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Earned Value Management Formulas
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The following table shows the EVM formulas you should know for the exam:
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Name Formula Sample Mnemonic Device
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Variance Earned Value Cost Variance Schedule Variance Cost Performance Index Schedule Performance Index Estimate at Completion Estimate to Complete based on atypical variances Estimate to Complete based on typical variances Variance at Completion
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VAR = BAC AC EV = % complete BAC CV = EV AC SV = EV PV CPI = EV/AC SPI = EV/PV EAC = BAC/CPI ETC = BAC EV ETC = (BAC EV)/CPI VAC = BAC EAC
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Appendix C: PgMP Exam Passing Advice
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Quality Management Facts
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The cost of quality is the money spent investing in training; in meeting requirements for safety and other laws and regulations; and in taking steps to ensure quality acceptance The cost of nonconformance is the cost associated with rework, downtime, lost sales, and waste of materials Some common quality management charts and methods include the following: Ishikawa diagrams (also called fishbone diagrams) are used to find cause-andeffect relationships that contribute to a problem Flow charts show the relationship between components and the flow of a process through a system Pareto 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 plot out the result of samplings to determine if projects are in control or out of control Kaizen technologies comprise approaches to make small improvements in an effort to reduce costs and achieve consistency Just-in-time ordering reduces the cost of inventory but requires additional quality, because materials would not be readily available if mistakes occur PART IV
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Human Resource Theories and Philosophy
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You should be somewhat familiar with these common human resource management theories for your PgMP examination Maslow s Hierarchy of Needs There are five layers of needs for all humans: physiological, safety, social needs (such as love and friendship), self-esteem, and the crowning jewel, self-actualization Herzberg s Theory of Motivation There are two catalysts for workers: hygiene agents and motivating agents Hygiene agents These do nothing to motivate, but their absence demotivates workers Hygiene agents are the expectations all workers have: job security, a paycheck, clean and safe working conditions, a sense of belonging, civil working relationships, and other basic attributes associated with employment Motivating agents These are the elements that motivate people to excel They include responsibility, appreciation of work, recognition, opportunity to excel, education, and other opportunities associated with work other than just financial rewards
PgMP Program Management Professional All-in-One Exam Guide
McGregory s Theory of X and Y This theory states X people are lazy, don t want to work, and need to be micromanaged Y people are self-led, motivated, and can accomplish things on their own Ouchi s Theory Z This theory holds that the workers are motivated by a sense of commitment, opportunity, and advancement Workers will work if they are challenged and motivated Think participative management Expectancy Theory People will behave in accordance with what they expect as a result of their behavior In other words, people will work in relation to the expected reward of the work
Communication Facts
Communicating is the most important skill for the program manager With that in mind, here are some key facts on communications: Communication channels formula: 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, given added stakeholders For example, if you have 25 stakeholders on your program and have recently added 5 team members, how many additional communication channels do you now have You ll have to calculate the original number of communication channels, 25(25 1)/2 = 300; 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, the number of additional communication channels 55 percent of communication is nonverbal Effective listening is the ability to watch the speaker s body language, interpret paralingual clues, and decipher facial expressions Following the message, effective listening has the listener asking questions to achieve clarity and offering feedback Active listening requires receivers of the message to offer clues, such as nodding the head to indicate they are listening It also requires receivers 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, other communication barriers include noise, hostility, cultural differences, and technical interruptions
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