THE PMP EXAM PREP COURSE

Transcription

1 THE PMP EXAM PREP COURSE Session 3 PMI, PMP and PMBOK are registered marks of the Project Management Institute, Inc.

2 Agenda 9:00 10:15 10:15 10:30 10:30 12:00 12:00 12:45 12:45 2:15 2:15 2:30 2:30 4:00 Practice the PMP Exam Questions Break Cost Management Part 1 (Pass the PMP Exam Ch. 5) Lunch Cost Management Part 2 (Pass the PMP Exam Ch. 5) Break Quality Management (Pass the PMP Exam Ch. 6) 2

3 Practice PMP Exam Chapters 5 6 The PMBOK Guide You have 50 questions Mark each one as A, B, C, or D You have 50 minutes to answer as many as possible in the exam you would have 1 hour Good luck! 3

4 COST MANAGEMENT Chapter 5 of Pass the PMP Exam Chapter 7 of the PMBOK Guide

5 Overview High Medium Low 5

6 Cost Management You will need to know all the formulas All the formulas make sense learn the logic Write down all the formulas as soon as you are allowed to start writing in the exam 6

7 Cost Management Links in very tightly with Scope and Time management Knowledge Area Processes Project Management Process Groups Initiating Planning Executing Monitoring & Controlling Closing Project Cost Management Plan Cost management Estimate Costs Determine Budget Control Costs Table 3-1. Project Management Process Groups and Knowledge Area Mapping A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 7

8 Project Cost Management 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget 7.4 Control Costs.1 Inputs.1 Project management plan.2 Project charter.3 Enterprise environmental factors.4 Organizational process assets.2 Tools and Techniques.1 Expert Judgment.2 Analytical techniques.3 Meetings.3 Outputs.1 Cost management plan.1 Inputs.1 Cost management plan.2 Human resource management plan.3 Scope baseline.4 Project schedule.5 Risk register.6 Enterprise environmental factors.7 Organizational process assets.2 Tools and Techniques.1 Expert Judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point estimating.6 Reserve analysis.7 Cost of quality.8 Project management software.9 Vendor bid analysis.10 Group decision making techniques.3 Outputs.1 Activity cost estimates.2 Basis of estimates.3 Project document updates.1 Inputs.1 Cost management plan.2 Scope baseline.3 Activity cost estimates.4 Basis of estimates.5 Project schedule.5 Resource calendars.6 Agreements.7 Organizational process assets.2 Tools and Techniques.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationships.5 Funding limit reconciliation.3 Outputs.1 Cost baseline.2 Project funding requirements.3 Project document updates.1 Inputs.1 Project management plan.2 Project funding requirements.3 Work performance data.4 Organizational process assets.2 Tools and Techniques.1 Earned value management.2 Forecasting.3 To-complete performance index (TCPI).4 Performance reviews.5 Project management software.6 Reserve analysis.3 Outputs.1 Work performance information.2 Cost forecasts.3 Change requests.4 Project management plan updates.5 Project document updates.6 Organizational process assets updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 8

9 Plan Cost Management Inputs Tools and Techniques Outputs.1 Project management plan.2 Project charter.3 Enterprise environmental factors.4 Organizational process assets.1 Expert Judgment.2 Analytical techniques.3 Meetings.1 Cost management plan Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 9

10 Plan Cost Management This is the process where you develop your cost management plan which will guide you and the project team in the development of individual cost estimates and the project budget It will also provide guidance on how changes to the project costs and budget will be managed. 10

11 Cost Types Variable Costs vs. Fixed Costs Direct Costs vs. Indirect Costs Sunk Costs 11

12 Estimate Costs Inputs Tools and Techniques Outputs.1 Cost management plan.2 Human resource management plan.3 Scope baseline.4 Project schedule.5 Risk register.6 Enterprise environmental factors.7 Organizational process assets. 1 Expert Judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point estimating.6 Reserve analysis.7 Cost of quality.8 Project management software.9 Vendor bid analysis.10 Group decision making techniques.1 Activity cost estimates.2 Basis of estimates.3 Project document updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 12

13 Estimate Costs May be performed multiple times Controlling definitely beats preliminary concepts by an order of magnitude ESTIMATE TYPE ESTIMATE RANGE Order of Magnitude Estimate -50% to +100% Rough Order of Magnitude Estimate -25% to +75% Conceptual Estimate -30% to +50% Preliminary Estimate -20% to +30% Definitive Estimate -15% to +20% Control Estimate -10% to +15% 13

14 Cost Estimating Tools & Techniques Analogous Estimating Bottom Up Estimating Parametric Estimating Three-point estimates You know these concepts from Time Management! Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 14

15 Cost Estimating Tools & Techniques Reserve Analysis Management Reserve (Unknown Unknowns) Contingency Reserve (Known Unknowns) Project management estimating software Vendor bid analysis Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 15

16 Cost Estimating Tools & Techniques Cost of Quality (COQ) Also used in Quality Planning Mirrored by Cost of Poor Quality (COpQ) Decisions to reduce quality rarely save costs. They usually transfer costs to other parts of the product lifecycle. Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 16

17 Estimate Costs Outputs Activity Cost Estimates Basis of Estimates Project document updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 17

18 Cost vs. Budget The difference is.. Project costs are individual cost estimates for specific activities and work packages which when aggregated form a total project cost estimate. The project budget are your project costs over time. 18

19 Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project Management Institute Inc., 2013, Page

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21 Determine Budget Inputs Tools and Techniques Outputs.1 Cost management plan.2 Scope baseline.3 Activity cost estimates.4 Basis of estimates.5 Project schedule.5 Resource calendars.6 Agreements.7 Organizational process assets.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationships.5 Funding limit reconciliation.1 Cost baseline.2 Project funding requirements.3 Project document updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 21

22 Determine Budget Budget = Cost Baseline The cost budgeting process time phases the costs so that the performing organisation will know how to plan for cash flow and likely expenditures 22

23 Determine Budget Inputs.1 Activity cost estimates.2 Basis of estimates.3 Scope baseline.4 Project schedule.5 Resource calendars.6 Agreements.7 Organisational process assets Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 23

24 Determine Budget Tools & Techniques.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationship.5 Funding limit reconciliation Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 24

25 Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project Management Institute Inc., 2013, Page

26 Determine Budget Outputs.1 Cost performance baseline - Specifies how much and when.2 Project funding requirements.3 Project document updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 26

27 Costs and Budget

28 Control Costs Inputs Tools and Techniques Outputs.1 Project management plan.2 Project funding requirements.3 Work performance data.4 Organisational process assets.1 Earned value management.2 Forecasting.3 To-complete performance index (TCPI).4 Performance reviews.5 Project management software.6 Reserve analysis.1 Work performance information.2 Cost forecasts.3 Change requests.4 Project management plan updates.5 Project document updates.6 Organisational process assets updates Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 28

29 Cost Control Similar to other control areas we have covered to date, i.e. scope and time control The project manager is proactive Measure actual against planned Used to forecast future performance! 29

30 Cost Control Inputs.1 Project management plan.2 Project funding requirements.3 Work performance data.4 Organisational process assets Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 30

31 Cost Control Tools & Techniques.1 Earned value management.2 Forecasting.3 To-complete performance index (TCPI).4 Performance reviews.5 Reserve analysis.6 Project management software Figure 7-1. Project Cost Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 31

32 Earned Value Technique Method to measure project performance against the project baseline (actual vs. planned) Helps analyse and understand deviations 32

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35 Figure Earned Value, Planned Value, and Actual Costs Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project Management Institute Inc., 2013, Page

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37 Real EV Data Example A three line graph based on real project data For a real client (who didn t really understand make sure you do!) 37

38 Project Status Report PV EV AC BCWS BCWP ACWP

39 Earned Value Terms BAC = Budget at Completion How much you originally planned for the project to cost 39

40 Earned Value Terms PV = Planned Value (BCWS) How much you planned to spend on what you planned to have achieved The position you should be in at the present point in time EV = Earned Value (BCWP) How much you planned to spend on what you actually achieved The value of the work that has been completed at the present point in time. AC = Actual Cost (ACWP) How much you actually spent on what you actually achieved The cost incurred at the present point in time. 40

41 Example You are a project manager on a project to complete 15km of road. Your approved budget for the project is $930,000, and you have forecast that the project will take 35 weeks to complete. You are 13 weeks into the project, and have constructed 7km of road at a cost of $58,000 per km. Use this information to calculate the following at the present point of the project; Budget at Completion (BAC) Actual Cost (AC) Planned Value (PV) Earned Value (EV) 41

42 Earned Value Terms EAC = Estimate at Completion How much it s looking like it s going to cost based on what you ve done so far There are four possible formulae; AC + ETC BAC/CPI AC+ (BAC-EV) AC+[(BAC-EV)/(CPI c x SPI c )] 42

43 Earned Value Terms ETC = Estimate to Complete How much you still have to spend to get it done VAC = Variance at Completion Difference between what you thought the project would cost and what it actually ends up costing 43

44 Grouping Group I BAC AC PV EV Group II CV = EV - AC CPI = EV / AC SV = EV - PV SPI = EV / PV 44

45 Formulas Cost Variance CV = EV AC The difference between what you ve done should have cost you and what it actually cost you For example: According to your project plan, you should spend $18 to make three widgets. You ve produced three widgets, but have spent $20. Your Cost Variance is -$2. 45

46 Formulas Schedule Variance SV = EV PV The difference between how much you ve accomplished and how much you had planned to accomplish by now For example: According to your project plan, at this point you should have produced five widgets for a value of $30. You ve produced three widgets with a value of $18. Your Schedule Variance is -$12. 46

47 Handy Hint For Cost Variance and Schedule Variance, positive is positive! 47

48 Formulas Schedule Performance Index SPI = EV/PV The ratio of how much you ve accomplished to how much you planned to accomplish For example: You ve produced three widgets worth $18. You should have produced five widgets worth $30. Your Schedule Performance Index is

49 Formulas Cost Performance Index CPI = EV/AC The ratio of how much it should have cost to how much it actually cost for a given period of time For example: In September, you should have made three widgets at a cost of $18. You spent $20 to make them. Your Cost Performance Index for September is

50 Formulas Cumulative CPI Cumulative CPI = CPI c CPI from the beginning of the project, not just for any given period of time For example: By now you should have made 10 widgets at a cost of $30. You ve made 10, but it cost you $40. Your CPI c is

51 Handy Hint For Cost Performance Index and Schedule Performance Index, greater than one is great! 51

52 More Handy Hints Wherever EV is used in a formula it nearly always comes first If it is a variance it is EV minus something If it is an index it is EV divided by something If the formula relates to cost use AC If the formula relates to schedule use PV 52

53 Formulas - Estimate at Completion EAC = one of four possible formulas! How much it s looking like it s going to cost based on what you ve done so far Several ways to calculate depending on the information you have available all very logical 53

54 Formulas - Estimate at Completion v1 EAC = BAC/CPI or BAC/CPI c Budget divided by your cost performance to date. For example: Your project was to create 300 widgets for $900. Based on your CPI of 0.75, it will actually cost $1,

55 Formulas - Estimate at Completion v2 EAC = AC + ETC How much it s looking like it s going to cost based on what you ve done so far For example: Your project was to create 300 widgets for $900. You ve created 100 widgets for $400, and you estimate it will cost another $700 to create the next 200. Your EAC is $1,

56 Formulas - Estimate at Completion v3 EAC = AC + (BAC - EV) Take your total budget, remove the value you have earned to date, and add you costs to date. For example: Your project was to create 300 widgets for $900. You ve created 100 widgets with an actual cost of $400, but an earned value of only $300, meaning you still have $600 of value left to create. Your EAC is $1,

57 Formulas - Estimate at Completion v4 EAC = AC + ((BAC - EV)/(CPI C x SPI C )) Take your total budget, remove the value representing the work you have actually achieved, divide that by an overall performance indicator, and then add you costs to date. For example: Your project was to create 300 widgets for $900. You ve created 100 widgets with an actual cost of $400, but an earned value of only $300. According to the plan, you should have created 150 widgets by now. You still have $600 of value left to create, but it will likely cost you $1,200 to create that value. Your EAC is $1,

58 Formulas - Estimate to Complete ETC = EAC - AC How much more it s going to cost to finish it. For example: Based on your most current calculations, you expect it will cost $100,000 to build your house. You ve already spent $60,000. Your ETC is $40,

59 Formulas - Variance at Completion VAC = BAC EAC The difference between how much you planned for the project to cost, and how much you think it s going to cost now. For example: You hoped your house was going to cost $80,000, but it s actually looking like it s going to cost $100,000. Your VAC is $20,

60 Control Costs - TCPI The rate at which you have to go to achieve the desired outcome. Based on either EAC or BAC BAC: (BAC - EV) / (BAC - AC) EAC: (BAC - EV) / (EAC - AC) This is the only time that less than 1 is good and greater then 1 is bad 60

61 Control Costs Outputs.1 Work performance information.2 Cost forecasts.3 Change requests.4 Project management plan updates.5 Project document updates.6 Organisational process assets updates 61

62 And now the big example... You are the project manager on a project to build 40kms of road at a cost of $10,000 per kilometre over 20 months At 14 months into the project you have built 22kms of road and spent a total of $205,000. Calculate: BAC, AC, PV, EV, CV, CPI, SV, SPI, EAC, ETC and VAC Bonus points for using at least 3 different formulae for EAC! 62

63 Answers BAC = $400,000 AC = $205,000 PV = $280,000 EV = $220,000 CV = +$15,000 CPI = 1.07 SV = -$60,000 SPI = 0.78 EAC = BAC/CPI = $373,800 EAC = AC + ((BAC-EV)/(CPI x SPI)) =$421,860 ETC = Depends on which EAC you used VAC = Depends on which EAC you used 63

64 Practice Questions Pass the PMP Exam, Page

65 QUALITY MANAGEMENT Chapter 6 of Pass the PMP Exam Chapter 8 of the PMBOK Guide

66 Overview High Medium Low 66

67 Quality Management Knowledge Area Processes Project Management Process Groups Initiating Planning Executing Monitoring & Controlling Closing Project Quality Management Plan Quality Management Perform Quality Assurance Control Quality Table 3-1. Project Management Process Groups and Knowledge Area Mapping A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 67

68 Quality Management Management of the degree to which a set of inherent characteristics fulfills requirements 68

69 Quality Management Prevention over inspection It costs more to fix an error than to prevent one! 69

70 Quality vs. Grade Grade refers to the amount of features a product has. Low grade is fine, low quality is not 70

71 Precision & Accuracy Precise Precise & Accurate 71

72 Some Basic Concepts Total Quality Management (TQM) ISO 9000 Six Sigma Kaizen Just in Time (JIT) 72

73 Project Quality Management 8.1 Plan Quality Management.1 Inputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements documentation.5.enterprise environmental factors.6 Organisational process assets.2 Tools and Techniques.1 Cost-benefit analysis.2 Cost of quality.3 Seven basic quality tools.4 Benchmarking.5 Design of experiments.6 Statistical sampling.7 Additional quality planning tools.8 Meetings.3 Outputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.3 Quality checklists.4 Project document updates 8.2 Perform Quality Assurance.1 Inputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality control measurements.5 Project documents.2 Tools and Techniques.1 Quality management and control tools.2 Quality audits.3 Process analysis.3 Outputs.1 Change requests.2 Project management plan updates.3 Project document updates.4 Organisational process asset updates 8.3 Control Quality.1 Inputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process assets.2 Tools and Techniques.1 Seven basic quality tools.2 Statistical sampling.3 Inspection.4 Approved change requests review.3 Outputs.1 Quality control measurements.2 Validated changes.3 Verified deliverables.4 Work performance information.5 Change requests.6 Project management plan updates.7 Project document updates.8 Organizational process assets updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 73

74 Plan Quality Management Inputs Tools and Techniques Outputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements documentation.5.enterprise environmental factors.6 Organizational process assets.1 Cost-benefit analysis.2 Cost of quality.3 Seven basic quality tools.4 Benchmarking.5 Design of experiments.6 Statistical sampling.7 Additional quality planning tools.8 Meetings.1 Quality management plan.2 Process improvement plan.3 Quality metrics.3 Quality checklists.4 Project document updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 74

75 Plan Quality Management Identifying the quality specifications for the project Development of: The quality management plan, The process improvement plan, and The configuration management plan Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 75

76 Plan Quality Inputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements documentation.5.enterprise environmental factors.6 Organisational process assets Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 76

77 Plan Quality Tools & Techniques.1 Cost-benefit analysis.2 Cost of quality.3 Seven basic quality tools.4 Benchmarking.5 Design of experiments.6 Statistical sampling.7 Additional quality planning tools.8 Meetings Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 77

78 Plan Quality Outputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality checklists.5 Project document updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 78

79 Perform Quality Assurance Inputs Tools and Techniques Outputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality control measurements.5 Project documents.1 Quality management and control tools.2 Quality audits.3 Process analysis.1 Change requests.2 Project management plan updates.3 Project document updates.4 Organisational process asset updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 79

80 Perform Quality Assurance Steadily improving the activities and processes used to achieve quality 80

81 Perform Quality Assurance Don t confuse with Control Quality! An executing process, not a control process 81

82 Perform Quality Assurance Inputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality control measurements.5 Project documents Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 82

83 Perform Quality Assurance Tools & Techniques.1 Quality management and control tools.2 Quality audits.3 Process analysis Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 83

84 Perform Quality Assurance Outputs.1 Change requests.2 Project management plan updates.3 Project document updates.4 Organisational process asset updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 84

85 Control Quality Inputs Tools and Techniques Outputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process assets.1 Seven basic quality tools.2 Statistical sampling.3 Inspection.4 Approved change requests review.1 Quality control measurements.2 Validated changes.3 Verified deliverables.4 Work performance information.5 Change requests.6 Project management plan updates.7 Project document updates.8 Organizational process assets updates Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 85

86 Control Quality Looking at specific results to determine if they conform to quality standards Quality does not mean good! It means fulfils requirements. 86

87 Control Quality Inputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process assets Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 87

88 Control Quality Tools & Techniques.1 Seven basic quality tools.2 Statistical sampling.3 Inspection.4 Approved change requests review Figure 8-1. Project Quality Management Overview A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition Project Management Institute, Inc. All rights reserved 88

89 7 Basic Quality Tools Seven charts that shows quality information graphically for easier understanding and analysis: 1. Cause and Effect/Fishbone/Ishikawa diagram 2. Control Chart 3. Check sheet 4. Scatter Diagram 5. Pareto Chart 6. Histogram 7. Flowchart 89

90 Cause & Effect - Ishikawa/Fishbone Time Machine Method Material Major Defect Energy Measurement Personnel Environment Potential Causes Effect 90

91 Control Chart Upper Specification Limit Upper Control Limit X Lower Control Limit Lower Specification Limit The Rule of Seven 7 consecutive points on one side of the mean must be investigated to determine the cause, as it threatens the mean amount 91

92 Check Sheet A standardized list of activities, process, and steps that need to be completed during quality management activities. 92

93 Scatter Diagram 93

94 Pareto s Law, a.k.a. The 80/20 Rule 80% of the problems come from 20% of the causes Focus improvement efforts on the 20% for biggest results 94

95 Pareto Diagram Cumulative Percentage Frequency by Cause 95

96 Histogram 96

97 Sample Process Flowchart 1. Project Request 2. Compliance Copy 3. Develop Artwork No 7. Vendor Makes Proofs 6. Artwork out for Proofs 5. Change control for specs 4. Artwork Approved No No Yes 8. Package Dev t Review/ Approval Yes 9. QA Review/ Approval Yes 10. Approved Proof back to Vendor 12. Order Materials 11. Specs Signed (Package and QA) 97

98 Statistical sampling Sampling a part of the total population and not the entire population Use when testing the entire population costs too much or when destructive testing is involved. 98

99 Perform Quality Control Outputs.1 Quality control measurements.2 Validated changes.3 Verified deliverables.4 Organisational process assets updates.5 Change requests.6 Project management plan updates.7 Project document updates 99

100 Practice Questions Pass the PMP Exam, Page

101 Next Session Starts with practice the PMP exam on today s material Cost and Quality Management (please bring a calculator) Read chapters 9, 10 and 11 of the PMBOK Guide (and Appendix X3) or Pass the PMP Exam, chapters 7, 8 and 9 Create your own PMP style multi-choice practice question 101