SPM PQS 5227 cheat sheet

Portfolio, programme, project hierarchy: portfolio = collection of projects/programmes selected to meet strategic objectives; programme = related projects managed together for benefits not obtainable separately; project = temporary endeavour producing a unique product, service or result.

A project is temporary: it has a defined start and finish; a programme may be a long-running vehicle for benefits realisation; operations are ongoing and repetitive.

Business case is the decision document justifying investment; it is reviewed at gates and closed when benefits are realised or the need disappears.

Benefits realisation is the defining purpose of a programme; the programme manager owns benefit delivery, the project manager owns output delivery.

Context analysis tools: PESTLE (political, economic, social, technological, legal, environmental) for external context; SWOT for internal/external position.

Governance of multiple projects uses a delivery portfolio to balance resource, risk and strategic alignment; projects compete for the same constrained resources.

Project life cycle phases typically: concept, definition, delivery/implementation, handover/transition, close; phase gates authorise progression.

Programme-level interdependencies include shared resources, shared risk, shared suppliers and shared technology; these create the coordination role of the programme office.

Project success criteria are agreed at baseline and distinguish output (delivered on time, cost, quality) from outcome (benefits realised in use).

Stakeholder = any individual, group or organisation that can affect, be affected by, or perceive itself affected by the project; include indirect and negative stakeholders.

Power/interest grid: high power-high interest = manage closely; high power-low interest = keep satisfied; low power-high interest = keep informed; low power-low interest = monitor.

Stakeholder engagement assessment matrix records current vs desired engagement level on five levels: unaware, resistant, neutral, supportive, leading.

Communication plan defines who receives what information, in what format, at what frequency, through which channel, and who is responsible.

Communication channel count formula: n(n-1)/2 for n stakeholders; the result grows disproportionately with each added stakeholder.

Communication models: sender–encoding–medium–decoding–receiver with noise; feedback and acknowledgement are needed to confirm understanding.

Formal written communication is used for contractual matters, approvals and audit trail; informal verbal suits team coordination and rapid issue resolution.

Reporting cadence should be set by decision need, not habit: dashboards for status, exception reports for variance beyond tolerance, stage reports at gate points.

Scope baseline = approved scope statement + work breakdown structure (WBS) + WBS dictionary; it is the reference for change control.

WBS decomposition rule: 100% rule (all work in the parent is captured in children, no more); work packages are the lowest level for estimating and control.

Requirements types: functional (what the product does), non-functional (performance, security, usability), and business/transition requirements.

MoSCoW prioritisation: Must have, Should have, Could have, Won't have (this time); Must-haves must be a viable subset if all else is cut.

Requirements traceability matrix links requirement to source, WBS element, design, test case and acceptance criteria; bidirectional traceability detects orphans.

Scope creep is uncontrolled incremental addition without change control; gold plating is unrequested extra scope added by the delivery team.

Verify scope confirms deliverables were completed correctly (inspection); validate scope confirms customer acceptance of the delivered output.

Product breakdown structure decomposes the product; WBS decomposes the work; confusing them causes missing activities or missing components.

Configuration management records versions and baselines of requirements and products so that changes can be tracked and reversed.

Critical path = longest path through the network; it determines the shortest possible project duration and has zero total float.

Total float = late finish − early finish (or late start − early start); free float = early finish of successor − early finish of activity.

PERT expected duration = (optimistic + 4 × most likely + pessimistic) / 6; standard deviation ≈ (pessimistic − optimistic) / 6.

Dependencies: mandatory (hard logic), discretionary (soft/preferred logic), external, and internal; lead time allows overlap, lag time inserts delay.

Crashing adds resources to critical-path activities to shorten duration, usually increasing cost; fast tracking overlaps sequential activities, increasing risk.

Resource levelling resolves over-allocation within float and may extend duration; resource smoothing uses float without changing the critical path.

Schedule compression should target critical-path activities only; shortening non-critical activities does not shorten the project.

Rolling wave planning elaborates near-term work in detail and leaves far-term work at a higher level until more is known.

Earned schedule compares earned value to planned value in time units to report schedule performance late in a project where earned value gives false signals.

Cost baseline = approved time-phased budget excluding management reserve; total funding requirement = cost baseline + management reserve.

Contingency reserve covers known-unknown risks and sits within the cost baseline; management reserve covers unknown-unknowns and sits above it.

Earned value: PV (planned value), EV (earned value), AC (actual cost); EV = % complete × BAC; CV = EV − AC; SV = EV − PV.

Performance indices: CPI = EV / AC; SPI = EV / PV; CPI below 1.0 means cost overrun per unit of work performed.

Forecast: EAC = BAC / CPI (typical variance continues); EAC = AC + (BAC − EV) (atypical, remaining work at planned rate); ETC = EAC − AC.

VAC = BAC − EAC; TCPI = (BAC − EV) / (BAC − AC) is the cost efficiency needed to finish within budget.

Estimating methods: analogous (top-down, fast, low accuracy), parametric (unit rate × quantity), bottom-up (accurate, costly), three-point/PERT.

Learning curve effect reduces unit cost with repetition; estimates must state the basis of estimate, assumptions, exclusions and confidence range.

Sunk costs are excluded from decisions about future spend; commitment accounting records orders placed but not yet invoiced.

Risk = uncertain event or condition that, if it occurs, has a positive (opportunity) or negative (threat) effect on objectives.

Risk management process: identify, analyse (qualitative then quantitative), plan responses, implement, monitor and control.

Qualitative analysis uses probability × impact scoring and a probability-impact matrix; quantitative uses Monte Carlo simulation, EMV, decision trees, sensitivity analysis.

Expected monetary value (EMV) = probability × impact; total EMV of a risk set informs the contingency reserve.

Threat responses: avoid, transfer, mitigate, accept (and escalate); opportunity responses: exploit, share, enhance, accept (and escalate).

Risk register records cause, event, effect, owner, probability, impact, score, response, residual risk and trigger.

Residual risk remains after response; secondary risk is created by the response itself.

Risk appetite is the amount of risk an organisation is willing to seek or retain; risk tolerance is the acceptable measurable variation around objectives.

Monte Carlo simulation produces a distribution of outcomes; the P80 value is commonly used to set contingency for cost or schedule confidence.

Quality planning defines standards and acceptance criteria; quality assurance is process audit to confirm the process can produce quality; quality control is inspection of outputs.

Cost of quality = cost of conformance (prevention, appraisal) + cost of non-conformance (internal failure, external failure); prevention is cheaper than failure.

Quality tools: cause-and-effect (Ishikawa) diagram, Pareto analysis (80/20 focus), control charts (upper/lower control limits vs specification limits), check sheets, histograms, scatter diagrams.

Continuous improvement cycles (Plan-Do-Check-Act) apply to process quality; lessons learned feed the next stage or project.

Benefits management cycle: define benefits and owners, baseline, plan realisation, monitor, review and sustain.

A benefit is a measurable improvement perceived as positive by a stakeholder; a dis-benefit is a negative outcome accepted to gain the benefit.

Benefits map links enablers → outputs → outcomes → benefits → strategic objectives; each benefit needs an owner accountable for realisation.

Benefit profile records description, owner, baseline, target, measurement method, timing and dependencies.

Benefits are usually realised after project closure, in operations; benefit reviews are scheduled post-implementation, not only at handover.

Contract types: fixed price (seller bears cost risk), cost-reimbursable (buyer bears cost risk), time and materials (risk shared, capped where possible).

Fixed-price incentive fee and cost-plus-incentive-fee share risk through a target cost, target fee and share ratio; point of total assumption applies to FPIF.

Procurement cycle: define need, prepare strategy, select route (open/restricted/negotiated), tender, evaluate, award, administer, close.

Tender evaluation should use published weighted criteria (price, technical, capability, risk) and record the scoring rationale for audit.

Standard contract terms typically address scope, price, payment terms, acceptance, warranties, indemnities, liquidated damages, termination, dispute resolution and change control.

Contract change control: no instruction outside the contract should be acted on without a formal variation; verbal instructions are confirmed in writing.

Retention and performance bonds protect the buyer against non-performance; warranties cover defects after acceptance.

Supplier relationship management uses performance reviews against KPIs; escalation routes should be defined before disputes arise.

Collusion and conflict of interest must be declared and managed; tender evaluation records are confidential until award.

Governance sets the decision rights, accountability and control framework: who approves baselines, tolerances, changes and closure.

Tolerance = permissible deviation from plan before escalation is required; typical dimensions are time, cost, scope, quality, risk and benefits.

Exception report is raised when a tolerance is forecast to be breached; it states cause, impact, options and recommendation.

Change control steps: request, log, impact assess (scope, schedule, cost, risk, quality), decide at the correct authority level, implement, verify, close.

Change control board (or equivalent) approves changes above defined thresholds; changes within tolerance may be delegated.

Assurance is independent review providing confidence to the sponsor and board; it differs from project management review of its own delivery.

Gate/stage review confirms continued business justification, plan viability, risks under control and benefits on track before releasing the next stage.

Baselines change only through approved change control; configuration management records the current approved version.

Segregation of duties: the person who approves a change should not be the person who implements or certifies it without independent check.

Core professional obligations: honesty, integrity, objectivity, competence, confidentiality, fairness and compliance with law and regulation.

Declare conflicts of interest as soon as identified; withdraw from decisions where an interest could bias judgement.

Confidentiality: information received in a professional capacity is not disclosed except with permission or where legally required.

Only accept work within your competence; disclose limitations and seek qualified input rather than overstating capability.

Report actual or suspected fraud, bribery, unsafe practice or falsified reporting through the proper channel, escalating if unresolved.

Accuracy of reporting: present data and forecasts honestly, including bad news; do not suppress unfavourable variance in reports.

Bribery and facilitation payments are prohibited; gifts and hospitality must be declared and must not influence procurement or approval decisions.

Whistleblowing protections exist in many jurisdictions; the professional duty is to raise the concern internally first where safe to do so.

Professional body codes (e.g. APM, PMI, engineering institutions) require reporting breaches and maintaining continuing professional development.