PMP Tutorial

This tutorial gives a very high level overview for the PMP certification exam. It does not cover sufficient information to clear the exam. You need to at least know the concepts mentioned in the tutorial to clear the exam. You may use it either as a starting point to get an initial overview, or you may use it as a last minute refresher to ensure you have covered everything. The tutorial is divided into the following topics PMP fundamentals - This chapter covers general information about project management that is not part of nine process areas. Integration - covers the knowledge area of Project Integration Management. Scope - covers the knowledge area of Project Scope Management. Time - covers the knowledge area of Project Time Management. Cost - covers the knowledge area of Project Cost Management. Risk - covers the knowledge area of Project Risk Management. Quality - covers the knowledge area of Project Quality Management. HR - covers the knowledge area of Project HR Management. Communications - covers the knowledge area of Project Communication Management. Procurement - covers the knowledge area of Project Procurement Management. Ethics - covers the PMP's code of ethics. The PMP exam format has the following distribution across the five process groups Project Initiation Project Planning Project Execution Project Monitoring and Control Project Closure Professional responsibility 11% 23% 27% 21% 9% 9%

Project Fundamentals
Every facet of human life is a project. Every little step we take, from the moment we wake up up to the time we settle to sleep, is filled with mini projects. It's then not a stretch to assume that the way we handle actual projects (from work, school, etc.) is reflection of the way we handle the biggest project there is - our existence. That's why it's doubly important to come up with the perfect habit of proper planning and management of projects. This page covers general information about the discipline of project management. 1. 2. 3. 4. A project is a temporary endeavor. Projects are unique and non-repetitive. Building a road is an example of a project. The process of building a road takes a finite amount of time, and produces a unique product. Operations on the other hand are repetitive. Delivering mail every day is an example of operation. The characteristics associated with a project are - unique purpose, temporary in nature, require resources (often from various domains), should have a primary sponsor and/or customer, and involves uncertainty. Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements A program consists of a related group of projects. Projects are finite where as programs are ongoing and continuous. Programs may be repetitive and cyclic. In some cases Project Management is a subset of Program Management. The project manager may report to the program manager in such cases. A project may or may not be a part of a program, but a program will always have projects. A portfolio consists of multiple programs. As an example Building a house may be a project. Building a colony consisting of row of houses is a program. Building a set of colonies to develop a new city can be considered a portfolio.

Tasks performed by project sponsor include o Provides financial support o Accepts the project during scope verification o May provide key milestone and deliverables due dates o Does not sign the Project Charter. You need to understand the concepts related to each of the input. 9. In Projectized organization. outputs and "tools and techniques" (ITTO). Each process has inputs. 10. A subproject is a subset of a project. These are o o o o o o o o o Project Integration Management Project Scope Management Project Cost Management Project Time Management Project Risk Management Project Quality Management Project HR Management Project Communication Management Project Procurement Management most of the decisions. In Functional organizations staff is organized based upon their specialty. Project Sponsors are primarily involved in funding the project. 6. 7. Real situations are a mixture of functional and projectized organizations. Technical or Functional Manager may be in charge of a subproject. There are a total of 42 processes. It is important to know the process group for each of the 42 processes. PMs have more authority and independence. This is done by Senior Management. Subprojects can be subcontracted. Shared leadership involves team members taking 8. Tasks performed by the senior management include o o o o Issues the project charter Helps organize the work into projects Helps identify risks Approves the final project plan . Project Management consists of nine Knowledge Areas. functional managers are responsible for specialized departments like marketing. Further the discipline of Project Management has five process groups. In these organizations. It encourages team development. the role of Project Manager is limited. In Functional organization. Type of organization . These are o o o o o Initiation Planning Execution Control Closure Each process is part of one of these five project phases. output and "tools and techniques". The type of organizations in decreasing order of Project Manager's authority are o Projectized o Strong Matrix o Weak Matrix o Functional Project Manager has maximum authority in a Projectized organization and least authority in a Functional organization. The PMBOK primarily covers each of the processes and it's ITTO in detail. All the persons in the project team report to the Project Manager. Each Knowledge area has further Processes.This is an important concept to understand for the PMP exam. Weak matrix organizations have characteristics of functional organizations.5. These mixed situations are called matrix organizations. such as engineering or sales. Leadership style varies from autocratic to democratic. Strong matrix organizations have characteristics of projectized organizations.

1. Project Life cycle: All projects have four parts in life cycle. reviews against a set of metrics are performed. Project Management Plan is developed using progressive elaboration. They include project team members. Project Integration Management This chapter covers key concepts related to Project Integration Management. 3. These phase end reviews are called Stage gates or Phase exits. management. Notified of project plan changes Are listed in the project team directory. 4. Starting the project Organizing and preparing Carrying out the project work Closing the project 2. Also there is a higher risk of failure at the beginning of the project. 3. political climate. As an example budget may be the most important constraint for the project sponsor. Become risk owners. Progressive Elaboration means adding more details in an iterative fashion. customers. 15. At the end of each project phase. 12. 14. Enterprise Environmental Factors refer to external factors in the company. Enterprise Environmental Factors may include cultural factors. that may influence the project. Stakeholders role includes Distributed information during the project.Stakeholders are all the individuals that are concerned with the project. Projects have multiple competing constraints. Scope may be imortant for a customer support engineer. and quality may be important for the testing team. 13. The risk reduces over the life of the project. 11. These are - o o o o 1. infrastructure and other external factors within the organization that may impact the project. At the beginning of the project there is less cost and less demand for resources. These are - o o o o o o Scope Quality Schedule Budget Resources Risk Different stakeholders may give different priority to these constraints. 2. Enterprise Environmental Factors are input to many planning processes. Project Management Office (PMO) is a group in an organization providing centralized project management services. the project may not be allowed to continue. Stakeholders have vested interest in the outcome of the project. PMO may provide services related to project management or may be directly responsible for project management. A project team has to balance the demand of these constraints. The exact role of PMO may vary across organizations. and other individuals who get impacted by the project. The knowledge area of Project Integration Management consists of the following seven processes Project Integration Processes Process Develop Project Charter Develop Project Management Plan Monitor and Control Project Work Perform Integrated Change Control Project Phase Initiating Planning Key Deliverables Project Charter Project Management Plan Deliverables Direct and Manage Project Execution Execution Monitoring and Control Change Requests Monitoring and Control Change Requests status updates . If the project fails to meet these metrics. The stakeholder influence is maximum at the beginning of the project and reduces over the life of the project.

Close Project or Phase 2. a lessons learned document must be prepared. D. These are: A. 5. Project Management Information System (PMIS) is a system that keeps track of status of all the project tasks. J. Project Management Plan is developed by Project Manager with inputs from the team. F. Scope management plan Requirement management plan Schedule management plan Cost management plan Quality management plan Process improvement plan Human resource plan Communication management plan Risk management plan Procurement management plan . wrong etc. The Senior Management protects the project from changes and loss of resources. 8. The Project Manager integrates all the pieces into the project as a whole. C. Develop Project Charter process Inputs Project Statement of work Business case Contract Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Outputs Project Charter 4. Project Management Plan development is iterative. A Project Management Plan consolidates other management plans. 7. Closure Final product 3. It is required to be completed in order for the project to be completed. G. o Includes name. A project charter o Formally authorizes the project. 9. stakeholders and management. Tools and Techniques. description. The exam does not focus on any specific system (for example Microsoft Project ). E. and Outputs of the Develop Project Management Plan process are given in the table below. H. The Inputs. A Project Management Plan includes o Project Charter o Budget o Schedule o Resources o Scope Statement o WBS o Responsibility charts/assignments o Management Plans 10. B. deliverables o A project does not start unless it has a Project charter. realistic and formal. o Gives the objectives and business case o Identifies the Project Manager. During project execution the project team focuses on completing the tasks assigned. I. Tools and Techniques and Output of Develop Project Charter process are given below. Develop Project Management Plan process Inputs Project charter Outputs from planning processes Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Outputs Project Management Plan 6. It is used to track the status of the project. At the end of each phase of a project. o Generic enough not to change often. The lessons learned document defines what was done right. approved. The Inputs. o Written by a Manager higher in authority than Project Manager. A Project Management Plan is bought into.

. The Input. 5. and then determine the need for further corrective action. 4. Tools and Techniques and Outputs of this process are given below. Direct and Manage Project Execution process includes performing the work defined in the PMP to achieve project goals. Project Manager needs to be proactive in looking for deviations from project plan and then take timely corrective action. the following steps must be taken (in this order) Evaluate (assess) the impact of change to the project Create alternatives including cutting other tasks. The change requests on the project deliverables and project artifacts are managed in this process. Tools and Techniques and Outputs of this process are given below. The Input. Schedule baseline L. each requested change must go through a change control review process. The Input. and measure performance of corrective action. 10. 9. Cost performance baseline and M. Tools and Techniques and Outputs of this process are given below. The change requests that get generated are evaluated as part of the Perform Integrated Change Control process. Monitor and Control project work process includes tracking and reviewing the progress of the project. service or result transition 1. Monitor and Control project work process Inputs Project management plan Performance reports Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Outputs Change requests Project management plan updates Project document updates 7. 3. Scope baseline 2. 2. It is typically used to communicate responsibilities of key stakeholders. Perform Integrated Change Control process Inputs Project management plan Work performance information Change requests Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Outputs Change request status updates Project document updates Change control meetings Project management plan updates 8. Meet with the customer if necessary The Close Project or Phase is the process of formal completion of all project related activities. Progressive Elaboration involves the process of taking a project from concept to detailed design. It is used to approve or reject change requests. Close Project or Phase Inputs Project management plan Tools & Techniques Expert judgment Outputs Final product. 4. Kick-off meeting happens after the planning phase and before the project execution. Meet with management. Change Control Board is formed to review change requests. sponsors etc. After that the Project Manager needs to evaluate the effectiveness of corrective action. Once the project management plan is baselined. fast-tracking etc. 2. After the project scope has been baselined. Direct and Manage Project Execution process Inputs Project management plan Approved change requests Enterprise Environmental factors Organizational process assets Tools & Techniques Expert judgment Project management information system Deliverables Work performance information Change requests Project management plan updates Project document updates Outputs 6. These are: K. When a change request is received. 3. it may only be changed by raising a change request. Project baseline refers to the original version of the project management plan.The Project Management Plan also includes project baselines. crashing. The Input. Tools and Techniques and Outputs of this process are given below.

wrong etc. There are the following type of Benefit Measurement project selection techniques o Murder Boards . A project with higher net value should be selected when performing project selection.A project that has higher IRR is better. 7.000. o Payback period . A project with lower pay back period is better. and only all the work required to complete the project successfully. The knowledge area of Project Scope Management consists of the following processes Scope Management Processes Process Define Scope Create WBS Verify Scope Control Scope Project Group planning planning Key Deliverables Requirements document project scope statement WBS. A project with higher present value is better. Constrained Optimization Project selection methods are used for large projects. The lessons learned document defines what was done right. then the net value of the project will be $20. 5. It involves making a decision about which project an organization should execute. WBS dictionary Collect Requirements planning Monitoring and Controlling Acceptance deliverables Monitoring and Controlling Change Requests 2. 8. Project with higher BCR is selected. Project Portfolio Management is the process of project selection. So if probability of a project's success is 20% and revenue earned if successful is $100000.This technique involves computing benefits to cost ratio (BCR) for a project. The knowledge area of Scope Management includes the processes required to ensure that the project 3. These are techniques based on mathematical models. These are o Benefits Measurement o Constrained Optimization Benefits Measurement project selection methods involve comparing the values of one project against another. as it is giving higher return on money. o Benefits Cost Ratio . There are two types of project selection methods.Different projects are given scores based on certain defined criteria. The Constrained Optimization techniques are o Linear Programming o Non-Linear Programming o Integer Algorithm o Dynamic Programming o Multi-objective Programming Expected monetary value of a project (or expected value) is equal to probability*impact.This involves a committee asking tough questions from each project o Scoring Models . includes all the work. a lessons learned document must be prepared. Project Scope Management This chapter covers key concepts related to Project Scope Management. o Discounted Cash Flow . PV is the present value of the project. Internal Rate of Return (IRR) . 1. The Future Value (FV) of projects is compared. Inflation or interest earned in not considered in this technique. Management by Objective (MBO) is a management philosophy with three objectives o Establish unambiguous and realistic objectives o Periodically Evaluate if objectives are being met o Take corrective actions.Accepted deliverables Organizational process assets 3. FV=PV(1+i)n 6. . It is required to be completed in order for the project to be completed. It is primarily concerned with controlling what is and what is not in the scope. Project with higher score is selected. Organizational process assets updates At the end of each phase of a project.This technique takes into account the interest earned on the money.This technique involves considering how long it takes back to "pay back" the cost of the project. o MBO works only if management supports it. 4.

Verify Scope Process Inputs Project management plan Requirements documentation Requirements traceability matrix Validated deliverables 17. Work Breakdown Structure (WBS) is an important part of the exam. then it is not part of the project. If a task is not in the WBS. Also WBS is input to most of the planning processes. The Inputs. The Inputs. WBS forces the project team to think through all the levels of the project.No task should be less than 8 hours or more than 80 hours. Perform Quality Control process focuses on correctness of work. The Verify Scope is the process in which the project customer formally accepts the project deliverables. The Define Scope process involves defining detailed description of the project and major deliverables. WBS dictionary explains all the WBS components. 16. Tools & Techniques. The Input. Specifically WBS is input to the following processes o Cost Estimating o Cost Budgeting o Scope control o Activity Definition o Plan Purchases and Acquisitions 15. During the Verify Scope process customer gives feedback on work performed. Scope Verification happens at the end of each phase. Control Scope process involves monitoring the status of project and managing scope changes. While Verify Scope process focuses on customer acceptance. 13. Tools and Techniques and Outputs of Create WBS process are: Create WBS Process Inputs Project Scope Statement Requirements documentation Organizational process assets Tools & Techniques Decomposition WBS WBS dictionary Scope baseline Project document updates 12. and Outputs of the Verify Scope process. Collect Requirements Process Inputs Project charter Tools & Techniques Interviews Facilitated workshops Group creativity techniques Questionaires and surveys Observations Prototypes Group decision-making techniques Outputs Requirements documentation Requirements management plan Requirements traceability matrix Stakeholder register Focus groups 10. Create WBS is the process of dividing the project deliverables into smaller components. 14. The table below gives inputs. The Inputs. Tools and Techniques and Output of the Define Scope process are: Define Scope Process Inputs Project charter Tools & Techniques Expert judgment Outputs Project scope statement Project document updates Requirements documentation Product analysis Organizational process assets Alternative identification Facilitated workshops 11. It is a graphical representation of the hierarchy of the project. Collect Requirements process involves documenting stakeholders needs to meet project objectives.9. Tools and Techniques. The WBS template can be reused across projects. 8/80 rule for WBS . and Outputs of Collect Requirements process are given below. Tools and Techniques and Outputs of Control Scope process are: Control Scope Process Inputs Tools & Techniques Outputs Tools & Techniques Inspection Outputs Accepted Deliverables Change requests Project document updates Outputs .

The Sequence Activities process has the following Inputs.Project management plan Requirements documentation Requirements traceability matrix Organizational process assets Work performance information Variance analysis Work performance measurements Change requests Project management plan updates Organizational process assets updates Project document updates Project Time Management This chapter covers key concepts related to Project Time Management. Change Requests Estimate Activity Resources Planning Estimate Activity Durations Develop Schedule Control Schedule 2. The Estimate Activity Durations process has the following Inputs. Resource breakdown structure Activity duration estimates Project Schedule Work Performance measurements. Tools and Techniques and Outputs Define Activities Process Inputs Scope baseline Organizational process assets Tools and Techniques Decomposition Templates Expert judgment Outputs Activity list Activity attributes Milestone list Enterprise environmental factors Rolling wave planning 3. Tools and Techniques and Outputs Sequence Activities Process Inputs Project scope statement Activity List Activity attributes Milestone list Organizational process assets Tools and Techniques Precedence diagram method (PDM) or AON Applying leads and lags Schedule Network Templates Dependency determination Outputs Project schedule network diagrams Project document updates 4. Milestone list Project Schedule network diagrams Activity resource requirements. Planning Planning Monitoring and Controlling class="basic" The Define Activities process has the following Inputs. The Estimate Activity Resources process has the following Inputs. Tools and Techniques and Outputs Estimate Activity Durations Process Inputs Activity list Activity attributes Tools and Techniques Expert judgment Analogous estimating Outputs Activity duration estimates Project document updates . 1. The knowledge area of Project Time Management consists of the following processes Time Management Processes Process Define Activities Sequence Activities Project Phase Planning Planning Key Deliverables Activity List. Tools and Techniques and Outputs Estimate Activity Resources Process Inputs Activity List Activity attributes Resource calendars Organizational process assets Tools and Techniques Expert judgment Alternative analysis Published estimating data Project Management software Outputs Activity resource requirements Resource breakdown structure Project document updates Enterprise environmental factors Bottom-up estimating 5.

and OutputsDevelop Schedule Process Inputs Organizational process assets Project scope statement Activity List Activity attributes Activity Resource requirements Resource Calendars Activity duration estimates Project Management Plan Risk Register Enterprise environmental factors Tools and Techniques Critical path method Schedule Compression What-if scenario analysis Critical chain method Scheduling tool Applying calendars Adjusting Leads and Lags Outputs Schedule baseline Schedule data Project document updates Schedule network analysis Project Schedule Project Schedule Network diagram Resource levelling 7. They are used to report status to Management. As an example Documentation 2 5 days 13. Tools and Techniques and Outputs Control Schedule Process Inputs Project management plan Project schedule Tools and Techniques Performance reviews Variance analysis Outputs Work performance measurements Organizational process assets updates Project management plan updates Project document updates Work performance information Project management software Change requests Organizational process assets Resource leveling What-if scenario analysis Adjusting leads and lags Schedule compression Scheduling tool 8. 9. The Control Schedule process has the following Inputs. Precedence (or Activity on Node) diagrams can be used to display four type of relationship between activities.Activity resource requirements Resource calendars Project scope statement Enterprise environmental factors Organizational process assets 6. An activity in a network diagram is displayed as shown below. They display major milestones (for example bridge design completed). Network diagrams can be used to perform critical path analysis. Bar charts (or Gantt charts) are used to display tasks and their dates in a graphical fashion. Network diagrams are used to display activities and their dependencies. Tools and Techniques. 14. 10. These are . They are generally used to track progress and show to the team. Parametric estimating Three-point estimates Reserve analysis The Develop Schedule process has the following Inputs. Bar charts do not show task dependencies. There are two type of network diagrams o Activities on Node (or Precedence) o Activities on Arrow (or AOA) Precedence is most commonly used. Network diagrams can also be used to perform crashing and fast tracking of the project. 11. Typically the date range is displayed in the X-axis and the tasks on the Y-axis. Milestone charts are similar to bar charts but display only major events. AON and AOA cannot have loops or conditional relationships. They are used to display information of the type task 1 is scheduled from date A to date B. Activity name class="basic"Activity Number Estimate 12. In the above example Documentation is activity number 2 and is estimated to last 5 days.

PERT utilizes more information than CPM as it considers the "Pessimistic" and "Optimistic" values in addition to the "Most Likely" value in its calculations. Slack or Float is the amount of time a task can be delayed without delaying the project. Project Phase Planning Key Deliverables Activity Cost Estimates.o o o o Finish-To-Start Start-To-Start Start-To-Finish Finish-To-Finish Finish-to-start relationship means the dependent activity cannot start until the first activity is finished. 19. 17. Value Analysis approach is used to find more affordable. 15. 1.optimistic. If a project has more than one critical paths then the risk to the project increases. GERT is another type of network diagram. 16.Basis of estimates Cost performance baseline Determine Budget Planning Monitoring and Controlling Work performance measurements 5. 4. pessimistic and most likely o It can be drawn only using AOA diagrams o It can have dummy events 21. Longest path through the network diagram is called the critical path. This is the most common way to represent relationships between activities. Critical Path Method (CPM) has the following characteristics. 18. o It uses three estimates per activity . The Estimate Costs process takes the following inputs o Scope baseline o Project schedule o Human resource plan o Risk register o Enterprise environmental factors o Organizational process assets Depreciation is technique used to compute the estimated value of any object after few years. The following are formulae used by PERT - Mean = (P + 4M + O)/6 Standard Deviation = (P-O)/6 Variance = ((P-O)/6)2 22. There are three type of depreciation techniques. 3. Program Evaluation and Review Technique (PERT) has the following characteristics. o PERT and CPM can only be used with AOA. 24. The activities on the critical paths are called critical activities. The knowledge area of Project Cost Management consists of the following processes Project Cost Processes Process Estimate Costs Control Costs 2. Tasks on the critical path have zero float. Project Cost Management This chapter covers key concepts related to Project Cost Management. It can support looping. These are o Straight line depreciation The same amount is deprecated (reduced) from the cost each year. O is the optimistic estimate and M is the most likely estimate. o AOA only uses Finish-To-Start relationship between tasks. For example Task B cannot start until three days after task A completes. o Dummy events are shown with dotted lines. . 23. Resource levelling refers to keeping the resources same across the duration of the project. Alternative identification process identifies other solutions to an identified problem. Lags are inserted waiting times in between tasks. less costly methods for accomplishing the same task. They do not take any time. Activity on Array (AOA) network diagrams have the following characteristics. They show dependencies between tasks. Here P is the pessimistic estimate. o It uses one time estimate per activity o It can be drawn only using AOA diagrams o It can have dummy events 20.

Each year after that the deduction is 40% less than the previous year. o Learning Curve model is based upon the principal that the cost per unit decreases as more work gets completed.000. The expenditure is maximum during the middle of the project. That is the expenditure is less in the beginning. It is related to EAC. ETC refers to Estimate to Completion.In the first year there is a higher deduction in the value . In Parametric Modeling Estimation. SV refers to Schedule Variance. It is also referred as BCWP (Budgeted Cost of Work Performed). in second year we deduce 4/15. Planned Value (PV) refers to what the project should be worth at this point in the schedule. For example. o Sum of year depreciation . It is usually an S-curve. you use a mathematical model to make an estimate. SPI = EV/PV . Earned Value (EV) is the physical work completed to date and the authorized budget for that. 16.AC 20. It involves estimating each work item and adding the estimates to get the total project estimate. 12. 15. It is defined as SV = EV . Cost estimating involves defining cost estimates for tasks. 11. Estimate At Completion (EAC) refers to the estimated total cost of the project at completion.EAC 21. in the first month the project will require $10. 14. It is defined as EAC = BAC/CPI ETC = EAC . It is defined as 18. It is defined as o CPI = EV/AC If CPI is less than 1. It is defined as 17. and so on. Actual Cost (AC) is the actual amount of money spent so far. These formulae are explained below. 22. It is also referred as BCWS (Budgeted Cost of Work Scheduled). 10. Cost baseline refers to what is expected to be spent on the project. The process of Cost budgeting defines time phased cost estimates for the project. The total of one to five is fifteen. and remember the formulae. BAC refers to Budget at Completion. CV refers to Cost Variance. The tools and techniques used for Estimate Costs are o Expert judgment o Analogous estimating o Parametric estimating o Bottom-up estimating o Three-point estimates o Reserve analysis o Cost of quality o Project Management estimating software o Vendor bid analysis 23. 6. You can expect five to ten questions related to Earned Value Management. In first year we deduce 5/15 from the cost. Bottom up estimation is same as WBS estimation. SPI refers to Schedule Performance Index. It is defined as VAC = BAC . Cost budgeting defines cost estimates across time.PV Negative cost or schedule variance means that project is behind in cost or schedule.Double-declining balance . CPI refers to Cost Performance Index. The after project costs are called life cycle costs. 8. Analogous Estimating is an estimating technique with the following characteristics o Estimates are based on past projects (historical information) o It is less accurate when compared to bottom-up estimation o It is a top-down approach o It takes less time when compared to bottom-up estimation o It is a form of an expert judgment 7. 9. It is of two types. this means that the project is over budget. and the end.twice the amount of straight line. These are generally pretty simple once you have good understanding of the concepts. 24.AC CV = EV . It is also referred as ACWP (Actual Cost of Work Performed). o Regression Analysis is a mathematical model based upon historical information.Lets say the life of an object is five years. 19. VAC refers to Variance At Completion. 13.

8.46% 99.26% 95. Kaizen Theory . This acts as an input to Quality Planning for a project. Giving extras i.99% Outputs Quality management plan Quality metrics Quality checklists Process improvement plan Project document updates Enterprise environmental factors Stastical sampling 5. In three sigma. The value of sigma of Normal Distribution are given below. Marginal Analysis . The knowledge area of Project Quality Management consists of the following processes Quality Management Processes Process Plan Quality Project Phase Planning Key Deliverables Quality Management Plan.Project Quality Management This chapter covers key concepts related to Project Quality Management. 9. Quality must be planned in and not inspected in. 12. Quality Policy is part of Organizational Process assets. According to Deming. As an example. Quality Policy defines the company goals and how to adhere to them.e. Deming suggested a process of Plan-Do-Check-Act to improve quality. for different grades of hotels. Quality Assurance is done during execution of the project. .73% 10. but poor quality is not.You compare the cost of incremental improvements against the increase in revenue made from quality improvements. The ITTO of Plan Quality process are given below. It includes o Process of evaluating overall performance on a regular basis o Re-evaluating quality standards o Quality audits . PMI does not recommend gold-plating. Poor grade may be acceptable. twenty seven out of 10. Normal Distribution Sigma values Sigma One sigma Two sigma Six sigma Percentage covered 68. These are important for the exam. the customers expectations are different.000 items can have defects. we can see that in six sigma one out of 10. each process should go through these steps to improve the quality. Plan Quality Process Inputs Scope baseline Stakeholder register Cost performance baseline Schedule baseline Risk register Organizational process assets Tools and Techniques Cost-benefit analysis Cost of quality Control charts Benchmarking Design of experiments Flowcharting Proprietary quality management methodology Additional quality planning tools 3. Based on the above table. 4. Three sigma 99. 6. The aim of quality is to ensure "Conformance to requirements" and "fitness for use". 7.Apply continuous small improvements to reduce costs and ensure consistency. Prevention is more important than inspection.000 items can have defects. Quality Metrics Change Requests Perform Quality Assurance Execution Perform Quality Control Monitoring and Controlling Quality control measurements 2.structured review of quality activities that identify lessons learned. The process of Plan Quality includes defining quality requirements of the project and documenting how the project will ensure compliance. These lessons learned are used for process improvement. 11. Grade refers to category or rank given to entities having same functional use but different technical characteristics. Optimal quality is reached when cost of improvements equals the costs to achieve quality. 13. doing more than the project scope is called gold-plating. 1.

tools and techniques and outputs (ITTO) used for Perform Quality Control process are ITTO of Perform Quality Control Inputs Project management plan Quality metrics Quality checklists Work performance measurements Approved change requests Deliverables Organizational process assets Tools and Techniques Cause and effect diagram Control charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical Sampling Inspection Approved change requests review Outputs Quality control measurements Validated changes Validated deliverables Organizational process assets updates Change requests Project management plan updates Project document updates 15. they are required. Perform Quality Control focuses on correctness of work. then an assignable cause must be found.Perform Quality Assurance involves reviewing the quality requirements and auditing the results from quality control measurements. Project HR Management This chapter covers key concepts related to Project HR Management. In Just-In-Time (JIT) Quality. The knowledge area of Project HR Management consists of the following processes HR Management Processes Process Acquire Project Team Develop Project Team Manage Project Team Project Phase Execution Execution Execution Key Deliverables Human Resource Plan Project Staff assignments Team performance assessments Change requests Develop Human Resource Plan Planning . 1. The inputs. It includes inspections. if there are seven points on one side of mean. and use them to make estimates. Rule of seven : In control charts. just when 16. The process of Analogous Estimation involves looking at the history of past projects. The inputs are made available. the amount of inventory is zero. 17. ITTO of Perform Quality Assurance Inputs Tools and Techniques Outputs Organizational process updates Change requests Project management plan updates Project document updates Plan Quality and Perform Quality Control tools Project management plan and techniques Quality metrics Work performance information Quality control measurements Quality audits Process analysis 14. This reduces the storage cost. Perform Quality Assurance uses data created during Perform Quality Control.

o Compromising (Find the middle route). The table below gives the inputs. Responsibility Assignment Matrix (RAM) defines who does what.The project team is afraid of the power the Project Manager holds. defines when will people get added and removed from the project.Power due to Project Managers position o Technical Power . 10. The Staffing Management Plan 6. The process of problem solving has these steps o Define the cause of the problem o Analyze the problem o Identify solution o Implement a decision 7. tools and techniques. The table below gives the inputs. and Outputs for the Develop Human Resource Plan process Develop Human Resource Plan Process Inputs Enterprise environmental factors Organizational process assets Activity resource requirements Tools and Techniques Outputs Organization charts and Human resource plan position descriptions Organizational Theory Networking 3. Acquire project team process involves identifying and obtaining the team necessary to execute the project. This is an example of loose-loose situation. and Outputs for the Acquire project team process Acquire project team process Inputs Project management plan Organizational process assets Tools and Techniques Pre-assignment Acquisition Virtual teams Outputs Project staff assignments Resource calendars Project management plan updates Enterprise environmental factors Negotiation 4.Project Manager has strong technical skills in the projects domain. Develop Human Resource Plan process involves identifying and documenting project roles and responsibilities. o Schedules o Project Priorities o Resources o Technical Opinions So the most common cause of conflicts in projects are issues related to schedules. The table below gives the inputs. tools and techniques. worst) Problem Solving or Confrontation (look at the facts.project team knows the PM o Formal Power . o Withdrawal or Avoidance o Smoothing (Emphasize the agreements) o Forcing (Do it my way). and Outputs for the Develop project team process Develop project team process Inputs Project staff assignment Resource calendars Tools and Techniques Interpersonal skills Team-building activities Ground rules Co-location Recognition and rewards Outputs Team performance assessments Enterprise environmental factors updates Project management plan Training 5. Conflicts in the team are caused due to the following reasons in decreasing order of occurrences. tools and techniques.2. Develop project team process involves improving the competencies of the team members and improving teamwork between the team. 9. A Project Manager may yield authority over the project team in one of the following ways o Referent . analyze them and find a solution). 8. Conflicts are best resolved by those in the team. These are (from best to o . There are standard conflict resolution techniques available to resolve conflicts. This is an example of win-loose situation. This is an example of win-win situation. o Coercive Power .

and confirm that the problem is solved.There are two type of employees. employee attempts to reach the next higher level. They can work independently. Herzberg Theory . The knowledge area of Project Communication Management consists of the following processes class="basic"Communication Management Processes Process Identify Stakeholders Plan Communications Distribute Information Process Group Initiating Planning Executing Key Deliverables Stakeholders register Communication Management Plan Organization process assets updates Change requests Manage Stakeholders Expectations Executing Report Performance 2. However good hygiene alone does not improve motivation.Expectancy Theory. Some of the main ones are . War room is a technique for team building. These level of needs from the highest to lowest are o Self-fulfillment o Esteem o Social o Safety o Physiology create a project identity. tools and techniques. self-actualization. Identify Stakeholders . are self-motivated. 18. Halo Effect is the assumption that because the person is good at a technology. The Identify Stakeholders process involves identifying all persons and organizations that may impact the outcome of project. This is a motivation factor. The total number of communication channels between n stakeholders is n(n-1)/2. When a lower level is met. 15. 4. 16.self-fulfillment. Manage project team process is the process of tracking team member performance and managing issues within the team.Hygiene factors (salary. emails are examples of non-formal communication. 17. growth. Memos. Project stakeholders may include customers. As part of this the project team meets in one room. 5. There are many organizational theories. What motivates people is the work itself. project sponsor and other persons involved in the project. 1. Monitoring and Controlling Performance Reports Communication Management Plan defines how and when the various stakeholders receive information. The motivation factors for employees include responsibility. The Inputs. project team. The table below gives the inputs. Maslow's Hierarchy of needs . McGregory Theory. and Outputs for the Manage project team process Manage project team process Inputs Project staff assignments Project management plan Team performance assets Performance reports Tools and Techniques Outputs Observation and conversation Enterprise environmental factors updates Project performance appraisals Organizational process assets updates Conflict management Issue log Change requests Project management plan updates Organizational process assets Interpersonal skills 12. McGregory Theory of X and Y . on the other hand. Employees of type X need to be always watched. and communicate with each other. he will be good as a project manager. The maximum satisfaction is achieved when the employee reaches the highest level of satisfaction . there are 45 channels of communication.there are various levels of needs for an employee.o Review the decision. recognition etc. and Output of Identify Stakeholders process is given below. They cannot be trusted and need to be micro managed. 11. Employees of type Y. Herzberg Theory. So if there are ten stakeholders in a project.) if not present can destroy motivation. People put in more efforts because they accept to be rewarded for their efforts. During stakeholder analysis the power and interest of the stakeholders is plotted with Interest on X-axis and Power on Y-axis. It helps to 13. Project Communication Management This chapter covers key concepts related to Project Communication Management. cleanliness etc. 14. Tools and Techniques. 3.People accept to be rewarded for their efforts. Expectancy Theory . Maslow's Hierarchy of needs.

Also documented is how and when the communication needs to be shared with stakeholders. The Inputs. information is shared with stakeholders as planned. Distribute Information Inputs Project management plan Performance reports Organizational process assets 8. and Output of Distribute Information process is given below. Tools and Techniques. the project manager works with the stakeholders. 1. This sharing of information is part of the Distribute Information process. This is documented in the Communication management plan. Throughout the project duration. Tools & Techniques Expert judgment Outputs Stakeholder management strategy Stakeholder analysis Stakeholder register Plan Communications process involves determining what kind of information should be shared with which project stakeholder. The Inputs. Plan Communications Process Inputs Stakeholder register Stakeholder management strategy Organizational process assets Tools & Techniques Communication requirements analysis Communication technology Outputs Communications management plan Project document updates Enterprise environmental factors Communication models Communication methods 7. The knowledge area of Project Risk Management consists of the following processes - . The Inputs. and Output of Manage Stakeholder Expectations process is given below. As part of the Manage Stakeholder Expectations process. Tools and Techniques. understands and addresses their needs and expectations.Inputs Project Charter Procrement documents Enterprise environmental factors Organizational process assets 6. The Report Performance process involves sharing the project status reports and measurements with appropriate stakeholders. Tools and Techniques. Report Performance Process Inputs Project Management Plan Work performance information Budget forecasts Organizational process assets Tools & Techniques Variance analysis Forecasting methods Reporting systems Outputs Performance reports Organizational process assets updates Tools & Techniques Outputs Change requests Project management plan updates Project document updates Communication methods Organizational process assets updates Management skills Tools & Techniques Communication methods Information distribution tools Outputs Organizational process assets updates Stakeholder management strategy Interpersonal skills Work performance measurements Communication methods Change requests Project Risk Management This chapter covers key concepts related to Project Risk Management. and Output of Plan Communications process is given below. Manage Stakeholder Expectations Process Inputs Stakeholder register Project management plan Issue log Change log Organizational process assets 9.

Project Procurement Management includes administering contracts and change control process to manage contracts or purchase orders. o Transferring risk Insurance is an example of transferring risk. It can be used to get inputs on Scope. 6. Some characteristics of the Delphi technique are o The experts identities are anonymous. They are not in the same room.Risk Management Processes Process Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Plan Risk Responses Monitor and Control Risks 2. 3. Project Phase Planning Planning Planning Planning Key Deliverables Risk Management Plan Risk register Risk register updates Risk register updates Risk related contract decisions Perform Quantitative Risk Analysis Planning Monitoring and Controlling Risk register updates A project risk is a potential source of deviation from the project plan. and Outputs of Plan Procurement process are listed in the table below. Project risks that are negative are called threats. Procurement contract award Closed procurements Administer Procurements Monitoring and Controlling Change requests The Plan Procurement process involves build versus buy decisions. 5. Project Phase Planning Execution Closure Key Deliverables Procurement Management Plan Selected Sellers. Tools and Techniques. The Inputs. Procurement Management involves getting work done by people outside the project team. Plan Procurement process Inputs Scope baseline Requirements documentation Teaming agreements Risk register Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost performance baseline Tools and Techniques Make-or-buy analysis Expert judgment Contract types Outputs Procurement management plan Procurement statements of work Make-or-buy decisions Procurement documents Source selection criteria Change requests . 7. Responses to threat include -o Reducing the probability of risk o Developing contingency plans o Passively accepting consequences. Non-critical risks should be documented. Project risks that are positive are called opportunities. Project risks can have a negative or positive impact on the project. 1. 4. The knowledge area of Project Procurement Management consists of the following processes Procurement Management Processes Process Plan Procurements Conduct Procurements Close Procurements 2. Estimates or Risks. They should be revisited and reviewed regularly. Work-around refers to how to handle risks that have occurred but are not part of risk response plan. Project Procurement Management This chapter covers key concepts related to Project Procurement Management. o The PM tries to build a consensus among the experts. This happens in risk monitoring and control phase. Delphi technique is most commonly used to obtain expert opinions on technical issues. Risks are identified in all phases.

Conduct Procurement process Inputs Project Management Plan Procurement documents Source Selection criteria Qualified seller list Seller proposals Project documents Make-or-buy decisions Teaming agreements Organizational process assets Tools and Techniques Bidder conferences Independent estimates Expert judgment Advertising Internet search Procurement negotiations Outputs Selected sellers Resource calendars Change requests Project management plan updates Project document updates Proposal evaluation techniques Procurement contract award 5. Privity is contractual information between customer and vendor. 10. and awarding a contract. Sole Source refers to a market condition in which only one qualified seller exists in the market. Most Governments back all contracts by providing a court system. Single Source refers to a market condition in which the company prefers to contract with only one seller. 11.Enterprise environmental factors Organizational process assets 3.pdf . The process of Administer Procurement involves managing procurement relationships and ensuring the seller performance meets the procurement requirements. Oligopoly refers to a market condition where very few sellers exist. Centralized Contracting refers to a separate contracting office that handles contracts for all projects. Procurement performance reviews Organizational assets updates Work performance information Claims administration Procurement documentation Negotiated settlements Code of Professional Ethics This chapter covers PMI's code of Professional Conduct. Contract can be used as a risk management tool. 12. The process of Conduct Procurement involves receiving seller responses. selecting a seller. During this process bids or proposals from sellers are evaluated. A contract is a formal agreement. 7. and one or more seller is selected to execute the work. as in transferring risk. 4. and the action of one seller will have impact on other seller prizes. The conference is used by buyers to provide consistent information to all sellers. Bidder conferences are meetings between buyer and sellers before the bid is submitted. Force majeure is a powerful and unexpected event. such as hurricane or other disaster. Administer Procurement process Inputs Procurement documents Project management plan Contract Performance reports Approved change requests Tools and Techniques Contract change control system Inspection and audits Performance reporting Payment systems Records management system 8. The process involves verifying that all planned work as per the contract has been completed. It is a legal document biding to both seller and buyer. In De-centralized Contracting a contract administrator is assigned for each project.pmi. The process of Close Procurement involves completing each procurement.org/PDF/AP_PMICodeofEthics. 9. The PMP code of Professional Conduct is defined at http://www. Close Procurement process Inputs Project management plan Tools and Techniques Procurement audits Records management system Outputs Closed procurements Organizational process updates Outputs Procurement documentation Change requests Project management plan updates 6. Changes to contract must be in writing and formally controlled.

7. 8. A PMP must not accept any form of inappropriate gifts. Culture Shock refers to the initial disorientation that a person first experiences when visiting a country 2. then it must be brought into notice of all the stake-holders. Ethnocentrism is a typical belief that one's culture is superior to the foreigner's culture. Managers on how to conduct as a professional. If a project team member or the project manager has a conflict of interest. Any violations can lead to disciplinary action. Any information that a PMP provides to general public must be accurate and truthful. It is a guide to Project 4. The confidentiality of any intellectual property information that a PMP professional works with. other than his own. PMP's Code of Professional Conduct is a document provided by PMI. and offer herself to be excluded out of the evaluation process. In such a situation. PMP aspirants need to provide accurate and truthful information through out the application process. As an example of this consider a case where a Project Manager is evaluating some vendors. the Project Manager should let all the stakeholders know. 3. Similarly a PMP must not offer inappropriate compensation for personal gains. must be maintained. 5. Lets assume the Project Manager has friendship with one of the vendors.1. to prevent any appearance of improperiety. . 6.

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