Association for Project Management Qualification (APM PMQ) Planning for Success Flashcards

24 sample cards from the Planning for Success deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. In critical chain method, what is a 'project buffer' and where is it placed?

   A project buffer is a block of contingency time aggregated from individual task safety margins, placed at the end of the critical chain (before the project end date) to protect the overall completion date against variation in critical chain tasks.

2. In critical chain method, what are 'feeding buffers'?

   Time buffers placed where a non-critical (feeding) chain of activities joins the critical chain, protecting the critical chain from delays in the feeding paths.

3. In critical chain, what is a 'resource buffer'?

   A warning or alert (not time) placed on the critical chain to ensure that the resources needed for critical chain activities are made available on time, e.g. by alerting a resource that its task is about to begin.

4. What is resource management in projects, and what are its two key sub-processes?

   Resource management is the acquisition and deployment of the resources (people, equipment, materials, money) needed to deliver the project. Its two key sub-processes are resource smoothing and resource levelling.

5. What is the difference between resource smoothing and resource levelling?

   Resource smoothing uses available float to adjust activities within the existing project end date, keeping the deadline fixed while staying within resource limits. Resource levelling delays activities (using and beyond float) to stay within resource limits, which may extend the project end date.

6. What is a resource histogram?

   A bar chart showing the amount of a given resource required against time, used to identify peaks, troughs and over-allocation so the schedule can be smoothed or levelled.

7. How is a project budget developed and what does it represent?

   The budget is developed by aggregating the cost estimates of all work packages (bottom-up), then adding contingency and management reserves. It represents the total authorised funds allocated to deliver the project.

8. What is the difference between the cost estimate, the project budget and the cost baseline?

   The estimate is the predicted cost of the work. The cost baseline is the time-phased budget against which performance is measured (estimates plus contingency reserve). The total budget adds management reserve on top of the cost baseline.

9. What is the difference between contingency reserve and management reserve?

   Contingency reserve covers identified ('known unknown') risks and is part of the cost baseline, controlled by the project manager. Management reserve covers unidentified ('unknown unknown') risks, sits outside the cost baseline, and is controlled by the sponsor/governance.

10. How is contingency typically estimated?

    Contingency is typically derived from quantitative risk analysis (e.g. expected monetary value of identified risks, or Monte Carlo simulation outputs at a chosen confidence level) rather than an arbitrary percentage.

11. What is cost phasing and what is the typical shape of cumulative project cost?

    Cost phasing is the spreading of budgeted costs across the project timeline to show when money will be spent. Cumulative spend typically follows an 'S-curve' — slow at first, steeper in the middle, and tailing off near completion.

12. What is cash flow in a project context and why is cash flow forecasting important?

    Cash flow is the movement of money in (income/funding) and out (expenditure) of the project over time. Forecasting it is important to ensure sufficient funds are available to pay for work as it occurs and to avoid funding shortfalls.

13. What is the cost baseline used for?

    The time-phased cost baseline is the approved spend profile against which actual costs and earned value are measured and controlled. It enables variance analysis and forecasting throughout the project.

14. What is a funding profile and how does it relate to the spend (cost) profile?

    The funding profile is the schedule of when funds (cash) are made available to the project, often released in steps or tranches at gates. It must be reconciled with the spend profile to ensure funding is available ahead of expenditure.

15. What does cost monitoring involve during delivery?

    Cost monitoring involves recording actual costs and committed costs, comparing them against the cost baseline, analysing variances, and reporting the project's financial status to enable corrective action.

16. In earned value, what is Cost Variance (CV) and how is it calculated?

    Cost Variance measures cost performance: $$CV = EV - AC$$ where $EV$ = earned value and $AC$ = actual cost. A positive CV is under budget; negative is over budget.

17. What is the Cost Performance Index (CPI) and how is it interpreted?

    $$CPI = \frac{EV}{AC}$$ $CPI > 1$ means under budget (good cost efficiency); $CPI < 1$ means over budget; $CPI = 1$ means on budget.

18. What is Schedule Variance (SV) and the Schedule Performance Index (SPI)?

    $$SV = EV - PV, \qquad SPI = \frac{EV}{PV}$$ where $PV$ = planned value. Positive SV / $SPI > 1$ means ahead of schedule; negative SV / $SPI < 1$ means behind schedule.

19. What is the Estimate at Completion (EAC) using the CPI method?

    $$EAC = \frac{BAC}{CPI}$$ where $BAC$ is the Budget at Completion. This forecasts the total expected cost assuming current cost performance continues.

20. What is the Estimate to Complete (ETC) and Variance at Completion (VAC)?

    $$ETC = EAC - AC, \qquad VAC = BAC - EAC$$ ETC is the forecast cost of remaining work; VAC is the forecast over/under spend at the end (positive = under budget).

21. What is quality planning?

    The process of determining the quality standards relevant to the project, defining how they will be met, and documenting them in a quality management plan — covering acceptance criteria, quality control and quality assurance activities.

22. Distinguish between quality control (QC) and quality assurance (QA).

    Quality control is product-oriented: inspecting, testing and measuring deliverables to verify they meet acceptance criteria (detecting defects). Quality assurance is process-oriented: providing confidence that processes are appropriate and being followed correctly (preventing defects), often via independent audit.

23. What is continual (continuous) improvement and a common model used for it?

    Continual improvement is the ongoing effort to incrementally improve processes, products and services. A common model is the Deming/Shewhart PDCA cycle — Plan, Do, Check, Act — repeated iteratively.

24. What are the four categories that make up the cost of quality?

    Cost of conformance: (1) prevention costs and (2) appraisal/inspection costs. Cost of non-conformance: (3) internal failure costs (defects found before delivery) and (4) external failure costs (defects found by the customer after delivery).

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