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Certified Associate in Project Management (CAPM)® Exam Official Cert Guide

Vijay Kanabar Arthur P. Thomas Thomas Lechler

Certified Associate in Project Management (CAPM)® Exam Official Cert Guide Copyright © 2023 by Pearson Education, Inc. All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the publisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions. Nor is any liability assumed for damages resulting from the use of the information contained herein.

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Contents at a Glance Introduction Part I Project Management Fundamentals Chapter 1 Becoming a Certified Associate in Project Management (CAPM)® Chapter 2 Projects and Project Management Chapter 3 Organizing for Project Performance Chapter 4 Development Approach and Life Cycle Performance Domain Part II Predictive Approach Chapter 5 Planning, Project Work, and Delivery: Predictive Methodologies Chapter 6 Project Work and Delivery Part III Adaptive Approach Chapter 7 Planning, Project Work, and Delivery: Adaptive Approaches Chapter 8 Overview of Adaptive Frameworks Chapter 9 Measurement, Tracking, and Managing Uncertainty Part IV Business Analysis Chapter 10 Business Analysis Frameworks

Chapter 11 Business Analysis Domains Chapter 12 Tailoring and Final Preparation Part V Appendixes Appendix A Answers to the “Do I Know This Already?”

Quizzes Appendix B PMI Project Management Process Groups and Processes Appendix C PMBOK 7 Project Performance Domains and Project Management Principles Appendix D PMI Certified Associate in Project Management (CAPM)® Exam Official Cert Guide Updates Appendix E Business Analysis Models and Their Usages Glossary Index Online Elements: Appendix F Study Planner Glossary

Contents Introduction Part I Project Management Fundamentals Chapter 1 Becoming a Certified Associate in Project Management (CAPM)® Foundation Topics Understanding Project Management Certified Associate in Project Management (CAPM)® Scope of the CAPM Exam How This Book Is Organized Part I: Project Management Fundamentals Part II: Predictive Approach Part III: Adaptive Approach Part IV: Business Analysis Part V: Appendixes Steps to Becoming a Certified Associate in Project Management (CAPM)® Study and Exam-Taking Strategies Suggested Reading and Resources Chapter 2 Projects and Project Management “Do I Know This Already?” Quiz Foundation Topics

What Is a Project?

A Project Project Manager Understanding Project Management Projects vs. Operational Work The Role of Projects in Operations Project-Based Operations Programs and Portfolios Creating Value Through Project Management Project Management Process Groups Project Management Challenges Challenges with Issues, Risks, Assumptions, and Constraints Project Management Trends Business Analysis Adaptive Project Management Principles of Project Management Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 3 Organizing for Project Performance “Do I Know This Already?” Quiz Foundation Topics Project Performance Domains The Stakeholder Performance Domain Identifying Stakeholders

Types of Stakeholders in a Project Stakeholder Analysis Types of Stakeholder Communication Stakeholder Performance Domain Successful Outcomes The Project Manager’s Role Roles of the Project Manager in a Project The Project Manager’s Required Skills Project Organization Structures Project Structure Concepts Functional Project Organization Structures Matrix Project Organization Structures Projectized Project Organization Structures The Power of Project Managers in Different Organization Structures Project Management Office (PMO) and Steering Committees The Project Management Office The Steering Committee The Team Performance Domain Effective Execution of Projects High-Performing Teams Leadership and Interpersonal Skills Affecting All Team Members Project Team Development Models Conducting Meetings Responsibility Assignment Matrix Project Team Culture Expectations for the Team Performance Domain

Applying the PMI Code of Ethics and Professional Conduct Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 4 Development Approach and Life Cycle Performance Domain “Do I Know This Already?” Quiz Foundation Topics Fundamentals of the Project Life Cycle The Concept of a Project Life Cycle Visualizing a Project Life Cycle Stage Gates Project Life Cycle vs. Project Management Process Groups Project Life Cycle vs. Product Life Cycle Development Approach and Life Cycle Performance Domain Concepts Terms Relevant to the Development Approach and Life Cycle Performance Domain Choosing the Predictive Approach Choosing the Adaptive Approach Choosing a Hybrid Approach Life Cycles in Practice Industry Application: Predictive Life Cycle Industry Application: Adaptive Life Cycle

Industry Application: Hybrid Life Cycle Considerations for Selecting a Development Approach Product, Service, or Result Project Organization Project Activity, Deliverables, and Milestones Project Activities Deliverables Measuring Deliverables Milestones Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Part II Predictive Approach Chapter 5 Planning, Project Work, and Delivery: Predictive Methodologies “Do I Know This Already?” Quiz Foundation Topics Choosing the Predictive, Plan-Based Methodology Process Groups of the Predictive, Plan-Based Approach Initiating Processes Planning Processes Executing Processes Monitoring and Controlling Processes

Closing Processes Creating a Tailored Predictive Life Cycle Performance Domains Develop Project Charter Develop Project Team Develop Project Management Plan Collect Requirements and Define Scope Statement Create Work Breakdown Structure (WBS) Define and Sequence Activities Estimate Time and Resources Identify Critical Path Develop Schedule Direct and Manage Project Work Monitor and Control Project Work Issues Management Change Requests and Control Monitoring and Controlling Project Cost and Schedule Close Project or Phase Foundations of Earned Value Analysis Planned Value (PV) Earned Value (EV) Actual Cost (AC) Cost Variance (CV) Schedule Variance (SV) Cost Performance Index (CPI) Forecasting Final Project Costs

More Information About Earned Value Analysis The Planning Performance Domain Schedule Compression Factors and Techniques Scaling Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 6 Project Work and Delivery “Do I Know This Already?” Quiz Foundation Topics Project Work Performance Domain Planning and Managing Procurement Bidding: Soliciting and Entering Bids Control Procurements Engaging Stakeholders Managing Project Communications Managing Risk Threats Opportunities Project Delivery Performance Domain Delivery of Value Quality Management Quality Management Tools Six Sigma Project Controls and Forecasting

Project Integration Components of Project Integration Achieving Project Integration Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Part III Adaptive Approach Chapter 7 Planning, Project Work, and Delivery: Adaptive Approaches “Do I Know This Already?” Quiz Foundation Topics When to Use an Adaptive Approach Team Structure in Adaptive Projects Requirements for the Adaptive Project Environment Adaptive Mindset Servant Leadership The Structure and Culture of Adaptive Teams Value-Driven Delivery Factors That Facilitate Adaptive Approaches: OPA and EEF Apparent Stages of Adaptive Projects Stage 1: Concept Stage 2: Construct and Deliver Stage 3: Close

Work Groups for Adaptive Project Stages Agile Life Cycles Case Study 7-1: Building a Website for a Conference Hybrid Project Approaches Hybrid Approach Scenario 1: Revisiting the APC Conference Hybrid Approach Scenario 2: Virtual Restaurant Business Hybrid Approach Scenario 3: Specification for Tax Software Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 8 Overview of Adaptive Frameworks “Do I Know This Already?” Quiz Foundation Topics Lean Eliminating Waste Value Streaming Using the Lean Approach Case Study 8-1: Getting a Book from the Library Iteration-Based Agile Flow-Based Agile Scrum Roles Processes and Artifacts

Scrum Core Values Timeboxing Challenges with Scrum Kanban Suitability of the Kanban Method Limiting Work in Progress (WIP) Workflow Focus Comparing Kanban and Scrum ScrumBan Extreme Programming Roles Core Practices of XP What Can We Learn from XP? FDD, DSDM, and Crystal Feature-Driven Development Dynamic Systems Development Method Crystal Frameworks for Scale Summary Scrum of Scrums Disciplined Agile® Which Approach for Scale?

Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources

Chapter 9 Measurement, Tracking, and Managing Uncertainty “Do I Know This Already?” Quiz Foundation Topics Problem Detection and Resolution The Measurement Performance Domain Prioritization Techniques What Gets Prioritized Key Performance Indicators (KPIs) for Project Control Progress Tracking Decision Making Communication of Adaptive Project KPIs Who Makes the Estimates?

Throughput, Cycle Time, and Lead Time The Uncertainty Performance Domain Uncertainty Strategies to Address Project Uncertainty Risk Strategies to Reduce the Likelihood of Uncertainty Opportunities Threats Tracking and Managing Risk in Adaptive Projects Team Workspace Design Tracking Progress to Manage Risk in Adaptive Approaches Summary Exam Preparation Tasks

Review All Key Topics Define Key Terms Suggested Reading and Resources Part IV Business Analysis Chapter 10 Business Analysis Frameworks “Do I Know This Already?” Quiz Foundation Topics The Importance of Business Analysis The Role of a Business Analyst Skills Needed to Perform Business Analysis Comparing Business Analysis with Project Management Requirements: The Focus of Business Analysis Requirement Types Case Study 10-1: Requirements for a Toll Collection System Requirements Documentation Requirements Management Plan Stakeholders and the Business Analyst Identify Stakeholders Stakeholder Analysis Business Analysis Planning Transition to a Future State Influence of Project Approaches on Business Analysis Business Analysis in the Predictive Approach Business Analysis in the Adaptive Approach

Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 11 Business Analysis Domains “Do I Know This Already?” Quiz Foundation Topics Domain 1: Needs Assessment Why Perform Needs Assessments?

When Do Needs Assessments Occur?

Who Is Involved in Needs Assessment?

What Are the Key Business Analysis Tasks During Needs Assessment?

What Are the Needs Assessment Processes?

Domain Summary Domain 2: Business Analysis Planning Domain 3: Requirements Elicitation and Analysis Elicit Requirements Analyze Requirements Document the Solution Requirements Domain 4: Traceability and Monitoring Trace Requirements Monitor Requirements Update Requirements and Communicate Requirements Status Manage Changes to Requirements Domain Summary

Domain 5: Solution Evaluation Evaluate Solution Performance Determine Solution Evaluation Approach Evaluate Acceptance Results and Address Defects Obtain Solution Acceptance for Release Evaluate Deployed Solution Domain Summary Summary Exam Preparation Tasks Review All Key Topics Define Key Terms Suggested Reading and Resources Chapter 12 Tailoring and Final Preparation “Do I Know This Already?” Quiz: Tailoring Section Foundation Topics Tailoring The Tailoring Process Aspects of Projects That Can Be Tailored How to Tailor the Project Approach Case Study 12-1: Design and Introduction of Portable CT Scanner Products Summary: Project Tailoring Concepts Final Preparation Scope and Key Concepts Suggested Plan for Final Review and Study Summary Exam Preparation Tasks Review All Key Topics

Define Key Terms: Tailoring Section Suggested Reading and Resources Part V Appendixes Appendix A Answers to the “Do I Know This Already?”

Quizzes Appendix B PMI Project Management Process Groups and Processes Appendix C PMBOK 7 Project Performance Domains and Project Management Principles Appendix D PMI Certified Associate in Project Management (CAPM)® Exam Official Cert Guide Updates Appendix E Business Analysis Models and Their Usages Glossary Index Online Elements: Appendix F Study Planner Glossary

About the Authors Vijay Kanabar, Ph.D., is the director and associate professor of Project Management programs at Boston University, Metropolitan College. He is one of the earliest PMP-credentialed practitioners from the Project Management Institute. He created one of the earliest PMP exam corporate training materials three decades ago and has introduced several thousand students and practitioners to the core exam concepts of both the CAPM® and Project Management Professional (PMP)® exams. Vijay also is an agile practitioner and has earned the PMI-ACP credential. He has authored several books and more than 75 research papers in IT and project management.

He received the prestigious PMI Linn Stuckenbruck Teaching Excellence Award in 2017 for his commitment to teaching and enhancing the project management discipline in higher education.

Arthur P. Thomas, Ed.M., Ph.D., is the executive director for the Office of Professional Acceleration and Microcredentials in the College of Professional Studies at Syracuse University, where he is also the program director for the Master of Professional Studies in Project Management. He has been teaching at SU since 2001 and has been a professor of practice since 2009, focusing his academic work on developing and administering project management courses and degree programs. Art is also the director of the iConsult Collaborative at Syracuse University, an experiential learning program he began leading in 2012 in which university students are engaged with client organizations in a diverse portfolio of information-related projects. Art was formerly the associate dean for Career Services and Experiential Learning, the associate dean for Academic Affairs, and the director of two information technology master’s degree programs, all at Syracuse University’s School of

Information Studies (the iSchool). Positions on the corporate side of his career have ranged from programmer to chief information officer, and from trainer to chief learning officer. With his more than 30 years of added consulting experience, his contracts have taken him from the United States to Europe and the Middle East, where he led two projects for the Ministry of Education in the Sultanate of Oman.

Thomas G. Lechler, Ph.D., is an associate professor at the School of Business, Stevens Institute of Technology in Hoboken, New Jersey. His doctorate is from the University of Karlsruhe, Germany.

He teaches project management and entrepreneurship. His research focuses on value creation in projects under situations of risk and uncertainty. Thomas has published his research in leading international research journals, including Research Policy, R&D Management, IEEE Transactions on Engineering Management, Small Business Economics, International Journal of Project Management, and Project Management Journal, and he has authored several books in the fields of project management and entrepreneurship. He was awarded the Project Management Journal Paper of the Year, has received several research grants from PMI, and was a NASA research fellow.

Dedications I want to dedicate this book to practitioners pursuing additional credentials, such as the CAPM®. It made a difference for me academically and professionally, and I am confident that it will accomplish the same for them. I would also like to dedicate this book to my wife, Dina; my father, Kalyandas; and my father-in-law, Prabhudas, who passed away recently but certainly cheered this project in spirit to its full successful completion.

—Vijay Kanabar This book is dedicated to the people who have most influenced my work in project management over the years: my elite students, who helped me to shape my teaching and then went on to become project professionals in their own right; my faculty colleagues, who first influenced me to pursue this topic as a personal specialty; and my wife, Helen, who has instilled in me the personal confidence to make it all happen.

—Art Thomas This book is dedicated to all my current and future students who are pursuing a career in managing projects. I hope it will make a difference to them and help them to better understand and address the many challenges in leading teams and managing projects. I would also like to dedicate this book to my wife, Ulrike, and my mother, who passed away just before the book was completed.

—Thomas Lechler