random cause. |
Glossary Term
|
|
Communication Skills
|
A part of general management skills, which involves getting the right information to the right individuals.
Emphasizes: listening actively and effectively; ensuring the information was understood by asking questions; educating; identifying or confirming information through fact-finding,; setting and managing expectations; persuading; negotiating; conducting conflict resolution; summarizing the information; and identifying the next steps. |
Glossary Term
|
|
Brainstorming
|
A general data gathering and creativity technique that can be used to identify risks, ideas, or solutions to issues by using a grooup or team members or subject-matter experts
|
Glossary Term
|
|
Budget at Completion (BAC)
|
The sum of all the budgets established for the work to be performed on a project or a WBS component or a schedule activity.
Also known as the total planned value for the project. |
Glossary Term
|
|
Communications Management Plan
|
The document that describes: the communications needs and expectations for the project; how and in what format information will be communicated; when and where each communication will be made; and who is responsible for providing each type of communication.
It is contained in, or is a subsidiary of, the project management plan. |
Glossary Term
|
|
Compromising
|
A conflict resolution technique, which requires finding a solution that brings some level of satisfaction to the people involved.
Considered a "lose-lose" situation, |
Glossary Term
|
|
Confronting / Problem Solving
|
A conflict resolution technique, which is a "win-win" situation where the conflict is dealt wih head on and resolved.
|
Glossary Term
|
|
Consensus
|
A leadership style where decisions are reached as a group.
|
Glossary Term
|
|
Consultative
|
A leadership style where ideas of others are encouraged.
|
Glossary Term
|
|
Contingency Plan
|
A risk response that is executed when predefined risk triggers occur.
|
Glossary Term
|
|
Contingency Reserve
|
The amount of funds, budget, or time needed above the estimate to reduce the risk of overruns of projectobjectives to a level acceptable to the organization.
|
Glossary Term
|
|
Contingent Response Strategy
|
A tool and technique of the Plan Risk Responses process.
This strategy invovles developing contingency plans for certain riskswhere a response plan can be developed in advance. |
Glossary Term
|
|
Continuous Distributions
|
Used to show uncertainty in values
|
Glossary Term
|
|
Control
|
Comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.
|
Glossary Term
|
|
Control Account
|
A management control point where scope, budet (resource plans), actual cost, and schedule are integrated and compared to earned value for performance measurement.
|
Glossary Term
|
|
Control Chart
|
A graphic display of process data over time and against established control limits, and that has a centerlinethat assists in detecting a trend of plotted values toward either control limit.
|
Glossary Term
|
|
Control Limits
|
The area composed of three standard deviations on either side of the centerline (mean), of a normal distribution of data plotted on a control chart that reflects the expected variation in the data.
|
Glossary Term
|
|
Corrective Action
|
Documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan.
|
Glossary Term
|
|
Data Gathering and Representation Techniques
|
A tool and technique of the Perform Quantitative Risk Analysis process, which includes: interviewing and probability distributions.
|
Glossary Term
|
|
Decision Tree Analysis
|
Diagram describing a decision under consideration and the implications of choosing one or another of the available alternatives.
Used when some future scenarios or outcomes of actions are uncertain |
Glossary Term
|
|
Deliverable
|
Any unique and verifiable product, result or capability to perform a service that must be produced to complete a process, phase or project
Often used more narrowly in reference to an external deliverable, which is a deliverable subject to approval by the project sponsor or customer. |
Glossary Term
|
|
Delphi Technique
|
An information gathering technique used as a way to reach consensus of experts on a subject.
Experts participate in this technique anonymously, and therefore this technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome. |
Glossary Term
|
|
Diagramming Techniques
|
A tool and technique of the Identify Risks process, which includes: cause and effect diagrams, system or process flow charts, and influence diagrams.
|
Glossary Term
|
|
Directing
|
A leadership style, which involves telling others what to do.
|
Glossary Term
|
|
Discrete Distributions
|
Used to show uncertain events.
|
Glossary Term
|
|
Distribute Information
|
The process of making relevant information available to project stakeholders as planned.
|
Glossary Term
|
|
Documentation Reviews
|
A tool and technique of the Identify Risks process.
It looks at project plans and documents to determine whether they are consistent with the project requirements, whether they are of high quality, and looks at what assumptions were made within the plans. |
Glossary Term
|
|
Earned Value (EV)
|
The value of work performed expressed in terms of of the approved budget assigned to that work for a schedule activity or WBS component.
Also known as Budgeted Cost of Work Perofrmed (BCWP) |
Glossary Term
|
|
Earned Value Management (EVM)
|
A management methodology for integrating scope, schedule and resources, and for objectively measuring project performance and progress.
Performance measured by determining the EV (BCWP) and comparing it to AC (ACWP) |
Glossary Term
|
|
Enhance
|
A risk repsonse strategy that looks to increase the probability that a positive risk occurs and increase the positive impact of the risk.
|
Glossary Term; mnemonic device: SEE / MAT /Accept
|
|
Estimate
|
A quantitative assessment of the likely amount or outcome.
Applied to project costs, resources, effort and durations. It should always include some indication of accuracy. |
Glossary Term
|
|
Executing
|
Directing, managing, performing and accomplishing the project work, providing the deliverables and providing work performance information.
|
Glossary Term
|
|
Expert
|
A type of power based on the expertise of an individual on a subject.
|
Glossary Term
|
|
Exploit
|
A risk response strategy used when the organization is interested in making sure that a positive risk occurs, eliminating the uncertainty of the risk occurring
|
Glossary Term
Mnemonic device: SEE/MAT/Accept |
|
Facilitating
|
A leadership style, which involves coordinating ideas and inputs of others
|
Glossary Term
|
|
Failure Mode and Effect Analysis (FMEA)
|
An analytical procedure in which potential failure mode in every componewnt of a productin analyzed to determine its effect on the reliability on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of the component
The examination of a product for all ways that a failure may occur For each potential failure, an estimate is made of it seffect on the total system of its impact, and a review is undertaken of the action planned to minimize the probability of failure and to minize its effects |
Glossary Term
|
|
Fallback Plan
|
Planned responses to risks used when other planned responses prove ineffective ("Plan B").
|
Glossary Term
|
|
Flowcharting
|
The depiction in a diagram format of the inputs, process actions, and putputs of one or more processes within a system
|
Glossary Term
|
|
Forcing
|
A conflict resolution technique, where someone pushes a decision even if it is at the expense of another
|
Glossary Term
|
|
Forecast
|
A estimate or prediction of conditions and events in the project's future based on information and knowledge available at the time of the forecast.
Information is based on past performance, expected future performance and other information that could impact the project in the future (i.e., EAC, ETC) |
Glossary Term
|
|
Formal Verbal
|
A communication type.
Examples: presentations, speeches |
Glossary Term
|
|
Formal Written
|
A communication type.
Examples: reports and written requests Used for complex issues or for updating plans |
Glossary Term
|
|
Formal
|
A type of power based on a person's position
|
Glossary Term
|
|
Functional Organization
|
a hierarchial organization where each employee has one clear superior, and staf are grouped by by areas of specialization and managed by a person with expertise in that area.
|
Glossary Term
|
|
Impact
|
The result of the probability of risk occurring
|
Glossary Term
|
|
Identify Risks
|
The process of determining which risks may affect the project and documenting their characteristics
|
Glossary Term
|
|
Identify Stakeholders
|
The rpocess of identifying all people or organization inpacted by the project, and documenting relevant information regarding their interests, involvement and impact on project success
|
Glossary Term
|
|
Inluence Diagrams
|
A graphical representation of situations showing casual influences, time ordering of events, and other relationshiups among variables and outcomes
|
Glossary Term
|
|
Informal Verbal
|
A communication type
Examples: meetings and conversation |
Glossary Term
|
|
Informal Written
|
A communication type
Examples: emails, notes and memos |
Glossary Term
|
|
Information Distribution Methods
|
Includes the following mediums: meetings; hard-copy documents; information databases and filing systems; electronic communication and conferencing tools; and electronic project management tools
|
Glossary Term
|
|
Information Gathering Techniques
|
A tool and technique of the Identify Risks process, which includes: brainstorming; Delphi Technique; Interviewing, Root Cause Identification and SWOT Analysis
|
Glossary Term
|
|
Initiating
|
The processes performed to define a new project or new phase of an existing project by obtaining authorization to start the project or phase.
|
Glossary Term
|
|
Input
|
Any item, internal or external to the project, that is requiredby a process before that process proceeds.
Can be an output from a predecessor process |
Glossary Term
|
|
Interpersonal Skills
|
A part of genral management skills, also known as "soft skills," important to managing a team
Examples include: empathy, influence, creativity and group facilitation |
Glossary Term
|
|
Interviewing
|
An information gathering technique, which is a tool or technique of the Identify Risks process
Primary source of risk identification data gathering |
Glossary Term
|
|
Issue
|
A realized risk, being dealt with in the present
A point or matter in question or in dispute, or a point or matter not settled and is under discussion or over which there are opposing views |
Glossary Term
|
|
Known Risk
|
A risk that is clear, with no uncertainty about the risk itself
|
Glossary Term
|
|
Known-Unknown Risk
|
Refers to a risk that the project or risk management team is aware of, but are not sure how it will affect the project
|
Glossary Term
|
|
Manage Stakeholder Expectations
|
The process of communicating and working with stakeholders to meet their needs and addressing issues as they occur
|
Glossary Term
|
|
Matrix Organization
|
Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project
|
Glossary Term
|
|
McGregor's Theory of X and Y
|
A motivational theory developed by Douglas McGregor
Theory revolves around two different types of attitudes toward work; Theory X, which believes employees are inherently lazy; and Theory Y, which believes employees are ambitious and self-motivated |
Glossary Term
|
|
Mitigate
|
A risk response planning technique asscoiated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold
|
Glossary Term
|
|
Modeling Simulation
|
A part of quantitative risk analysis and modeling techniques, which is a tool and technique of the Perform Quantitative Risk Analysis process
Translates uncertainties provided at a detailed level of the project into the potential impacts they could have on project objectives Monte Carlo is a common technique used |
Glossary Term
|
|
Monitor
|
Collect project performance data with respect to a plan, produce performance measures, and report and disseminate performance information
|
Glossary Term
|
|
Monitor and Control Risks
|
The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process throughout the project
|
Glossary Term
|
|
Monitoring and Controlling
|
Those processes required to track, review, and regulate the progress and performance of the project, identify any areas in which changes to the plan are required, and initiate the corresponding changes
|
Glossary Term
|
|
Monte Carlo Analysis
|
A technique that computes or iterates the project cost or project schedule many times using input values selected at random from probability distributions of possible costs or durations, to calculate a distribution of possible total project cost or completion dates
|
Glossary Term
|
|
Monte Carlo Simulation
|
A process which generates hundreds of thousands of probable performance outcomes based on probability distribution for cost and schedule on individual tasks
Outcomes are used to generate a probability distribution for the project as a whole |
Glossary Term
|
|
Near-Term Risk
|
Risk requiring an immediate response
|
Glossary Term
|
|
Organizational Theory
|
Theory states that the behavior of people, teams, and organizational units is based on the organizational type that the company functions within
|
Glossary Term
|
|
Opportunity
|
A condition or situation favorable to the project, a positive set of circumstances, a positive set of events, a risk that will have a positive impact on project objectives, or a possibility for positive changes
Opposite of Threat |
Glossary Term
|
|
Output
|
A product, result, or service generated by a process
May be an input to a successor process |
Glossary Term
|
|
Parametric Estimating
|
An estimating technique that uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters such as scope, cost, budget and duration
|
Glossary Term
|
|
Pareto Chart
|
A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause
|
Glossary Term
|
|
Passive Acceptance
|
A risk response strategy where nothing is done about a risk, and is simply accepted once it occurs
|
Glossary Term
|
|
Penalty/Coercive
|
A type of power that is based on punishment for not doing something
|
Glossary Term
|
|
Performance Measurement Baseline
|
An approved integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance
|
Glossary Term
|
|
Performance Reports
|
Documents and presentations that provide organized and summarized work performance information, earned value management parameters and calculations and analyses of project work progress and status
|
Glossary Term
|
|
Perform Qualitative Risk Analysis
|
The process or prioritizing risks for further analysis or action by assessing or combining their probability of occurrence and impact
|
Glossary Term
|
|
Perform Quantitative Risk Analysis
|
The process of numerically analyzing the effect of identified risks on overall project objectives
|
Glossary Term
|
|
Plan Communications
|
The process of determining project stakeholder information needs and defining a communication approach
|
Glossary Term
|
|
Plan Risk Management
|
The process of defining how to conduct risk management activities for a project
|
Glossary Term
|
|
Plan Risk Responses
|
The process of developing options and actions to enhance opportunities and to reduce threats to project objectives
|
Glossary Term
|
|
Planned Value (PV)
|
The authorized budget assigned to the scheduled work to be accomplished for a schedule activity or WBS component
Also known as Budgeted Cost of Work Scheduled (BCWS) |
Glossary Term
|
|
Planning
|
Those processes performed to establish the total scope of the effort, define and refine the objectives, and develop the course of action required to attain those objectives
|
Glossary Term
|
|
Planning Meetings and Analysis
|
A tool and technique of the Plan Risk Management process, performed early on within the project
During meetings: Develop risk activities and estimate costs Assign risk responsibilities Identify risk categories Define levels of probability and impact Create/modify probability and impact matrix Create/modify risk templates These meetings generate the Risk Management Plan |
Glossary Term
|
|
Probability and Impact Matrix
|
A common way to determine whether a risk is low, moderate or high by combining the two dimensions of risk: its probability of occurrence and its impact on objectives if it occurs
|
Glossary Term
|
|
Probability Distributions
|
A part of data gathering and presentation tehniques, which is a tool and technique of the Perform Quantitative Risk Analysis process
|
Glossary Term
|
|
Probability
|
The likelihood the risk will occur
|
Glossary Term
|
|
Program Evaluation and Review Technique (PERT)
|
A technique for estimating that applies a weighted average of optimistic, pessimistic and most likely estimates when there is uncertainty with the individual activity estimates
Formula: ((O + P + 4(ML)) / 6 |
Glossary Term
|
|
Project
|
A temporary endeavor undertaken to create a unique product, service or result
|
Glossary Term
|
|
Project Environment
|
Internal and external factors that influence the project
|
Glossary Term
|
|
Project Management Plan
|
A formal, approved document that defines how the project is executed, monitored, and controlled
|
Glossary Term
|
|
Project Phase
|
A collection of logically related project activities, usually culminating in the completion of a major deliverable
Mainly completed sequentially, but can overlap in some project situations Component of a project life cycle A project phase is NOT a Project Management Process Group |
Glossary Term
|
|
Project Risk Management
|
Includes the processes concerned with conducting risk management planning, identification, analysis, response and monitoring and control on a project
|
Glossary Term
|
|
Project Scope Statement
|
A narrative description of the project scope, including major deliverables, project assumptions, project constraints and a description of the work, that provides a documented basis for making future project decisions and for confirming or developing a common understanding of project scope amojng the stakeholders
|
Glossary Term
|
|
Projectized Organization
|
An organization structure in which the project manager has full authority to assign priorities, apply resources and direct the work of persons assigned to the project
|
Glossary Term
|
|
Pure Risk
|
Risk that contains only the possibility of loss
An "insurable" risk |
Glossary Term
|
|
Quantitative Risk Analysis and Modeling Techniques
|
A tool and technique of the Perform Quantitative Risk Analysis process
Includes: Sensitivity Analysis; EMV Analysis; and Modeling and Simulation |
Glossary Term
|
|
Referent
|
A type of power based on the authority or formal power of another individual or a connection to an individual
|
Glossary Term
|
|
Report Performance
|
The process of collecting and distributing performance information
Includes: Status Reports; Progress Measurements; and Forecasts |
Glossary Term
|
|
Reserve
|
A provision in the Project Management Plan to mitigate cost and/or schedule risk
Often used with a modifier to provide detail on what types of risk are meant to be mitigated (i.e., management reserve, contingency reserve) |
Glossary Term
|
|
Reserve Analysis
|
An analytical technique to determine the essential features and relationships of components in the Project Management Plan to establish a reserve for the schedule duration, budget, estimated cost or funds for a project
|
Glossary Term
|
|
Residual Risks
|
Risks expected to remain after the planned risk responses have been executed or have been accepted
|
Glossary Term
|
|
Reward
|
A type of power based on rewarding someone for doing something
|
Glossary Term
|
|
Risk Acceptance
|
A risk response planning technique that indicates the project team has decided not to change the Project Management Plan to deal with a risk, or is unable to identify any other suitable response strategy
Two types: Passive Acceptance and Active Acceptance |
Glossary Term
|
|
Risk Audits
|
A tool and technique of the Monitor and Control Risks process
Measures the effectiveness of risk responses and of the risk management processes |
Glossary Term
|
|
Risk Averse
|
Someone who is uncomfortable with risk
|
Glossary Term
|
|
Risk
|
An uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives
|
Glossary Term
|
|
Risk Breakdown Structure (RBS)
|
A hierarchy organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks
Often tailored to specific project types |
Glossary Term
|
|
Risk Categories
|
A group of potential causes of risk
|
Glossary Term
|
|
Risk Categorization
|
A tool and technique of the Perform Qualitative Risk Analysis process
Categorizes risks by source to identify which areas of the project are affected most by risk |
Glossary Term
|
|
Risk Data Quality Assessment
|
A tool and technique of the Perform Qualitative Risk Analysis process
Checks the data used for risk management purposes is accurate and unbiased |
Glossary Term
|
|
Risk Event
|
Describes what would happen if a risk were to occur
Captured in the "THEN" Statement when describing the risk |
Glossary Term
|
|
Risk Management Plan (RMP)
|
The document describing how project risk management will be structured and performed on the project.
Contained in, or is a subsidiary plan of the Project Management Plan |
Glossary Term
|
|
Risk Management
|
Involves increasing the impact of positive events, and decreasing the impact of negative events
It is about controlling risks, and therefore controlling the outcome of the project |
Glossary Term
|
|
Risk Neutral
|
Someone who embraces risk and sees it as a potential opportunity
|
Glossary Term
|
|
Risk Probability and Impact Assessment
|
A tool and technique of the Perform Qualitative Risk Analysis process
Assess the probability that a risk will occur and its impact, using the definitions of risk probability and impact developed and documented within the RMP Results in an initial risk rating, a watchlist, and documented reasons for the risk assessment |
Glossary Term
|
|
Risk Reassessment
|
A tool and technique of the Monitor and Control Risks process
Involves reassessing existing risks and identifying new risks using the risk management processes |
Glossary Term
|
|
Risk Register
|
The document containing the results of the qualitative risk analysis, quantitative risk analysis and risk response planning
Details all identified risks including description, category, cause, probability of occurring, impact on objectives, proposed responses, owners and current status |
Glossary Term
|
|
Risk Seeking
|
Someone who actively looks for risk and views it as a challenge
|
Glossary Term
|
|
Risk Tolerance
|
The degree, amount or volume of risk an organization or individual will withstand
|
Glossary Term
|
|
Risk Tolerant
|
Someone who is not concerned about risk, but is surprised when it occurs
|
Glossary Term
|
|
Risk Urgency Assessment
|
A tool and technique of the Perform Qualitative Risk Analysis process
Determines level of urgency in addressing risks, resulting in a list of "near-term" risks |
Glossary Term
|
|
Root Cause Analysis
|
An analytical technique used to determine the basic underlying reason(s) that causes a variance, defect, or risk
|
Glossary Term
|
|
Risk Tolerant
|
Someone who is not concerned about risk, but is surprised when it occurs
|
Glossary Term
|
|
Risk Urgency Assessment
|
A tool and technique of the Perform Qualitative Risk Analysis process
Determines level of urgency in addressing risks, resulting in a list of "near-term" risks |
Glossary Term
|
|
Root Cause Analysis
|
An analytical technique used to determine the basic underlying reason(s) that causes a variance, defect, or risk
|
Glossary Term
|
|
S-Curve
|
Graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time
Depicts planned value, earned value, and actual cost of project work Also, a term used express the cumulative likelihood distribution resulting from a simulation, a tool of quantitative risk analysis |
Glossary Term
|
|
Secondary Risks
|
A risks arising as a direct result of implementing a risk response
|
Glossary Term
|
|
Sensitivity Analysis
|
A quantitative risk analysis and modeling technique used to determine which risks have the most potential impact on the project
Examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values A typical display of the results is a tornado diagram |
Glossary Term
|
|
Share
|
A risk response strategy that involves using a third party that helps ensure the organization can take advantage of an opportunity
|
Glossary Term
|
|
Simulation
|
Uses a project model that translates the uncertainties specified at a detailed levelinto their potential impact on objectives expressed at the level of the total project
Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level, typically performed using Monte Carlo analysis |
Glossary Term
|
|
Smoothing
|
A conflict resolution technique, where an agreement is emphasized in an attempt to deal with the differences of opinion
|
Glossary Term
|
|
Special Cause
|
A source of variation not inherent in the system, is not predictable, and is intermittent
It can be assigned to a defect in the system, and can be indicated on a control chart as points beyond the control limits, or non-random patterns within the control limits Also called assignable cause; contrasts with common cause |
Glossary Term
|
|
Specification Limits
|
The area, on either side of the centerline (mean), of data plotted on a control chart that meets the customer's requirements for a product or service
|
Glossary Term
|
|
Stakeholders
|
Person or organizationactively involved in the project, or whose interest may be positively or negatively effected by the execution or completion of the project
May exert influence over the project and its deliverables |
Glossary Term
|
|
Status Meetings
|
A tool and technique of Monitor and Control Risks process
Risk management should be added as an agenda item for these meetings |
Glossary Term
|
|
Strategies for Negative Risks or Threats
|
A tool and technique of the Plan Risk Response process
Strategies include: mitigation, avoid, transfer, and accept |
Glossary Term
Mnemonic device: MAT/Accept |
|
Strategies for Positive Risks or Threats
|
A tool and technique of the Plan Risk Response process
Strategies include: share, exploit, enhance, and accept |
Glossary Term
Mnemonic device: SEE/Accept |
|
Supporting
|
A leadership style which involves providing the project team with assistance and guidance
|
Glossary Term
|
|
System / Process Flow Charts
|
A diagramming technique, which is a tool and technique of the Identify Risks process
Shows how various elements of a system interrelate, thereby showing how a problem occurs |
Glossary Term
|
|
Technical Performance Measurement
|
A performance measurement technique comparing technical accomplishements during project execution to the project management plan's schedule of planned technical achievements
Achieved metric values are part of the work performance information |
Glossary Term
|
|
Technique
|
A defined systematic procedure employed by a human resource to perform an activity to produce a product or result or deliver a service, and may employ one or more tools
|
Glossary Term
|
|
Threat
|
A condition or situation unfavorable to the project, a negative set of circumstances, a negative set of events, a risk that will have a negative impact on a project objective if it occurs, or a possibility for negative changes
Contrasts with opportunity |
Glossary Term
|
|
3-Point Estimate
|
An analytical technique that uses three cost or duration estimates to represent the optimistic, most likely and pessimistic scenarios
Applied to improve the accuracy of the estimates of cost or duration when the underlying activity or cost component is uncertain |
Glossary Term
|
|
Tool
|
Something tangible (i.e., template, software program) used in performing an activity to produce a product or result
|
Glossary Term
|
|
Tornado Diagram
|
Commonly used to display results of sensitivity analysis performed during quantitative risk analysis
Compares the importance of variables that have a high degree of uncertainty to more stable variables |
Glossary Term
|
|
Transfer
|
A risk response planning technique that shifts the impact of a threat to a third party, together with the ownership of the response
|
Glossary Term
|
|
Triggers
|
Indocations a risk has occurred or is about to occur
May be discovered in the Risk Identification process and watched in the Risk Monitoring and Control process Also called risk symptoms or warning signs |
Glossary Term
|
|
Uncertainty
|
A lack of knowledge of future events, which typically leads to risk
|
Glossary Term
|
|
Uniform Diistributions
|
Used to show scenarios where no obvious value is more likely than others
|
Glossary Term
|
|
Unknown-Unknown Risks
|
Risks the project or risk management team cannot imagine, based on the information and knowledge at hand
|
Glossary Term
|
|
Variance and Trend Analysis
|
A tool and technique of the Monitor and Control Risk process
Exammines trends using performance data to forecast any potential cost and/or schedule variance deviations of the project at completion |
Glossary Term
|
|
Withdrawal
|
A conflict resolution technique, where an issue is avoided, and therefore, there is no opportunity for resolution
|
Glossary Term
|
|
WBS Component
|
An entry in the WBS that can be at any level
|
Glossary Term
|
|
WBS Dictionary
|
A document describing each component in the WBS
|
Glossary Term
|
|
Work Package
|
A deliverable or project work component at the lowest level of ht each branch of the WBS
Also known as control account |
Glossary Term
|
|
Work Performance Information
|
Information and data, on the status of the project schedule activities being performed to accomplish the project work, collected as part of the direct and manage project execution processes.
Includes: status of deliverables; implementation status for change requests; corrective actions, preventative actions and defect repairs; forecasted estimates to complete; reported percent of work physically completed; achieved value of technical performance measures; start and finish dates of scheduled activities |
Glossary Term
|
|
Workaround
|
A response to a negative risk that has occurred
Differs from a contingency plan, in that a workaround is not planned in advance of the occurrence of the risk event |
Glossary Term
|
|
Project Integration Management: Processes
|
1. Develop Project Charter
2. Develop Project Management Plan 3. Direct and Manage Project Execution 4. Monitor and Control Project Work 5. Perform Integrated Change Control 6. Close Project or Phase |
Project Management Knowledge Areas
|
|
Develop Project Charter Process
|
Purpose: Develop the project charter that formaly authorizes the project and documents the initial requirements to satisfy stakeholder needs and expectations
Outputs: Project Charter |
Project Integration Management
|
|
Develop Project Management Plan Process
|
Purpose: Document the actions necessary to define, prepare, integrate and coordinate all subsidiary plans
Outputs: Project Management Plan |
Project Integration Management
|
|
Direct and Manage Project Execution Process
|
Purpose: Achieve project objectives by performing the work defined in the Project Management Plan
Outputs: Deliverables, Work Performance Information |
Project Integration Management
|
|
Monitor and Control Project Work Process
|
Purpose: Track, review and regulate the progress to meet performance objectives defined in the Project Management Plan
Outputs: Change Requests |
Project Integration Management
|
|
Perform Integrated Change Control Process
|
Purpose: Revew all requests, approve changes, and manage changes to the project
Outputs: Change request status |
Project Integration Management
|
|
Close Project or Phase Process
|
Purpose: Finalize all activities across the process groups to formally completethe project or phase
|
Project Integration Management
|
|
Project Scope Management Processes
|
1. Collect Requirements
2. Define Scope 3. Create WBS 4. Verify Scope 5. Control Scope |
Project Management Knowledge Areas
|
|
Collect Requirements Process
|
Purpose: Define and document the needs of the stakeholders, and meet project objectives
Outputs: Requirements Documentation, Requirements Management Plan, Requirements Traceability Matrix |
Project Scope Management
|
|
Define Scope Process
|
Purpose: Develop a detailed description of the project and product
Outputs: Project Scope Statement |
Project Scope Management
|
|
Create WBS Process
|
Purpose: Subdivide the project deliverables and work into smaller, more manageable components
Outputs: WBS, WBS Dictionary, Scope Baseline |
Project Scope Management
|
|
Verify Scope Process
|
Purpose: Formalize acceptance of the completed project deliverables
Outputs: Accepted Deliverables |
Project Scope Management
|
|
Control Scope Process
|
Purpose: Monitor the status of the project and product scope and manage changes to the scope baseline
Outputs: Work Performance Measurements |
Project Scope Management
|
|
Project Time Management Processes
|
1. Define Activities
2. Sequence Activities 3. Estimate Activity Resources 4. Estimate Activity Durations 5. Develop Schedule 6. Control Schedule |
Project Management Knowledge Areas
|
|
Define Activities Process
|
Purpose: Identify the actions to be performed to produce project deliverables
Outputs: Activity List, Activity Attributes, MIlestone List |
Project Time Management
|
|
Sequence Activities Process
|
Purpose: Identify and document relationship among the project activities
Outputs: Project Schedule Work Diagrams |
Project Time Management
|
|
Estimate Activity Resources Process
|
Purpose: Estimate the type of and quantities of material, people, equipment or supplies
Outputs: Activity Resource Requirements, Resource Breakdown Structure |
Project Time Management
|
|
Estimate Activity Durations Process
|
Purpose:Estimate the number of work periods needed to complete individual activities with estimated resources
Outputs: Activity Duration Estimates |
Project Time Management
|
|
Develop Schedule Process
|
Purpose: Analyze activity sequences, durations, resource requirements, and schedule constraints to create the project schedule
Outputs: Project Schedule, Schedule Baseline, and Schedule Data |
Project Time Management
|
|
Control Schedule Process
|
Purpose: Monitor the status of the project and manage changes to the schedule baseline
Outputs: Work Performance Measurements |
Project Time Management
|
|
Project Cost Management Processes
|
1. Estimate Costs
2. Determine Budget 3. Control Costs |
Project Management Knowledge Area
|
|
Estimate Costs Process
|
Purpose: Develop an approximation of the monetary resources needed to complete the project activities
Outputs: Activity Cost Estimates, Basis of Estimates |
Project Cost Management
|
|
Determine Budget Process
|
Purpose: Aggregate the estimated costs if individual activities or work packages to establishan authorized cost baseline
Outputs: Cost Performance Baseline, Project Funding Requirements |
Project Cost Management
|
|
Control Costs Process
|
Purpose: Monitor the status of the project to update the project budget and manage changes to the cost baseline
Outputs: Work Performance Measurements, Budget Forecasts |
Project Cost Management
|
|
Project Quality Management Processes
|
1. Plan Quality
2. Perform Quality Assurance 3. Perform Quality Control |
Project Management Knowledge Area
|
|
Plan Quality Process
|
Purpose: Identify quality requirements and/or standards for the project and product, and document how the project will demonstrate compliance
Outputs: Quality Management Plan, Quality Metrics, Quality Checklists, and Process Improvement Plan |
Project Quality Management
|
|
Perform Quality Assurance Process
|
Audit the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operations definitions are used
Outputs: Change Requests, Organizational Process Assets Updates |
Project Quality Management
|
|
Perform Quality Control Process
|
Purpose: Monitor and record results of executing the quality activities to assess performance and recommend necessary changes
Outputs: Quality Control Measurements, Validated Changes, and Validated Deliverables |
Project Quality Management
|
|
Project Human Resources Management Processes
|
1. Develop Human Resource Plan
2. Acquire Project Team 3. Develop Project Team 4. Manage Project Team |
Project Management Knowledge Area
|
|
Develop Human Resource Plan Process
|
Purpose: Identify and document the project roles, responsibilities, required skills, reporting relationships and creating a Staffing Management Plan
Outputs: Human Resource Plan (contains Staffing Management Plan) |
Project Human Resources Management
|
|
Acquire Project Team Process
|
Purpose: Confirm human resource availability and obtain the team necessary to complete the project assignments
Outputs: Project Staff Assignments, Resource Calendars |
Project Human Resources Management
|
|
Develop Project Team Process
|
Purpose: Improve the competencies, team interaction, and the overall team environment to enhance project performance
Outputs: Team Performance Assessments |
Project Human Resources Management
|
|
Manage Project Team Process
|
Purpose: Track team member performance, provide feedback, resolve issues and manage changes to optimize project performance
Outputs: Change Requests, EEF Updates |
Project Human Resources Management
|
|
Project Communications Management Processes
|
1. Identify Stakeholders
2. Plan Communications 3. Distribute Information 4. Manage Stakeholder Expectations 5. Report Performance |
Project Management Knowledge Area
|
|
Identify Stakeholders Process
|
Purpose: Identify all people or organizations impacted by the project, and document relevant information regarding their interests, involvement, and impact on project success
Outputs: Stakeholder Register, Stakeholder Management Strategy |
Project Communications Management
|
|
Plan Communications Process
|
Purpose: Determine the stakeholder information needs and define a communication approach
Outputs: Communications Management Plan |
Project Communications Management
|
|
Distribute Information Process
|
Purpose: Make relevant information available to project stakeholders as planned
Outputs: OPA Updates |
Project Communications Management
|
|
Manage Stakeholder Expectations Process
|
Purpose: Communicate and work with stakeholders to meet their needs and address issues as they occur
Outputs: Change Requests |
Project Communications Management
|
|
Report Performance Process
|
Purpose: Collect and distribute performance information, including status reports, progress measurements, and forecasts
Outputs: Performance Reports |
Project Communications Management
|
|
Project Risk Management Processes
|
1. Plan Risk Management
2. Identify Risks 3. Perform Qualitative Risk Analysis 4. Perform Quantitative Risk Analysis 5. Plan Risk Responses 6. Monitor and Control Risks |
Project Management Knowledge Area
|
|
Plan Risk Management Process
|
Purpose: Define how to conduct risk management activities for a project
Outputs: Risk Management Plan (RMP) Process Group: Planning |
Project Risk Management
|
|
Identify Risks Process
|
Purpose: Determine which risks may affect the project and document their characteristics
Outputs: Risk Register Process Group: Planning |
Project Risk Management
|
|
Perform Qualitative Risk Analysis Process
|
Purpose: Prioritize risks for further analysis or action by assessing and combining their probability of occurrence and impact
Outputs: Risk Register Updates Process Group: Planning |
Project Risk Management
|
|
Perform Quantitative Risk Analysis Process
|
Purpose: Numerically analyze the effect of identified risks on overall project objectives
Outputs: Risk Register Updates Process Group: Planning |
Project Risk Management
|
|
Plan Risk Responses Process
|
Purpose: Develop options and actions to anhance opportunities and reduce threats to the project objectives
Outputs: Risk Register Updates, Risk Related Contract Decisions Process Group: Planning |
Project Risk Management
|
|
Monitor and Control Risks Process
|
Purpose: Implement risk response plans, track identified risks, monitor residual risks, identify new risks, and evaluate risk process effectiveness throughout the project
Outputs: Risk Register Updates, Change Requests, and OPA Updates Process Group: Monitoring and Controlling |
Project Risk Management
|
|
Project Procurement Management Processes
|
1. Plan Procurements
2. Conduct Procurements 3. Administer Procurements 4. Close Procurements |
Project Management Knowledge Area
|
|
Plan Procurements Process
|
Purpose: Document project-purchsing decisions, specify approach, and identify potential sellers
Outputs: Procurement Management Plan, Procurement Statements of Work, Make-or-Buy Decisions, Procurement Documents, and Source Selection Criteria |
Project Procurement Management
|
|
Conduct Procurements Process
|
Purpose: Obtain seller responses, select a seller, and award a contract
Outputs: Selected Sellers, Procurement Contract Award, Resource Calendars |
Project Procurement Management
|
|
Administer Procurements Process
|
Purpose: Manage procurement relationships, monitor contract performance, and make changes and corrections as needed
Outputs: Procurement Documentation, Change Requests |
Project Procurement Management
|
|
Close Procurements Process
|
Purpose: Complete each project procurement
Outputs: Closed Procurements, OPA Updates |
Project Procurement Management
|
|
Project Management Plan Elements
|
12 Management Plans
1. Change Management Plan 2. Configuration Management Plan 3. Communications Management Plan 4. Cost Management Plan 5. Human Resources Plan 6. Process Improvement Plan 7. Procurement Management Plan 8. Quality Management Plan 9. Requirements Management Plan 10. Risk Management Plan 11. Schedule Management Plan 12. Scope Management Plan 3 Performance Measurement Baselines 1. Cost Performance Baseline 2. Schedule Baseline 3. Scope Baseline |
|
|
Reasons to Take Risk
|
1. To pursue a benefit to the project, i.e.:
Reduce costs Meet the schedule Achieve company status Release cutting edge technology 2. When the benefit exceeds the potential costs |
|
|
Risks by Level of Uncertainty
|
3 Types
Known Risk Known-Unknown Risk Unknown-Unknown Risk |
|
|
Risks by Potential Outcome
|
2 Types
Pure Risk (only possibility of loss) Business Risk (possibility of gain or loss) |
|
|
Risk Impact by Objective
|
4 Types
Scope Risks Quality Risks Schedule Risks Cost Risks |
|
|
Standard Approach to Risk Management
|
5 Steps
Risk Management Planning Information Gathering and Risk Identification Risk Assessment and Risk Analysis Plan Responses Plan Execution and Monitoring |
|
|
Critical Risk Management Success Factors
|
Educating the Team
Obtaining Team Buy-in Align Strategic Goals to Project Goals Tailor Risk Effort to the Project Integrate Risk Management with Project Management |
|
|
Risk Management Plan: Contents
|
1. Methodology
2. Roles and Responsibilities 3. Budgeting 4. Timing 5. Risk Categories 6. Definitions of Risk Probability and Impact 7. Probability and Impact Matrix 8. Updated Stakeholder Risk Tolerances 9. Reporting Formats 10. Tracking |
|
|
Steps to Generating the RMP
|
1. Obtain Information
2. Conduct Planning Meeting 3. Generate RMP |
|
|
Enterprise Environmental Factors (EEFs)
|
Internal:
Organizational structure Infrastructure The skills, disciplines and knowledge of human resources Personnel administration Stakeholder risk tolerances External: Governmental or industry standards Commercial databases, Marketplace conditions Tools and Systems: Project management information systems Company work authorization systems Database structure or tool |
|
|
Organizational Process Assets (OPAs): Examples
|
Work Processes and Procedures:
Standards of the process and policies of the organization Guidelines for performance measurement and work instructions Templates Communication meetings Financial controls, change control, risk control and work authorization procedures Corporate Knowledge Base: Project files Historical information Issue and defect management database Financial database Process measurement database |
|
|
Cost Management Plan
|
Provides the information needed for the risk budget, contingencies and also management reserves
|
|
|
Schedule Management Plan
|
Assesses and reports schedule contingencies
|
|
|
Communications Management Plan
|
Defines the interaction that will take place and who is responsible for sharing information and when
|
|
|
Plan Risk Management: Ciritcal Success Factors
|
Acceptance by Stakeholders
Alignment with Project Constraints Balance Between Costs vs. Efforts Risk Management Efforts Aligned with Project Needs |
|
|
Risk Register: Process Inputs
|
1. Perform Qualitative Risk Analysis
2. Perform Quantitative Risk Analysis 3. Plan Risk Responses 4. Monitor and Control Risks |
|
|
Risk Register: Process Outputs
|
1. Identify Risks
2. Perform Qualitative Risk Analysis (Risk Register is Updated) 3. Perform Quantitative Risk Analysis (Risk Register is Updated) 4. Plan Risk Responses (Risk Register is Updated) 5. Monitor and Control Risks (Risk Register is Updated) |
|
|
Risk Register Updates: Identify Risks Process
|
1. a list of the identified risks, including: their descriptions, root causes, owners if assigned one already, consequence if the risk occurs, and the effect on project objectives
2. The root causes, if identified 3. a list of potential responses; which will be utilized in the Plan Risk Responses process |
Key Words: Potential, Root Cause
|
|
Risk Register Updates: Perform Qualitative Risk Analysis
|
1. Ranking or a priority list of risks
2. Risks grouped by categories 3. Causes of risk 4. List of risks requiring near-term response, which identifies the risks that are urgent or need immediate attention 5. List of risks for additional analysis and response 6. Watchlists of low priority risks 7. Trends in qualitative risk analysis results |
Key Words: Prioritize, Assess
|
|
Risk Register Updates: Perform Quantitative Risk Analysis
|
1. The agreed-upon response strategies, developed within the process
2. The risk owner and assigned responsibilities 3. Specific actions to implement the chosen response strategy 4. The symptoms and warning signs of risks' occurrence 5. Budget abd schedule activities required to implementthe chosen responses 6. Contingency reserves of time and cost designed to provide for stakeholders' risk tolerances 7. Contingency plans and triggers that call for their execution 8. Fallback plans, which are executed when initial planned response is ineffective and additional action to handle the risk is needed 9. Residual risks are documentedin the risk register 10. Secondary risks, to be documented in the risk register and dealt with accordingly 11. Contingency reserves that are calculated based on quantitative analysis |
Key Words: Strategy, Contingency
|
|
Risk Register Updates: Monitor and Control Risks
|
1. The outcomes of risk assessments, risk audits, and periodic risk reviews
2. The closing of risks that are no longer apllicable, which is an outcome of risk reassessments, risk audits and reviews 3. Actual resulting outcomes of project risks and risk responses |
Key Words: Outcome
|
|
Managing the Risk Register
|
1. Formatting the Risk Register
2. Updating the Contents 3. Utilizing Results |
|