PMP Audio Crash Course

Project Management Professional Exam Preparation Audio Crash Course™ www.AudioLearn.com

TABLE OF CONTENTS INTRODUCTION ....................................................................................................................... 5 PROJECT MANAGEMENT PROFESSIONAL CERTIFICATION PROCESS ......................................... 6 KNOWLEDGE, SKILLS, AND ABILITIES ..................................................................................... 10 Vocabulary .............................................................................................................................. 10 Acronyms .......................................................................................................................... 11 Definitions ......................................................................................................................... 15 Math ........................................................................................................................................ 17 Earned Value Management Formulas .............................................................................. 17 Additional Formulas .......................................................................................................... 20 Tools and Techniques ............................................................................................................. 22 Cross-Cutting Knowledge and Skills ........................................................................................ 22 Knowledge Areas .................................................................................................................... 27 Project Integration Management ..................................................................................... 27 Project Scope Management.............................................................................................. 29 Project Schedule Management......................................................................................... 29 Project Cost Management ................................................................................................ 30 Project Quality Management............................................................................................ 31 Project Resource Management ........................................................................................ 36 Project Communication Management ............................................................................. 37 Project Risk Management ................................................................................................. 38 Project Procurement Management .................................................................................. 39

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Project Stakeholder Management .................................................................................... 41 Project Management Background .......................................................................................... 42 Project Components ......................................................................................................... 46 Project Environment ......................................................................................................... 48 Project Manager’s Role ..................................................................................................... 49 PROJECT PROCESS GROUPS ................................................................................................... 52 Initiating .................................................................................................................................. 52 Develop Project Charter ................................................................................................... 54 Identify Stakeholders ........................................................................................................ 57 Project Initiating Practice Questions ................................................................................ 60 Planning................................................................................................................................... 65 Project Management Plan ................................................................................................ 67 Project Scope .................................................................................................................... 69 Plan Scope Management .................................................................................................. 69 Define the Scope ............................................................................................................... 70 Project Requirements ....................................................................................................... 72 Work Breakdown Structure .............................................................................................. 76 Project Schedule ............................................................................................................... 77 Cost Management............................................................................................................. 90 Quality Management ........................................................................................................ 96 Resource Management ..................................................................................................... 99 Communications Management ...................................................................................... 105 Risk Management ........................................................................................................... 108 Procurement Management ............................................................................................ 118 Stakeholder Engagement ................................................................................................ 122 Project Planning Practice Questions ............................................................................... 125 Project Executing Process Group .......................................................................................... 130 2

Direct and Manage Project Work ................................................................................... 132 Manage Project Knowledge ............................................................................................ 134 Manage Quality ............................................................................................................... 136 Manage Resources .......................................................................................................... 139 Manage Communications ............................................................................................... 147 Implement Risk Responses ............................................................................................. 150 Conduct Procurements ................................................................................................... 151 Manage Stakeholder Engagement.................................................................................. 154 Project Executing Practice Questions ............................................................................. 157 Project Monitoring and Controlling Process Group ............................................................. 161 Monitor and Control Project Work ................................................................................. 162 Integrated Change Control ............................................................................................. 164 Control Scope .................................................................................................................. 167 Control Scope .................................................................................................................. 169 Control Schedule ............................................................................................................. 170 Control Costs ................................................................................................................... 173 Control Quality ................................................................................................................ 177 Control Resources ........................................................................................................... 179 Monitor Communications ............................................................................................... 182 Monitor Risks .................................................................................................................. 184 Control Procurements..................................................................................................... 186 Monitor Stakeholder Engagement ................................................................................. 189 Project Monitoring and Controlling Practice Questions ................................................. 192 Project Closing Process Group .............................................................................................. 197 Close Phase or Project .................................................................................................... 198 Project Closing Practice Questions ................................................................................. 201 CONCLUSION ....................................................................................................................... 206

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PRACTICE TEST..................................................................................................................... 207 Project Initiating Practice Questions .............................................................................. 251 Project Planning Practice Questions ............................................................................... 254 Project Executing Practice Questions ............................................................................. 257 Project Monitoring and Controlling Practice Questions ................................................. 260 Project Closing Practice Questions ................................................................................. 263

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INTRODUCTION Getting your Project Management Professional, or PMP, certification can be a dauting prospect.

This guide will help you understand what all is involved in the certification process, give you an overview of the skill and knowledge requirements for the test, and explain the project processes to help you study. This study guide aligns with the Project Management Institute’s 6th edition of the Guide to the Project Management Body of Knowledge, the book that functions as the encyclopedia of project management information for the certification test.

The first few chapters will provide some information on the test and on knowledge and skills required for project management. The next chapters discuss information you need to know in the project management knowledge areas. Then the process group chapters will focus on how processes are organized within the framework of the project phases. These process group chapters each have a practice quiz with questions similar to those on the certification test.

These quizzes can help you know if you have mastered the content within that group. At the end of this guide, you will find a practice test. You can use the results of this test to determine whether you are ready to take the PMP certification test.

While you must already have some experience as a project manager to be qualified to take the PMP certification test, obtaining the certification can improve your management skills and open additional opportunities to you. Completing this study guide is a great first step!

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PROJECT MANAGEMENT PROFESSIONAL CERTIFICATION PROCESS The Project Management Institute, commonly called PMI, grants the Project Management Professional certificate. PMI is also an active advocate for project management, managers, and standardization of the field. They provide membership opportunities to help connect managers to helpful resources. As of this writing, their web address is www.pmi.org. You should check out the website before taking the test to decide whether to become a member. While it won’t have any impact on your ability to become certified, there are benefits to becoming a member before you are certified, such as a reduced fee for the test and access to test study materials and the Project Management Book of Knowledge, or PMBOK. The certification is recognized worldwide within many different types of industries. A lot of different types of companies prefer new project manager hires to be PMP certified. This helps companies ensure their managers understand the many different facets of project management, giving a measure of assurance in the applicants’ management skills, and helps ensure a consistent approach from all the company’s project managers.

You must have some experience managing projects and at least a secondary, or high school, education before you can become certified. If you completed secondary school, you must have 7500 hours of managing experience. If you have a college degree, you only need 4500 hours of managing experience. Regardless of your education level, you will also need 35 hours of professional development training in project management. Please see Table 1 in your followalong pdf guide for a summary of these requirements.

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Table 1: A summary of prerequisites for taking the Project Management Professional exam.

The PMI website has the most current information on the application timing and process. The PMP Handbook, available for download from the PMI website, has many details about the exam, such as the audit and complaint processes. While you will not send all your documentation on management and educational history when you turn in the application, you need to keep it in a convenient location so that you can readily turn it in if you are chosen for an audit. If you encounter any problems with the certification process, you should explore the complaints process that PMI has established.

Once you are a certified PMP, you will need to obtain 60 PDUs, or Professional Development Units, every 3 years to be eligible for recertification. One PDU is equivalent to one learning hour. You can find continuing education opportunities from the PMI website or from your local PMI chapter, at colleges and universities, and more. Some self-directed opportunities may also be available. Refer to the PMI website for the most up-to-date list of available opportunities.

You also need to refer to the PMI website for the most up-to-date information on the PMP certification testing details. The cost, location, and timing can change. As of this writing, the cost is $405.00 for PMI members and $555.00 for non-members. Note that a PMI membership is about $140 for a year, so it may be most cost-effective to become a member before applying for the exam, especially as the membership includes a copy of the PMBOK. PMI certification tests are taken at Prometric Testing Centers. You can find more information about testing locations on their website, www.prometric.com. Once you have applied to PMI and been deemed eligible, you will receive additional exam scheduling instructions. You will then be able to schedule the test with the testing center. Testing centers are available worldwide, and the test is available in multiple languages.

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Besides the basic qualifications required to be eligible to take the PMP exam, you do need to spend time studying the material to be sure you are ready. While this guide summarizes and highlights the most important aspects of the project information management information you need to know, you also need to review the PMBOK to be truly prepared. If you do not pass the exam the first time, you can retake it twice in the year you are eligible. The PMI website and certification handbook will have current information about the fees for retaking the exam.

The PMP test is made of 200 multiple choice questions. You will have 4 hours to take the exam.

The questions will be drawn from each of the process groups in a specific proportion: 13% will come from the Initiating Process Group, 24% will come from the Planning Process Group, 31% will come from the Executing Process Group, 25% will come from the Monitoring and Controlling Process Group, and 7% will come from the Closing Process Group, as shown in Table 2 in your follow-along pdf guide. About 10% of the questions will involve math or formulas.

Table 2: The distribution of question categories on the Project Management Professional exam

Of the 200 questions, 25 are not part of the score but are used to develop future versions of the test. You won’t know what questions are scored or not scored, so treat them all with equal attention. There is not a set score to pass. Each version of the test will have a different combination of questions with varying levels of difficulty. Since the questions are weighted based on difficulty, the passing score can be different for each version of the test, though will range somewhere between about 50% and 70% correct.

The knowledge, skills, and abilities required for project management are covered next. Since people come to the PMP exam with a wide variety of backgrounds, you can expect some areas 8

to be more comfortable for you than others. As you go through this guide, this can give you a better understanding of your strengths and weaknesses. This will allow you to strategically prepare for the test by focusing on areas where you need the most help. This will also help you recognize your management strengths so that you can build teams with talents complimentary to your own.

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KNOWLEDGE, SKILLS, AND ABILITIES Project management does have vocabulary and acronyms specific to the discipline, and some common ones with which you should be familiar are listed in this section. Managing projects will also require some basic math skills and concepts. The math most likely to be encountered during the test is listed in this section, as well. Your educational and professional experiences have given you a wealth of background knowledge that you will need to use when managing projects. This background knowledge includes skills that you may have developed but not formally learned, like conflict resolution and decision making. It also includes a basic knowledge of project management concepts and tools, like scheduling and procurement. This study guide will highlight the knowledge that you are expected to have but cannot cover every skill indepth. The project management experience and professional development prerequisites for the PMP exam ensure you have had the opportunity to become acquainted with these concepts. But as you work through this section, if you encounter concepts that are not familiar to you, you should consider spending some time to learn them better through professional development courses, especially if you are still working through your required hours, or selfguided study.

VOCABULARY Many industries have specific acronyms and jargon, and project management is no exception.

Part of successfully completing the PMP exam is understanding the common project management acronyms and recognizing the definitions of words as they relate to project management.

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ACRONYMS This is not an exhaustive list of acronyms you will encounter while managing projects. But it does cover the terms in this guide, including the acronyms encountered in the math formulas, and many that you might encounter on the PMP exam.

AC

- Actual Cost

ADR

- Alternative Dispute Resolution

AT

- Actual Time

BAC

- Budget at Completion

BOOT

- Build, Own, Operate, Transfer

CCB

- change control board

COQ

- Cost of Quality

CPAF

- Cost Plus Award Fee

CPFF

- Cost Plus FIxed Fee

CPI

- Cost Performance Index

CPIF

- Cost Plus Incentive Fee

CPM

- critical path method

CV

- Cost Variance

DB

- design build

DfX

- Design for X

EAC

- Estimate at Completion

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EAD

- Etimated Activity Duration

EEF

- Enterprise Environmental Factors

EF

- Early Finish

EMV

- Estimated Monetary Value

ES

- Early Start OR Earned Schedule

ETC

- Estimate to Completion

EV

- Earned Value

EVM

- Earned Value Management

FF

- Finish-to-finish

FFP

- Firm Fixed Price

FPEPA

- Fixed Price with Economic Price Adjustments

FPIF

- Fixed Price Incentive Fee

FS

- Finish-to-start

FV

- Future Value

IFB

- invitation for bid

IRR

- Internal Rate of Return

LOE

- level of effort

LF

- Late Finish

LS

- Late Start

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M

- Most Likely

MBO

- Management by Objectives

MBWA

- Management by Walking Around

MSA

- Master Services Agreement

NPV

- Net Present Value

O

- Optimistic

OBS

- organizational breakdown structure

OPA

- Organizational Process Assets

P

- Pessimistic

PDCA

- Plan-Do-Check-Act

PDM

- precedence diagramming method

PDU

- Professional Development Unit

PERT

- Program Evaluation and Review Technique

PESTLE

- Political, Economic, Social, Technological, Legal, and Environmental

PMBOK

- Project Management Body of Knowledge

PMI

- Project Management Institute

PMIS

- Project Management Information System

PMO

- Project Management Office

PMP

- Project Management Professional

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PV

- Planned Value OR Present Value

QFD

- quality function deployment

RACI

- responsible, accountable, consult, and inform

RAM

- responsibility assignment matrix

RCA

- Root Cause Analysis

RBS

- risk breakdown structure

RFI

- request for information

RFP

- request for proposal

RFQ

- request for quotation

ROI

- Return on Investment

SD

- Standard Deviation

SF

- Start-to-finish

SMART

- Specific, Measurable, Attainable, Relevant, and Timely

SOW

- statement of work

SPI

- Schedule Performance Index

SS

- Start-to-start

SV

- Schedule Variance

SWOT

- strengths, weaknesses, opportunities, and threats

TCPI

- To-complete Performance Index

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TECOP

- Technical, Environmental, Commercial, Operational, and Political

TOR

- Terms of Reference

TQM

- Total Quality Management

VAC

- Variance at Completion

VUCA

- Volatility, Uncertainty, Complexity, and Ambiguity

WBS

- work breakdown structure

DEFINITIONS The PMBOK contains a glossary with the definitive definitions for terms as they relate to project management. When you review the PMBOK, be sure to review this list and learn any terms that are not familiar. You do not need to memorize the definitions, per se, but you do need to be able to recognize the terms and concepts they relay.

Some general project management terms that you should know while reading this study guide are listed here: Baseline – A project baseline provides a starting point or original estimate to be used comparisons to determine whether a project is progressing as expected.

Business Case – Documentation of the expected benefits used to justify a project.

Deliverable - The product or service generated as an outcome of a project.

Management Plans – A management plan provides details on how the project will achieve its goals.

Milestone – A milestone marks a significant event or end of a stage during a project.

Phase gate – A project can be divided into stages or phases, with each phase ending in a phase gate that requires a decision on whether to proceed with the project or not.

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Project life cycle – The project life cycle refers to the entire span of the project, from initiating the project to closing it out.

Project management knowledge areas – The knowledge areas are the core technical subjects used to manage a project, including project integration, scope, schedule, cost, quality, resource, communication, risk, procurement, and stakeholder management.

Knowledge areas cover what you need to know.

Project management processes – A process is a set of actions that create a specified result. The PMBOK lists 47 processes that could be used for managing a project.

Project phase - The five phases than comprise a project life cycle are initiation, plan, execute, monitor and control, and close.

Project process groups – Process groups are processes that work in concert together during a project or use similar inputs and outputs and so can be worked in tandem.

Process groups encompass what you need to do.

Project Scope - The scope describes the work that must be accomplished to complete the project. It can include details like the goals, deliverables, milestones, and costs. It is generally a higher-level description than the statement of work.

Project Statement of Work – The project SOW describes the work to be done, including details like the scope, the products or services that will be created, the business need that will be addressed, and milestones. It is generally more detailed than the scope.

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