PMP Tutorial preparepm.

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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 11% Project Planning 23% Project Execution 27% Project Monitoring and Control 21% Project Closure 9% Professional responsibility 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. 5. A subproject is a subset of a project. Subprojects can be subcontracted. Technical or Functional Manager may be in charge of a subproject.

6.

Type of organization - This is an important concept to understand for the PMP exam. 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. In Functional organizations staff is organized based upon their specialty, such as engineering or sales. In these organizations, functional managers are responsible for specialized departments like marketing. In Functional organization, the role of Project Manager is limited. In Projectized organization, PMs have more authority and independence. All the persons in the project team report to the Project Manager. Real situations are a mixture of functional and projectized organizations. These mixed situations are called matrix organizations. Strong matrix organizations have characteristics of projectized organizations. Weak matrix organizations have characteristics of functional organizations.

7. 8.

Leadership style varies from autocratic to democratic. Shared leadership involves team members taking most of the decisions. It encourages team development. Project Management consists of nine Knowledge Areas. These are o Project Integration Management o Project Scope Management o Project Cost Management o Project Time Management o Project Risk Management o Project Quality Management o Project HR Management o Project Communication Management o Project Procurement Management Each Knowledge area has further Processes. There are a total of 42 processes. Each process has inputs, outputs and "tools and techniques" (ITTO). The PMBOK primarily covers each of the processes and it's ITTO in detail. You need to understand the concepts related to each of the input, output and "tools and techniques".

9.

Further the discipline of Project Management has five process groups. These are o Initiation o Planning o Execution o Control o Closure Each process is part of one of these five project phases. It is important to know the process group for each of the 42 processes.

10. Project Sponsors are primarily involved in funding the project. 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. This is done by Senior Management. 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

Stakeholders are all the individuals that are concerned with the project. Stakeholders have vested interest in the outcome of the project. They include project team members, customers, management, and other individuals who get impacted by the project. Stakeholders role includes -

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

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

Direct and Manage Project Execution process includes performing the work defined in the PMP to achieve project goals. Risk management plan Procurement management plan The Project Management Plan also includes project baselines. Expert judgment Change requests Project management plan updates Project document updates Perform Integrated Change Control process Inputs Tools & Techniques Outputs Project management plan Work performance information Change requests Enterprise environmental factors Organizational process assets Expert judgment Change request status updates Project document updates Change control meetings Project management plan updates . Kick-off meeting happens after the planning phase and before the project execution. Tools and Techniques and Outputs of this process are given below. Scope baseline Project baseline refers to the original version of the project management plan. Tools and Techniques and Outputs of this process are given below. Inputs Project management plan Direct and Manage Project Execution process Tools & Techniques Expert judgment Outputs Deliverables Change requests Project management plan updates Project document updates Approved change requests Enterprise Environmental factors Organizational process assets Project management information system Work performance information Monitor and Control project work process includes tracking and reviewing the progress of the project. The Input. Cost performance baseline and M. The Input. Once the project management plan is baselined. These are: K. It is typically used to communicate responsibilities of key stakeholders. The Input. J. The change requests on the project deliverables and project artifacts are managed in this process. Progressive Elaboration involves the process of taking a project from concept to detailed design. Schedule baseline L. it may only be changed by raising a change request. Tools and Techniques and Outputs of this process are given below. Monitor and Control project work process Inputs Tools & Techniques Outputs Project management plan Performance reports Enterprise environmental factors Organizational process assets The change requests that get generated are evaluated as part of the Perform Integrated Change Control process.I.

It is used to approve or reject change requests. Project with higher BCR is selected. the following steps must be taken (in this order) 0. 5.Different projects are given scores based on certain defined criteria. a lessons learned document must be prepared. Evaluate (assess) the impact of change to the project 1.This technique involves computing benefits to cost ratio (BCR) for a project. crashing. and measure performance of corrective action. 4. 3. Project Portfolio Management is the process of project selection. After that the Project Manager needs to evaluate the effectiveness of corrective action. o Benefits Cost Ratio .Change Control Board is formed to review change requests. The lessons learned document defines what was done right. 1. wrong etc. It is primarily concerned with controlling what is and what is not in the scope. These are o Benefits Measurement o Constrained Optimization Benefits Measurement project selection methods involve comparing the values of one project against another. There are two types of project selection methods. and only all the work required to complete the project successfully. Meet with the customer if necessary The Close Project or Phase is the process of formal completion of all project related activities. Tools and Techniques and Outputs of this process are given below. . When a change request is received. 2. Scope Management Processes Project Group Key Deliverables Requirements document project scope statement WBS. sponsors etc. The knowledge area of Project Scope Management consists of the following processes - Process Define Scope Create WBS Verify Scope Control Scope 2. Create alternatives including cutting other tasks. each requested change must go through a change control review process. Meet with management. fast-tracking etc. Project with higher score is selected.This involves a committee asking tough questions from each project o Scoring Models . service or result transition Organizational process assets updates At the end of each phase of a project. The Input. There are the following type of Benefit Measurement project selection techniques o Murder Boards . and then determine the need for further corrective action. WBS dictionary planning planning Collect Requirements planning Monitoring and Controlling Acceptance deliverables Monitoring and Controlling Change Requests The knowledge area of Scope Management includes the processes required to ensure that the project includes all the work. It involves making a decision about which project an organization should execute. After the project scope has been baselined. 3. Project Manager needs to be proactive in looking for deviations from project plan and then take timely corrective action. It is required to be completed in order for the project to be completed. Inputs Project management plan Accepted deliverables Organizational process assets Close Project or Phase Tools & Techniques Expert judgment Outputs Final product. Project Scope Management This chapter covers key concepts related to Project Scope Management.

Discounted Cash Flow . A project with higher present value is better. 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. The Future Value (FV) of projects is compared.This technique takes into account the interest earned on the money. FV=PV(1+i)n PV is the present value of the project.000. The Inputs. Inflation or interest earned in not considered in this technique. MBO works only if management supports it.This technique involves considering how long it takes back to "pay back" the cost of the project. Create WBS is the process of dividing the project deliverables into smaller components. 8. The Inputs. 9. Tools and Techniques and Output of the Define Scope process are: Inputs Project charter Define Scope Process Tools & Techniques Expert judgment Outputs Project scope statement Project document updates Requirements documentation Product analysis Organizational process assets Alternative identification Facilitated workshops 11. Tools and Techniques. then the net value of the project will be $20. A project with higher net value should be selected when performing project selection. Expected monetary value of a project (or expected value) is equal to probability*impact. Inputs Project charter Collect Requirements Process 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. Collect Requirements process involves documenting stakeholders needs to meet project objectives. These are techniques based on mathematical models. The Define Scope process involves defining detailed description of the project and major deliverables. o Internal Rate of Return (IRR) . Constrained Optimization Project selection methods are used for large projects.A project that has higher IRR is better.o o Payback period . The Constrained Optimization techniques are o Linear Programming o Non-Linear Programming o Integer Algorithm o Dynamic Programming o Multi-objective Programming 7. 6. and Outputs of Collect Requirements process are given below. A project with lower pay back period is better. as it is giving higher return on money. So if probability of a project's success is 20% and revenue earned if successful is $100000. Tools and Techniques and Outputs of Create WBS process are: . The Input.

Inputs Project management plan Requirements documentation Verify Scope Process Tools & Techniques Inspection Outputs Accepted Deliverables Change requests Project document updates Requirements traceability matrix Validated deliverables 17. Tools and Techniques and Outputs of Control Scope process are: Inputs Project management plan Requirements documentation Requirements traceability matrix Organizational process assets Work performance information Control Scope Process Tools & Techniques Variance analysis Outputs 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. WBS forces the project team to think through all the levels of the project. During the Verify Scope process customer gives feedback on work performed. If a task is not in the WBS. 13. then it is not part of the project. It is a graphical representation of the hierarchy of the project. Work Breakdown Structure (WBS) is an important part of the exam. Also WBS is input to most of the planning processes. While Verify Scope process focuses on customer acceptance. 1.No task should be less than 8 hours or more than 80 hours. The WBS template can be reused across projects. The Inputs. 16. Scope Verification happens at the end of each phase. The table below gives inputs. Tools & Techniques. Control Scope process involves monitoring the status of project and managing scope changes. 8/80 rule for WBS .Inputs Project Scope Statement Create WBS Process Tools & Techniques Decomposition WBS Outputs WBS dictionary Scope baseline Project document updates Requirements documentation Organizational process assets 12. 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. 14. The knowledge area of Project Time Management consists of the following processes - . and Outputs of the Verify Scope process. Perform Quality Control process focuses on correctness of work. WBS dictionary explains all the WBS components. The Verify Scope is the process in which the project customer formally accepts the project deliverables.

class="basic" The Define Activities process has the following Inputs.Process Define Activities Sequence Activities Time Management Processes Project Phase Key Deliverables Planning Planning Activity List. Change Requests Estimate Activity Resources Planning Estimate Activity Durations Planning Develop Schedule Control Schedule Planning Monitoring and Controlling 2. The Estimate Activity Durations process has the following Inputs. Milestone list Project Schedule network diagrams Activity resource requirements. Resource breakdown structure Activity duration estimates Project Schedule Work Performance measurements. Tools and Techniques and Outputs - Inputs Activity List Activity attributes Resource calendars Estimate Activity Resources Process 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 Organizational process assets 5. Sequence Activities Process Tools and Techniques Applying leads and lags Schedule Network Templates Dependency determination Outputs Project document updates Precedence diagram method (PDM) or AON Project schedule network diagrams The Estimate Activity Resources process has the following Inputs. Tools and Techniques and Outputs - Estimate Activity Durations Process Inputs Tools and Techniques Outputs . Tools and Techniques and Outputs - Inputs Project scope statement Activity List Activity attributes Milestone list Organizational process assets 4. Tools and Techniques and Outputs - Inputs Scope baseline Define Activities Process Tools and Techniques Decomposition Templates Expert judgment Outputs Activity list Activity attributes Milestone list Enterprise environmental factors Rolling wave planning Organizational process assets 3. The Sequence Activities process has the following Inputs.

Expert judgment Analogous estimating Parametric estimating Three-point estimates Reserve analysis Activity duration estimates Project document updates The Develop Schedule process has the following Inputs. Network diagrams can be used to perform critical path analysis. Network diagrams can also be used to perform crashing and fast tracking of the project. They are generally used to track progress and show to the team. Typically the date range is displayed in the X-axis and the tasks on the Y-axis. . They display major milestones (for example bridge design completed). Tools and Techniques. and Outputs- Inputs Project scope statement Activity List Activity attributes Develop Schedule Process 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 Organizational process assets Schedule network analysis Project Schedule Project Schedule Network diagram Resource levelling Activity Resource requirements Resource Calendars Activity duration estimates Project Management Plan Risk Register Enterprise environmental factors 7. Network diagrams are used to display activities and their dependencies.Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement Enterprise environmental factors Organizational process assets 6. They are used to display information of the type task 1 is scheduled from date A to date B. There are two type of network diagrams o Activities on Node (or Precedence) 8. Bar charts do not show task dependencies. Milestone charts are similar to bar charts but display only major events. Tools and Techniques and Outputs - Inputs Project management plan Project schedule Control Schedule Process 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 Bar charts (or Gantt charts) are used to display tasks and their dates in a graphical fashion. The Control Schedule process has the following Inputs. They are used to report status to Management. 10. 9.

Project Cost Management . The following are formulae used by PERT - Mean = (P + 4M + O)/6 Standard Deviation = (P-O)/6 Variance = ((P-O)/6)2 Here P is the pessimistic estimate. These are o Finish-To-Start o Start-To-Start o Start-To-Finish o Finish-To-Finish Finish-to-start relationship means the dependent activity cannot start until the first activity is finished. In the above example Documentation is activity number 2 and is estimated to last 5 days. 16. They show dependencies between tasks. Lags are inserted waiting times in between tasks. O is the optimistic estimate and M is the most likely estimate. 22. If a project has more than one critical paths then the risk to the project increases. 17. For example Task B cannot start until three days after task A completes. AON and AOA cannot have loops or conditional relationships. o It uses three estimates per activity . Longest path through the network diagram is called the critical path. Resource levelling refers to keeping the resources same across the duration of the project. It can support looping. o AOA only uses Finish-To-Start relationship between tasks. o PERT and CPM can only be used with AOA. o It uses one time estimate per activity o It can be drawn only using AOA diagrams o It can have dummy events 20. They do not take any time. Tasks on the critical path have zero float. pessimistic and most likely o It can be drawn only using AOA diagrams o It can have dummy events 21. 19. An activity in a network diagram is displayed as shown below. As an example Documentation 2 5 days 13. Critical Path Method (CPM) has the following characteristics. 15. Precedence (or Activity on Node) diagrams can be used to display four type of relationship between activities. Activity on Array (AOA) network diagrams have the following characteristics. 14.o Activities on Arrow (or AOA) Precedence is most commonly used. 24. This is the most common way to represent relationships between activities. GERT is another type of network diagram. 11. 23.optimistic. PERT utilizes more information than CPM as it considers the "Pessimistic" and "Optimistic" values in addition to the "Most Likely" value in its calculations. The activities on the critical paths are called critical activities. o Dummy events are shown with dotted lines. Activity name class="basic"Activity Number Estimate 12. 18. Program Evaluation and Review Technique (PERT) has the following characteristics. Slack or Float is the amount of time a task can be delayed without delaying the project.

Actual Cost (AC) is the actual amount of money spent so far. Project Cost Processes Project Phase Key Deliverables Planning Activity Cost Estimates. In first year we deduce 5/15 from the cost. o Sum of year depreciation .Lets say the life of an object is five years. Learning Curve model is based upon the principal that the cost per unit decreases as more work gets completed. BAC refers to Budget at Completion. It is also referred as ACWP (Actual Cost of Work Performed). The knowledge area of Project Cost Management consists of the following processes - Process Estimate Costs Control Costs 2.In the first year there is a higher deduction in the value . 1. It is of two types. It involves estimating each work item and adding the estimates to get the total project estimate. You can expect five to ten questions related to Earned Value Management. in second year we deduce 4/15. and remember the formulae.Basis of estimates Cost performance baseline Determine Budget Planning Monitoring and Controlling Work performance measurements 5. 9. you use a mathematical model to make an estimate. 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. 13. o Double-declining balance . The total of one to five is fifteen. It is defined as ETC = EAC . 15. less costly methods for accomplishing the same task. There are three type of depreciation techniques. 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 In Parametric Modeling Estimation. It is also referred as BCWS (Budgeted Cost of Work Scheduled). EAC = BAC/CPI 16. 4. Earned Value (EV) is the physical work completed to date and the authorized budget for that. Alternative identification process identifies other solutions to an identified problem. 3. 12. It is defined as o 8. Planned Value (PV) refers to what the project should be worth at this point in the schedule.AC . 14. CPI = EV/AC If CPI is less than 1. CPI refers to Cost Performance Index. 6. Estimate At Completion (EAC) refers to the estimated total cost of the project at completion. 10. It is related to EAC. this means that the project is over budget. These are generally pretty simple once you have good understanding of the concepts. o Regression Analysis is a mathematical model based upon historical information.This chapter covers key concepts related to Project Cost Management. Value Analysis approach is used to find more affordable. It is also referred as BCWP (Budgeted Cost of Work Performed). Each year after that the deduction is 40% less than the previous year.twice the amount of straight line. These formulae are explained below. and so on. These are o Straight line depreciation The same amount is deprecated (reduced) from the cost each year. 7. 11. ETC refers to Estimate to Completion. Bottom up estimation is same as WBS estimation.

It is defined as SPI = EV/PV 20. 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. Non-critical risks should be documented. Project risks that are negative are called threats. . Project risks that are positive are called opportunities. 22. o Transferring risk Insurance is an example of transferring risk. It is defined as CV = EV . Risks are identified in all phases. 3.000. Project Risk Management This chapter covers key concepts related to Project Risk Management. 1. Cost baseline refers to what is expected to be spent on the project. Perform Quantitative Risk Analysis Planning Monitoring and Controlling Risk register updates A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive impact on the project. The knowledge area of Project Risk Management consists of the following processes - Process Plan Risk Management Identify Risks Risk Management Processes Project Phase Planning Planning Planning Planning Key Deliverables Risk Management Plan Risk register Risk register updates Risk register updates Risk related contract decisions Perform Qualitative Risk Analysis Plan Risk Responses Monitor and Control Risks 2.PV Negative cost or schedule variance means that project is behind in cost or schedule. VAC refers to Variance At Completion. 4. It is defined as SV = EV . Responses to threat include -o Reducing the probability of risk o Developing contingency plans o Passively accepting consequences. That is the expenditure is less in the beginning. and the end. They should be revisited and reviewed regularly.17. It is defined as VAC = BAC .EAC 21. Cost budgeting defines cost estimates across time. 19. It is usually an S-curve. SV refers to Schedule Variance.AC 18. CV refers to Cost Variance. The expenditure is maximum during the middle of the project. 5. Cost estimating involves defining cost estimates for tasks. in the first month the project will require $10. The process of Cost budgeting defines time phased cost estimates for the project. The after project costs are called life cycle costs. 24. For example. SPI refers to Schedule Performance Index.

Grade refers to category or rank given to entities having same functional use but different technical characteristics. 7. It can be used to get inputs on Scope. 5. each process should go through these steps to improve the quality. o The PM tries to build a consensus among the experts. Poor grade may be acceptable.Apply continuous small improvements to reduce costs and ensure consistency. 8. Inputs Scope baseline Stakeholder register Cost performance baseline Schedule baseline Risk register Organizational process assets Plan Quality Process Tools and Techniques Cost-benefit analysis Cost of quality Control charts Benchmarking Design of experiments Flowcharting Proprietary quality management methodology Additional quality planning tools Outputs Quality management plan Quality metrics Quality checklists Process improvement plan Project document updates Enterprise environmental factors Stastical sampling 3. 4. 9. but poor quality is not. 6. Quality Metrics Change Requests Perform Quality Assurance Execution Perform Quality Control 2. Kaizen Theory . 1. Monitoring and Controlling Quality control measurements The process of Plan Quality includes defining quality requirements of the project and documenting how the project will ensure compliance. The aim of quality is to ensure "Conformance to requirements" and "fitness for use". The value of sigma of Normal Distribution are given below. The ITTO of Plan Quality process are given below. Marginal Analysis . The knowledge area of Project Quality Management consists of the following processes - Process Plan Quality Quality Management Processes Project Phase Key Deliverables Planning Quality Management Plan. the customers expectations are different.You compare the cost of incremental improvements against the increase in revenue made from quality improvements. This happens in risk monitoring and control phase. Work-around refers to how to handle risks that have occurred but are not part of risk response plan.6. These are important for the exam. Deming suggested a process of Plan-Do-Check-Act to improve quality. Estimates or Risks. Some characteristics of the Delphi technique are o The experts identities are anonymous. Delphi technique is most commonly used to obtain expert opinions on technical issues. Project Quality Management This chapter covers key concepts related to Project Quality Management. Optimal quality is reached when cost of improvements equals the costs to achieve quality. Normal Distribution Sigma values Sigma Percentage covered . This acts as an input to Quality Planning for a project. 7. Quality Policy defines the company goals and how to adhere to them. According to Deming. They are not in the same room. for different grades of hotels. As an example. Quality Policy is part of Organizational Process assets.

One sigma Two sigma Three sigma Six sigma 68. 10. Giving extras i.26% 95. In Just-In-Time (JIT) Quality. doing more than the project scope is called gold-plating. Quality Assurance is done during execution of the project.99% Based on the above table. .73% 99.000 items can have defects. Perform Quality Assurance involves reviewing the quality requirements and auditing the results from quality control measurements. the amount of inventory is zero. tools and techniques and outputs (ITTO) used for Perform Quality Control process are - Inputs Project management plan Quality metrics Quality checklists Approved change requests Deliverables Organizational process assets ITTO of Perform Quality Control Tools and Techniques Cause and effect diagram Control charts Flowcharting 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 Work performance measurements Histogram 14.46% 99. twenty seven out of 10. we can see that in six sigma one out of 10. just when they are required. These lessons learned are used for process improvement. The inputs are made available. This reduces the storage cost. The inputs.structured review of quality activities that identify lessons learned. It includes inspections. 15. Inputs Project management plan Quality metrics Work performance information Quality control measurements ITTO of Perform Quality Assurance Tools and Techniques Plan Quality and Perform Quality Control tools and techniques Quality audits Process analysis Outputs Organizational process updates Change requests Project management plan updates Project document updates 13. if there are seven points on one side of mean. Perform Quality Assurance uses data created during Perform Quality Control. Prevention is more important than inspection.000 items can have defects. PMI does not recommend gold-plating. Quality must be planned in and not inspected in. It includes o Process of evaluating overall performance on a regular basis o Re-evaluating quality standards o Quality audits . Rule of seven : In control charts. then an assignable cause must be found. 12. Perform Quality Control focuses on correctness of work. 11.e. In three sigma.

and use them to make estimates. The table below gives the inputs.16. and Outputs for the Develop project team process - Inputs Project staff assignment Resource calendars Develop project team process Tools and Techniques Interpersonal skills Team-building activities Ground rules Outputs Team performance assessments Enterprise environmental factors updates Project management plan Training . The knowledge area of Project HR Management consists of the following processes - Process Acquire Project Team Develop Project Team Manage Project Team 2. The table below gives the inputs. and Outputs for the Acquire project team process - Inputs Project management plan Acquire project team process Tools and Techniques Pre-assignment Acquisition Virtual teams Outputs Project staff assignments Resource calendars Project management plan updates Enterprise environmental factors Negotiation Organizational process assets 4. The process of Analogous Estimation involves looking at the history of past projects. and Outputs for the Develop Human Resource Plan process - Develop Human Resource Plan Process Inputs Tools and Techniques Outputs Enterprise environmental factors Organizational process assets Activity resource requirements 3. Project HR Management This chapter covers key concepts related to Project HR Management. HR Management Processes Project Phase Key Deliverables Human Resource Plan Project Staff assignments Team performance assessments Change requests Execution Execution Execution Develop Human Resource Plan Planning Develop Human Resource Plan process involves identifying and documenting project roles and responsibilities. tools and techniques. 1. The table below gives the inputs. Organization charts and position descriptions Organizational Theory Networking Human resource plan Acquire project team process involves identifying and obtaining the team necessary to execute the project. tools and techniques. Develop project team process involves improving the competencies of the team members and improving teamwork between the team. tools and techniques.

8. o Withdrawal or Avoidance o Smoothing (Emphasize the agreements) o Forcing (Do it my way). The table below gives the inputs. and confirm that the problem is solved. 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 o Review the decision. 13.project team knows the PM o Formal Power .There are two type of employees. Herzberg Theory . 6.The project team is afraid of the power the Project Manager holds. 17. 10. Maslow's Hierarchy of needs. he will be good as a project manager. cleanliness etc. tools and techniques. These are (from best to worst) o Problem Solving or Confrontation (look at the facts. They cannot be trusted and need to be micro managed. 9. Conflicts in the team are caused due to the following reasons in decreasing order of occurrences. War room is a technique for team building. Expectancy Theory .) if not present can destroy motivation. recognition etc. on the other hand.Project Manager has strong technical skills in the projects domain. A Project Manager may yield authority over the project team in one of the following ways o Referent . It helps to create a project identity. o Schedules o Project Priorities o Resources o Technical Opinions So the most common cause of conflicts in projects are issues related to schedules. Employees of type Y. There are many organizational theories. 16. self-actualization. McGregory Theory. and Outputs for the Manage project team process - 7. 11. 14. This is an example of win-loose situation. Herzberg Theory.People accept to be rewarded for their efforts. Employees of type X need to be always watched. o Coercive Power . McGregory Theory of X and Y . Responsibility Assignment Matrix (RAM) defines who does what. Inputs Project staff assignments Project management plan Team performance assets Performance reports Manage project team process 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. This is a motivation factor.Expectancy Theory. This is an example of loose-loose situation. They can work independently. As part of this the project team meets in one room. o Compromising (Find the middle route). There are standard conflict resolution techniques available to resolve conflicts. The Staffing Management Plandefines when will people get added and removed from the project. Conflicts are best resolved by those in the team.Hygiene factors (salary.Power due to Project Managers position o Technical Power . are self-motivated. People put in more efforts because they accept to be rewarded for their efforts.Co-location Recognition and rewards 5. 15. This is an example of win-win situation. Some of the main ones are . The motivation factors for employees include responsibility. However good hygiene alone does not improve motivation. Halo Effect is the assumption that because the person is good at a technology. . What motivates people is the work itself. Manage project team process is the process of tracking team member performance and managing issues within the team. analyze them and find a solution). growth.

Also documented is how and when the communication needs to be shared with stakeholders.self-fulfillment. project sponsor and other persons involved in the project. 5. emails are examples of non-formal communication. project team. Tools and Techniques. 1. Inputs Stakeholder register Plan Communications Process Tools & Techniques Outputs Project document updates Communication requirements analysis Communications management plan Stakeholder management strategy Communication technology . The Inputs.18. there are 45 channels of communication. and Output of Plan Communications process is given below. and Output of Identify Stakeholders process is given below. Maslow's Hierarchy of needs . Inputs Project Charter Procrement documents Enterprise environmental factors Organizational process assets 6. and communicate with each other. The total number of communication channels between n stakeholders is n(n-1)/2. When a lower level is met. So if there are ten stakeholders in a project. This is documented in the Communication management plan. The maximum satisfaction is achieved when the employee reaches the highest level of satisfaction . The knowledge area of Project Communication Management consists of the following processes - class="basic"Communication Management Processes Process Process Group Key Deliverables Identify Stakeholders Plan Communications Distribute Information Initiating Planning Executing Stakeholders register Communication Management Plan Organization process assets updates Change requests Manage Stakeholders Expectations Executing Report Performance 2. These level of needs from the highest to lowest are o Self-fulfillment o Esteem o Social o Safety o Physiology Project Communication Management This chapter covers key concepts related to Project Communication Management.there are various levels of needs for an employee. 3. Tools and Techniques. employee attempts to reach the next higher level. Identify Stakeholders Tools & Techniques Stakeholder analysis Expert judgment Outputs Stakeholder register Stakeholder management strategy Plan Communications process involves determining what kind of information should be shared with which project stakeholder. Project stakeholders may include customers. The Inputs. During stakeholder analysis the power and interest of the stakeholders is plotted with Interest on X-axis and Power on Y-axis. Monitoring and Controlling Performance Reports Communication Management Plan defines how and when the various stakeholders receive information. The Identify Stakeholders process involves identifying all persons and organizations that may impact the outcome of project. Memos. 4.

Communication models Communication methods Throughout the project duration. Procurement Management involves getting work done by people outside the project team. information is shared with stakeholders as planned. Inputs Stakeholder register Manage Stakeholder Expectations Process Tools & Techniques Outputs Communication methods Organizational process assets updates Change requests Project management plan updates Project document updates Management skills Stakeholder management strategy Interpersonal skills Project management plan Issue log Change log Organizational process assets 9. The Report Performance process involves sharing the project status reports and measurements with appropriate stakeholders. the project manager works with the stakeholders. The knowledge area of Project Procurement Management consists of the following processes - . and Output of Distribute Information process is given below. The Inputs. understands and addresses their needs and expectations. Distribute Information Tools & Techniques Communication methods Information distribution tools Outputs Organizational process assets updates As part of the Manage Stakeholder Expectations process. and Output of Manage Stakeholder Expectations process is given below. Project Procurement Management includes administering contracts and change control process to manage contracts or purchase orders. Inputs Project management plan Performance reports Organizational process assets 8. Tools and Techniques. The Inputs. Inputs Project Management Plan Work performance information Budget forecasts Organizational process assets Report Performance Process Tools & Techniques Variance analysis Forecasting methods Reporting systems Outputs Performance reports Organizational process assets updates Work performance measurements Communication methods Change requests Project Procurement Management This chapter covers key concepts related to Project Procurement Management. 1. Tools and Techniques.Enterprise environmental factors Organizational process assets 7. This sharing of information is part of the Distribute Information process.

Changes to contract must be in writing and formally controlled. The process of Conduct Procurement involves receiving seller responses. and one or more seller is selected to execute the work. . and the action of one seller will have impact on other seller prizes. 4. Most Governments back all contracts by providing a court system. A contract is a formal agreement. and Outputs of Plan Procurement process are listed in the table below. and awarding a contract. It is a legal document biding to both seller and buyer. Tools and Techniques. Procurement contract award Closed procurements Administer Procurements Monitoring and Controlling Change requests The Plan Procurement process involves build versus buy decisions.Process Plan Procurements Conduct Procurements Close Procurements 2. selecting a seller. Single Source refers to a market condition in which the company prefers to contract with only one seller. 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 5. Procurement Management Processes Project Phase Key Deliverables Planning Execution Closure Procurement Management Plan Selected Sellers. The Inputs. Oligopoly refers to a market condition where very few sellers exist. Inputs Scope baseline Requirements documentation Teaming agreements Risk register Plan Procurement process 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 Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost performance baseline Enterprise environmental factors Organizational process assets 3. Conduct Procurement process 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 Sole Source refers to a market condition in which only one qualified seller exists in the market. During this process bids or proposals from sellers are evaluated.

Culture Shock refers to the initial disorientation that a person first experiences when visiting a country other than his own. must be maintained. Similarly a PMP must not offer inappropriate compensation for personal gains. In Decentralized Contracting a contract administrator is assigned for each project. The process of Administer Procurement involves managing procurement relationships and ensuring the seller performance meets the procurement requirements. 2. In such a situation. 7. Force majeure is a powerful and unexpected event. If a project team member or the project manager has a conflict of interest. Inputs Procurement documents Project management plan Contract Performance reports Approved change requests Administer Procurement process Tools and Techniques Contract change control system Inspection and audits Performance reporting Payment systems Records management system Outputs Procurement documentation Change requests Project management plan updates Procurement performance reviews Organizational assets updates Work performance information Claims administration Contract can be used as a risk management tool. A PMP must not accept any form of inappropriate gifts. 10. Lets assume the Project Manager has friendship with one of the vendors. Privity is contractual information between customer and vendor. As an example of this consider a case where a Project Manager is evaluating some vendors. such as hurricane or other disaster. Ethnocentrism is a typical belief that one's culture is superior to the foreigner's culture. 5. 12. 6. PMP aspirants need to provide accurate and truthful information through out the application process. Any violations can lead to disciplinary action. then it must be brought into notice of all the stake-holders. 4. 11.pmi. 7. The PMP code of Professional Conduct is defined athttp://www. Bidder conferences are meetings between buyer and sellers before the bid is submitted.pdf 1.org/PDF/AP_PMICodeofEthics. PMP's Code of Professional Conduct is a document provided by PMI. The confidentiality of any intellectual property information that a PMP professional works with. Any information that a PMP provides to general public must be accurate and truthful. . The conference is used by buyers to provide consistent information to all sellers. 8. The process of Close Procurement involves completing each procurement. Inputs Project management plan Close Procurement process Tools and Techniques Procurement audits Records management system Outputs Closed procurements Organizational process updates Procurement documentation Negotiated settlements Code of Professional Ethics This chapter covers PMI's code of Professional Conduct.6. 8. and offer herself to be excluded out of the evaluation process. 3. Centralized Contracting refers to a separate contracting office that handles contracts for all projects. The process involves verifying that all planned work as per the contract has been completed. It is a guide to Project Managers on how to conduct as a professional. as in transferring risk. 9. the Project Manager should let all the stakeholders know. to prevent any appearance of improperiety.

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