Procurement audit

A Technique used during procurement closure to find successes and failures that might be useful for other contracts
and projects in organization.

Monte Carlo Simulation

is a process used to predict the probability of outcome based on input. Multiple iterations are done with the input
value randomly from probability distribution (of input variable) to create probability distribution of the output. Output is
generally Total cost or Completion dates. e.g. It can be determined what is the probability of achieving specific total
cost or completing project on certain date.

Attribute sampling vs.. variable sampling

attribute sampling the result either conforms or does not conform
variable sampling the degree to which results conforms

Quality Theories
Joseph Juran 80/20 principle, top management involvement, fitness to use
Edward Deming 14 steps to total quality management, plan-do-check-act cycle
Philip Crosby advocated cost of poor quality, and prevention over inspection, zero defects, quality = conformance
to requirement
Total Quality Management Theory encourages everybody to continuously find ways to improve quality.
Process Analysis
Quality Assurance tool for process improvement. Recurring Process is checked after certain time for improvements.
Std deviation
+/-1 68.2%
+/-2 95.46%
+/-3 99.73%
+/-6 99.99%

Kaizen - Continuous improvement

OPM3
PMIs project management maturity model to help organization identify their level of maturity in project management
Lessons Learnt are created through out the project and shared. Lessons learnt are finalized in Closing
process.
RFI Request for Information is done before RFP, RFQ or IFB is sent to collect information for sellers. The
information can be used to select sellers or to create procurement documents.
Source Selection Criteria
Used as guide to select sellers. Sellers can use the criteria to determine the buyers need and whether to bid or not.
Standard Contract and Special Provisions/Conditions
Standard Contract are created to be used with standard recurring type of procurement by organization. These can be
used without separate legal approval. Special Provisions can be added based on Project requirement and needs
legal approval before use.

Privity Contractual relationship

Fait Accompli A negotiating tactic for a must situation such as including meeting government regulations.

Type of risks Business risk (risk of gain or loss); Pure (Insurable risk) only loss

Risk Audit A monitor and Control risk process to make sure all risks are identified, you have proper
response plans etc.
Type of performance reports include Status report, Progress report, Trend report, Forecasting report,
Variance report, Earned Value report.
Resource Histogram
When are resource needed showing spike in resources. This can help PM arrange resources during peaks.

Laissez Fair A leadership style where people are left alone and manager work as consultant type as
required.

Reason of conflicts in the order of frequency

Schedule
Project Priorities
Resources
Technical Opinion
Admin procedures
Cost
Personality

Expectation Theory
Employees who believe their efforts will lead to effective performance and will be rewarded works productively

Arbitration a neutral party resolve dispute

Perquisites or Perks special benefit
Fringe Benefit Standard benefit everybody gets

McGregors theory of X and Y

X = People need to be watched, Y = Opposite

Maslows Hierarchy of Needs Lowest to highest

Physiology
Safety
Social
Esteem
Self-fulfillment

David McClellands Theory of Need or Acquired Need theory

People are motivated by need for any one of achievement, affiliation, power

Herzbergs Theory
Poor Hygiene factors may destroy motivation, but improving them will not improve motivation. Motivational
factors are work related e.g. Responsibility, Self-actualization, professional growth, work recognition.
Phase exists are also known as phase gates, decision gates,stage gates, kill points or milestones.

Quality Function deployment

A type of facilitated workshop technique used in requirement gathering to determine critical characteristics of new
product. It starts by Voice of customer (collecting customer needs).
Tornado diagram
A type of Sensitivity analysis (Modelling) technique used in Quantitative risk analysis comparing relative importance
and impact of variables.
Force majeure - a powerful and unexpected event, such as a hurricane or other disaster
Unique organization culture (part of environmental factors) include
Shared vision, values, norms, beliefs, expectations
Policies, methods, procedures
View of authority relationships
Work ethics and work hours
Cultural differences should be considered when deciding recognition and rewards during develop team
process.

Accuracy of estimate
Rough of order of magnitude -50% to +50%, generally used in initiating phase
Budget estimate -10% to to +25%, generally used in planning
Definitive estimate -10% to +10%

Activity Attributes information associated with an activity such as Predecessor, Successor, resources
assigned etc.
Activity Duration Time in calendar units.
Actual Duration Time in calendar units between actual start date and current date if activity is not finished

Code of Accounts Numbering system used to identify wbs elements.

Cost Performance Baseline A specific version of time phased budget to compare actual cost to planned
cost.

Duration Time in workweeks or workdays.

Effort The number of labor units required to complete schedule activity.
Master Schedule Summary level schedule including major deliverable.
Planning Package WBS Component below control account with known work content but without detailed
schedule
Project Organization Chart A chart that shows project team members and their relationships.
Project Scope Statement Contains description of project scope, major deliverables, assumptions,
constraints and description of work.
Residual Risk A risk that remains after risk response implementation.
Resource Breakdown Structure A hierarchy chart used to show resources by category and type used for
resource levelling.
Scope Creep Adding Scope without approval and without analyzing effect on constraints
Secondary Risk A risk that arises as a result of implementing risk response.
Strategies to deal to with risks
Negative Risks or threats Avoid Changing Plan to avoid risks completely example changing schedule or limiting scope.
Transfer Transfer risks on someone else e.g. Outsourcing using FP Contract, Insurance etc
Mitigate Reducing probability or impact.
Accept accept the risk.
Positive risks or Opportunities Exploit Reduce the uncertainty of risk happening
Share Share the risks with another party who is best able to capture it.
Enhance Increase probability or impact of risk
Accept Accept but do not actively pursue it.
Techniques for resolving conflict
There are six techniques
Withdrawing/Avoiding Retracting from an actual or potential conflict situation.
Smoothing/Accommodating Emphasize area of agreement
Compromising Alternative where everybody compromises a little.
Forcing Pushing one viewpoint
Collaborating discussing multiple view point, results in consensus and commitment
Confronting/Problem Solving Treating conflict as a potential problem, best method as resolves cause.
Five Phases of team building
Forming Initial stage when team is formed and members learn about their roles and responsibilities.
Storming The team starts to work on individual tasks. The team is not collaborative yet.
Norming The team begins to work together and trust each other.
Performing The team functions as a unit and performs as team.
Adjourning The team completes the work.

Performing Quality Control

Cause and Effect diagrams or Ishikawa diagram or Fishbone diagram shows how factors can be related to effects.
Control Charts
Flowcharting
Histogram A bar chart showing how often a variable occurs.
Pareto Chart A type of histogram showing frequency of occurrence.
Run Chart Similar to Control Chart without showing limits
Scatter diagram shows relationship between two variables and whether these are related or not.
Statistical Sampling
Inspection
Approved Change Request Review

Precision Vs Accuracy
Precision is the degree of scatter for repeated measurement. Accuracy is how close the measure value is to expected
value.
Quality Vs Grade

Quality and Grade are different though can be confused. Quality is the degree to which outcome meets the specified
requirements and measurements. Grade is the category of the product. For example, Software can have two grades,
one with limited features other with all the features.

Critical Path Method

Critical Path - Critical path is the longest duration path in the network diagram and provides shortest time to
complete the project.
Near Critical Path The path closest to the critical path. The closer near critical path is to critical path, the more risk
to the project. Why? Because if there is need to shorten critical path or lengthen the near critical path, the near critical
path will become new critical path.
Types of Activity Duration Estimations
Analogous Estimating Uses parameters from similar historical projects to estimate.
Parametric Estimating Uses statistical relationship between historical data and variables. Example cost per labour
hour
Three Point Estimate PERT (Program Evaluation and Review Technique)E = (O+4M+P)/6
Heuristic Rule of Thumb (e.g.. Testing should take 50% of what development takes)
Float(Slack) Total Float- The amount of time an activity can be delayed without delaying project end date or next milestone.
Free Float - The amount of time an activity can be delayed without delaying early start of successor activity
Project Float - The amount of time project can be delayed without delaying promised completion date.Activities on
critical path have zero float.
Float = LS ES = LF EF
Fast Tracking Doing Critical path activities in parallel.
Crashing Compressing schedule by increasing cost e.g. Adding resources.
Resource Levelling Limiting resources by compromising schedule and cost to the project.
Critical Chain Method A resource constrained critical path is critical chain. Network diagram is prepared
and critical chain is calculated by adding resource dependencies. A buffer is added before milestones to provide
cushion.
Requirements Traceability Matrix - A table that links requirement to original goal or object or objective to
provide traceability.
Change Requests and actions
Actions are taken during projects to mitigate or stop performance deviation.
Corrective Action Action taken to bring future performance back to expected performance.
Preventive Action Action taken in advance to stop performance to deviate from expected performance.
Defect Repair Repair the bug or problem or replace the faulty item
Project Documents
Any document that is not part of project management plan. It includes Project Charter, SOW, Contracts, Stakeholder
Register, Risk Register, Issue Log, Change Log, Quality metrics etc.
Project Management Information System - Any software tools used in project management process.
Change Control System
An organizational process asset that includes forms, templates, procedures, software to control, track and monitor
changes. This is generally a subset of Configuration management system.
Any action that would require change to the project management plan would require a change request. The
change can also be requested by stakeholders. Change request would than need to go thru Integrated
Change Control Process.
Evaluate the impact
Create options including Crashing, Fast tracking etc.
Internally approve the Change request
Review with management and sponsor
Review with Customer if required
Update the status of the in change control system

Work Authorization System

Work Authorization System is the tool to authorize work performed during Project. It is collection of formally
documented procedures to define to ensure work is performed by right resource or team, at appropriate time and
proper sequence. The procedures also include required forms, templates, steps and approvals required to perform
work,

At the beginning of the project there is less cost and less demand for resources. Also there is a higher risk of
failure at the beginning of the project. The risk reduces over the life of the project. The stakeholder influence is
maximum at the beginning of the project and reduces over the life of the project.
Progressive Elaboration means adding more details in an iterative fashion. Project Management Plan is
developed using progressive elaboration.
Organizational Process Assets
Organization Process Assets include all existing documents, templates, Historical information, Lessons learned,
plans, procedures, guidelines, risk data etc that can influence projects success.
Enterprise Environmental Factors
Enterprise Environmental Factors are unique factors (internal and external) that might impact Projects success.
These are inputs to most Project Management Processes.
Company Culture and Structure
Government regulations
Industry Standards
Existing Infrastructure
Existing Resources and Available Skills
HR Policies
Market Conditions
Risk Tolerance
Political Climate
Project Management tools
Project Life Cycle, Project Phases
All projects follow a life cycle from start to close. Generic life cycle can be think of as Starting, Preparing, Executing
and Closing.
Project can have multiple phases. Each Phase is like a new project and goes thru Project Life cycle. Phases would
generally have one of the following relationships
Sequential New Phase can only start after completing current phase
Overlapping New Phase will start before ending current phase.
Iterative Only one phase is planned initially and new phase will be planned later as the work continues in the
current phase.