📊 PMP Visual Mastery: Every Chart, Graph & Table Explained
PMP EXAM VISUAL GUIDE Each visual below shows the actual sketch + full explanation of WHAT it is, WHEN/WHERE/HOW/WHY it is used, how to read & interpolate the data, and all exam tips you need to score 100%.
1Network Diagram — Precedence Diagramming Method (PDM)
🔵 WHAT IS IT?
A diagram showing all project activities as boxes (nodes) with arrows depicting dependencies. Uses PDMPrecedence Diagramming Method – the most common network diagram; activities on nodes, arrows show dependencies. — activities are ON the nodes.📍 WHERE & WHEN USED?
Created during Plan Schedule Management process. Used throughout schedule planning to identify the critical path, float, and sequencing.🔍 HOW TO READ IT?
- ES = Early Start | EF = Early Finish
- LS = Late Start | LF = Late Finish
- Float = LS − ES = LF − EF
- Red arrows = Critical Path (Float=0)
🔗 Dependency Types
FSFinish-to-Start: B cannot start until A finishes. MOST COMMON type. FFFinish-to-Finish: B cannot finish until A finishes. SSStart-to-Start: B cannot start until A starts. SFStart-to-Finish: Rare. B cannot finish until A starts.
Float (Total Float) = LS − ES = LF − EF | Critical Path = Longest path with Float = 0
Forward Pass → calculates ES & EF | Backward Pass → calculates LS & LF
Forward Pass → calculates ES & EF | Backward Pass → calculates LS & LF
🎯 EXAM TIPS
- The Critical Path is the LONGEST path through the network, NOT necessarily the path with the most activities.
- If a question asks "what happens to the project end date if Task X is delayed by 2 days?" — check if Task X is on the critical path. If yes → project delays 2 days.
- LeadNegative lag. B starts BEFORE A finishes. e.g. Lead = -2d means B starts 2 days early. compresses the schedule; LagPositive waiting time between tasks. e.g. Lag = 2d means wait 2 days after A finishes before B starts. adds waiting time.
- Free Float = how much a task can be delayed without affecting the NEXT task.
- Total Float = how much a task can be delayed without affecting PROJECT END.
2Gantt Chart — Bar Chart Schedule
🔵 WHAT IS IT?
A horizontal bar chart where each bar represents a task's planned start and end. The X-axis is TIME; the Y-axis lists activities. Also called a Bar ChartAnother name for Gantt Chart. Used in the PMBOK as synonym..📍 WHO INVENTED IT?
Henry Gantt (1910s). Still the most widely understood schedule tool. Great for STATUS reporting to stakeholders.🔍 HOW TO READ IT?
- Bar length = task duration
- TODAY vertical line shows current position
- Bars left of TODAY = completed work
- Double bars = planned (outer) vs actual (inner)
- Diamond ♦ = Milestone (zero duration)
❌ LIMITATION
Gantt Charts do NOT clearly show task dependencies or logical relationships — use Network Diagram for that. Gantt is great for communication, poor for logic analysis.🎯 EXAM TIPS
- Gantt Chart = Bar Chart — they are the SAME thing on the exam.
- When asked which tool is BEST for communicating schedule to stakeholders → Gantt Chart.
- When asked which tool shows dependencies → Network Diagram.
- Milestone Chart = Gantt with only diamond-shaped milestones (no bars).
3Milestone Chart
🔵 WHAT IS IT?
A simplified schedule showing only KEY events (milestones) as diamonds ♦. A milestone has zero duration — it marks a point in time, not a work period.📍 WHEN USED?
Best for executive/senior stakeholder communication. Shows whether key deliverables are on time without overwhelming detail.🎯 EXAM TIPS
- Milestone = zero duration event. Never confuse with a task/activity.
- Used for high-level tracking with executives — not for day-to-day team management.
- A delayed milestone with no float = schedule risk requiring immediate corrective action.
4PERT / Three-Point Estimating Distribution
🔵 WHAT IS IT?
PERTProgram Evaluation and Review Technique – uses weighted average of 3 estimates to calculate expected duration. uses three estimates (Optimistic, Most Likely, Pessimistic) weighted to produce an Expected value. The curve shows probability distribution.📐 TRIANGULAR ESTIMATE
Alternative: E = (O + M + P) / 3PERT weights M by 4× because Most Likely is the best expert estimate — it's more probable.
📊 READING THE CURVE
- Peak = Most Likely (Mode)
- Mean ≠ Mode (skewed distribution)
- Wide spread = high uncertainty = high σ
- Narrow curve = high confidence
📏 STD DEVIATION RULE
±1σ = 68.27% confidence±2σ = 95.45% confidence
±3σ = 99.73% confidence
Used in schedule risk and quality control charts.
PERT: E = (O + 4M + P) / 6 | σ = (P − O) / 6 | Variance = [(P−O)/6]²
Triangular: E = (O + M + P) / 3
Triangular: E = (O + M + P) / 3
🎯 EXAM TIPS
- PERT gives MORE weight to M (×4) because it's the most realistic estimate.
- If O=4, M=6, P=14 → E = (4+24+14)/6 = 42/6 = 7 days. Practice this!
- σ = (P−O)/6: If O=2, P=14 → σ = 12/6 = 2 days
- The exam LOVES asking which estimate type uses 3 points → Three-Point or PERT.
5Critical Path Method (CPM) — Float Calculation
| Field | Symbol | Formula | Example (Task C) |
|---|---|---|---|
| Early Start | ES | Forward pass | 5 |
| Early Finish | EF | ES + Duration − 1 | 5+2−1 = 6 (or ES+Dur=7) |
| Late Finish | LF | Backward pass | 8 |
| Late Start | LS | LF − Duration + 1 | 8−2+1 = 7 (or LF−Dur=6) |
| Total Float | TF | LS − ES = LF − EF | 6−5 = 1 day |
| Free Float | FF | ES(next) − EF(this task) | 8−7 = 1 day |
🎯 EXAM TIPS
- Critical Path tasks have Float = 0. Any delay = project delay.
- Forward Pass: Add durations left to right (EF = ES + Duration).
- Backward Pass: Subtract durations right to left (LS = LF − Duration).
- If two paths converge on a node, the LARGEST EF value is used in forward pass; SMALLEST LF value is used in backward pass.
- Negative Float = project is already behind schedule.
6S-Curve — Cost Baseline & Spending Profile
🔵 WHAT IS THE S-CURVE?
Shows cumulative cost vs time. It's S-shaped because: slow start (planning) → rapid spending (execution) → tapering off (closeout). The baseline is set during planning and becomes the PMBPerformance Measurement Baseline – the approved, integrated scope-schedule-cost baseline against which project performance is measured..🟢 THREE CURVES
- PV = Planned Value: What was PLANNED to be spent by today
- EV = Earned Value: Value of work ACTUALLY completed
- AC = Actual Cost: What was ACTUALLY spent
📊 READING THE GRAPH
At the TODAY line:If EV < PV → Behind Schedule
If AC > EV → Over Budget
If EV = PV and EV = AC → On track!
🚦 BAC LINE
BACBudget at Completion – the total planned budget for the project. The endpoint of the PV curve. = the budgeted total at 100% completion. EVM calculations use BAC extensively in forecasting formulas.🎯 EXAM TIPS
- The S-Curve represents the Cost Baseline (PV line) — it's the approved budget.
- If EV is BELOW PV at today → SV is negative → behind schedule.
- If AC is ABOVE EV at today → CV is negative → over budget.
- BAC = highest point of PV line = total project budget.
7EVM — Earned Value Analysis Graph & Interpretations
SV = EV − PV | CV = EV − AC | SPI = EV/PV | CPI = EV/AC
EAC = BAC/CPI (most common) | ETC = EAC − AC | VAC = BAC − EAC
TCPI = (BAC−EV)/(BAC−AC) — work efficiency needed to finish on budget
EAC = BAC/CPI (most common) | ETC = EAC − AC | VAC = BAC − EAC
TCPI = (BAC−EV)/(BAC−AC) — work efficiency needed to finish on budget
| Metric | Formula | Result | Meaning |
|---|---|---|---|
| SV | EV − PV | Negative | Behind Schedule |
| SV | EV − PV | Positive | Ahead of Schedule |
| CV | EV − AC | Negative | Over Budget |
| CV | EV − AC | Positive | Under Budget |
| SPI | EV / PV | < 1.0 | Behind Schedule |
| SPI | EV / PV | > 1.0 | Ahead of Schedule |
| CPI | EV / AC | < 1.0 | Over Budget |
| CPI | EV / AC | > 1.0 | Under Budget |
🎯 EXAM TIPS
- MEMORIZE: EV is the hero — it compares to PV (schedule) and AC (cost).
- CPI < 1 = spending MORE than the value earned. CPI = 0.8 means every $1 spent earns $0.80 of value.
- Most reliable EAC forecasting formula = BAC / CPI.
- If asked "what is the most important EVM metric?" → CPI, because cost overruns are harder to recover than schedule delays.
- TCPI > 1 = need to be MORE efficient going forward to finish on budget (harder target).
8Complete EVM Formula Cheat Table
| Term | Full Name | Formula | Good / Bad Indicator |
|---|---|---|---|
| PV | Planned Value | Budgeted cost of scheduled work | Baseline reference |
| EV | Earned Value | % complete × BAC | The "hero" metric |
| AC | Actual Cost | Actual money spent | Lower is better (vs EV) |
| BAC | Budget at Completion | Total approved budget | Baseline |
| SV | Schedule Variance | EV − PV | + good, − bad |
| CV | Cost Variance | EV − AC | + good, − bad |
| SPI | Schedule Performance Index | EV / PV | >1 good, <1 bad |
| CPI | Cost Performance Index | EV / AC | >1 good, <1 bad |
| EAC | Estimate at Completion | BAC/CPI (most common) AC+(BAC−EV) if atypical AC+(BAC−EV)/CPI | Forecast total cost |
| ETC | Estimate to Complete | EAC − AC | Work remaining cost |
| VAC | Variance at Completion | BAC − EAC | + = under budget at end |
| TCPI | To-Complete Performance Index | (BAC−EV)/(BAC−AC) | <1 means on track |
🎯 SUPER EXAM TRICK
Remember: All variances start with EV (SV = EV−PV, CV = EV−AC). If EV is first and result is POSITIVE = good news. All performance indices: EV is numerator (SPI=EV/PV, CPI=EV/AC). Index >1 = good. Index <1 = bad.
9Control Chart — Statistical Process Control
🔵 WHAT IS IT?
A time-series chart showing process variation over time. Uses UCLUpper Control Limit = Mean + 3σ. Statistical boundary – not a specification. Crossing UCL means process is OUT of control. and LCLLower Control Limit = Mean − 3σ. Data below LCL is equally an out-of-control signal. at ±3σ from the mean.🟢 IN CONTROL vs OUT OF CONTROL
- In Control: Points within UCL/LCL, random variation
- Out of Control: Point outside UCL or LCL
- Rule of 7: 7 consecutive points same side of mean
📐 SPECIFICATION vs CONTROL LIMITS
Control Limits = statistical (±3σ). Customer Specifications = external requirements. A process can be in STATISTICAL control but still fail SPECIFICATIONS.⚠ SPECIAL CAUSE vs COMMON CAUSE
Common CauseNormal random variation within control limits. Acceptable. Do not adjust the process unnecessarily. = random, expected variation.Special CauseAssignable cause – a point outside control limits or Rule of 7. MUST be investigated and corrected. = identifiable cause, must investigate.
🎯 EXAM TIPS
- Control Chart is used to Control Quality — monitoring an ongoing process.
- Rule of Seven: 7 or more consecutive data points on SAME SIDE of mean = out of control (even if within limits).
- ±3σ control limits = 99.73% of data falls inside when process is in control.
- Do NOT confuse UCL/LCL (statistical) with USL/LSL (specification limits set by customer).
10Pareto Chart — 80/20 Rule
🔵 WHAT IS IT?
A bar chart ranked in descending frequency order with a cumulative line. Based on Pareto Principle80/20 Rule: 80% of problems come from 20% of causes. Focus limited resources on the "vital few" not the "trivial many." — 80% of problems from 20% of causes.🔍 HOW TO READ IT?
- Bars go LEFT to RIGHT in descending order
- Cumulative % line crosses 80% line
- Causes to LEFT of 80% line = "vital few" — focus here!
- Use for defect analysis, complaint analysis
🎯 EXAM TIPS
- Pareto Chart = ranked bar chart with cumulative line — used to PRIORITIZE quality improvement.
- If asked "which tool helps identify the most impactful quality issues?" → Pareto Chart.
- The 80/20 rule: 80% of defects come from 20% of causes — fix the 20%!
11Fishbone / Ishikawa / Cause-and-Effect Diagram
🔵 WHAT IS IT?
A diagram that maps root causes to an effect. The "head" = problem (Effect); bones = categories of causes. Also called Cause-and-EffectSame as fishbone/Ishikawa. Maps multiple causes back to one effect. Used in root cause analysis. or Ishikawa Diagram.📋 THE 6 M's
- Methods, Machines, Materials
- Manpower, Measurement, Mother Nature
- In services: 8 P's (People, Process, Physical evidence…)
🎯 EXAM TIPS
- Used in Plan Quality Management and Control Quality for root cause analysis.
- The EFFECT is always at the fish HEAD (right side).
- Used AFTER identifying a defect to find WHY it happened (root cause).
- Goes with: 5 Whys technique — ask "why" 5 times to drill to root cause.
12Scatter Diagram — Correlation Analysis
🔵 WHAT IS IT?
A graph plotting two variables to find correlationStatistical relationship between two variables. Correlation does NOT mean causation!. Each dot = one observation. The pattern reveals the relationship type.📊 THREE PATTERNS
- Positive: Both variables rise together
- Negative: One rises while other falls
- None: No identifiable pattern
🎯 EXAM TIPS
- Scatter Diagram shows correlation, NOT causation.
- Used in Quality Management to test if a suspected cause relates to the defect.
- Example: "Does heat correlate with concrete curing defects?" → Use scatter diagram.
13Histogram — Frequency Distribution
🔵 WHAT IS IT?
A bar chart showing how often values fall in ranges. Unlike Pareto, bars are in sequential ORDER (not ranked). Shows distributionHow data is spread – normal (bell), skewed, bimodal. Shape reveals process behavior. shape.🔍 HOW TO READ IT?
- Tallest bar = most frequent range
- Bell-shaped = normal distribution
- Skewed left/right = process bias
- Bimodal (2 peaks) = two different populations
14Run Chart — Trend Analysis
🎯 EXAM TIPS
- Run Chart = NO control limits (unlike Control Chart). Shows raw data over time.
- Used to identify TRENDS (steady improvement/decline) and SHIFTS (sudden jump).
- Run Chart comes BEFORE Control Chart in quality evolution.
15Probability and Impact Matrix (P×I)
🔵 WHAT IS IT?
A grid plotting risks by their ProbabilityLikelihood of a risk occurring, expressed as 0.0–1.0 or as Low/Medium/High. (Y-axis) and ImpactThe effect on project objectives if the risk occurs. Can be on cost, schedule, scope, or quality. (X-axis). Each cell = a risk score (P × I).📊 RISK SCORE
Risk Score = Probability × ImpactExample: P=0.7, I=0.4 → Score = 0.28
Higher score = higher priority for response planning.
🔄 RESPONSE STRATEGIES
- Red: Avoid, Transfer (Threats) / Exploit, Share (Opportunities)
- Yellow: Mitigate (Threats) / Enhance (Opportunities)
- Green: Accept (active or passive)
⚠ RISKS vs OPPORTUNITIES
The matrix works for BOTH negative risks (threats) and positive risks (opportunities). Same matrix, opposite response strategies!🎯 EXAM TIPS
- Used during Perform Qualitative Risk Analysis — NOT quantitative.
- Qualitative = subjective (expert judgment). Quantitative = numerical (Monte Carlo, Decision Tree).
- Red zone risks get priority for detailed quantitative analysis and response planning.
- Risk appetite defines where you draw the red/yellow/green thresholds.
16Tornado Diagram — Sensitivity Analysis
🔵 WHAT IS IT?
A horizontal bar chart ranking risks by their sensitivityHow much a risk variable can swing the project outcome. Higher sensitivity = more impact on cost/schedule. — the widest bar at top, narrowest at bottom (looks like a tornado). Shows which uncertainties have the most impact.📍 WHEN USED?
Used in Perform Quantitative Risk Analysis. Each bar shows the range of impact — left = pessimistic, right = optimistic. The center = base case value.🎯 EXAM TIPS
- Tornado = Quantitative risk tool (not qualitative).
- The TOP bar = the risk with the MOST impact on project objectives — address FIRST.
- Wide bar = high uncertainty. Narrow bar = low variability.
17Decision Tree — Expected Monetary Value (EMV)
EMV = Probability × Impact (for each outcome)
Net EMV = Sum of all outcome EMVs − Decision Cost
Choose the branch with the HIGHEST Net EMV
Net EMV = Sum of all outcome EMVs − Decision Cost
Choose the branch with the HIGHEST Net EMV
🎯 EXAM TIPS
- Decision Tree = Quantitative risk analysis tool.
- □ Square node = Decision point (you choose). ● Circle node = Chance event (probability).
- Always calculate ALL branches. Choose the HIGHEST expected monetary value.
- For threats: EMV is negative. For opportunities: EMV is positive.
18Risk Breakdown Structure (RBS)
🎯 EXAM TIPS
- RBS = hierarchical decomposition of risk categories (like WBS for scope).
- Used in Identify Risks as a prompt/checklist for finding risks.
- Common categories: Technical, External, Organizational, Project Management.
19Power / Interest Grid (Stakeholder Matrix)
🔵 WHAT IS IT?
A 2×2 grid classifying stakeholders by PowerThe authority or influence a stakeholder has over project decisions. (authority) and InterestHow much the stakeholder cares about or is affected by the project. (concern for project outcome). Determines engagement strategy.🎯 4 QUADRANT STRATEGIES
- High/High = MANAGE CLOSELY
- High P/Low I = KEEP SATISFIED
- Low P/High I = KEEP INFORMED
- Low/Low = MONITOR
🎯 EXAM TIPS
- Also called Power/Influence Grid (replaces Interest with Influence).
- The sponsor = typically HIGH POWER / HIGH INTEREST.
- A regulator = HIGH POWER / LOW INTEREST (keep satisfied).
- End users = LOW POWER / HIGH INTEREST (keep informed).
20Salience Model (3-Circle Stakeholder Analysis)
🔵 WHAT IS IT?
A 3-attribute model classifying stakeholders by PowerAuthority to impose their will., LegitimacyValid relationship/claim on the project., and UrgencyTime-sensitive claims or critical nature of the relationship.. Center (all 3) = highest priority.🎯 PRIORITY
Definitive Stakeholders (all 3 circles) = MUST manage intensively.Dormant (Power only) = have authority but currently inactive.
Demanding (Urgency only) = loud but little influence.
21Stakeholder Engagement Assessment Matrix
| Stakeholder | Unaware | Resistant | Neutral | Supportive | Leading |
|---|---|---|---|---|---|
| Sponsor (Amy) | C | D | |||
| PM Team Lead | C | D | |||
| End Users | C | D | |||
| Regulator | C | D | |||
| Supplier | C | D |
C = Current engagement level | D = Desired engagement level
🔵 HOW TO READ IT?
The GAP between C and D shows where engagement effort is needed. If C=Resistant, D=Supportive → need a communication/engagement plan to move them right.📊 5 LEVELS
- Unaware: Doesn't know about project/impact
- Resistant: Aware but opposing
- Neutral: Aware, neither supporting nor opposing
- Supportive: Aware and supporting
- Leading: Aware and actively driving success
🎯 EXAM TIPS
- The goal is always to close the gap between C (current) and D (desired) level.
- Created during Plan Stakeholder Engagement and updated throughout.
- If the exam shows C<D → engagement strategy needed. If C=D → good.
22Work Breakdown Structure (WBS)
🔵 WHAT IS IT?
A hierarchical decomposition of total project scope into Work PackagesLowest WBS level. Small enough to estimate cost and duration, assign to an owner, and monitor/control. NOT a task/activity.. Created during Create WBS process.📐 100% RULE
WBS must capture 100% of project scope — nothing more, nothing less. Every work package rolls up to its parent. No work is done that isn't in the WBS!📋 LEVELS
- Level 0 = Project
- Level 1 = Major Deliverables / Phases
- Level 2+ = Sub-deliverables
- Lowest Level = Work Package
⚠ WBS ≠ SCHEDULE
WBS shows WHAT will be delivered (deliverable-oriented), NOT HOW or WHEN. Schedule comes from breaking work packages into activities.🎯 EXAM TIPS
- WBS is deliverable-oriented (nouns), NOT activity-oriented (verbs).
- WBS DictionaryDocument describing each WBS element – includes description, responsible party, cost account, schedule milestones, quality requirements. defines each element in detail.
- Scope BaselineScope Statement + WBS + WBS Dictionary = Scope Baseline. Used to measure scope performance. = Scope Statement + WBS + WBS Dictionary.
- Gold plating = adding unauthorized features → BAD — even if helpful!
23RACI Matrix — Responsibility Assignment Matrix (RAM)
| Activity / Deliverable | Project Manager | Architect | Inspector | Client | Contractor |
|---|---|---|---|---|---|
| Project Charter | R | C | I | A | I |
| Design Review | A | R | C | C | I |
| Construction Inspection | A | C | R | I | C |
| Budget Approval | C | I | I | R A | I |
| Final Acceptance | C | C | R | A | I |
R = Responsible
The person who DOES the work. Multiple people can be R, but one must coordinate.A = Accountable
The ONE person ultimately answerable — the decision-maker. Only ONE A per row.C = Consulted
Two-way communication. Their input is sought before decisions.I = Informed
One-way communication. Told after decisions are made.🎯 EXAM TIPS
- Only ONE A (Accountable) per activity — two Accountables creates confusion!
- RACI = type of RAMResponsibility Assignment Matrix – maps project roles to WBS elements. RACI is the most common format. (Responsibility Assignment Matrix).
- Used in Resource Management to clarify who does what.
24Burndown Chart — Agile Sprint Tracking
🔵 WHAT IS IT?
Tracks remaining work (Y-axis) over time (X-axis). The line BURNS DOWN toward zero as work is completed. If actual is ABOVE ideal → team is behind.🔍 HOW TO READ IT?
- Actual line BELOW ideal → ahead of plan
- Actual line ABOVE ideal → behind plan
- Flat line → no progress being made
- Never reaches zero → sprint incomplete
🎯 EXAM TIPS
- Burndown chart = primary Agile/Scrum progress tracking tool.
- Reviewed daily in stand-up meeting (Daily Scrum15-minute daily meeting where team discusses: What did I do yesterday? What will I do today? Any blockers?).
- Burndown shows remaining work; Burnup shows completed work — both are valid.
25Burnup Chart — Work Completed + Scope Changes
🔵 ADVANTAGE OVER BURNDOWN
Burnup shows BOTH work completed AND total scope. If scope increases (red line jumps up), you can see it clearly. Burndown hides scope changes.📊 KEY GAP
The gap between the two lines = remaining work. When lines meet → project/sprint complete.26Velocity Chart — Team Capacity Trend
🎯 EXAM TIPS
- Velocity = story points completed per sprint. Used to forecast how many sprints needed.
- If backlog = 200 points and average velocity = 42 → need about 5 more sprints.
- A new team has LOW velocity initially; it increases as team gels (TuckmanForming-Storming-Norming-Performing-Adjourning model of team development. Velocity improves in Performing stage. Performing stage).
27Kanban Board — Visual Work Management
🔵 WHAT IS IT?
A visual board showing work items flowing through stages. Key feature: WIP LimitWork-in-Progress Limit – the maximum number of items allowed in a column at once. Prevents bottlenecks and promotes flow. limits items per column to prevent overload.🔍 KEY METRICS
Lead TimeTotal time from work item creation to completion (from backlog to done). = start to finish.Cycle TimeTime from when work actually STARTS (In Progress) to completion. = actual work time.
ThroughputNumber of items completed per time period. Higher = more productive. = items/week.
28Project Life Cycle — Staffing / Cost Curve
🔵 WHAT IT SHOWS
Staff levels and costs are LOW at start (Initiating), RAMP UP through Planning, PEAK during Execution, then taper off in Monitoring/Controlling and Closing.📍 WHY THIS MATTERS
Resources are committed in phases. Knowing this curve helps with resource planning and budget release scheduling.🎯 EXAM TIPS
- Highest cost/staffing = Executing Process Group.
- Initiating and Closing = lowest cost and staffing.
- Risk is HIGHEST early (beginning of project) but cost to fix problems is LOWEST then too.
29Cost of Change Curve — Why Changes Cost More Later
🔵 KEY PRINCIPLE
Changes made EARLY (Initiating/Planning) cost very little. Changes made LATE (Execution/Closing) cost exponentially more due to rework, cascading impacts.📊 STAKEHOLDER INFLUENCE
Inverse relationship: Stakeholders have HIGH influence early → can shape the project. Late in project → low influence, and changes are very costly.🎯 EXAM TIPS
- "The cost of change increases as the project progresses" — TRUE. This justifies thorough planning upfront.
- Stakeholder influence is HIGHEST during Initiating and LOWEST during Closing.
- This curve supports the importance of requirements gathering early.
30Influence vs. Cost Curve — Project Decision Window
🎯 EXAM TIPS
- These two curves always appear together on the PMP exam.
- Message: front-load decisions, requirements, and planning to minimize cost and maximize influence.
- In Agile, this is addressed by continuous delivery and early feedback loops.
31Contract Types — Risk Distribution Table
| Contract Type | Abbreviation | Who Bears Risk | Best Used When | Key Feature |
|---|---|---|---|---|
| Firm Fixed Price | FFP | Seller | Well-defined scope | Fixed total price; seller absorbs overruns |
| Fixed Price Incentive Fee | FPIF | Mostly Seller | Good scope, want cost savings shared | Seller earns fee for beating target cost |
| Fixed Price Award Fee | FPAF | Mostly Seller | Fixed deliverable, need quality incentive | Award fee based on performance criteria |
| Fixed Price Economic Adj. | FPEPA | Seller | Long-term contracts (inflation risk) | Price adjusted for inflation indices |
| Cost Plus Fixed Fee | CPFF | Buyer | Unclear/R&D scope | Seller gets costs + fixed fee regardless |
| Cost Plus Incentive Fee | CPIF | Buyer | Uncertain scope, want motivation | Shared savings formula incentivizes seller |
| Cost Plus Award Fee | CPAF | Buyer | Performance-based services | Award fee based on subjective performance |
| Time and Material | T&M | Buyer | Small scope, short duration | Per hour + materials; unlimited spending risk |
🎯 EXAM TIPS
- FFP = most common; buyer loves it, seller takes risk.
- CPFF = seller's favorite; buyer takes ALL cost risk.
- T&M = hybrid; used for staff augmentation. Buyer risk if no limit (add NTENot-to-Exceed clause added to T&M contracts to cap buyer's cost exposure. clause!).
- Cost-reimbursable contracts require auditing of seller's actual costs.
- All cost-reimbursable = BUYER pays actual costs PLUS a fee.
32Communication Channels Formula
| Team Size (n) | Communication Channels n(n-1)/2 | New Member Added | Additional Channels |
|---|---|---|---|
| 3 | 3 | → 4 | +3 (total=6) |
| 5 | 10 | → 6 | +5 (total=15) |
| 8 | 28 | → 9 | +8 (total=36) |
| 10 | 45 | → 11 | +10 (total=55) |
| 15 | 105 | → 16 | +15 (total=120) |
| 20 | 190 | → 21 | +20 (total=210) |
🎯 EXAM TIPS
- Formula: n(n-1)/2 where n = total number of stakeholders (including PM).
- Adding one person = you add n NEW channels (where n is the ORIGINAL team size).
- "Team grows from 10 to 13 members" → Original=45, New=13×12/2=78, Change=+33 channels.
- This justifies why large project teams need formal Communication Management Plans.
33Process Groups vs. Knowledge Areas Matrix
| Knowledge Area | Initiating | Planning | Executing | M&C | Closing |
|---|---|---|---|---|---|
| Integration | Develop Charter | Develop PM Plan | Direct & Manage | Monitor & Control; Perform Change Control | Close Project |
| Scope | — | Plan, Collect Req., Define Scope, Create WBS | — | Validate & Control Scope | — |
| Schedule | — | Plan, Define Activities, Sequence, Est. Duration, Develop Schedule | — | Control Schedule | — |
| Cost | — | Plan, Est. Costs, Determine Budget | — | Control Costs | — |
| Quality | — | Plan Quality | Manage Quality | Control Quality | — |
| Resources | — | Plan Resource, Est. Activity Resources | Acquire, Develop, Manage Team | Control Resources | — |
| Communications | — | Plan Communications | Manage Communications | Monitor Communications | — |
| Risk | — | Plan Risk, Identify, Qual., Quant., Plan Responses | Implement Risk Responses | Monitor Risks | — |
| Procurement | — | Plan Procurement | Conduct Procurement | Control Procurement | — |
| Stakeholders | Identify Stakeholders | Plan Engagement | Manage Engagement | Monitor Engagement | — |
🎯 EXAM TIPS
- Only 2 processes in Initiating: Develop Project Charter + Identify Stakeholders.
- Only 1 process in Closing: Close Project or Phase.
- Planning has the MOST processes — this is where PM earns their keep!
- M&C monitors EVERY knowledge area — "Monitor and Control Project Work" is the umbrella.
- Quality is the only area with DIFFERENT verbs: Plan → Manage (Executing) → Control.