Saturday, October 25, 2008

One Page Formula's for PMP Exam

From PMP Exam Resource, I have received the following email that I believe will be very valuable before taking PMP exam.:


Q U A L I T Y
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CoQ = ( ( Review Efforts +  Test Efforts + Training Efforts + Rework Efforts + Efforts of Prevention) / Total Efforts) x 100 %

PERT  =    O + 4ML +  P 
           --------------
                 6
MEAN -> Average

MODE  -> The "most found" number

RANGE -> Largest - Smallest Measure.

MEDIUM -> No in the middle or avg. of 2 middle Nos

STD. DEV. OF TASK  =     P - O
                      ____________
                           6

TASK VAR.  =   (P - O)  2   =   Std. Dev ^ 2
               ____________
                  6
                   _____________
CP STD. DEV.  =  √ σ² + σ² + σ²

SIGMA   1   =  68.26
        2   =  95.46
        3   =  99.73
        6   =  99.99


Channels of Communication
-------------------------
COMM  =  (N2 - N) / 2   =  (N x (N - 1)) /   2


P R O J E C T   S E L E C T I O N
--------------------------------- 
PV    =    F V   .      
          -------
          (1+r)ⁿ

FV   =  PV  x (1+r)

NPV = S  (  PV  +    PV +   PV  +   PV   )
           ----     ----   ----    ----  
          (1+r)ⁿ   (1+r)ⁿ  (1+r)ⁿ  (1+r)ⁿ 

Cash Flow = Cash Inflow - Cash Outflow

Discounted Cash Flow = CF x Discount Factor

ARR = S Cash Flow / No. of Years

ROI = (ARR / Investment) * 100 %

BCR  =  Benefits / Cost

Exp. Value = Probability %  x Consequence $


Class of Estimates 
-------------------
Definitive                   +5%

Capital Cost             +10-15%

Appropriation           +15-25%

Feasibility                  +25-35%

Order of Magnitude > +35%


Contract Incentives
--------------------
Savings = Target Cost - Actual Cost

Bonus  =  Savings x Percentage

Contract Cost =  Bonus + Fees

Total Cost = Actual Cost + Contract Cost


E A R N E D     V A L U E     A N A L Y S I S
---------------------------------------------
PV (Present Value) = BCWS (Budgeted Cost of Work Schedule)

EV (Earned Value) = BCWP (Budgeted Cost of Work Performed)

AC (Actual Cost) = ACWP (Actual Cost of Work Performed)

CV  =  EV  -  AC

CPI  =  EV  / AC  (efficiency)

SV   =  EV  -  PV 

SPI   =  EV  /  PV

ETC = BAC - EV   or     (BAC - EV) / CPI

EAC = AC + ETC 

EAC = BAC / CPI

VAC = BAC - EAC

%  COMPLETE  =  EV  /  BAC x 100

%  SPENT          =  AC  / BAC x 100

CV%  =  CV / EV x 100 

SV%   =  SV / PV x 100

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Sunday, October 12, 2008

General PMP Exam Tips

General tips - obtained from "PMP Exam Resource"
  • You should memorize all formulas, especially the Earned Value and PERT.
  • Practice eliminating the completely implausible options first.
  • There is no penalty for guessing; thus, do not leave any question blank.
  • There will always be those situations where you have no idea what the question is asking.
  • Use educated guessing to select the most appropriate option. Remember, you have only 80 seconds for each question. If you do not know the answer of a question, mark it and move on and revisit it later if you have time.
  • Answer the questions based on the PMBOK concepts first, then consider your experience.
  • If they are in conflict, the PMBOK wins.

PMI Concept Oriented Tips

PMI concept-oriented tips - (obtained from "PMP Exam Resource")

  • The project manager takes an active approach to the job by not waiting until a risk materializes and becomes a problem. This is an extremely important concept that might affect many questions on an exam. The project manager does not escalate problems to upper management or to the customer before fully analyzing them and identifying options.
  • When answering a question related to what the project manager should do in a specific situation, you should rephrase the question to: What is the first thing the project manager will do given such a situation and given his or her proactive nature?
  • Assume that lessons learned and historical databases are available. This might not be true in a real life situation.
  • PMI does not approve adding extra functionality without benefits or gold plating.
    Project managers have all kinds of soft and hard skills.
  • The Work Breakdown Structures (WBSs) are wonderful tools.
  • Roles and responsibilities need to be properly defined.

Tips for taking the PMP exam (Part 2)

Tips for taking the PMP exam (Part 2) - (obtained from "PMP Resources")

Passing the PMP exam requires extensive preparation. Use the following tips and techniques as part of that preparation, which should also include developing a comprehensive understanding of the PMBOK concepts and terminology, practicing previous exam questions when possible, and attending a few project management-training courses.

Question-oriented tips

  • There are certain questions that contain extra information. This information is irrelevant and it does not relate to the correct answer. Beware of such questions and remember it isn't necessary to use all the information provided to answer the question.
  • Each question has only one correct answer. You need to select the most appropriate answer. Beware of choices that represent true statements but are not relevant. Be sure to read all the options before you select any one.
  • You need to answer the questions from a PMI perspective—not from your own perspective, which you acquired through experience. Remember that PMI is trying to present an ideal environment for project managers that might be different from your own experience.
  • Beware of answer choices that represent generalizations, which may be characterized by words such as always, never, must, or completely; these are often the incorrect choices.
  • Look out for choices that represent special cases. These choices tend to be correct and are characterized by words such as often, sometimes, may, generally, and perhaps.
  • The correct answer may not be grammatically correct.

Tips on taking the PMP exam (Part 1)

Tips on taking the PMP exam (taken from "PMP Exam Resource")

The PMP certification examination is a computer-based exam that is offered at PMI locations in the United States, Canada, and in other countries worldwide.

The exam is based on information from the entire project management body of knowledge. The Guide to the Project Management Body of Knowledge” (PMBOK), which is published by PMI, provides an outline of the topics covered.

Because the exam is computer based, participants can find out how they scored by reading the detailed report on performance that is available when the exam is completed. Questions on the PMP exam are grouped by project management processes. The basic PMP exam is not industry specific. The PMI Certificate of Added Qualification (CAQ), which tests your knowledge of a particular industry, can be added to certify your expertise in Information Technology Project Management, Establishing a Project Management Office, and Project Management in the Automotive Industry.

Friday, October 10, 2008

Introducing Qualitative Risk Analysis

Qualitative Risk Analyis is:

a subjective analysis of risks analysis of the risk identified in the risk identification. It includes:
  • the probability of each risk occurring (eg, low, medium, high, etc)
  • the impact (consequences, positive, negative) of each risk occuring.

Friday, October 3, 2008

Types of Risk Identifcation Output

Risk Identification Output:

Risk Register

  • is the only output from the risk identification process.
  • contains the results fo the qualitative risk analysis, quantitative risk analysis and risk response planning.
  • identifies risks, potential risk responses and their triggers or waning signs.
  • If risk categories are changed, they are updated in the risk register.

Any critial responses included inthe risk register are forwarded for use in the risk response planning process.

PMP Exam Experience Verification Worksheet

I have received an email from The Project Management PrepCast™ on a very useful excel worksheet to fill the experience verification section. Details from the email is as follow:

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All,I have created and released a new MS Excel worksheet that will help you get your PMP Exam application ready.

A big part of the PMP application is filling in the experience verification section. You will have to document all projects that you worked on in the past 8 years. The total hours have to add up to a minimum of 4,500 or 7,500 (depending on your educational background).

This worksheet makes the process easier for you: Select your educational background, enter all your project information and now check if the total comes up to the number that you need. It doesn't make collecting the project information easier for you, but the worksheet is an excellent way to help gather the information before you fill in the online application.

I cannot attach it to this message but you can download it via this link:http://www.pm-prepcast.com/index.php?option=com_weblinks&task=view&catid=38&id=232

Until next time,
Cornelius Fichtner, PMP

The Project Management PrepCast™ - http://www.pm-prepcast.com/The Project Management Podcast™ - http://www.thepmpodcast.com/Project Management Lectures - http://www.project-management-lectures.com/Follow me on Twitter: http://twitter.com/corneliusfichthttp://hk.mc537.mail.yahoo.com/mc/compose?to=pmpodcast@gmail.com

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Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)