PMP Exam Tips

Presented by: Nguyễn Bình Phương

Processes & Knowledge areas
 Earned Value Management
• BAC = Budget At Completion
• EV = Actual % * BAC
• Negative is bad
• PV = Planned % * BAC • Positive is good
• AC = Sum of all incurred costs
• CV = EV - AC • If Variance: EV -
• SV = EV - PV
• CPI = EV / AC
Something
< 1 = Over Budget • If Index: EV /
> 1 = Under Budget
• SPI = EV / PV Something
< 1 = Behind Schedule
> 1 = Ahead of Schedule • If Cost related use AC
• EAC = BAC / CPI • If Time related use PV
• EAC = AC + ETC
• EAC = AC + (BAC + EV) / CPI • Most formulas start
• ETC = EAC - AC
• VAC = BAC - EAC with EV
 Rules Based on Numbers
• 80 Hour Rule = Max size of work
packages
• 80/20 Rule = Pareto’s Law 20% of causes
responsible for 80% of problems
• 0/50/100 = Work package completion. No
credit until 50% complete. No additional
credit until 100% complete.
 Integration Management
• Benefit Cost Ratio = Cost / Benefits
BCR < 1 Unfavorable
BCR > 1 Higher is Better
• Net Present Value = FV / (1 + r)^n
• Future Value = PV (1 + i)^n
• Internal Rate of Return: Higher is better
• Opportunity Cost
• Sunk Cost
• Depreciation: Straight line depreciation,
Accelerated depreciation
• Contract Close: Before project close
• Project or Phase Close: Lessons Learned
 Scope Management
9 Scope creep
9 Gold plating
9 Team buy-in
9Heuristic (Rule of thumb)
9 Group Decision-Making techniques: Unanimity,
Majority, Plurality, Dictatorship.
9 How verify scope relates to Perform Quality control?
9 Inspection techniques: Measurement, Testing,
Review, Walkthrough, Desk-check, Audit

6
 Time Management
¾ PDM or AON: SS, SF, FS, FF, GERT
¾ Dependency determination (hard, logic, external)
¾ Lead, lag
¾ One-point estimate
¾ Analogous Estimating (top-down)
¾ Parametric Estimating
9 Regression analysis (scatter diagram)
9 Learning curve
9 Heuristic (rule of thumb)
¾ Three-point estimates
¾ Reserve analysis:
9 Contingency reserve (known-unknowns)
9 Management reserve (unknown-unknown)
¾ Critical Path Method: slack or float (total, free, project float), LF-EF = LS - ES
¾ Critical Chain Method
¾ EVM: SV = EV- PV, SPI = EV/PV, If SV <0 or SPI <1 => schedule got
problem
¾ Progress report: 50/50 rule, 20/80 rule, 0/100 rule.
 Cost Management
• Cost estimating accuracy
ROM: -50%-100%
Budgetary: -10%-25%
Definitive: -5%-10%
• Estimate:
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
• Contingency reserve vs. management reserve
• EVM
 Quality Management
¾ Gold plating 7 basic quality control tools:
¾ Marginal analysis ¾ Cause & effect diagram
¾ Continuous improvement (fishbone diagram, Ishikawa
(or Kaizen) diagram)
¾ JIT ¾ Flow chart
¾ TQM ¾ Histogram
¾ Benchmarking ¾ Pareto chart
¾ DOE ¾ Run chart
¾ COQ (Cost of quality: cost ¾ Scatter chart
of avoid failure, Cost of poor ¾ Control chart (Upper &
quality: failure cost) lower control limits,
¾ Sigma (3 sigma: 99,73%, 6 Specification limits, Rule of
sigma: 99,99985%) seven, Assignable
cause/special cause
variation)
 Human Resource
¾ Hallo affect
¾ Stages of team formation & development
¾ Ground Rules
¾ Co-location (War-room)
¾ 7 sources of conflict
¾ 6 general techniques for resolving conflict
¾ Power of PM
¾ Leadership styles
¾ Motivation theories
 Communication
Management
¾ 3 steps of stakeholder identification
¾ Communication models: effective
communication (nonverbal, Para lingual,
feedback)
¾ Communication methods: pull, push, interactive
¾ Communication channel: N(N-1)/2
¾ Communication blocker: noise, distance,
improper, hostility, language, culture
¾ Report types: status, progress, trend, forecast,
variance
 Risk
Management
9 Risk averse
9 Risk tolerance
9 Risk threshold
9 Business risk vs. pure
risk
9 Tornado diagram
9 EMV = probability x
outcome
9 Qualitative analysis vs.
Quantitative analysis
9 Contigency reserve vs.
Management reserve
9 Risk strategies (threats):
avoid, transfer, mitigate,
accept
9 Risk strategies
(opportunities): exploit,
share, enhance, accept
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 Procurement management
9Privity
9Single source
9Sole source
9Screening
system
93 types of
Procurement Contract type Procurement
docs statement of procurement
work SOW:
RFP CR Performance/
Functional
performance,
IFB FP Design functional, design.
RFQ T&M Any
 Professional & Social
Responsibility
¾Responsibility
¾Respect
¾Fairness
¾Honesty