PMP Training PPT Document

Welcome to PMP Exam Preparation
(Based on Guide to PMBoK 4th Edition)
Introduction
1
Chicago Management Training Institute LLC. Email: info@chicagomti.com www.chicagomti.com. © 2009 All rights reserved
General Information
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 Key Contact Details

 Support: Mr. Krish 050-2459498 Email. krish@chicagomti.com
 Suggestions & Complaints: info@chicagomti.com
2
Ground rules for this training program
 On Time all the Time
 Tolerance Limit - 10 Minutes / 80% of the class strength
 Interactive Class
 Everyone has to participate

 No Criticism
 Bring Highlighter
 Keep an open mind & do not always link the concepts with your job
3
Project Management Institute
Building Professional in Project Management
Project Management Institute
 Established in 1969 and headquartered outside Philadelphia, Pennsylvania USA ,the

Project Management Institute (PMI) is the world’s leading non-for-project
management professional association with over 260,000 members in more than 171
countries and 180,000 PMP’s worldwide.
4
Types of Questions
 Situational Questions
 Questions with two or more right answers
 Questions with extraneous information
 Out of the blue questions
 Questions where understanding is important
 Questions with new approach to known topic.
5
FORMAT OF THE PMP EXAM
 Computer based exam conducted in Prometric centers.
 200 multiple choice questions to be answered within 4 hours.
 Exam is preceded by a 15-minute computer tutorial on the format of the exam.
 Each question has exactly one correct answer. Most people find four hours to be more than
sufficient for the exam.
 Out of these 200 questions, 25 questions are research questions. These are randomly placed
throughout the exam. These questions are not evaluated while computing exam results. You will
only be evaluated on the basis of 175 questions.
 On clicking the final submission button, the system will compute the results immediately and provide
you with the Pass or Fail message. Do not forget to collect the result-sheet from the Examination
center invigilator/coordinator
 To pass the PMP examination, you must answer a minimum of 106 of the 175 scored questions
correctly. Immediately on completion of the exam, the Prometric center will give you the provisional
mark-sheet. The mark-sheet will give the breakup of the score by Process Area.
 There is no negative marking in the exam. Unanswered questions are treated as wrong questions.
 After clearing the exam, you will receive the PMP certificate by mail within 2 months. Examination
scores are confidential.
6
Distribution of Questions by Process Group in the PMP
Exam
Topics Percentage of Questions

Initiation 11%
Planning 23%
Executing 27%
Monitoring & Controlling 21%
Closing 9%
Professional & Social 9%
Responsibility
7
The Project Management Framework
8
Introduction
Trying to manage a project without
project management is like trying to
play a football game without a game
plan.
K. Tate
9
Advantages of Using Formal Project Management
 Better control of financial, physical, and human resources
 Improved customer relations
 Shorter development times
 Lower costs
 Higher quality and increased reliability
 Higher profit margins
 Improved productivity
 Better internal coordination
 Higher worker morale (less stress)
10
What is a Project ?
 A Project is a temporary endeavor undertaken to create a

unique, product, service, or result.
 Temporary endeavor with a beginning and an end.
 Creates unique product, service or result.
 Is Progressively Elaborated.
 Distinguishing characteristics of each unique project will be

progressively detailed as the project is better understood.
11
Another definition of a Project
 "A project is a finite endeavor - having specific start and

completion dates - undertaken to create a unique product or
service which brings about beneficial change or added value.
This finite characteristic of projects stands in sharp contrast to
processes, or operations, which are permanent or semi-
permanent functional work to repetitively produce the same
product or service." -- Wikipedia
12
What is Project Management?
 The application of knowledge, skills, tools and technique to

project activities to meet project requirements
 Project Management is accomplished through the application and

integration of the processes such as
 Initiating
 Planning
 Executing
 Monitoring and Controlling
 Closing
Why Project Management ?
13
Managing Projects
 The Project Manager is the person responsible for

accomplishing the project objectives.
 Managing a project includes:

 Identifying requirements.
 Establishing clear and achievable objectives.
 Balancing the competing demand of quality, scope, time and cost.
 Adapting the specifications, plans, and approach to the different

concerns and expectations of the various stakeholders.
14
Triple Constraints
15
Organizational / Managerial Approach
 Management by Objective
 Management by Objectives (MBO) is a process of agreeing

upon objectives within an organization so that management
and employees agree to the objectives and understand what
they are in the organization.
16
 The essence of MBO is participative goal setting, choosing

course of actions and decision making. An important part of
the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set.
Ideally, when employees themselves have been involved with
the goal setting and the choosing the course of action to be
followed by them, they are more likely to fulfill their
responsibilities
17
 Management by Project
18
Project management is the discipline of planning, organizing,

and managing resources to bring about the successful
completion of specific project goals and objectives. It is
sometimes conflated with program management, however
technically a program is actually a higher level construct: a
group of related and somehow interdependent projects
19
Areas of Expertise
Generally accepted as Good Practice
Effective communication
Influencing the organization 1. Project life cycle definition
Leadership 2. Five project management process Groups
Motivation 3. Nine Knowledge areas
Negotiating and conflict management
Problem solving
•Functional departments & supporting disciplines

•Technical elements
•Management specialization
•Industry Groups
Planning, Organizing, Staffing,

Executing & Controlling •Cultural and social environment
•International and political environment
•Physical environment
20
Project Management Context
 Program Management
 Portfolio Management
 Project Management Office
21
Programs and Program Management
 A Program is a group of related projects.

 Management is coordinated because:
 they may use the same resources,
 the results of one project feed into another, or
 they are parts of a larger "project that has been broken down to smaller
projects".
 ADVANTAGES Programs may include elements

of related work outside of the scope
 Decreased risk of the discrete projects in the program.
 Economies of Scale
 Improved Management
22
Portfolios and Portfolio Management
 A Portfolio is a collection of projects or programs and

other work that are grouped together to facilitate effective
management of that work to meet strategic business
objectives.
The projects or programs in the portfolio may not

necessarily be interdependent or directly related.
23
Portfolios and Portfolio Management
Portfolio - A suite of Programs and

Projects managed to optimize
Enterprise Value
Portfolio Management
Program - A structured grouping

Program Management of projects designed to produce
clearly identified business value
Project – A structured set of activities

undertaken to deliver a defined
capability based on an agreed
schedule and budget
24
Project, Program and Portfolio Management
Projects Programs Portfolios
Scope Have defined objectives. Programs have larger Have business scope
Scope is progressively scope and provide more that changes with
elaborated. significant benefits strategic goals of
organization
Change Project Managers expect Program Manager must Portfolio managers
change and implement expect change from both continually monitor
processes to keep change inside and outside the changes in the broad
managed and controlled program and be prepared environment
to manage it
Planning Project Managers Program Managers Portfolio Managers
progressively elaborate high- develop the overall create and maintain
level information into program plan and create necessary processes
detailed plans throughout high-level plans to guide and communication
the project life cycle detailed planning at the relative to the
component level aggregate portfolio
25
Project, Program and Portfolio Management
Projects Programs Portfolios
Management Project Managers Program Managers manage the Portfolio managers may
manage the project program staff and the project manage or coordinate
team to meet the managers; they provide vision portfolio management
project objectives and overall leadership staff
Success Success is measured by Success is measured by degree to Success is measured in
product and project which program satisfies the needs terms of aggregate
quality, timeliness, cost and benefits for which it was performance of
effectiveness and undertaken portfolio components
degree of customer
satisfaction
Monitoring Monitoring and Program Managers monitor Portfolio Managers
Controlling of the work progress of program components monitor aggregate
of producing the to ensure overall goals, performance and value
project’s products, schedules, budget and benefits of indicators
services or results the program will be met 26
Subprojects
 Projects are frequently divided into more manageable

components or subprojects.
 Subproject are often contracted to an external enterprise or to
another functional unit in the performing organization.
 Sub projects can be referred to as projects and managed as such.
27
Project Management Office (PMO)
 An organizational entity that centralizes and coordinates the

management of projects.
 Responsibility of a PMO can range from providing project

management support functions to actually being responsible
for the direct management of a project.
28
Functions of a PMO
 A PMO performs a number of functions that may include but are not
limited to:
 Managing shared resources across projects
 Project Management Process/Methodology: Develop and implement a

consistent and standardized process.
 Coaching, mentoring, training and oversight
 Developing and managing project policies, procedures, templates and other

shared documentation (Organizational Process Assets)
 Monitoring compliance with PM standards, policies, procedures and templates
29
Project Management Office (PMO)
 Home for project managers: In some cases, maintain a

centralized office from which project managers are loaned out to
work on projects.
 Project management software tools: Select and maintain project

management tools for use by employees. Also manage the Project
Management Knowledge base.
 Portfolio management: Establish a staff of program managers who

can manage multiple projects that are related, such as infrastructure
technologies, desktop applications and so on, and allocate
resources accordingly.
30
Authority of PMO
 Manage the interdependencies between projects
 Help provide resources
 Terminate projects
 Help gather lessons learned and make them available to other projects
 Provide templates
 Provide guidance
 Provide enterprise project management software
 Be more heavily involved during project initiating than later in the

project
31
Differences between role of a Project Managers
and PMO
 Project manager focuses on the specified project objectives ,
while the PMO manages major program scope changes which
may be seen as potential opportunities to better achieve
business objectives
 The project manager controls the assigned project resources

to best meet project objectives while the PMO optimizes the
use of shared organizational resources across all the projects
32
Making PMO Work
 The role of the PMO must be clearly defined.
 Preferably all those who are in the PMO must be qualified on

Project Management e.g. PMP certified.
 The commitment of executive (top) management is required.
 The PMO will not improve your project performance without

the use of proper project management processes and
technique. So professional project management must be
encouraged.
33
Project Life Cycle and Organization
34
Session Objective
2.1 The Project Life Cycle - Overview
2.2 Projects vs. Operational Work
2.3 Project Stakeholders
2.3 Organizational Influences
35
2.1 The Project Life Cycle
 All projects are divided into phases, and all projects, large or
small, have a similar life cycle structure.
 At a minimum, project will have a beginning or initiation

phase, an intermediate phase or phases, and an ending
phase.
 All the collective phases the project progresses through in

concert are called the project life cycle.
Construction: Feasibility-> Planning -> Design -> Production -> Turnover -> Startup
IT Project: Requirement -> Design -> Program -> Test -> Implement
36
Phases in Project Life Cycle
37
Handoffs
 Project phases evolve through the life cycle in a series of

phases sequences called handoffs, or technical transfers. The
end of one phase sequence may mark the beginning of the
next.
The completion of one phase does not automatically

signals the beginning of next phase.
38
Phase Completion
 You will recognize phase completion because each phase

has a specific deliverable, or multiple deliverables, that
marks the end of the phase.
A deliverable is an output that must be produced,

reviewed, and approved to bring the phase or project to completion.
Deliverables are tangible and can be measured and easily proved.
A Guide to the PMBOK states that phase ending reviews are also known
by a new other names: Phase Exits, Phase Gates, or Kill Points.
39
Phase-to-Phase Relationships
There are three basic types of phase – to – phase relationships :
A Sequential relationship : where a phase can only start once the previous
phase is complete
An Overlapping relationship : where the phase starts prior to completion

of the previous one (Fastracking ). Overlapping phase may increase risk
and can result in rework .
An Iterative relationship : where only one phase is planned at any given

time and the planning for the next is carried out as work progresses on
the current phase and deliverables
40
More on Project Phases
 In early phases of a project life cycle:
 Resource needs are usually lowest
 The level of uncertainty (risk) is highest
 Project stakeholders have the greatest opportunity to influence the project
 In middle phases of a project life cycle:
 The certainty of completing a project improves
 More resources are needed
 The final phase of a project life cycle focuses on:
 Ensuring that project requirements were met
 The sponsor approves completion of the project
41
Typical Project Cost and Staffing Level Across the Project Life Cycle
42
Typical Construction Life Cycle
Full Operation
100%
Installation
Substantially
complete
Percentage Complete
Major
Contracts
Let
Project
“GO”
decision
Feasibility Planning & Production Turnover and

Designing Start-up
43
Product and Project Life Cycle
44
2.2 Project vs. Operational Work
Projects Operations
• Attains its objectives and terminates •Sustains the business
• Semi-permanent charter, organization,
• Create own character, organization, and goals
and goals
• Catalyst for change
• Maintain status quo
• Unique product or services
• Standard product or services
• Heterogeneous teams
• Homogeneous teams
• Definite Start and end date
• Ongoing
Examples Examples
• Producing a News letter • Responding to customers requests
• Writing and publishing a book • Writing a letter to a Prospect
• Implementing a LAN • Hooking up a Printer to a computer
• Hiring a sales man • Meeting with an employee
• Arrange for a conference • Attending a conference
• Opening for a new shop • Running a shop
• Arranging a Music Concert • Writing a progress update memo
45
2.3 Projects and Strategic Planning
 Projects are means of organizing activities that cannot be

addressed within the organizations normal operational limits.
 Projects are typically authorized as a result of one or more of

the following strategic considerations:
 A Market Demand & Organizational Need
 A Customer Request
 A Technological Advancement
 A Legal Requirement
46
2.4 Project Stakeholders
 A stakeholder is someone whose interest may be positively or

negatively impacted by the project.
 Key stakeholders
 The project manager
 Customer
 Performing organization
 Project Team
 Project Management Team
 Sponsor
 Influencers
 The Project Management Office
47
Key Stakeholders
Sponsor Person or group that provides the financial
resources for the project
Portfolio Managers/Portfolio Review Board Managers responsible for the high-level
governance of a collection of projects or
programs
Program Managers Managers responsible for managing related
projects in a coordinated way to obtain
benefits and control not available from
managing them individually
Project Management Office It has direct or indirect responsibility for
the outcome of the project
Project Managers Manages the Project
Project team members Group performing the project’s work
Functional (Department/Unit) Managers Key individuals playing a management role
within a functional area of the business
Operations Management Individuals who have a management role
in a core business area
48
Key Stakeholders
Influencers Due to an individual's position can
influence positively or negatively
Sellers/Business Partners External companies that enter into a
contract
Customer Purchases the product or service
User Uses the product or services
Performing Organization Whose employees are most directly
involved in doing the project’s work
49
Relationship between Stakeholders and the Project
Page 24
50
What we do with the Stakeholders ?
 Identify ALL of them
 Determine ALL of their requirements
 Determine their expectations
 Communicate with them
 Manage their influence
51
Stakeholders Grid
52
Stakeholders influence over time
53
Organizational Influence
 Projects are typically part of an organization that is larger than

the project.
 The maturity of the organization with respect to its project

management system, culture, style, organizational structure
and project management office can also influence the project.
 Organizational Systems
 Organizational Cultures and Styles
 Organizational Structure
54
Organizational System
 Project-based organizations are those whose operations

consist primarily of projects. These organizational falls into
two categories:
 Organizations that derive their revenue primarily from performing
projects for others under contract - architectural firms, engineering
firms, consultants, construction contractors, and government
contractors.
 Organizations that have adopted management by projects.
55
Organizational Cultures and Styles
 These cultures are reflected in numerous factors:

 Shared values, norms, beliefs, and expectations
 Policies and procedures
 View of authority relationships
 Work ethics and work hours
56
Organizational Structure
 The structure of the performing organization often constraints

the availability of resources in a spectrum from Functional to
Projectized, with a variety of matrix structure in between.
57
Functional
58
Functional Organization - Key Points
 The organization is grouped by areas of specialization within

different functional areas.
 Projects generally occur within a single department.
 Information required from other department will be routed

through departmental heads.
 Team members complete project work in addition to normal

department work.
59
Projectized Organization
60
Projectized Organization – Key Points
 The entire company is organized by projects.
 The project manager has control of projects.
 Personnel are assigned and report to a project manager.
 Team members complete only project work and when its over
they don't have HOME.
 Communication generally occurs only within the project.
61
Weak Matrix Organization
62
Weak Matrix - Key Points
 Two Bosses
 Team members reports to Project Manager and Functional Manager
 Team members do project work in addition to normal departmental
work
 Power rests with functional manager
 Project Manager plays a role of:
 Project Expediter: Cannot take decision. Staff assistant and
Communication coordinator.
 Project Coordinator: Similar to Project Expeditor except has some power
to take decision.
63
Balanced Matrix Organization
64
Balanced Matrix Organization - Key Points
 Two Bosses
 Team members reports to Project Manager and Functional

Manager
 Team members do project work in addition to normal

departmental work
 Power is shared between the functional and project manager
65
Strong Matrix
66
Strong Matrix – Key Points
 Power rests with the Project Manager
67
Composite Organization
68
Organization Structure influence on Project
69
Advantages & Disadvantages
Functional Matrix
Advantages Disadvantages Advantages Disadvantages
 Clear career paths  More than one boss  Improved project  More than one boss
in specialization areas for project team manager control over for project team
members resources members
 Team members
report to one  Resource allocation  Project objectives  Resource allocation
supervisor is challenging are supported in the is challenging
organization
 Easier specialist  Potential for conflict  Potential for conflict
management between functional  More support from between functional
and project managers functional organization and project managers
70
Advantages & Disadvantages (Cont..)
Projectized
Advantages Disadvantages
 Efficient project organization  Lack of professionalism in

specialization areas
 Project loyalty
 No “home” when projects are
 Simplified communications
completed
 Duplication of facilities and job

functions
71
Project Management System
 The project management system is the set of tools,

techniques, methodologies, resources, and procedures used
to manage a project.
 If a PMO exists in the performing organization, one of the

functions of the PMO would typically be to manage the project
management system, in order to ensure consistency in
application and continuity on the various projects being
performed.
72
Project Management Processes for a Project
Unit 1
73
Session Objective
3.1 Project Management Processes
3.2 Project Management Process Groups
3.3 Process Interactions
3.4 Project Management Process Mapping
74
Processes for a Project
 Recall the definition of Project Management !
 Project Management is accomplished through processes.

 It uses Project Management Knowledge, Skills, Tools & Technique
 It receives Inputs and generates Outputs
 Select appropriate processes within the PM process group that are

required to meet the project objectives
 Use a defined approach to adapt the product specifications and plans to

meet project and product requirements.
 Comply with Stakeholders needs, wants and expectations.
 Balance the competing demand.
75
What is a process ?
 A Process is a set of interrelated actions and activities that

are performed to achieve a pre-specified set of products,
results, or services.
76
Tailoring
 Project Managers and their teams are advised to carefully

consider addressing each process and its constituent inputs
and outputs.
The project manager and project team are responsible for determining which
processes within each process group are appropriate for the project you're working on.
This is called Tailoring.
77
Project Management Processes
 Based on Plan-do-check-act cycle (as defined by Shewhart

and modified by Deming)
The application of the project management processes

to a project is iterative and many processes are
repeated and revised during the Project.
Initiating = Start the cycle

Planning = Plan
Executing = Do
Monitoring & Controlling = Check and Act
Closing = Ends the Cycle
78
3.2 Project Management Process Groups
 The project life cycle describes what you need to do the work,
the project management process describes what you need to
do to manage the project. It includes:
 Initiating
 Planning
 Executing
 Monitoring & Controlling
 Closing
79
Project Management Process Group Triangle
The Process Groups are not project phases.
Process may be repeated for each phase of project life cycle. 80

3.3 Process Groups Interaction in a Project
The processes frequently overlap during the life of the project.

81

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Welcome to PMP Exam Preparation

(Based on Guide to PMBoK 4th Edition)

 Key Contact Details

 Suggestions & Complaints: info@chicagomti.com

 On Time all the Time

 Tolerance Limit - 10 Minutes / 80% of the class strength

 Everyone has to participate

Building Professional in Project Management

Project Management Institute

 Established in 1969 and headquartered outside Philadelphia, Pennsylvania USA ,the

 Questions with two or more right answers

 Questions with extraneous information

 Out of the blue questions

 Questions where understanding is important

 Questions with new approach to known topic.

Topics Percentage of Questions

 A Project is a temporary endeavor undertaken to create a

 Creates unique product, service or result.

 Distinguishing characteristics of each unique project will be

 "A project is a finite endeavor - having specific start and

 The application of knowledge, skills, tools and technique to

 Project Management is accomplished through the application and

 Monitoring and Controlling

 The Project Manager is the person responsible for

 Managing a project includes:

 Establishing clear and achievable objectives.

 Balancing the competing demand of quality, scope, time and cost.

 Adapting the specifications, plans, and approach to the different

 Management by Objectives (MBO) is a process of agreeing

 The essence of MBO is participative goal setting, choosing

Project management is the discipline of planning, organizing,

Generally accepted as Good Practice

•Functional departments & supporting disciplines

Planning, Organizing, Staffing,

 Project Management Office

 A Program is a group of related projects.

 ADVANTAGES Programs may include elements

 A Portfolio is a collection of projects or programs and

The projects or programs in the portfolio may not

Portfolio - A suite of Programs and

Program - A structured grouping

Project – A structured set of activities

 Projects are frequently divided into more manageable

 Sub projects can be referred to as projects and managed as such.

 An organizational entity that centralizes and coordinates the

 Responsibility of a PMO can range from providing project

 Project Management Process/Methodology: Develop and implement a

 Coaching, mentoring, training and oversight

 Developing and managing project policies, procedures, templates and other

 Monitoring compliance with PM standards, policies, procedures and templates

 Home for project managers: In some cases, maintain a

 Project management software tools: Select and maintain project

 Portfolio management: Establish a staff of program managers who

 Manage the interdependencies between projects

 Help provide resources

 Provide enterprise project management software

 Be more heavily involved during project initiating than later in the

 The project manager controls the assigned project resources

 The role of the PMO must be clearly defined.

 Preferably all those who are in the PMO must be qualified on

 The commitment of executive (top) management is required.

 The PMO will not improve your project performance without

2.1 The Project Life Cycle - Overview