ARE 5.0: PjM cheat sheet

Staffing plan = project schedule (activity durations) × labor hours per activity ÷ productive hours per FTE; productive hours typically 6-7 per 8-hour day.

Direct labor multiplier = total firm revenue ÷ direct labor cost; it covers overhead, fringe, and profit and is applied to raw salary cost.

Break-even multiplier = (1 + overhead rate) ÷ (1 − profit target); any billing multiplier below it produces a loss on that project.

Utilization rate = billable hours ÷ total paid hours; a 100% target is unattainable because of PTO, holidays, and business development time.

Direct costs (consultants, printing, reimbursables) pass through at cost or with a small markup; they are not multiplied by the labor multiplier.

The critical path sets the minimum project duration; float = late start − early start, and consuming float on noncritical activities can shift the critical path.

Resource leveling changes activity start/finish dates to resolve over-allocation and may extend duration; resource smoothing stays within float and does not.

When in-house staff are at capacity, compare the cost of overtime, hiring, or outsourcing against the fee impact of a schedule delay.

Work breakdown structure (WBS) decomposes scope into deliverable-oriented work packages; it is not an organizational chart or a schedule.

A work package is the lowest WBS level at which duration and cost can be reliably estimated and assigned to one responsible party.

Percent complete by cost = costs to date ÷ total estimated cost at completion; percent complete by hours uses the same ratio on labor hours.

Earned value: CV = EV − AC; SV = EV − PV; CPI = EV ÷ AC; SPI = EV ÷ PV; a CPI below 1.0 means cost overrun.

Estimate at completion (EAC) = BAC ÷ CPI when current cost performance is expected to continue.

The project schedule is built from the WBS by sequencing activities, estimating durations, and identifying dependencies (finish-to-start is most common).

A milestone has zero duration and represents a significant event or approval point; it consumes no resources.

The fee proposal must reconcile scope, schedule, and staffing: hours × billing rate plus reimbursables plus contingency must cover the negotiated fee.

Fast-tracking overlaps activities that were sequential; crashing adds resources to critical-path activities at added cost.

Tuckman stages: forming, storming, norming, performing, adjourning; conflict is expected during storming and is not itself a failure.

RACI matrix assigns each task exactly one Accountable party; Responsible parties do the work, Consulted gives input, Informed is notified.

Span of control: a project manager can effectively supervise roughly 5-9 direct reports before delegation or sub-leadership is needed.

Authority types: legitimate (position), reward, coercive, expert, and referent; expert and referent authority persist without formal title.

Conflict modes (Thomas-Kilmann): competing, collaborating, compromising, avoiding, accommodating; collaborating seeks win-win but takes the most time.

Motivation theory: Herzberg separates hygiene factors (pay, policy, working conditions) from motivators (achievement, recognition, growth).

A project manager's coordination duty includes verifying that consultants' and engineers' deliverables are integrated before issuing to the client.

Documented performance feedback should be specific, behavioral, and timely; unsupported personality judgments invite dispute.

Risk = uncertain event with probability and impact on project objectives; an issue is a risk that has already occurred and must be managed.

Expected monetary value (EMV) = probability × impact; sum EMVs across risks for the contingency reserve.

Risk response types for threats: avoid, transfer, mitigate, accept (and escalate); for opportunities: exploit, share, enhance, accept.

Transferring risk (insurance, hold-harmless clauses, consultant agreements) shifts financial consequence but not ownership of project outcomes.

A risk register records description, cause, probability, impact, score, owner, response, and trigger for each identified risk.

Risk score = probability × impact; a common matrix uses 3x3 or 5x5 scales, and high-score risks require a response plan before execution.

Contingency reserve covers identified risks and is controlled by the project manager; management reserve covers unknown-unknowns and needs sponsor approval.

Risk monitoring is continuous: reassess probability and impact at phase gates and close risks that are no longer relevant.

Professional liability exposure is reduced by documenting decisions, owner approvals, and scope changes in writing.