PMP Formula Key and PMP Concepts

Earn Value Formulas	PV (Planned Value) = BCWS (Budgeted Cost of Work Scheduled  EV (Earned Value) = BCWP (Budgeted Cost of Work Performed) AC (Actual Cost) = ACWP (Actual Cost of Work Performed) SV = EV – PV (A negative value indicates that project is behind schedule) CV = EV – AC (A negative value indicates that project is over budget) SPI = EV/PV (Less than 1 is behind schedule) CPI = EV/AC (Less than 1 is over budget) EAC = AC + (BAC-EV)    Use when variances are atypical EAC = AC + [(BAC-EV)/CPI]   Use when variances are typical (Note: This is the same as EAC = BAC/CPI) VAC = BAC – EAC ETC = BAC – EV   Use when variances are atypical ETC = (BAC – EV)/CPI   Use when variances are typical ETC = EAC – AC    Use when original estimates were flawed TCPI - To complete performance Index TCPI = BAC-EV/BAC-AC TCP (EAC Based) = BAC-EV/EAC-AC
Calculating Slack or Floa     t What is Free Float?	Critical path is the longest path in the project network diagram and it determines the planned duration. A project can have more than one critical path. Critical path may change during the project life cycle. Total Float (also called Slack, Float, or Project Float) is the total amount of time an activity can be delayed without delaying the project finish date. Free Float/Slack is the amount of time an activity can be delayed without delaying its successor (following activity).   Ø  LS – ES:    Calculates slack with forward pass   Ø  LF – EF:    Calculates slack with backwards pass Lag Time:  Inserted wait time between activities  Lead Time: Overlapping activities, also called paralleling or fast tracking.  “Lead In; Lag Out” For the activities on the critical path float is zero.  Free Float – Amount of delay we can afford in a predecessor without delaying the early start of successor.
Three Point Estimates, or PERT	PERT = PROGRAM Evaluation and Review Technique Holds schedule and lets cost float 3 estimates for each task: Optimistic, Pessimistic, and Most Likely For Beta or Normal Distribution Mean Estimate = (O + 4*ML + P)/6 Standard Deviation (s) = (P – O)/6 For Triangular Distribution Mean Estimates = 0+M+P/3
Accuracy of Estimates	Order of Magnitude:-25% to +75% Budget Estimate:-10% to +25% Definitive Estimate:-5% to +10%
Channels of Communication	Between Team Members = N(N-1)/2 where N is the no of  team members
Project Selection Financials or project Appraisal	NPV (Net Present Value) = FV/(1+r)n  FV= Future Value, r= interest rate, n= no. of time periods Higher NPV is better IRR (Internal Rate of Return) = Solve the NPV equation for “r” Also called Hurdle Rate Higher IRR percentage is better BCR (Benefit/Cost Ratio) Higher BCR is better. Beware, exam can call it CBR, where lower is better ROI (Return on Investment) = Earnings/Investment Higher ROI is better Payback Period = Time to recover cost of the project Lower payback period is better All the Appraisal techniques mentioned above help  in assessing the business justification of the project.

PMP ITTOs- Input, Tools & Techniques and Outputs

Click the link below to download the chart on - Input, Tools & Techniques and Outputs for all the 49 processes based on PMBOK Sixth Edition.

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PMP VS PRINCE2

The PMBOK Guide is knowledge or a collection of recommendations and best practices, while PRINCE2 is a methodology. Following table highlights some of the key differences.

PMBOK Guide	PRINCE2
Knowledge or a collection of recommendations and best practices (Explains what you should know)	Methodology (explains what you should do)
Descriptive (explains the good practices)	Prescriptive (tells you what to do)
PMBOK consists of the tools and techniques of project management and is a guide telling how things could be done whereas PRINCE2 is a methodology, with a clear process, steps and templates.	Answers WHAT, WHEN, and WHOM questions.  PRINCE2 explains exact set of processes or steps to be followed and templates. A project manager following PRINCE2 is very clear about steps to be  followed
PMP is centred  around the project manager and emphasises on what a project manager should and his roles and responsibilities	In PRINCE2 the focus is on three levels of management, Directing (Project Board), Managing (Project Manager) and Delivering (Team Manager). The roles and responsibilities corresponding to each role in all the three levels is defined very clearly

PRINCE2 is popular in countries such as UK, Australia and certain European countries such as Netherlands, Denmark and Germany. PMP is more popular in North America. A good project manager should have both the PRINCE2 and PMP certifications.  Even if one doesn’t have both the certifications still at least one should be familiar with both.  It is a popular scenario in UK after receiving the PRINCE2 certification, the project manager will supplement with PMP training while in North America, PMP members wants to take the PRINCE2 in order to get more on the Project Control and with an additional globally recognized certification.

PMP - Project Stakeholder Management

Click to Start  >>>Project Schedule Management - Online Sample Test


Project Stakeholder Management PPTs

Additional Questions

1.       In the stakeholder register the stakeholders can be classified into the following.

a.       Internal/external

b.      Supporter

c.       Neutral

d.      All of the above

2.      Influence/ Impact grid classify the stakeholder based on the following

a.       Power and Influence

b.      Influence and Impact

c.       Power and Urgency

d.      Power and Interest

3.      Which of the following is not input to Identify Stakeholders process

a.       Project Management Plan

b.      Project Charter

c.       Procurement  Documents

d.      Organizational Process Assets

4.      Organizational Process Assets that an influence the Identify stakeholder process include.

a.       Stakeholder register from the current project

b.      Issue log from previous projects

c.       Stakeholder register from Previous project

d.      None of the above

5.      The engagement level of the stakeholders can be classified as

a.       Unaware

b.      Resistant

c.       Neutral

d.      All of the above

6.       In a highway construction project the planning was complete and execution was about to begin.  The villagers living in vicinity came out and stopped the execution. They demanded a very high compensation that adversely impacted the budget and timelines of the project. Which process from PMBOK would have helped in preventing this problem from occurring?

a.       Identify Stakeholders

b.      Plan communication

c.       Plan Budget

d.      Develop Schedule

7.      Which of the following processes do not use meetings as a tools and techniques?

a.       Identify Stakeholders

b.      Plan Stakeholder Management

c.       Manage Stakeholder Engagement

d.      Control Stakeholder Engagement

8.      Project plan updates during  Manage Stakeholder Engagement Process  can be due to

a.       Change in the scope baseline

b.      Change in the schedule baseline

c.       Change in the cost performance baseline

d.      Replacement of an ineffective communication method by a new method

9.      Which of the following statement about the issue log is correct

a.       The Issue log contains Risks and is created during Manage Stakeholder Engagement Process

b.      The Issue log contains Issues and is created during Plan Stakeholder Engagement Process

c.       The Issue log contains Issues and Risks and is created during Control Stakeholder Engagement process

d.      The Issue log  is updates as new issues are identified and current issues are resolved during Manage Stakeholder Engagement Process

10.  Which of the following are output of Manage Stakeholder Engagement process

a.       Project Management Plan Updates

b.      Organizational Process Asset Update

c.       Change Request

d.      All of the above

11.  Which of the following is the process of monitoring overall project relationships and adjusting the strategies and plans for engaging stakeholders?

a.       Control Stakeholder Engagement

b.      Plan Stakeholder Engagement

c.       Manage Stakeholder Engagement

d.      Identify Stakeholders

12.  Work Performance Data is  input to which of the following process

a.       Control Stakeholder Engagement

b.      Plan Stakeholder Engagement

c.       Manage Stakeholder Engagement

d.      Identify Stakeholders

13.  Which of the following processes is used to process the change requests generated from analysis of project performance and interaction with the project stakeholders?

a.       Control Stakeholder Engagement

b.      Perform Integrated Change Control

c.       Manage Stakeholder Engagement

d.      Plan Stakeholder Engagement

14.  Who of the following are project stakeholders?

a.       Someone who thinks that they are impacted by the outcome of the project

b.      Competitors

c.       Team members

d.      Government

15.  Fill in the blank

Projects stakeholders are individuals, groups, or                     who may effect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of the project. 

a.       Team

b.      Team Members

c.       Sponsors

d.      Organization

16.  The number of stakeholders in a project depends upon

a.       Size of the Project

b.      Type  of the Project

c.       Complexity  of the Project

d.      All of the above

17.  Project Charter is an input in the Identify stakeholders process and it provides information related to

a.       Project Budget

b.      Major Risk

c.       Project Timelines

d.      Internal and External parties related with the project

18.  Which of the following document provides guidance in managing stakeholder’s expectations?

a.       Stakeholder Register

b.      Stakeholder Management plan

c.       Communication Management Plan

d.      Project Management Plan

19.  For a project that is a result of a procurement activity, which of the following is a key stakeholder?

a.       Suppliers

b.      Parties in the Contract

c.       Competitors

d.      Customers

20.  Which of the following are the contents of the Stakeholder Management Plan

a.       Desired and current engagement levels of key stakeholders

b.      Identified Interrelationship and Potential overlap between stakeholders

c.       Stakeholder communication requirements for the current phase

d.      All of the above

21.  Which of the following are true about  activities related to the process Manage Stakeholder Engagement

a.       Engaging stakeholders at appropriate project stages to obtain or confirm their continued commitment to the success of the project

b.      Clarifying and resolving issues that have been identified

The correct answers are:

a.       a & b

b.      a only

c.       b only

d.      None of the above

22.  Which of the following process has Interpersonal skills as a tools and techniques?

a.       Identify Stakeholders

b.      Plan Stakeholder Management

c.       Manage Stakeholder Engagement

d.      Control Stakeholder Engagement

23.  Which  document  provides the  information related to needs and techniques for communication among stakeholders

a.       Project Management Plan

b.      Stakeholder Register

c.       Stakeholder Management Plan

d.      Communication Plan

24.  Percentage work completed, technical performance measures , start and finish dates of scheduled activities , number of change requests, number of defects , actual costs and actual duration etc are included in

a.       Work Performance Information

b.      Work Performance Data

c.       Performance Reports

d.      Forecasting

25.   Which of the following process uses Information Management System as a tool and technique

a.       Identify Stakeholder

b.       Plan Stakeholder Engagement

c.       Manage Stakeholder Engagement

d.      Control Stakeholder Engagement

Answer Key – Project Stakeholder Management

1.      d

2.      b

3.      a

4.      c

5.      d

6.      a

7.      c

8.      d

9.      d

10.  d

11.  a

12.  a

13.  b

14.  c

15.  d

16.  d

17.  d

18.  c

19.  b

20.  d

21.  a

22.  c

23.  a

24.  b

25.  d

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