CAPM Exam
ten knowledge areas Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula total float = late finish - early finish
normal distribution bell curve - symmetrical distribution - 50% chance of falling below the mean
and 50% chance of falling above the mean (1sigma=68.27%. 2sigma = 95.45%.
3sigma= 99.73%)
triangular distribution when there are 3 possible values w/ equal probability - distribution is a triangle.
A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) triangular distribution w/ more weight given to the most likely estimate (can be
asymmetrical). O = optimistic estimate, ML=most likely estimate, P=pessimistic
estimate
mean for a beta distribution mean = (O + 4ML + P)/6
standard deviation for beta distribution standard deviation = (P-O)/6
statistical sums project mean is the sum of the means of the individual tasks. project standard
deviation is the square root of the project variance
earned value management used to monitor the progress of a project and is an analytical technique. uses 3
independent values - PV, AC, EV
planned value (PV) the budget or the portion of the approved cost estimate planned to be spent
during a given period
, CAPM Exam
actual cost (AC) the total of direct and indirect costs incurred in accomplishing work during a
given period
earned value (EV) the budget for the work accomplished in a given period
cost variance (CV) CV = EV - AC
schedule variance (SV) SV = EV - PV
cost performance index (CPI) CPI = EV/AC
schedule performance index (SPI) SPI = EV/PV
positive CV indicates, negative CV indicates costs are below budget, costs are overrun
positive SV indicates, negative SV indicates a project is ahead of schedule, a project is behind schedule
CPI greater than 1.0 indicates costs are below budget
SPI greater than 1.0 indicates project is ahead of schedule
CPI less than 1.0 indicates costs are over budget
SPI less than 1.0 indicates a project is behind schedule
estimate at completion (EAC) the amount we expect the total project to cost on completion and as of the
"data date" (time now)
new estimate technique for finding EAC EAC = AC/new estimate for remaining work
new estimate is most applicable when: the actual performance to date shows that the original estimates were
fundamentally flawed or when they are no longer accurate because of changes
in conditions relating to the project
original estimate technique for finding EAC EAC = AC/(BAC - EV)
, CAPM Exam
original estimate is most applicable when: actual variances to date are seen as being the exception, and the expectations
for the future are that the original estimates are more reliable than the actual
work effort efficiency date
performance estimate low technique for finding EAC EAC = AC + (BAC - EV)/CPI or EAC = BAC/CPI
performance estimate low formula is most applicable future variances are projected to approximate the same level as current
when: variances
performance estimate high technique for finding EAC EAC = AC + (BAC - EV) / (CPI)(SPI)
performance estimate high formula is most applicable the project is over budget and the schedule impacts the work remaining to be
when: completed
BAC budget at completion. the total budgeted cost of all approved activities
ETC estimate to complete - the estimate for completing the remaining work for a
scheduled activity
ETC when past variances are considered to be atypical ETC = BAC - EV
ETC when prior variances are considered to be typical ETC = (BAC - EV)/CPI
of future variances
communications channels channels = (n(n-1))/2. n - number of ppl
rule of seven if 7 or more observations occur in one direction, or a run of 7 observations
occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
business value the entire value of a business - the total sum of all tangible and intangible
elements
colocation project team members are physically located close to one another in order to
improve communications, working relations, and productivity
, CAPM Exam
constraint a restriction or limitation that may force a certain course of action or inaction
enterprise environmental factors external or internal factors that can influence a project's success. includes
controllable factors such as the tools used in managing project within the org,
or uncontrollable factors that have to be considered by the project manager
such as market conditions or corporate culture
good practice a specific activity or application of a skill, tool, or technique that has been
proven to contribute positively to the execution of a process
operations ongoing work performed by ppl, constrained by resources, planned, executed,
monitored, and controlled. unlike a project bc they are repetitive
organizational process assets any formal or informal processes, plans, policies, procedures, guidelines, and
ongoing or historical project info such as lessons learned, measurement data,
project files, and estimates vs actuals
portfolio a collection of programs, projects, and additional work managed together to
facilitate the attainment of strategic business goals
product life cycle the collection of stages that make up the life of a product. these stages are
typically introduction, growth, maturity, and retirement
program a group of related projects managed in a coordinated way
progressive elaboration the iterative process of increasing the level of detail in a project management
plan as greater amounts of information and more accurate estimates become
available
project work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a
unique outcome
project life cycle the name given to the collection of various phases that make up a project -
make the project easier to control and integrate
project management the ability to meet project requirements by using various knowledge, skills,
tools, and techniques to accomplish project work
project management info system collection of tools, methodologies, techniques, standards, and resources used
to manage a project
stakeholder an individual, group, or organization who may affect by, or perceive itself to be
affected by a decision, activity, or outcome of a project
standard a document that describes rules, guidelines, methods, processes, and practices
that can be used to enhance the chances of success
subproject a component of a project
program management the act of managing a group of related projects in a coordinated way
project management office (PMO) an additional layer of organization dedicated to helping project managers
ten knowledge areas Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula total float = late finish - early finish
normal distribution bell curve - symmetrical distribution - 50% chance of falling below the mean
and 50% chance of falling above the mean (1sigma=68.27%. 2sigma = 95.45%.
3sigma= 99.73%)
triangular distribution when there are 3 possible values w/ equal probability - distribution is a triangle.
A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) triangular distribution w/ more weight given to the most likely estimate (can be
asymmetrical). O = optimistic estimate, ML=most likely estimate, P=pessimistic
estimate
mean for a beta distribution mean = (O + 4ML + P)/6
standard deviation for beta distribution standard deviation = (P-O)/6
statistical sums project mean is the sum of the means of the individual tasks. project standard
deviation is the square root of the project variance
earned value management used to monitor the progress of a project and is an analytical technique. uses 3
independent values - PV, AC, EV
planned value (PV) the budget or the portion of the approved cost estimate planned to be spent
during a given period
, CAPM Exam
actual cost (AC) the total of direct and indirect costs incurred in accomplishing work during a
given period
earned value (EV) the budget for the work accomplished in a given period
cost variance (CV) CV = EV - AC
schedule variance (SV) SV = EV - PV
cost performance index (CPI) CPI = EV/AC
schedule performance index (SPI) SPI = EV/PV
positive CV indicates, negative CV indicates costs are below budget, costs are overrun
positive SV indicates, negative SV indicates a project is ahead of schedule, a project is behind schedule
CPI greater than 1.0 indicates costs are below budget
SPI greater than 1.0 indicates project is ahead of schedule
CPI less than 1.0 indicates costs are over budget
SPI less than 1.0 indicates a project is behind schedule
estimate at completion (EAC) the amount we expect the total project to cost on completion and as of the
"data date" (time now)
new estimate technique for finding EAC EAC = AC/new estimate for remaining work
new estimate is most applicable when: the actual performance to date shows that the original estimates were
fundamentally flawed or when they are no longer accurate because of changes
in conditions relating to the project
original estimate technique for finding EAC EAC = AC/(BAC - EV)
, CAPM Exam
original estimate is most applicable when: actual variances to date are seen as being the exception, and the expectations
for the future are that the original estimates are more reliable than the actual
work effort efficiency date
performance estimate low technique for finding EAC EAC = AC + (BAC - EV)/CPI or EAC = BAC/CPI
performance estimate low formula is most applicable future variances are projected to approximate the same level as current
when: variances
performance estimate high technique for finding EAC EAC = AC + (BAC - EV) / (CPI)(SPI)
performance estimate high formula is most applicable the project is over budget and the schedule impacts the work remaining to be
when: completed
BAC budget at completion. the total budgeted cost of all approved activities
ETC estimate to complete - the estimate for completing the remaining work for a
scheduled activity
ETC when past variances are considered to be atypical ETC = BAC - EV
ETC when prior variances are considered to be typical ETC = (BAC - EV)/CPI
of future variances
communications channels channels = (n(n-1))/2. n - number of ppl
rule of seven if 7 or more observations occur in one direction, or a run of 7 observations
occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
business value the entire value of a business - the total sum of all tangible and intangible
elements
colocation project team members are physically located close to one another in order to
improve communications, working relations, and productivity
, CAPM Exam
constraint a restriction or limitation that may force a certain course of action or inaction
enterprise environmental factors external or internal factors that can influence a project's success. includes
controllable factors such as the tools used in managing project within the org,
or uncontrollable factors that have to be considered by the project manager
such as market conditions or corporate culture
good practice a specific activity or application of a skill, tool, or technique that has been
proven to contribute positively to the execution of a process
operations ongoing work performed by ppl, constrained by resources, planned, executed,
monitored, and controlled. unlike a project bc they are repetitive
organizational process assets any formal or informal processes, plans, policies, procedures, guidelines, and
ongoing or historical project info such as lessons learned, measurement data,
project files, and estimates vs actuals
portfolio a collection of programs, projects, and additional work managed together to
facilitate the attainment of strategic business goals
product life cycle the collection of stages that make up the life of a product. these stages are
typically introduction, growth, maturity, and retirement
program a group of related projects managed in a coordinated way
progressive elaboration the iterative process of increasing the level of detail in a project management
plan as greater amounts of information and more accurate estimates become
available
project work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a
unique outcome
project life cycle the name given to the collection of various phases that make up a project -
make the project easier to control and integrate
project management the ability to meet project requirements by using various knowledge, skills,
tools, and techniques to accomplish project work
project management info system collection of tools, methodologies, techniques, standards, and resources used
to manage a project
stakeholder an individual, group, or organization who may affect by, or perceive itself to be
affected by a decision, activity, or outcome of a project
standard a document that describes rules, guidelines, methods, processes, and practices
that can be used to enhance the chances of success
subproject a component of a project
program management the act of managing a group of related projects in a coordinated way
project management office (PMO) an additional layer of organization dedicated to helping project managers
