Project Management Professional PMP Exam Prep based on PMBOK guide 5th Free Sample Training Course

7/25/2019 Project Management Professional PMP Exam Prep based on PMBOK guide 5th Free Sample Training Course

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Chapter 1

Introduction to Project Management

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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

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The Triple Constraint of Project Management

Scope

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It is the project managers duty to balance and achieve

these three often

-

competing goals.


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Constraint of Project Management

Cost

Customer

Satisfaction

Project

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Project, Program, Portfolio

Project E


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Project, Program, Portfolio

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Project-Based Organizations

Project-based organizations (PBOs) refer to variousorganizational forms that create temporary systems forcarrying out their work. (as in telecommunications, oil andgas, construction, consultancy, and professional Services)

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Chapter 2

Project Life Cycle and Organization

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Project Life Cycle (Technical Work)

Project Life Cycle is a collection of generally sequential and

sometimes overlapping project phases.(not black box)

Project Phases are marked by the completion of a deliverable

(Tangible, verifiable work product).

Review of deliverables and approval/denial-phase end

review- are phase exits, stage gates, or kill points???

All projects are divided into phases, and all projects, large or

small, have a similar life cycle structure.

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Project

Phase 1

Project

Phase 2

Project

Phase 3

Project

Phase 4

Initiation Conclusion

Handoff Handoff Handoff

GatesGatesGates

Deliverables Deliverables Deliverables

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Project Life Cycle

Project phases differ from project to another

Construction: Feasibility-> Planning -> Design -> Production -> Turnover -> StartupIT Project: Requirement -> Design -> Program -> Test -> Implement


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Fast Tracking

There are times when phases are

overlapped to shorten or compress the

project schedule. This is called Fast

Tracking.

Fast tracking means that a later phase is

started prior to completing and approving the

phase, or phases, that come before it.

This technique is used to shorten the overall

duration of the project.

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Project Stakeholders

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An important part of a project managers responsibility is to manage

stakeholder expectations, which can be difficult because

stakeholders often have very different or conflicting objectives.

Part of the project managers responsibility is to balance these

interests and ensure that the project team interacts with

stakeholders in a professional and cooperative manner.


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Co

standstaffingle

vel

Time

Initial Phase Intermediate Phase(s) Final Phase

cost of changes

influence of stakeholders

Stakeholders Influence Over Time

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Project Success

The success of the project should be measured in terms ofcompleting the project within the constraints of scope, time,cost, quality, resources, and risk as approved between theproject managers and senior management.

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Organizational Structure- FunctionalOrganization

The organization is grouped by areas of specialization within differentfunctional 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

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Organizational Structure- BalancedMatrix Organization

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 thefunctional and project manager

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Iterative and Incremental Life Cycles

Ones in which project phases (also called iterations)intentionally repeat one or more project activities as the

project teams understanding of the product increases,while increments successively add to the functionality ofthe product.

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Chapter 4

Project Integration Management

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Project Integration Management

Project Integration Management includes the processesand activities to identify, define, combine, unify, andcoordinate the various processes and project managementactivities within the Project Management Process Groups.

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Develop Project Charter

Project Charter is the process of developing adocument that formally authorizes the existence of a

project and provides the project manager with the

authority to apply organizational resources to project

activities.

The Project Managershould always be assigned prior

to the start of planning, and preferably while the project

charter is being developed.

The Project Charter is Issued by a sponsor, not the

project manager, but preferred to be participated in

developing it.

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Project Selection Methods

Project selection is generally the responsibility of Portfolio Managers,

Steering Committees. In smaller companies, Presidents and Vice- Presidents.

These methods generally fall into one of two broad categories:

Benefit measurement methods (comparative approach) that are

comparative approaches:murder board, peer review, scoring models,

benefit contribution, or Economic models.

Constrained optimization methods (Mathematical approach) that useprograms; linear, nonlinear, dynamic, integer, or multi-objective

programming algorithms

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1. Present valuePresent value :PV = FV/(1 + r)n

FV = amount of money t years from now

r = interest rate (also called discount rate)

n = time period

Assume a 10% interest (or discount) rate

PV (Year 1) = FV / (1 + r)t =$35,000/(1 + 0.1)1= $31,819

Economic Model

Year FV PV

0 $50,000 $50,000

1 $35,000 $31,819

2 $15,000 $12,397

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2. Net present value: This Means the total benefits (income or revenue) less

the cost. To calculate NPV you need to calculate the present value of each

of the income and revenue figures then add up the present values.

Time

Period

Income or

revenue

Present Value

at 10% interest

rate

Costs Present Value

at Costs 10%

interest rate

0 0 0 200 200

1 50 45 100 91

2 100 83 0 0

3 300 225 0 0

Total 353 291

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Economic Model


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Requirements Traceability Matrix

A grid that links product requirements from their origin to the deliverables that satisfythem.It provides a mean to track requirements throughout the project life cycle.

Matrix helps to ensure that requirements approved in requirements documentation

are delivered at the end of the project.

Attributes associated with each requirement can be recorded in the requirements

traceability matrix.

Collect Requirements Outputs

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Create WBS

The WBS is a deliverables-orientateddecomposition of the work to be executed by

project team to accomplish the project

objectives and create the required

deliverables.

The planned work is contained within the

lowest level WBS components (work

packages) which can be scheduled, cost

estimated, monitored and controlled.

The top most level of each WBS is the total

project itself

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Question

You're the project manager for an advertising campaign. The stakeholders,

including the client, approved your completed WBS. Later, after some of the

artwork has been printed, the client wants to add a registered trademark

symbol, which will cost a considerable amount of money. The client says that

your company's salesperson, prior to signoff on the WBS, promised this

feature would be included. Who should pay for the change?

A. Your company managing the project

B. Both the client and your company should pay part of the cost

C. The change should not be implemented

D. The client

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Create WBS Outputs

A WBS structure may be created through various approaches. Some of

the popular methods include the top down approach, the use of

organization-specific guidelines, and the use of WBS templates. A bottom-

up approach can be used during the integration of subcomponents

The WBS is a hierarchical decomposition of the total scope of work to be

carried out by the project team to accomplish the project objectives and

create the required deliverables.

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Validate Scope

Validate Scope is the process of formalizing acceptance of the completedproject.

The Validate Scope process differs from the Control Quality process in that

the former is primarily concerned with acceptance of the deliverables, while

quality control is primarily concerned with correctness of the deliverables

and meeting the quality requirements specified for the deliverables.

Control Quality is generally performed before Validate Scope, although the

two processes may be performed in parallel.

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Three Point Estimates (PERT)

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PERT Calculations

If all activities are on critical, then total estimated project duration = sum of

PERT values for each activities.

Standard Deviation shall not be added. Add variance of each activities and

take square root of sum to get standard deviation for total project.

In the example above, range will be 170.167 +/-10.060

Estimate Activity Durations : Tools &Techniques

Activity O M P PERT SD Variance Range

A 14 27 47

B 41 60 89

C 39 44 48

D 29 37 42

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PERT Calculations

If all activities are on critical, then total estimated project duration = sum of

PERT values for each activities.

Standard Deviation shall not be added. Add variance of each activities and

take square root of sum to get standard deviation for total project.

In the example above, range will be 170.167 +/-10.060


Activity O M P PERT SD Variance Range

A 14 27 47 28,167 5.5 30,25 28.167+/-5.5

B 41 60 89 61,667 8 64 61.667+/-8

C 39 44 48 43,833 1.5 2.25 43.833+/-1.5

D 29 37 42 36,500 2.167 4.694 336,5+/-2.167

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Group Decision-Making Techniques

Team-based approaches, such as brainstorming, the Delphi or nominal

group techniques, are useful for engaging team members to improve

estimate accuracy and commitment to the emerging estimates. By involving

a structured group of people who are close to the technical execution of

work in the estimation process, additional information is gained and more

accurate estimates obtained.


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Reserve Analysis

Contingency Reserve time also called buffer or time reserves

Reserve is added to account for schedule risk.

You might choose to add a percentage of time or a set number of work

periods to the activity or the overall schedule.

If not done properly can lead to padding

Contingency reserve shall be clearly identified and documented for future

analysis


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Develop Schedule-Tools & Techniques

Schedule Network Analysis

Schedule network analysis is a technique that generates the project

schedule.

It employs a schedule model and various analytical techniques, such as

critical path method, critical chain method, what-if analysis, and resource

levelling to calculate the early and late start and finish dates for the

uncompleted portions of project activities.

Critical Path Method A method used to estimate the minimum project duration and determine the

amount of scheduling flexibility on the logical network paths within the

schedule model

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Example of Critical Path Method

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Network Diagram Nodes

ES = Earliest date an activity can be started EF = Earliest date an activity can be completed LS = Latest date an activity can start LF = Latest date an activity can be completed

ES

LS LF

EF

Duration

Forward pass

Backward pass

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Develop Schedule: Tools and TechniquesResource Optimization Techniques

1. Resourceleveling.Atechnique in whichstart and finishdates are adjusted

based on resourceconstraints with thegoal of balancingdemand forresources with theavailable supply.

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Develop Schedule: Tools and TechniquesModeling Techniques

1. What-If Scenario Analysis. is the process of evaluating scenarios

in order to predict their effect, positively or negatively, on project

objectives.

2. Simulation. involves calculating multiple project durations withdifferent sets of activity assumptions, usually using probability

distributions constructed from the three-point estimates

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Develop Schedule: Tools and TechniquesSchedule Compression

Fast Tracking Performing critical path tasks in parallel and

riskier than crashing Eg,.Design is half finished and start coding

Crashing

Analyze cost and schedule trade-offs Determine most compression for least cost Crash the tasks that cost the least first,

focusing on minimizing project cost

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Milestone Chart

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Project Calendars

project calendar identifies working days and shifts that are available

for scheduled activities. It distinguishes time periods in days or parts

of days that are available to complete scheduled activities from time

periods that are not available. A schedule model may require more

than one project calendar to allow for different work periods for

some activities to calculate the project schedule. The project

calendars may be updated.

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Sample PMP

CertificationQuestions


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Exercise

Q1. The estimate for a task is O = 3 days, P = 7 days, M = 4 days. What is the standarddeviation of the task?

A. 5/6 of a day -B. 2/3 of a day -C. 1 days -D. 5 2/3 days

Solution: SD = (P-O)/6 = (7-3)/6 = 2/3

Q2. You are the project manager for a new project and have figured out the following

dependencies: Task 1 can start immediately and has an estimated duration of 3 weeks

Task 2 can start after Task1 is completed and has an estimated duration of 3 weeks

Task 3 can start after Task 1 is completed and has an estimated duration of 6 weeks

Task 4 can start after Task 2 is completed and has an estimated duration of 8 weeks

Task 5 can start after task 4 is completed and after Task 3 is completed . This tasktakes 4 weeks.

What is the duration of the critical path?

A. 18.5 weeks -B. 19 weeks -C. 20 weeks -D. 18 weeks

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You are the project manager fora project with the followingnetwork diagram. Studying thediagram, which path is thecritical path?

A. ABCDB. EBCD

C. EFH

D. EGH

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Exercise


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Chapter 7

Project Cost Management

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Forecasting

Using the earned value analysis, team can now forecast the project

performance.

Estimate at completion (EAC) may differ from Budget at Completion (BAC)

Estimate to complete (ETC) is the estimate of remaining work. Now

Estimate at completion = AC + ETC.

Control Costs- Tools and Techniques

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Plan Human Resource Management:Outputs

Human Resource Management Plan - which includes:

Roles and Responsibilities

Role. The function assumed by or assigned to a person in the project.

Authority. The right to apply project resources, make decisions, sign

approvals, accept deliverables, and influence others to carry out the work of

the project.

Responsibility. The assigned duties and work that a project team member is

expected to perform in order to complete the projects activities.

Competency. The skill and capacity required to complete assigned activities

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Acquire Project Team

The process of confirming human resource availability and obtaining the team

necessary to complete project activities.

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http://wendyjacobs.com.au/http://wendyjacobs.com.au/


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Multi-Criteria Decision Analysis

Knowledge. Consider if the team member has relevant knowledge of the customer,

similar implemented projects, and nuances of the project environment.

Skills. Determine whether the member has the relevant skills to use a project tool,

implementation, or training.

Attitude. Determine whether the member has the ability to work with others as a

cohesive team.

International factors. Consider team member location, time zone and

communication capabilities.

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Acquire Project Team: Tools &Techniques


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Develop Project Team

Develop Project Team is the process of improving competencies,team member interaction, and overall team environment to enhanceproject performance.

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Motivation Theory: McGregors X & Y Theory

Theory X

People tends to be negative, passive e.g. Avoid responsibility,

need to be watched

Extrinsic Motivation

Theory Y

People tends to be positive e.g. Want to achieve, willing to work

without supervision, can direct their own effort

Intrinsic Motivation

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Herzbergs Theory

Job Satisfaction due to lack of hygiene factors

Job satisfaction due to motivation factors

Hygiene Factors

Working conditionSalaryPersonal life

Relationship at workSecuritystatus

Motivations Factors

ResponsibilitySelf actualizationProfessional growthrecognitionPersonal lifeRelationship at workSecurity

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Team Building Activities: Such

activities can vary from a five minute

agenda item in a status review

meeting to an off-site, professionally

facilitated experienced designed to

improve interpersonal relationships.

Informal communication and activities

supported building trust and

establishing good working

relationships.

Develop Project Team: Tools &Techniques

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Develop Project Team: Tools andTechniques

Team Building Activities

One theory states that there are 5 stages of development that the teams may

go through. Usually these stages occur in an order .

1. Forming : this phase is where the team meets and learns about the project

and what their formal roles and responsibilities are . Team members tend to

be independent and not as open in this phase

2. Storming : During this phase , the team begins to address the project work,

technical decisions , and the project management approach . If team

members are not collaborative and open to differing ideas and perspectives

the environment can become destructive.

.

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Pl C i ti M t T l d


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Plan Communications Management: Tools andTechniques

Communication Requirements AnalysisThe total number of potentialcommunication channels is n(n 1)/2,where n represents the number of

stakeholders

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2)1(

NN


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Communication Methods:

Interactive communication - Between two or more parties in

multidirectional (Phone calls, meetings, interviews). Most effective way.

Push communication - Sent a specific information to specific recipients.

Examples are letters, memos, e-mails, faxes etc. This ensures that

message is sent but will but will not certify that it is actually received or

understood. (Push the message to recipient)

Pull communication Used for large volume of information and large

audiences. Examples are internet sites, company data bases, e-learning

etc. Recipients has to access the communication content (Pull out

information) at their own discretion.

Plan Communication : Tools & Techniques

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Chapter 11

Project Risk Management

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Perform Quantitative Risk Analysis Tools &


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Modelling and Simulation: Project simulations allow the project team to

play what-if games without affecting any areas of production. The Monte

Carlo technique is the most common simulation.

Monte Carlo, typically completed through a computer software program,

completely simulates a project with values for all possible variables topredict the most likely model.

Perform Quantitative Risk Analysis Tools &Techniques

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Control Risks

Control Risks is the process of implementing risk response plans, trackingidentified risks, monitoring residual risks, identifying new risks, and evaluating

risk process effectiveness throughout the project.

Control Risks Tools & Techniques

Reserve Analysis: it compared the amount of the contingency reserves

remaining to the amount of risk remaining at any time in the project

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Chapter 12

Project Procurement Management

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Project Procurement Management

Plan Procurement Management is the process of documenting project

procurement decisions, specifying the approach, and identifying potential

sellers.

PM must be involved in the creation of the contracts

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P j P M T l &


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Project Procurement Management Tools &Techniques

Make-or-Buy AnalysisIt is a general management technique used to determine whether particularwork can best be accomplished by the project team or must be purchasedfrom outside sources.

You are trying to decide whether to lease or buy an item for your project.The daily lease cost is Dhs. 120. To purchase the item investment cost isDhs. 1000 and the daily cost is Dhs. 20. How long will it take for the leasecost to be the same as the purchase cost?

Let D equal the number of days when the purchase and lease costs areequal.

QR 120 D = QR 1000 + QR 20 D

QR 120 D - QR 20 D = QR 1000 QR 100 D = QR 1000

D = QR 1000 / QR 100

D = 10

The least cost will be the same as the purchase cost after ten days.

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Contract Types:

Contract is a mutually binding legal agreement that

obligates the seller to provide the specified products,

services or results, and obligates the buyer to

compensate the seller.

The contract may includes the following: An offer,

Acceptance, Pricing, roles and responsibilities,

penalties, warranty,

1. Purchase Order: Contract to purchase 30 linear

meters of wood at Dhs. 40 per meter

Legal Contractual Relationships

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Chapter 13

Project Stakeholder Management

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Identify Stakeholders

Identify Stakeholders is the process of identifying the people,groups, or organizations that could impact or be impacted by adecision, activity, or outcome of the project, analyzing anddocumenting relevant information regarding their interests,involvement, interdependencies, influence, and potential impact onproject success.

It is critical for project success to identify the stakeholders early inthe project or phase and to analyze their levels of interest, their

individual expectations, as well as their importance and influence.

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Identify Stakeholders: Tools and Techniques

Stakeholder Analysis: is a technique of systematicallygathering and analyzing quantitative and qualitativeinformation to determine whose interests should betaken into account throughout the project.

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Identify Stakeholders : Tools &Techniques

Step 1:Identify all potential project stakeholders andrelevant information such as their roles, departments,

interest, knowledge levels, expectations and influence

levels .

Step 2 :Identify the potential impact or support each

stakeholder could generate and classify them so as to

define an approach strategy.

Step 3 :Access how key stakeholders are likely to react

in various situations and plan how to influence them for

their support and mitigate potential negative impact

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Plan Stakeholder Management: Tools


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Plan Stakeholder Management: Toolsand Techniques

Analytical Techniques:The engagement level of the stakeholders can be classified as follows:

Unaware. Unaware of project and potential impacts.

Resistant.Aware of project and potential impacts and resistant to

change.

Neutral.Aware of project yet neither supportive nor resistant.

Supportive.Aware of project and potential impacts and supportive

to change.

Leading.Aware of project and potential impacts and actively

engaged in ensuring the project is a success.

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Chapter 13Professional Responsibility

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Professional Responsibility

About 18 questions on the exam cover this part.

The PMP must adhere to a high set of principles, rules, and policies.

On the PMP exam, always choose the answer which best supports the PMP

profession and the higher set of principles the PMP is expected to adhere to.

Did you realize that it is unethical to manage a project if you have not been

trained in project management? Did you know that it is unethical to provide a

project schedule that you do not believe to be accurate?

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Responsibility

Fairness

Respect

Honesty

Responsibility- ownership of decisions


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Responsibility ownership of decisionsand actions

Make decisions based on the best interests of the company and the team,

as well as society, rather than your own interest.

Inform the sponsor of your real qualifications if its not matching the project

before accepting the assignment

Do what you say you will do

Acknowledge your own errors

Respect confidentiality requirements

Uphold laws

Report unethical behaviour to the management

Report violations of PMIs code of ethics and professional conduct

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Respect the appropriate treatment ofpeople and resources

Maintain an attitude of mutual cooperation

Respect cultural differences

Don't gossip or saying things that could damage another persons reputation

Engage in good faith negotiations

Respect others

Be direct in dealing with conflict

Do not use your power or position to influence others for your own [personal

benefit

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Q4


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Q4

You are the project manager of the LKH Project. This project must be

completed within six months, but after two months the schedule has begun to

slip. As of now, the project is one week behind schedule. Based on your

findings, you believe you can make some corrective actions and recover the

lost time over the next month to get the project back on schedule for its

completion date. Management, however, requires weekly status reports on

cost and schedule. Which of the following should you do?

A. Report that the project is one week behind schedule, but will finish on

schedule based on cited corrective actions.

B. Report that the project is on schedule and will finish on schedule.

C. Report that the project is off schedule by a few days, but will finish on

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Q5

You are a project manager within an organization that completes technical

projects for other entities. You have plans to leave your company within the

next month to launch your own consulting businesswhich will compete with

your current employer. Your company is currently working on a large proposal

for a government contract that your new company could also benefit from.

What should you do?

A. Resign from your current job and bid against your employer to get the

contract.

B. Decline to participate due to a conflict of interest.

C. Help your employer prepare the proposal.

D. Inform your employer that you will be leaving their company within a month

and it would be inappropriate for you to work on the current proposal.

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Q6


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Q6

Your company does not allow project managers to accept gifts from vendorsof any kind. A friend that you have known for years now works for a vendor

that your company may be doing business with. Your friend from the vendor

asks you to lunch to discuss an upcoming project and you accept. When the

check arrives at the lunch table, your friend insists on paying. You should:

A. Allow the friend to buy because youve been friends for years.

B. Allow the friend to buy because lunch isnt really a gift.

C. Dont allow the friend to buy because your company does not allow any gifts

from vendors.

D. Insist that you purchase your friends lunch and your friend buys yours.

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Q7


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Q7

You are the project manager of the AAA Project. Due to the nature of theproject, much of the work will require overtime between Christmas and New

Years Day. Many of the project team members, however, have requested

vacation during that week. What is the best way to continue?

A. Refuse all vacation requests and require all team members to work.

B. Only allow vacation requests for those team members who are not needed

during that week.

C. Divide tasks equally among the team members so each works the same

amount of time.

D. Allow team members to volunteer for the overtime work.

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Tricks for the PMP Exam

Bring the authorization letter from PMI to the test site

Bring snacks, you can not eat in the test room, but you can out of

the room.

The exam will not be adapted according to you, 200 Qs will beselected in the beginning and it will not be changed

You can mark questions in order to return to it back

Most of the questions are situational

You can re-take the exam for 2 times only.

Project Management Professional PMP Exam Prep based on PMBOK guide 5th Free Sample Training Course

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