This section has some quick facts you should be know at a glance. Hold on, this moves pretty fast.

Organization Structures  Organizational structures are relevant to the project manager’s authority. A project manager’s authority will vary depending on the organizational structure he’s operating within. The structures that offer the least power to the highest amount of power for the project manager are in the following order:

WBS Facts  The Work Breakdown Structure (WBS) is the big picture of the project deliverables. It is not the activities that occur to create the project, but the components the project will create. The WBS helps the project team and the project manager create accurate cost and time estimates. The WBS also helps the project team and the project manager create an accurate activity list. The WBS is an input to five planning processes:

Project Scope Facts  Projects are temporary endeavors to create a unique product of service. Projects are selected by one of two methods:

• Benefit measurement methods These include scoring models, cost-benefit ratios, and economic models.

• Constrained optimization Mathematical models based on linear, integer, and dynamic programming models. (You probably won’t see this one on the IT Project+ exam as a viable answer.)

The project scope defines all of the required work, and only the required work, to complete the project. Scope management is the process of ensuring the project work is within scope and protects the project from scope creep. The scope statement is the baseline for all future project decisions as it justifies the business need of the project. There are two types of scope:

• Product scope defines the attributes of the product or service the project is creating.

• Project scope defines the required work of the project to create the product.

Scope verification is the process completed at the end of each phase and project to confirm the project has met the requirements. It leads to the formal acceptance of the project deliverable.

Project Time Facts  Time can be a project constraint. Effective time management is the scheduling and sequencing of activities in the best order to ensure the project completes successfully—and in a reasonable amount of time. There are some key terms for time management:

There are three types of dependencies between activities:

• Mandatory This hard logic requires a specific sequence between activities.

• Discretionary This soft logic prefers a sequence between activities.

• External Due to reasons outside of the project, such as vendors, the sequence must happen in a given order.

Project Cost Facts  There are several methods for providing project estimates:

• Bottom-up Project costs start at zero and each component in the WBS is estimated for costs and then the “grand total” is calculated. This is the longest method to complete, but it provides the most accurate estimate.

• Analogous Project costs are based on a similar project. This is a form of expert judgment, but it is also a top-down estimating approach so it less accurate than a bottom-up estimate.

• Parametric Modeling Price is based on cost per unit; examples include cost per metric ton, cost per yard, cost per hour.

There are four types of costs attributed to a project:

• Variable costs The costs depend on other variables. For example, the cost of a food-catered event depends on how many people register to attend the event.

• Fixed costs The cost remains constant throughout the project. For example, a rented piece of equipment is the same fee each month even if it is used more in some months than others.

• Direct costs The cost is directly attributed to an individual project and cannot be shared with other projects; for example, airfare to attend project meetings, hotel expenses, and leased equipment that is used only on the current project.

• Indirect costs These are the cost of doing business; examples include rent, phone, and utilities.

Some common quality management charts and methods include:

• Ishikawa diagrams These diagrams are also called fishbone diagrams. They are used to find causes and effects that contribute to a problem.

• Flow charts These charts show the relationship between components and the flow of a process through a system.

• Pareto Diagrams These diagrams identify project problems and their frequencies. These are based on the 80/20 Rule: 80 percent of project problems stem from 20 percent of the work.

• Control Charts These charts plot out the result of samplings to determine if projects are “in control” or “out of control.”

• Kaizen technologies These technologies make small improvements in an effort to reduce costs and consistency.

• Just-in-time ordering This method reduces the cost of inventory but requires additional quality because materials are not readily available should mistakes occur.

Human Resource Facts  There are several human resource theories you should be familiar with on the IT Project+ exam. They are:

Communication Facts  Communicating is the most important skill for the project manager. With that in mind, here are some key facts on communications:

• The communication channels formula is N(N - 1)/2. N represents the number of stakeholders. For example, if you have 10 stakeholders, the formula would read 10(10 - 1)/2 for 45 communication channels. Pay special attention to questions wanting to know how many additional communication channels you have based on added stakeholders. For example, you have 25 stakeholders on your project and have recently added 5 team members. How many additional communications do you now have? You’ll have to calculate the original number of communication channels, 25(25-1)/2 = 300, and then calculate the new number with the added team members, 30(30-1)/2 = 435, and, finally, subtract the difference between the two: 435 - 300 = 135 additional communication channels.

• Fifty-five percent of communication is nonverbal.

• Effective listening is the ability to watch the speaker’s body language, interpret para lingual clues, and decipher facial expressions for insight. The next step is to follow these messages with questions for clarity and to offer feedback. Active listening requires the receiver of the message to offer clues, such as nodding the head to indicate he is listening. It also requires the receiver to repeat the message, ask questions, and continue the discussion if clarification is needed.

• Communication can be hindered by trendy phrases, jargon, and extremely pessimistic comments. In addition, communication can be blocked by noise, hostility, cultural differences, and static among other communication barriers.

The only output of the risk planning is the Risk Management Plan. There are two broad types of risks:

• Business risk The loss of time and finances; a downside and an upside may exist.

• Pure risk The loss of life, injury, and theft. Only a down side exists.

Risks can be responded to in one of four methods:

• Avoidance Avoid the risk by planning a different technique to remove the risk from the project.

• Mitigation Reduce the probability or impact of a risk.

• Acceptance The risk’s probability or impact may be small enough that it can be accepted.

• Transference The risk is not eliminated but the responsibility and ownership of the risk is transferred to another party; for example, it’s transferred to insurance.

Procurement Facts  A Statement of Work (SOW) is provided to the potential sellers so they can create accurate bids, quotes, and proposals for the buyer. A bidders’ conference may be held so sellers can query the buyer on the product or service to be procured.

A contract is a formal agreement, preferably written, between a buyer and seller. On the exam, procurement questions are usually from the buyer’s point of view. All requirements the seller is to complete should be clearly written in the contract. Requirements of both parties must be met or legal proceedings may follow. Contract types include:

• Cost-reimbursable contracts require the buyer to assume the risk of cost overruns.

• Fixed-price contracts require the seller to assume the risk of cost overruns.

• Time-and-material contracts are good for smaller assignments but can impose cost overrun risks to the buyer if the time by the seller is not monitored.

• A purchase order is a unilateral form of contract.

• A letter of intent is not a contract, but it shows the intent of the buyer to purchase from a specific seller.