PMP

Explain secondary and residual risks in detail

Secondary Risks V/s Residual risk

Secondary risk

A Secondary risk is defined as those risks that arise as a result of the direct output of the risk response implementation. In simple first risk is identified and response plan is prepared in order to deal with that risk. When this response plan is implemented a new risk is generated due to the implementation of this response plan that new risk is called secondary risk.

The creation of the response plan depends onto the risk impact on the project. If the impact of risk is high, then a response plan is associated with the risk, on the other hand, if the impact of risk is negligible, then it can be easily managed by the project managers there is no requirement of any response plan for such type of risks.

Residual Risks

The justify over risk or the risk that remains is known as residual risk. This risk is called residual because it remains even after the implementation of the planned response to a particular risk. This risk is also those risks that are deliberately accepted by the organization

The acceptance level of residual risk depends upon the organization tolerance level, sometimes these risks are not associated with any response, in this case, the managers simply accept these risks in the way they are.

In an organization, the residual risks are addressed by considering the following factors:

1. Risk, relevant governance, and the compliance requirements are identified
2. By providing the proper acknowledgment of the existing risks
3. By determination of organization control framework’s strengths and the weaknesses
4. By defining the appetite of an organization
5. By doing proper planning for the appropriate contingencies.

Differentiate product scope and project scope

Define Cost Performance Index (CPI) and the causes for favorable and unfavorable cost performance

Cost performance index measures the cost efficiency of a particular project or defined as the ratio of earned value to the actual value. The Cost performance index is earned value divided by the actual value that CPI=EV-AV. The value of the Cost performance index defines the favorable and unfavorable condition for a project if the value of CPI greater than or equal to one indicates the favorable condition, whereas the value of CPI less than one indicates the unfavorable condition in a project. There is a different cause for favorable and unfavorable cost performance some of them are as follows:

Define Effective Earned Value Management and its ground rules.

There are different tools introduced by the project management for the efficient management of the project. Earned value analysis is one of the important tools among different management tools for the project. Earned value analysis is a method by means of which project manager can easily measure the amount of work performed onto the project apart from the basic cost and the schedule review. The progress achieved by the particular project measures in the earned value analysis. After successful determination of the project progress, the project manager easily estimates the project total cost and the project completion date. The key measure in this analysis is the earned value. The Earned value is also defined as the budgeted cost of work performed or BCWP. This BCWP makes the project manager well aware about the performance of the project, cost burn rates and also the performance schedule. This helps in determining the overall performance of the project that how well the project is performing and when applied to future work the project will work according to the requirement or not. BCWP enable the manager of the project to forecast project future work also by considering zero cost fluctuation.

Ground Rules for Effective Earned Value Management

There are three major concepts in earned value management and they are as follows:

Where have we been?

Where are we now?

Where will be in future?

Project manager requires having a clear idea about these three questions while going for any project. The data sources for earned value management are a budget that is the scheduled work planned value, the actual value of the work completed and the earned value of the physical work completed. The comparison between the actual value of completed work and the earned value of the completed physical work with the planned value of the scheduled work is carried out in earned value.

Describe the contract types in plan procurements.

In the plan, procurement contract type is one of the important tool and technique. Whenever an agreement is made with the supplier for any kind of procurement contract is required to be signed between the parties involved in the procurement. These contracts are divided into three main types which are further divided into subcategories:

Fixed Price contract: In this contract, fixed total price is negotiated, for this contract the work scope require to be defined clearly. Incentive provisions are also involved in this type of contract in the case when the work scope exceeds the quantifiable measurements. In such type of contract the seller is always at high risk because if the work completed does not satisfy the need mentioned in the work scope or not according to the quantifiable measurements, then all responsibility or the damages are taken care by the seller. There are three types of fixed price contract:

1. Firm fixed price contract (FFP):

   For any product or the service, the price is fixed in this type of contract. There is no provision for the incentive, whereas the risk is borne by the seller only and in this contract, it requires to clearly define the scope of work.

   Fixed Price incentive fee contracts (FPIF): In this contract, the incentives are provided to the seller in the case when the already define targets met or exceeded the limit. These incentives are defined at the starting of the work. A Price Ceiling is mentioned, if cost increases above the price ceiling, then that cost is borne by the seller. This contract encourages the seller to earn the incentive.

   Fixed price with economic price adjustment contracts (FP-EPA): When the project duration has extended over the years then this contract is signed. This provides the safeguard to both the buyer and the seller in against of any conditions that are not in their control like inflammation rate, fluctuation in currency exchange rate in case of an outsourced project and so on.

2. Cost Reimbursable contract: This type of contract minimizes the seller risk from the view of the cost if the scope of work is not clearly defined at the starting or change as the work progresses. The Seller is paid with the actual cost required for completing the work along with the incentives. In such types of contract, buyers are at higher risks because the total cost is not known at the start of the work.

   There are following four types of cost reimbursable contracts:

   Cost plus fixed fee contract (CPFF): In this contract, the seller is paid with the actual cost and the fixed fee this fixed fee is calculated as initial estimated cost percentage, Fixed fee remains constant does not vary according to the actual cost.

   Cost plus incentive fee contract (CPIF): In this contract, the seller is paid with the actual cost along with the incentive fee. This incentive fee depends on the seller performance. Some performance targets are defined in order to measure the seller performance.

   Cost Plus award fee contract (CPAF): In this contract seller is paid with actual cost along with the award fee that depends on the seller performance here for evaluating the seller performance subjective evaluation is carried out.

   Cost plus fee (CPF): In this contract, the seller is provided with the amount required for completing the work in addition to the actual cost fee is also given to the seller. This fee depends on the percentage of the actual cost, therefore, it varies according to the actual cost of completing the work

1. 3.Time and Material Contract (T&M): This contract is a mixture of fixed price contracts and the cost reimbursable contract. In most of the cases at the start of the work, the work scope and project duration are not mentioned or defined clearly. This contract resembles the cost reimbursable in such a way because the cost is not defined clearly and also resembles the fixed price in such way so the material and labor unit rate both decided or agreed at the initiation of the work

What are the benefits of earning PMI Certification?

There are following benefits of earning the PMP certification

1. The salary of project management professionals is comparatively higher than the other
2. PMP certification increases the market reach by getting PMP certification one can reach the potential employers across the globe and interact with the PMP certification aspirants and already certified professional by means of discussion boards and the forums.
3. PMP increase the opportunities of a job because the high-performing projects hire only the PMP certified manager for efficient management of the project.
4. PMP certification enables one to direct, lead and implement the challenging projects.
5. PMP certified candidates are demanded and recognized globally, hence it gives recognition to one’s skills worldwide.
6. PMP exam is only made for the experienced candidates and also depend on the project manager management education. Thus, PMP credential provides validation to one’s skills and experience in order to handle the challenging and critical industry based projects.
7. PMP improves the performance of the project and guarantees the successful project completion.

List the industry sectors where PMP professionals are in much demand?

Following are the industry sectors where PMP professionals are in high demand:

Information Technology: Project management professionals are in high demand to manage the software development projects. One can start his/her career as an IT developer and later can move into the project management and can go into the certification like PMP.

Banking and Insurance: There are lots of opportunity in these sectors whenever a new policy is introduced the project management is required. Banks basically focus on hiring the managers with project management skills.

Healthcare: There are so many projects available in this sector and the project management is required, therefore this sector also hires project management professionals.

Construction and Manufacturing: Lot of work is available in this sector like the construction of the building, bridge; road and some product all these works require continuous project management in order to monitor the cost, schedule, scope and so on. Therefore, there is a huge chance of project management job in this sector.

Training and consultancy: The Project Manager is required to be a good consultant because a good project manager deals with the client and according to the client requirement provides or arrange the training of the candidates and sources the resources. Therefore, there is a huge demand for project managers in this sector.

ITES/KPO/BPO: This is one of the biggest platforms for the one to start the career. Project management plays a very important role, whether it is a matter of team handling, interaction with the client, project management and so on.

Do you think that there is a demand for certified PMP Professionals? If so, what is their salary in the market?

There is high demand for certified PMP professional in the market because of the following reasons:

1. PMP make the resume more attractive for getting the PMP certifications, there is some prerequisite. If you want to build the career in the project management, then PMP adds a great value to your resume this certification take the one’s career to a great level because while recruiting the candidate the recruiters focus onto their certification and shortlist them on the basis of certification
2. PMP also provides knowledge about the common global language of project management that is registered with the project managers and the executives. Before going through the PMP training the candidate remains unaware about the different project prospects like project goals. Resources required risks analyzed, constraints that stakeholder operates on. This training makes the one aware of all these facts. Common language knowledge makes the communication with the client easier in order to discuss all project prospects
3. There is high demand for certified project managers in the market than any other profile
4. For becoming a PMP a candidate is required to be a member of PMI according to the 2013 PMI annual report, there are around 628,363 PMI members spread across the globe and this number continues to increase every year. The PMP certified members also have opportunities in networking as they also attend the networking sessions
5. For clearing the PMP exams some prerequisites are there. The candidate with an associate degree should have 60 months work experience to be eligible for the exam and with the bachelor degree candidate should have 30 months of work experience to be eligible for the exam. This experience proves to be beneficial for the aspirants.

Certified PMPs take home an average salary of $109,405 and the salary of female and male aspirants is shown in fig1.

What are the skills needed by Project Managers?

What is the need for enacting PMIAA?

The main reason for enacting the PMIAA is to increase the government department transparency and accountability and try to incorporate the same in the private sector. PMIAA is influenced by the project management institutes. The profession reports pulse focus on the fact that only 64 percent of the government initiatives meet their strategic goals and these government initiative losses $101 million for each $1 billion spent. This report clearly shows that if these government initiatives properly follow the program and project management then it is possible to minimize the loss.

Another reason for enacting the PMIAA is that it provides benchmarks for the other organizations that the other organizations follow, these are state government, private companies, and even other countries also follow. The British government has already set some standards to follow for the project management and the United States is also setting up the standards these countries are encouraging the world government to enact the law in order to increase the government accountability.

What are the Prerequisites for PMP Course?

The prior requirements for taking up the PMP course are minimal. If you are a non-graduate, you will need to have 5 years or 7500 hours of project management experience along with around 35 hours of project management education. A graduate will need 3 years or 4500 hours of project management experience and 35 hours of project management education to take up this certification.

What are the system requirements to attend the live sessions?

1. Processor I3 with 4GB RAM, OS can be 32 or 64 bit (Laptop/Desktop)
2. Internet connection with Min 1 MBPS speed
3. Good quality headset
4. Power back up
5. You can also log in through your Android mobile phone/ Tablet with 4G internet connectivity

What if the trainee miss any session?

The trainee can watch the recorded video of all the sessions in the LMS or Trainee can attend the missed session in the upcoming batches.

What do the trainee get from the LMS?"

The trainee will have the access to Recorded sessions, Assignments, Quizzes, Case Studies, few course documents posted by trainers, Placement related docs etc.

What is the validity of the LMS access? What if the LMS access is expired.

The trainee will get 1-year access to the LMS. You can contact our support team to extend the validity of the LMS.

Will the trainee get any project to work on with PMP course?

Yes, of course! The trainee will get the project at the end of the course; you need to submit a project. Our trainers will assist you to complete the project.

How are the practicals done?

The trainee will get step by step assistance on VM installation from our expert trainers during the practical sessions, post live sessions, you can practice at your end and submit your queries if any to our support team support@bumacoglobal.com for further assistance.

What are the types of training we offer?

1. WBLT- Web-based live Training
2. WBVT- Web-based Video Training
3. One on One live training
4. Self-paced training
5. In class training
   

What are the benefits of online training ?

1. Flexible location
2. Flexible schedule
3. Travel free
4. Time saving
5. Cost saving
6. LMS access
7. You will never miss a class
8. Two-way interactive
9. Fast learning
10. Trainer support for 1 year
    

Who are our Trainers?

Our trainers are industry experts having 10 to 15 years of industry experience and 3-4 years of training experience. Most of the trainers are working professionals who teach the real time scenarios which will help the students to learn the courses in an effective manner.

Will the trainee get the certification post the course completion?

Yes, Trainee will get the participation certificate from Bumaco Global upon successfully completing the course.

What if the trainee has more queries and need assistance?

The trainee can drop an email to support@bumacoglobal.com an automatic ticket will get generated. Our support team works 24/7 to assist you with all your queries.