PMP Daily

Daily Puzzle – February 12, 2004
Daily Question
There is a 10% probability that a given risk will occur during your new project. If it occurs, it will result in a loss of
$10,000. The insurance cost for this event is $700, with a deductible amount of US $250. Should a project manager
buy this insurance?
Yes, since $1,000 is greater than $950

Yes, since $1,000 is greater than $700
No, since the deductible amount changes the expected value of the risk event
No, since $1,250 is greater than $1,000
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Daily Vocabulary Word Reminder

Decision tree analysis- A decision analysis is usually structured as a decision tree. The decision
tree is a diagram that describes a decision under consideration and the implications of choosing
one or another of the available alternatives.
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Daily Question
A project manager has just been assigned to a new project and has been given the completed project scope. The first
thing the project manager must do is:
create a project plan using the WBS.

confirm that all the stakeholders have had input to the scope of work.
form a team to create the procurement plan.
create a network diagram.

Alternatives Identification- This is a general term for any technique used to produce different
approaches to the project. There are various general management techniques often used here,
most common of which are brainstorming and lateral thinking.

Daily Question
A team member complains to the project manager that another team member has once again failed to provide
necessary information. The project manager meets with both team members to uncover the problem. This is an
example of:
withdrawal.
confronting.
compromising.
smoothing.

Organization Chart- is any graphic display of project reporting relationships. It may be formal
or informal, detailed or broadly structured, based on the needs of the project.

Daily Question
A project is seriously delayed. Earned value analysis shows the project needs to be completed 10% faster than the
work has been going. To get the project back on track, management wants to add 10 people to a task currently
assigned to one person. The project manager disagrees, noting that such an increase will not produce an increase in
speed. This is an example of:
law of diminishing returns.

fast tracking.
earned value.
life-cycle costing.

Revised Cost Estimates - Are changes or modifications to the cost information used to manage
the project. Appropriate stakeholders should be notified. Revised cost estimates may or may not
warrant adjustments to other aspects of the project plan.

Minute Review - February 18, 2004-

We have enclosed a complementary copy of today’s Minute
Review. For subscriptions, please visit http://www.pmptools.com/minutereview/index.html
Daily Question
Management has provided you with a project charter, and you are creating a scope statement. You have asked the
team for input to ensure the scope statement is complete. However, the team is struggling with defining the scope.
Which of the following describes the problem?
A WBS was not completed before the scope statement was begun.
The team is working on the scope statement without the benefit of product analysis and stakeholder agreement
on what the project will deliver.
The team is in the scope definition process and needs the scope statement as an input.
The project objectives were not identified before the scope statement was begun.

Scope Management- The function of controlling a project in terms of its goals and objectives through the processes
of conceptual development, full definition or scope statement, execution and termination.


Daily Puzzle– February 19, 2004
Daily Question
A project is defined as:
a coordinated undertaking of interrelated activities directed toward a specific goal that has a finite period of
performance.
a large, complex undertaking with many objectives, multiple sources of funding, and a not discernible end
point.
an undertaking of interrelated activities directed toward a specific goal that can be accomplished in less than
one year.
a group of activities headed by a project manager who has cradle-to-grave cycle responsibility for the end
product.

Six Sigma- The goal of Six Sigma is to increase profits by eliminating variability, defects and
waste that undermine customer loyalty. Six Sigma can be understood/perceived at three levels:
Metric: 3.4 Defects Per Million Opportunities. DPMO allows you to take complexity of product/process into
account. Rule of thumb is to consider at least three opportunities for a physical part/component - one for form,
one for fit and one for function, in absence of better considerations. Also you want to be Six Sigma in the
Critical to Quality characteristics and not the whole unit/characteristics.
Methodology: DMAIC/DFSS structured problem solving roadmap and tools.
Philosophy: Reduce variation in your business and take customer-focused, data driven decisions.
Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business
processes. This increase in performance and decrease in process variation leads to defect reduction and vast
improvement in profits, employee morale and quality of product.

Daily Question
An organization is going through an evolution phase of restructuring the way it does projects. In a shift from a weak
matrix organization to a strong matrix organization, the power is shifted from the:

project manager to functional manager.
expeditor to coordinator.
functional manager to project manager.
functional manager to sponsor.

Functional Organization- A functional organization is a hierarchy where each employee has
one clear superior. Staff members are grouped by specialty, such as production, marketing,
engineering, and accounting at the top level, with engineering further subdivided into functional
organizations that support the business of the larger organization.

Daily Question
Your bolt production project is well underway. The requirements are clear that each bolt must weigh between .320
and .325 ounces. The first day of test production resulted in 15,000 bolts. Of the bolts inspected 47% fell within the
acceptable weight range. This is an example of?
Variable sampling
Attribute sampling
Control charting
Flow charting

Quality Assurance
A planned and systematic set of activities to ensure that variances in processes are clearly
identified, assessed and improving defined processes for fulfilling the requirements of customers
and product or service makers. "Work done to ensure that Quality is built into work products,
rather than Defects." This is by (a) identifying what "quality" means in context; (b) specifying
methods by which its presence can be ensured; and (c) specifying ways in which it can be
measured to ensure conformance



Daily Question
A project manager decides to bring expected future schedule performance in line with the project plan. What is this
a definition of?
Corrective action
Lessons learned
Scope verification
Scope planning

SWOT Analysis- A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm usually can be classified as
strength (S) or weaknesses (W), and that external to the firm can be classified as opportunity (O)
or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

Daily Question
A project team is having difficulty communicating over long distances. There are 13 team members from two
countries when five people from Indiaare added. This is of concern to the project manager because:
communications grow exponentially.

it will be harder to use reward power.
communication blockers grow linearly.
conflict can be increased with an increase in project priorities.

Project Closure- Confirmation that the project has met all stakeholder requirements for the
product of the project (the customer has formally accepted the project results and deliverables
and the requirements of the delivering organization).


Daily Question
A contract has just been signed with a construction company to complete a remodeling project within three months.
Due to force majeure, the project will be delayed by an additional three months. The construction company has
asked for an early termination of the contract due to lack of resources. What is the most appropriate option to do in
this situation?
Complete contract closure

Complete administrative closure
Re-negotiate the contract
Seek legal advice

Force Majeure- literally means "greater force". These clauses excuse a party from liability if
some unforeseen event beyond the control of that party prevents it from performing its
obligations under the contract. Typically, force majeure clauses cover natural disasters or other
"Acts of God", war, or the failure of third parties--such as suppliers and subcontractors--to
perform their obligations to the contracting party. It is important to remember that force majeure
clauses are intended to excuse a party only if the failure to perform could not be avoided by the
exercise of due care by that party.
When negotiating force majeure clauses, make sure that the clause applies equally to all parties
to the agreement--not just the licensor. In addition, it is helpful if the clause sets forth some
specific examples of acts that will excuse performance under the clause, such as wars, natural
disasters, and other major events that are clearly outside a party's control. Inclusion of examples
will help to make clear the parties' intent that such clauses are not intended to apply to excuse
failures to perform for reasons within the control of the parties.

Daily Question
You are about to begin negotiations with people from another country. Which of the following should provide
guidance on what business practices are allowed and not allowed?
The company code of conduct

The project charter
The project scope management plan
The negotiation plan

Decompression- The process of breaking project deliverables down into smaller, manageable
components so that project tasks and activities can be planned and managed.
Daily Question
A team member notifies you that she is about to add extra functionality to the project. She states there was no impact
on the cost or schedule. What is the initial action to perform by the project manager?
Understand what functionality is proposed, and if she is gold plating, halt her progress
Implement change control processes to track the change
Inform the customer of the change to the scope
Notify the functional manager that scope changes are not approved

Change Control Board (CCB)- A formally constituted group of stakeholders responsible for
approving or rejecting changes to the project baselines.

Daily Question
A project manager is taking over a project from another project manager while the project is in
planning. If the new project manager wants to see what the previous project manager's plans for
managing changes to the schedule were, she would look at the:
communication plan.
project plan.
time management plan.
schedule management plan.

Schedule Management Plan - (An output of schedule development)
This document defines how changes to the schedule will be managed. It may be formal or
informal, highly detailed or broadly framed, based on the needs of the project.
Daily Question
Your project schedule is tight and in danger of falling behind when two team members start disrupting status
meetings by arguing with each other. As project manager, which of the following is your best option?
Separate the two until the project is back on track

Speak with each team member and give each a verbal warning
Discuss the problem with the manager of the two team members
Meet with both team members and their manager to determine the source of conflict

Smoothing(Conflict Resolution) - Smoothing consists of de-emphasizing the opponents'
differences and emphasizing their commonalties over the issues in question. Smoothing keeps
the atmosphere friendly, but avoids solving the root causes of the conflict.

Daily Question
The principal use of a Pareto diagram is to:
focus attention on the most critical issues.

quantify risks.
help predict future problems.
improve risk management.

Pareto Principle- The Pareto principle states that 80% of the impact of the problem will show
up in 20% of the causes. A bar chart that displays by frequency, in descending order, the most
important defects. Proper use of this chart will have the cumulative percentage on a second y-
axis (to the right of the chart). This chart-type is used to identify if the Pareto principle is evident
in the data. If the Pareto principle is evident, about 20% of the categories on the far left will have
about 80% of the impact on the problem.

Daily Puzzle– March 1, 2004
Daily Question
You are a project manager in a large organization that uses a matrix structure. You have been asked to investigate
what organizational structure your competitors use and how this affects their ability to manage projects successfully.
How would you describe the main difference between a matrix organization and a functional organization?
In a functional organization, project managers have more authority than they do in matrix organizations.
More people work full-time on projects in a functional organization than in a matrix organization.
Project team members usually report to two bosses in a matrix organization--the functional manager and the
project manager.
Most companies have found that functional organization structures provide the most flexibility for managing
projects.

Matrix Organization- Any organizational structure in which the project manager shares
responsibility with the functional managers for assigning priorities and for directing the work.


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Daily Puzzle – February 12, 2004

Yes, since $1,000 is greater than $950

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Daily Puzzle – February 13, 2004

create a project plan using the WBS.

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Daily Puzzle – February 15, 2004

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Daily Puzzle – February 16, 2004

law of diminishing returns.

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Minute Review - February 18, 2004-

Daily Puzzle – February 18, 2004

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Daily Vocabulary Word Reminder

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Daily Puzzle– February 20, 2004

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Daily Puzzle– February 21, 2004

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Daily Puzzle– February 22, 2004

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Daily Puzzle– February 23, 2004

communications grow exponentially.

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Daily Puzzle – February 24, 2004

Complete contract closure

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Daily Puzzle– February 25, 2004

The company code of conduct

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Daily Puzzle – February 26, 2004

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Daily Puzzle – February 27, 2004

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Daily Puzzle – February 28, 2004

Separate the two until the project is back on track

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