a pmp strategy guide - koenig-solutions.comrms.koenig-solutions.com/sync_data/trainer/qms/...pmp...

©2008-2012 Project Management Academy®. All rights reserved. Project Management Academy is a registered trademark of eCity Market Inc. PMBOK, PMI and PMP are registered trademarks of the Project Management Institute, Inc.

A PMP®

STRATEGY GUIDEThe Insights you need to pass

July 2013 - V5.0

© Copyright 2012 by Ecity Market, Inc. DBA Project Management Academy

Printed and assembled in the United States of America. All rights reserved. No part of this publication may be repro-duced, stored in a retieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, without the written permission of the copyright owner.

Although the author and publisher have made every effort to ensure accuracy and completeness of information entered in this book, we assume no responsibility for errors, inaccuracies, omissions, or inconsistencies included herein.

“PMI,” “PMP,” “PMBOK” are certification marks in the United States and other nations, registered to the Project Management Institute, Inc.

Project Management Academy is a Registered Education Provider with the Project Management Institute.

All inquiries should be addressed to [email protected]

ContentsChapter 1 - Top 10 PMP Exam Tricks

Trick #1 ................................................................................................................................. 9

Trick #2 ................................................................................................................................ 13

Trick #3 ................................................................................................................................ 15

Trick #4 ................................................................................................................................ 17

Trick #5 ................................................................................................................................ 19

Trick #6 ................................................................................................................................ 21

Trick #7 ................................................................................................................................ 23

Trick #8 ................................................................................................................................ 25

Trick #9 ................................................................................................................................ 27

Trick #10 .............................................................................................................................. 29

Chapter 2 - Top 25 Common Confusions on the PMP Exam

1. Project Statement of Work vs. Project Scope Statement ......................................... 33

2. Business Case vs. Business Need .................................................................................. 33

3. Sign-off on the Charter vs. Sign-off on the Project Management Plan ................... 33

4. Project Scope vs. Product Scope ................................................................................ 34

5. Work Performance Data vs. Work Performance Information ................................... 34

6. Work Package vs. Activities List .................................................................................... 34

7. Dependency Relationships .......................................................................................... 35

8. Analogous Estimating vs. Parametric Estimating ....................................................... 36

9. Critical Chain Method vs. Critical Path Method ........................................................ 36

10. Baselines (Cost Baseline, Scope Baseline, Schedule Baseline ............................... 37

11. Cost of Quality ............................................................................................................. 37

12. Contingency Reserves vs. Management Reserves ................................................. 38

13. Quality Control vs. Quality Assurance ....................................................................... 38

14. Communication Methods vs. Communication Technology .................................. 38

15. Risk Management Plan vs. Risk Register .................................................................... 39

PMP Strategy Guide

16. Qualitative Risk Analysis vs. Quantitative Risk Analysis ............................................ 39

17. Risk Response Strategies ............................................................................................. 40

18. Corrective Actions vs. Preventive Actions ................................................................ 41

19. Quality Audits vs. Inspection ....................................................................................... 41

20. Team Performance Assessments vs. Project Performance Appraisals ................... 41

21. Requirements vs. Constraints ..................................................................................... 42

22. The EAC formulas and when to use them ................................................................ 42

23. EAC vs. BAC.................................................................................................................. 43

24. Validated Deliverables vs. Accepted Deliverables ................................................. 43

25. Procurement Performance Reviews vs. Procurement Audits ................................. 43

Chapter 3 - A Study Approach for Success

1. Allow Sufficient Time to Prepare .................................................................................. 47

2. Understand the Big Picture ........................................................................................... 47

3. Use the PMBOK ® Guide Strategically ......................................................................... 48

4. Identify and Fill Gaps in Your Knowledge ................................................................... 48

5. Understand Inputs, Tools and Techniques and Outputs ............................................ 49

6. Study Terminology, Formulas and Charts/Diagrams ................................................. 49

7. Take Practice Exams ..................................................................................................... 50

8. Practice Your Brain Dump ............................................................................................. 51

Chapter 4 - What to Expect on Exam Day ............................................................................. 53

Chapter 5 - Additional Study Aids .......................................................................................... 57

Chapter 6 - PMP Exam Readiness Checklist ......................................................................... 63

PMP Strategy Guide

7PMP Strategy Guide

Chapter One

Top 10 PMP Exam Tricks

Trick 1

9PMP Strategy Guide

Practice Question

Your team is performing a project for a major aircraft manufacturer and the quality requirements are very strict. There is very little room allowed for budget or schedule slippage. You and your team have been collecting and analyzing the results of the quality control activities and plot-ting them out visually. There is a horizontal mean value shown as the middle, and there are lines above and below it indicating the upper and lower control limits. The distance to each line from the mean line is set at three standard deviations. What is the process that helps you validate the results of your quality control activities? A. Control Chart B. Run Chart C. Expert Judgment D. Quality Assurance

Trick 1

10 PMP Strategy Guide

Answer

D. Quality Assurance helps ensure you are gathering reliable data from your quality control activities. It ensures you are testing the right things in the right ways, and also ensures you are following the appropriate quality control processes, and that they are yielding good results.

The Trick

Bait and Switch

If you chose A (or even B), then you probably fell victim to the classic “bait and switch.” A favorite of exam writers across many disciplines, this trick can be spotted by very carefully reading the question, and most importantly, “the call of the question.”

The call of the question, which is nearly always the last sentence, tells you exactly what the examiners want you to answer. Read it twice, or as many times as you need. It is by far the most important sentence in what is likely to be a long and perhaps confusing question, and it only takes a few seconds of your time to double-check it.

In the example above, the facts would allow for a variety of questions. The examiner can go in a number of directions, and the last sentence is where they make their turns. You must go with them. The facts are very important and you must understand them, but you must understand them in the context of what is being asked of you. If they don’t fit in with where the question is going, you should disregard them.

The above example contains facts that are largely if not entirely irrelevant to the call of the question. If only the last sentence remained (the call of the question), you likely would spot the correct answer pretty easily, since we know that quality assurance is used to validate and analyze the results of Quality Control activities and measurements. Indeed, Quality Control Measurements are a vital input to the Quality Assurance process.

Besides focusing on the call of the question, you might also spot a bait and switch when the last sentence just doesn’t fit well with those preceding it. This of course is where the switch occurs. In the example above, note how the question is setting up in present tense – “you are collecting and analyzing…”-- but then the tone and tense change somewhat. The question no longer refers to anything you are doing presently, but asks instead about something fairly generic that is true of every project. None of the preceding facts mattered. They were merely bait.

The trick in the example is further strengthened by placing the “trap” answer at the top, drawing your eye to the trap even before you reach the all-important call of the question, and perhaps causing you to gloss over it entirely because you are already looking at the answer you like. This is especially effective if you are in a hurry. The trap answer won’t always be shown at the very top of course, but it is something you should probably keep in mind.

Another noteworthy part of this trap is they present you (at answer choices A and B) with what seem to be two competing options. You may know that run charts and control charts have some major similarities, so we sort of lock in there, seeing it as a two-horse race. Answers C and D seem like mere afterthoughts. C is an obvious red herring, and that could help trick a student into thinking that D would be as well. Again, the ordering encouraged a false competition between A and B, when in fact neither of them were responsive to the call of the question.

You may be asking yourself why examiners do this – why not just cut to the chase and ask you flat out what they want to make sure you know? Unfortunately, for an exam to carry influence, some people have to fail. This tactic helps serve that purpose. Moreover, your reading and comprehension skills must be tested along with your substantive knowledge for any exam to have value. Even experienced test-takers can get caught in a well-crafted bait and switch, so you must be vigilant. Just don’t get paranoid and think every question is a bait and switch. They won’t

Trick 1

11PMP Strategy Guide

be. The trick doesn’t work as well when used too often. Again, always let the call of the question be your guide. Consider only those facts that are relevant to what is being asked, and don’t get tripped up by filler material that serves only to distract you and wear you down.

Trick 2


Practice Question

You are managing a project to install fiber optic lines across a wide area. There are a variety of risks facing the project, one of which is the chance that you will sever gas lines or other buried utility cables during the digging process. During risk planning, you identified this as a risk, and you set aside money to cover the liabilities you would incur if this risk event materialized. You are now executing the work and are reviewing the reserve amounts previously set aside to see if they are still adequate. What process are you performing? A. Risk Audits B. Reserve Analysis C. Monitor and Control Risk D. Risk assessment

Trick 2


Answer

C. Monitor and Control Risk is the process that is being described above. It involves, among other things, verifying that existing contingency reserves are adequate in light of the risks remaining in the project.

The Trick

Mismatching processes with tools and techniques

Sometimes the examiners may ask you to identify which “process” is being used, but then provide some answer choices that are not actually defined processes. Recall that, for PMBOK purposes, there are only 47 processes. Certainly there are other tasks, methodologies, etc. that we employ in project management, but it is important to know what is (and is not) an actual “process.”

In the example above, you may have chosen B, Reserve Analysis. The facts certainly support this selection, since we know reserve analysis involves reviewing the remaining contingency reserves to make sure we have enough to cover our remaining risks. The trick comes, however, with the specific terms used in the call of the question. It asks which “process” you are working on. Reserve Analysis is not a process, nor are A or D. All three of those choices are “tools and techniques.” The only “process” listed as an answer choice is Monitor and Control Risk. Thus, while Reserve Analysis fits very well with what is described in the facts, it is not responsive to the call of the question (because it is not a “process”) and must therefore be eliminated.

Keep this trick in mind when you have two or more answers you like, and need to break the tie. Go back to the call of the question and focus on the exact words used. From the facts given, you may have focused in on B or D. But when you re-read the call of the question closely, you should see that there is only one answer that is an actual “process.”

Trick 3


Practice Question

You are managing a major software upgrade for your company across its many different locations. You are trying to create a schedule but are having problems estimating the amount of time that certain activities will require to complete. A colleague suggests that you refer to the activity duration estimates your company has on file from the last software upgrade that was performed, which was very similar in its scope, in order to get a sense of how much time it will take to complete each activity. You took her advice, and used the historical information to formulate your activity duration estimates. What input to the Estimate Activity Durations process have you relied upon? A. Analogous Estimating B. Parametric Estimating C. Expert Judgment D. Organizational Process Assets

Trick 3


Answer

D. The input you relied upon is the previous duration estimates you already had on file, which is an organizational process asset.

The Trick

Confusing inputs (or outputs) with tools and techniques

Always keep in mind the important distinction between inputs and tools and techniques, as the examiners may try to confuse the two on the exam fairly often. An input is always a “thing,” whether it be tangible (historical records) or intangible (corporate culture).

A tool or technique is just that – it is something you apply to the inputs to help you get from Point A to Point B. They are methodologies or tactics we apply to the inputs in order to come up with an output. There are a handful of tools and techniques that sound more like “things,” such as Project Management Software (Estimate Activity Resources), Scheduling Tool (Develop Schedule/Control Schedule), Independent Estimates (Conduct Procurements) and Records Management System (Close Procurements). Of course, these things help us get from point A to point B, and that is what makes them tools and techniques for those processes.

In this question, you are clearly being set up for analogous estimating, so there is a “bait and switch” element there also. The facts state that you are having trouble estimating the time needed for each activity, and you are further told that the prior software upgrade was similar in scope. The question takes a turn at the last sentence, however, when it asks you for the input you rely upon. The input of course is the historical data from your files, which falls under Organizational Process Assets.

Again, you must read the call of the question carefully to realize what exactly the question is seeking. Once you realize that the examiners are asking about an input, choices A, B and C drop off, leaving you with the correct answer, D.

Trick 4


Practice Question

All of the following are inputs to the Plan Human Resources Management process except for which one? A. Employment Laws B. Activity Resource Requirements C. Organizational Process Assets D. Project Management Plan

Trick 4


Answer

D. The Project Management Plan is not an input to this process.

The Trick

Unfamiliar inputs are listed, when in fact they are examples of EEF’s or OPA’s

When an answer choice looks unfamiliar to you and you must decide if it qualifies as an input, consider whether it qualifies as an EEF or OPA before making your selection. We must be careful when studying inputs that we don’t become too mechanical, thereby eliminating any inputs that we don’t see specifically listed in our charts. Indeed, there are many inputs to a process like developing human resource plan that are not specifically listed, but instead fall under the broad category of Enterprise Environmental Factors. Similarly, many items are considered Organizational Process Assets, and therefore serve as inputs.

In this question, you may have been skeptical about Answer A because it seems unfamiliar as an input. But keep in mind that we must tailor our project management approach to fit the environment in which we are working. Employment laws are a critical part of our environment when it comes to human resource matters, so they are part of the Enterprise Environmental Factor input to the Develop Human Resources Plan process.

Trick 5


Practice Question

All of the following are true regarding Cost of Quality except for which one? A. It focuses on the costs associated with failures, such as scrap or re-work. B. It is a tool and technique of Estimate Costs. C. It recognizes that, to have a high quality deliverable, certain costs must be incurred. D. The largest portion of these costs will likely stem from quality management activities.

Trick 5


Answer

A. Cost of Quality considers not only costs associated with failures (costs of non-conformance), but also those incurred to prevent failures in the first place (costs of conformance).

The Trick

Using verbs that are too restrictive or expansive

Multiple choice examiners often use particular verbs to set up their tricks. You must pay careful attention to the verbs employed. Are they asking you to think broadly, or to narrow in on something?

In this case, it is the “focuses on” language that is problematic. Yes, scrap and re-work are certainly part of the Cost of Quality, but by no means is Cost of Quality “focused on” these items to the exclusion of others. Answer A would be perfectly fine if it said Cost of Quality “includes” or “considers” or “takes into account” such costs. By employing such a restrictive verb, however, Answer Choice A is simply not true.

We know by now that we must read every word of the question closely, and this example illustrates how a question can hinge on something as subtle as the type of verb that is used.

You should therefore be prepared to identify the different types of verbs being used and their effect on the question or answer choices.

Trick 6


Practice Question

You are the project manager overseeing the development of a new shopping plaza. Your client intends to hold the grand opening of the plaza on November 1, in order to be fully ramped up for the holiday shopping season. This deadline is best characterized as which of the following? A. Project Risk B. Project Requirement C. Project Assumption D. Project Constraint

Trick 6


Answer

D. A constraint is anything which limits your options as a project team. Schedule, budget, scope and quality are common restraints, but there can be any number of constraints you must deal with on a given project.

The Trick

Confusing real-word terminology with PMBOK terms

Here you may have chosen Project Requirement, since you are required to complete the project by that date. In our everyday work we may use the term “requirement” to describe such things, but we must be careful to use the PMBOK language on the exam. The PMBOK term for this deadline is a “constraint,” since it limits our options (with regard to scheduling). The term “requirement” has a fairly narrow definition for PMBOK purposes, and it refers to the features and characteristics we must include in the deliverables. In this example, requirements might include parking spaces, sidewalks, light posts, etc. If you can learn to think of requirements as features, this should help you a great deal on the exam. Remember that much of your everyday terms may carry different meaning on the PMP exam so be sure to understand and apply the PMBOK definitions.

Trick 7


Practice Question

All of the following are outputs from the Develop Schedule process except for which one? A. Gantt Chart B. Project Schedule C. Changes to the Risk Register D. Schedule Baseline

Trick 7


Answer

A. The Gantt Chart, also called a bar chart, is not a defined output of the Develop Schedule process (though it is a component of the Project Schedule).

The Trick

Confusing specific project document updates or plan updates as outputs to a given process

Outputs will often include necessary updates to project documents, or to the project management plan, to account for things we learned by performing the process. Your particular situation will dictate which particular items must get updated, so you must perform a case-by-case analysis.

The key here, again, is to not be too mechanical with our analysis. We tend to try to memorize our inputs/outputs charts and that is a good thing, but we should not be overly reliant on them. When the outputs of a process contain Project Document Updates or Project Management Plan updates, take a few moments to consider the ways in which these items could be updated in light of the process being performed. In this example, we could be performing a construction project in a cold environment and if our digging falls well behind schedule, we may run the risk of the ground freezing when winter sets in. Thus, we would need to update the risk register after creating our schedule to document this risk.

Trick 8


Practice Question

You are managing a large project to develop a high-speed train. The train must meet strict requirements in terms of fuel efficiency, emissions, etc. The project has hit some snags, mostly related to quality issues. You have found that roughly 80% of the quality problems stem from just 20% of the variable factors. What is the tool you most likely used to uncover these defects? A. Ishikawa Diagram B. Pareto Chart C. Scatter Diagram D. Control Chart

Trick 8


Answer

A. The Ishikawa diagram (also called a Fishbone Diagram or Cause and Effect Diagram) is a tool used to help you discover (as opposed to document) what factors are causing a particular defect.

The Trick

Confusing tools that help us uncover information with those that help us graphically present information.

Charts and diagramming techniques are very helpful in project management, and they will be very important for you to know on the exam. Specifically, you should understand which of these charts/techniques will help you uncover information in the first place versus those which help you track information you have already learned.

This question employs a couple of the tricks we have seen thus far. You are clearly being baited towards cause and effect diagram, as you are told that 20% of factors are leading to 80% of the defects (which calls into play Pareto’s Law, a/k/a the 80/20 principle).

The question turns, however, with the particular verb used in the call of the question. You are asked what tool you used to “uncover” – not to graphically illustrate – what factors were causing the defects. The Pareto Chart will obviously not uncover the causes of particular defects, but rather is there to help us graphically illustrate and keep track of these factors and their effects on quality objectives. Before we can create this chart, we must determine what is causing the defects, and this of course leads us to the correct answer -- the Ishikawa Diagram (aka Fishbone Diagram or Cause and Effect Diagram). Note that all the other answers show tools which are used to portray information we already know, while only one will actually help you uncover the information in the first place.

Trick 9


Practice Question

Which of the following is not true regarding the Create Work Breakdown Structure process? A. Its outputs include a Work Breakdown Structure. B. Level one entries may be shown as major deliverables, or organized in another fashion (such as by phase), if the team so chooses. C. The large pieces of work are broken down via decomposition into smaller pieces, until an Activity List is created. D. Organizational Process Assets are inputs to this process but Enterprise Environmental Factors are not.

Trick 9


Answer

C. The WBS breaks down the work to the Work Package level, not to the Activity List level.

The Trick

Merging two distinct processes together

While it is true that the process groups (Initiation, Planning, etc.) overlap and inter-relate in many ways, it is important for us to keep individual processes distinct from each other. We know that each process has its own inputs, tools and techniques, and outputs, so we need to be careful not to merge individual processes together on the exam.

In this example, Answer C is incorrect because it attempts to merge the Create WBS process with the Define Activities process. It is true that we will ultimately create an Activities List, and we will use Decomposition (along with Rolling Wave Planning, and Expert Judgment) to get this Activities List. The question, however, asks you to identify that which is not true regarding the Create WBS process. We must therefore analyze the answer choices in a restrictive way, looking only at what is done in that particular process. We break down pieces of work only to the Work Package level during the Create WBS process. Then, as part of a completely different knowledge area (Time Management), we will break down the work package items further via the Define Activities process to create our Activities List.

Note also that this question asks you to select the answer which is “not” true. It is fairly apparent here, because it is a short question. Be careful, however, not to skip over this very important word when there is a long fact pattern preceding it. It sounds obvious, but students often overlook this word when they are worn down or in a hurry.

Trick 10


Practice Question

You are the project manager for a large project that is wrapping up. The deliverables have been duly accepted and you are ensuring that all documentation is gathered and that the team is properly released. What is the best way to describe your role during this process? A. Leader B. Motivator C. Coordinator D. Planner

Trick 10


Answer

C. Of the choices listed, this is the best answer because it relates most closely to what you would be doing, i.e. overseeing fairly ministerial tasks, checking off punch list items, etc. There is little if any “leading” to be done during this process (Close Project), nor is there much need for motivating or planning.

The Trick

No real “correct” answer

These types of questions can be frustrating, especially if you get a lot of them. The first thing you need to remember is to keep your composure. Yes, it seems unfair to ask questions to which there is no “black and white” answer, but it happens frequently, in all kinds of exams. Don’t sweat it. Recall that you are being tested not just from the PMBOK, but your experience as a project manager as well. Also recall that if you are getting questions that seem unfair (or perhaps even ridiculous), odds are that everyone else is too.

Your first step in navigating through this type of question is of course to narrow the answer choices. One way you may do this is by finding those answers that are very similar. Because there can only be one correct answer (at least in the examiners’ minds), answer choices that seem very similar should often be discarded. Looking at this example, “Leader” and “Motivator” seem fairly similar. There are not enough facts given for you to draw a meaningful distinction between the two for purposes of the question, so we can toss them both out. That leaves us with “Planner” and “Coordinator,” which makes our choice fairly easy since we know there is no planning to be done during project closure.

31PMP Strategy Guide31 PMP Strategy Guide

Chapter Two

Top 25 Common Confusionson the PMP Exam

Common Confusions


IIn this section, we will highlight terms and concepts that often create confusion and might be mis-matched on the exam. We will cover the items in the order they occur throughout the project life cycle.

1. Project Statement of Work vs. Project Scope Statement These two terms are often confused because in real-world practice we may consider a “Statement of Work” to cover all the work to be done. However, from a PMBOK perspective the Project Statement of Work only contains very high-level definitions and the Project Scope Statement is the document that contains the full details. The Project Statement of Work, which is an input to Develop Project Charter, contains three elements: 1) business need, 2) high-level scope description and 3) organization’s broad strategic plan. It is important to remember that the Statement of Work is a high-level description, lacking the specific details one would find in the Scope Statement. Because the Statement of Work is created so early on, even before the Charter is created, it will not contain the very specific information found in the Scope Statement (which is created via the Define Scope process, after all requirements have been gathered). This is a good example of how knowing where you are in the project life cycle helps you find the right answer. The Project Scope Statement, on the other hand, provides a detailed description of the deliverables being created, and identifies all work required to create those deliverables. It may also contain specific exclusions showing what work the project team will not be doing. You may think of the Scope Statement as telling you “what’s in and what’s out” with regard to the project work. To help distinguish the two, consider where you are chronologically in the project. If you are working on the Charter, then the Project Statement of Work will come into play. Once you have gathered your requirements and defined your scope, however, you should be referring to the Scope Statement to identify what work will be performed.

2. Business Case vs. Business Need These terms may be confused because they sound very similar, but there is a subtle difference between the two.

The business case is the generic reason for doing a project. Business cases typically fall into one of the following categories: market demand, strategic opportunity, customer request, technological advance, legal requirement, ecological impact or social need.

The business need, on the other hand, describes what the organization needs to accomplish and how that fits in with the overall organizational strategy. The business need appears as a subcomponent in the Project Statement of Work (see above).

Think of business case as the justification for doing the project in the first place, and business need as what the organization is trying to accomplish from a strategic perspective.

3. Sign-off on the Charter vs. Sign-off on the Project Management Plan You may be asked on the exam to identify who should be signing off on the Charter and/or the Project Management Plan. Some students become confused, thinking the same person(s) would sign off on both, which is not the case. According to the PMBOK, the Charter should be authored (signed off) by “the sponsoring entity.” This will often be the sponsor, but it does not have to be.

Compare this with the Project Management Plan, which should be signed by the entire project

Common Confusions


team and the key stakeholders. The goal here is to ensure buy-in across the board for the Project Management Plan, thus ensuring everyone is on the same page with regard to how the project work will be performed. You might use the project timeline here to assist you. At the Charter phase, you likely will not have your team assembled, nor would you likely have identified all key stakeholders. It would therefore be impossible to have the project team and all key stakeholders sign off on the Charter. Also remember that the Project Charter authorizes work to commence, so someone in a position of authority (typically the Project Sponsor) needs to provide this authorization.

4. Project Scope vs. Product Scope These terms sound very similar and the examiners may interchange them on the exam. Product Scope refers to the deliverable being created, and outlines things such as design specifications and features. Product Scope is defined in the Product Requirements.

Project Scope, on the other hand, describes the ways in which the deliverable will be created, and sets forth things like budgeting, scheduling, human resources, etc. Project Scope is defined in the Project Management Plan.

Think of Product Scope as the features and functions of the product being delivered, and Project Scope as the work that needs to be done to complete the project.

5. Work Performance Data vs. Work Performance Information

These terms create confusion because they sound very much alike and also because each of them serves as inputs/outputs to certain processes. Work Performance Data, which is an output of Direct and Manage Project Work, is “raw data” showing the status of a particular project area. It includes, among other things, percentage of work completed and start/finish dates for schedule activities. Thus, Work Performance Data merely shows where we are in a given area and what has been accomplished. It does not compare that information to what had been originally planned, nor does it integrate with any other controlling processes or related areas. This “raw data” will be rolled up into Work Performance Information, where it will provide a better assessment of the project status. Work Performance Information, which is a broader and more descriptive indicator of project status, provides project performance results in context (i.e. actual vs. planned values). We see Work Performance Information as an output to processes within the Monitor and Control process group (Control Scope, Control Schedule, Control Costs), where we are looking for variances from our baselines and analyzing their magnitude. Work Performance Information also integrates information across various management areas, to paint a clearer picture of the actual project status (i.e. overall status of deliverables, implementation status of change requests, and forecasted estimates to complete).

6. Work Package vs. Activities List

Some students mistakenly view the Activities List as the lowest level of the WBS, since it is the most granular level to which the project work is broken down. The Activities List is not part of the WBS, however.

The Work Package is the lowest level at which project work is broken down (i.e. “decomposed”) in the WBS, but that does not mean the Work Packages will not be further broken down. The Work Package items are further “decomposed” during the Define Activities process, in order to create an Activities List.

Common Confusions


The Activities List sets forth each discrete activity needed to complete the project. The project team can then estimate the type and amount of resources needed for each activity, and then estimate how long each activity will take.

Again, understanding what process you are in will help you make the proper distinction. The Activities List is created during the Time Management knowledge area (via the Define Activities process), whereas the Work Package is created during the Scope Management knowledge area (via the Create WBS process). Keep in mind that you must first create your WBS, which includes the Work Package, before you can break down the Work Package further into the Activities List. 7. Dependency Relationships Students sometimes struggle with the four different types of dependency relationships, in part because of the way they are titled.

Finish to start is the most common dependency relationship. This is where one activity must finish before another activity may start (a building’s foundation must finish being dug before concrete can start being poured). This relationship is diagrammed as follows:

A start to start relationship exists where the two activities can proceed at the same time, but one must be started before the other. Think of writing a book – an editor can review chapters as the book is being written, but the author must start writing the book before the editing can start. This relationship is diagrammed as follows:

A finish to finish relationship exists where two activities can proceed simultaneously, however, one activity must finish in order for the other to finish. For an example, think of installing appliances in a new home while also installing the electrical wiring. The two activities could proceed simultaneously, however, one could not finish installing the appliances until the electrical wiring was finished. This relationship is diagrammed as follows:

Start to finish is the least common dependency relationship. With start to finish, one activity must begin before a preceding activity may finish. Think here of a change of shift at a restaurant. The new shift must start before the people from the prior shift can finish and go home. This relationship would be diagrammed as follows:

Task A

Task B

Task A

Task B

Task A

Task B

Task A

Task B

Common Confusions


8. Analogous Estimating vs. Parametric Estimating

Many students confuse these tools because they both look to past projects as sources of information, but there is a key difference between them.

With analogous estimating, we are looking to a past project or activity that is similar to that being estimated, and simply plugging that number in to our current estimate (while making adjustments for any known differences). For example, if we know it took 3 months to deploy software to 500 users during a prior software upgrade, we can use that 3-month timeframe as an estimate of time needed to deploy a new software package to the same number of users. Note that this method, also called “top-down” estimating, will yield the least reliable estimate, but is also the quickest and easiest way of formulating an estimate.

Parametric estimating, on the other hand, requires us to scale the figures we take from our historical information. For example, if we know it previously took 6 months to construct a 6,000 square foot building, but in this case we are constructing a 10,000 square foot building that is otherwise similar, we could use parametric estimating to determine that it will take 10 months to construct the new building (since we know it takes roughly 1 month per every 1,000 square feet).

You might use the following trick to help you remember the difference: The term “Parametric” includes the term “per.” Think of the example above, and remember that we are not simply transplanting the historical figure into our new estimate, but instead trying to determine how much time it takes “per” square foot to construct a building of a different size.

9. Critical Chain Method vs. Critical Path Method These terms sound similar and are both used as tools and techniques in the Develop Schedule process. As such, students often confuse the two and the examiners may try to confuse you with the two terms on the exam. We will look at critical path method first, since you must first determine the critical path before employing the critical chain analysis. The critical path method reveals the chain of activities throughout your schedule network diagram which adds up to the longest total duration. Thus, there will be no float (or slack) for any activity along the critical path, and therefore any delays along the critical path will necessarily delay the project completion date. If you are only asked to identify the critical path, you will simply choose the chain of activities that adds up to the longest total duration (without having to map out the schedule network diagram). With critical chain analysis, however, we are looking at our schedule and taking into account any resource constraints we may encounter. For example, if we know an important team member will be unavailable for a certain period, our duration estimates for certain activities may change, which may cause a new critical path to emerge (or there may be additional critical paths). Once we have accounted for these resource constraints, our critical path is now called the “critical chain.” Apart from analyzing resource constraints, the critical chain method also is used to place buffers in the schedule to “protect” the critical chain from any delays. Called “feeding buffers,” these time cushions are added to certain activities that feed directly into the critical chain, helping ensure that any delays that arise on those non-critical chain activities do not carry over on to the critical chain and delay the project completion. Another type of buffer used in the critical chain method is called a “project buffer” and would be placed at the end of the critical chain to further protect the project completion date from slippage.

Common Confusions


10. Baselines (Cost Baseline, Scope Baseline, Schedule Baseline) When something is referred to as a baseline, it indicates that it has been approved (usually by the sponsor and/or key stakeholders). Some students mistakenly believe that a baseline, once set, can never change. Baselines may need to be adjusted, however, which can only be done by following the appropriate change control procedures set forth in the Project Management Plan. Not every change will require a re-baseline, but significant changes very well could.

11. Cost of Quality Cost of Quality is fairly straight-forward, however, you must have a firm understanding of each type of cost as they make for very good multiple choice test questions.

The first step is to break down the costs into two broad categories: costs of conformance and costs of nonconformance. The costs of conformance include all costs incurred to prevent defects in the deliverables. Costs of non-conformance, on the other hand, arise when a defect has already occurred. Costs of conformance are further broken down into two categories: Prevention Costs and Appraisal Costs. Prevention Costs are those monies spent “on the front end” to help prevent defects from arising in the first place. Examples of these costs include, among other things, updating or maintaining equipment, or providing additional training to team members in an effort to avoid failures. Appraisal Costs, on the other hand, are those costs incurred to uncover defects. Appraisal Costs would therefore include testing and inspection costs, destructive testing losses, etc.

Costs of non-conformance are also broken down into two categories: Internal Failure Costs and External Failure Costs. Internal failure costs arise when the defect has been discovered while the deliverable is still in your possession. These include costs incurred to fix defects in the deliverables (re-work) or those costs associated with having to throw out defective items (scrap). Internal failure costs, while not desirable, are less harmful than external failure costs.

External failure costs stem from failures in the deliverables after they have left your possession. They include items such as warranty repairs, lost business or product liability lawsuits, and should therefore be considered the most harmful costs. Cost of Conformance Cost of Nonconformance

Prevention Costs(Build a quality product)• Training• Document Processes• Equipment• Time to do it right

Appraisal Costs(Assess the quality)• Testing• Destructive testing loss• Inspections

Internal Failure Costs(Failures found by the project)• Rework• Scrap

External Failure Costs(Failures found by the customer)• Liabilities• Warranty work• Lost business

Money spent during the projectto avoid failures

Money spent during and after theproject because of failures

Source: PMBOK Guide 5th edition, page 235

Common Confusions


12. Contingency Reserves vs. Management Reserves

These terms are often confused because they both refer to amounts set aside to cover unexpected costs. The difference lies not only in who sets the reserve amounts, but also the type of events each type of reserve is meant to cover.

Contingency reserves are those buffers that we as project managers add to our project cost estimates to account for uncertain events that we know might happen (aka “known unknowns”). For example, if we are performing a construction project along the Gulf Coast during hurricanes season we know we could face additional costs in the event of a hurricane. These costs are included in our Cost Baseline. Management reserves, however, are not set by the project manager, but instead are established by senior management. In fact, the project manager may not even know what level of reserves management has set. The difference is that management reserves are designed to guard against those events that we could never see coming (aka “unknown unknowns”). You might think of an asteroid strike here. Whereas we knew the hurricane could possibly occur, we could never foresee an asteroid strike, and that is why we have management reserves. Remember that management reserves are not part of our Cost Baseline. 13. Quality Control vs. Quality Assurance Students are often confused by these two terms since their PMBOK meanings sometimes conflict with how certain organizations use the terms. Since this is a very important distinction, you should expect to see multiple questions testing your understanding of the difference between quality control and quality assurance. Fortunately, the distinction is fairly simple. Quality control is primarily concerned with ensuring the correctness of the deliverables. Here we want to make sure the deliverables meet the requirements, and that they came out as planned. If we were making cars, for example, we would test for things like braking capacity, engine performance, crashworthiness, etc. There is also an element of quality control that examines our performance throughout the project, such as our adherence to schedule, scope and budget. The main thrust of quality control, however, focuses on the deliverable. Quality assurance, by contrast, looks not at the deliverables but rather at the processes and methodologies we employ as part of our overall quality objectives. For example, are we testing the correct items in our quality control procedures? Are we using the proper metrics when we perform our testing, and are we gathering reliable and useful data? Moreover, quality assurance is used to help ensure that we are actually following the quality procedures we set forth in our Quality Management Plan (which is why we see Quality Audits as a tool and technique here). Because we also need to validate the results of our testing, we see quality control measurements as an input to Perform Quality Assurance, but not an output. The output of Perform Quality Assurance is essentially “what have we learned and what might we need to change?” If you can remember to associate Quality Assurance with processes, metrics and standards, while associating Quality Control with the deliverables and our efficiency in creating them, you should be in good shape for the exam. Also remember with Quality Assurance we use Quality Audits, and with Quality Control we measure the quality of the deliverables. 14. Communication Methods vs. Communication Technology This is a simple terminology distinction but one which may cause confusion and may be used as a

Common Confusions


trap on the exam. In our everyday life, we may think of things like e-mail and fax as communication methods. You must not do so on the exam, however, as “Communication Methods” carries a distinct meaning according to the PMBOK.

There are three main types of communication methods: interactive, push and pull. Interactive communications involve a two-way exchange of information, and are therefore the most efficient. Meetings are a good example. Push communication is where information is sent out to recipients from one source. E-mail, regular mail and fax are good examples. They are one-way transmissions. Pull communications are also one-way transmissions, but they work the opposite way. With a pull communication, someone accesses (or “pulls”) the information from a file or some sort of repository (i.e. Sharepoint).

Communication technologies are things like e-mail, fax, telephone, etc., which are used in conjunction with “Communication Methods” in order to get the information distributed. We also must know “Communication Types” which include formal written (memorandums, project charter), informal written (emails, notes), formal verbal (presentations and speeches) and finally, informal verbal (meetings, conversations).

Again, distinctions in terms like these make for good multiple choice testing opportunities. Be sure you have a clear understanding of these various terms, and be prepared to see them mismatched on the exam.

15. Risk Management Plan vs. Risk Register

These terms are often confused because many organizations may use Risk Management Plans to identify and track all risks facing the project. The Risk Management Plan does not perform this function, however, according to the PMBOK.

The Risk Management Plan, while very important, may not be the most critical document in risk management because it doesn’t address the specific risks the project faces. The Risk Management Plan instead sets forth the ways in which we will manage risk in general. It includes the approaches, tools and data sources we will rely upon in managing risk. It also designates who has responsibility for certain types of activities set forth in the Risk Management Plan, and clarifies their roles. It will also address budgeting and timing as they pertain to risk management activities.

The Risk Management Plan does contain a Risk Breakdown Structure, but this will not identify specific risks. Instead, it is used to map out categories of risks facing the project, which will be a useful tool when you create your Risk Register (in the Identify Risk process). The Risk Breakdown Structure helps you see all categories of risk so you don’t skip over anything, much the same way the WBS helps ensure you have captured all necessary items of work.

The Risk Register contains each specific risk facing the project, as well as our assessment, response plan, etc. for each risk. Once we create the Risk Register, our remaining risk processes will result in our going back to update the Risk Register.

To avoid confusion, think of the Risk Management Plan as being our general guide with regard to risk management activities, while the Risk Register is the place where we document specific risks and how we will handle each of them. The Risk Register will be updated multiple times as we proceed through a project, whereas the Risk Management Plan may or may not need updated.

16. Qualitative Risk Analysis vs. Quantitative Risk Analysis These terms sound similar and are both used as part of our Risk Management, but they address different things. Because Risk Management is a vitally important area, you should expect to see multiple questions addressing this distinction.

Common Confusions


To begin with, you should understand that Qualitative Risk Analysis is the more important process, and in fact, Quantitative Risk Analysis may not always be needed (as per the PMBOK). The difference between the two is that in Qualitative Risk Analysis we are concerned with prioritizing the various risks we identified and noted in the Risk Register. Here we determine which negative risks pose the greatest threats and which positive risks present the greatest opportunity. We will use tools such as Probability and Impact Analysis and Risk Urgency Assessment to prioritize the risks during Qualitative Risk Analysis, thereby allowing us to focus our efforts on the most important risk matters first. We will then update the Risk Register to document the results of our analysis, and go on to perform Quantitative Risk Analysis (if needed), and of course develop our Risk Response Plan. For those risks that we deem to be low priority – either because of a very low probability of occurrence or very low impact, or both – we will use a Watch List to keep an eye on them. We will not need to further analyze these Watch List items or develop response plans, unless they become more significant. With Quantitative Risk Analysis, we are looking to quantify the impact of the potential risk events on our project objectives. We tend to think of these just as dollars, but of course the risk could affect our schedule or other project objectives as well. We can use modeling and simulation techniques here to determine the likelihood of achieving our project objectives in light of the risks facing the project (i.e. we may have a 50% likelihood of completing the project within budget in light of the risks we are analyzing). In short, you should remember that Qualitative Risk Management results in a ranking of the risks according to their priority. Quantitative Risk Analysis, on the other hand, provides a numerical assessment of the risk impact. 17. Risk Response Strategies There a couple of ways students may get tricked with respect to risk response strategies. The first way is simply confusing positive risk response strategies with negative risk response strategies. The terminology is different, except for “Accept,” which can be used for both.

For negative risks, we avoid, transfer, mitigate, or accept. For positive risks, we exploit, share, enhance or accept. The examiners may try to trick you and get you to share a negative risk, or mitigate a positive risk, so spend some time memorizing these terms. Fortunately the terminology here is pretty logical. We would naturally want to exploit, enhance or share good things. For bad things, though, we want to avoid, transfer them away, or mitigate them. Another way students often get tripped up here is by mistakenly describing a risk response as “Avoidance,” even though there is a chance the risk event could still occur.

For example, you may have an oil and gas project in an unstable country, and there is a risk that the government might nationalize your equipment and expel you from the country. You may negotiate an agreement with the government whereby it agrees not to interfere with your project or resources in any way. Have you really “avoided” the risk though? No, you have simply mitigated the risk. The government could of course change its mind, or be overthrown and replaced by a new government. To truly avoid the risk in this scenario, you would simply have to stop working in that country. Only then is the risk truly taken off the table. Bottom line: Do not select “Avoidance” if there is any chance the risk event could still occur.

Similarly, students often confuse the use of transferring (negative) risks and sharing (positive) risks. Remember, when you transfer a risk it gets moved from you (the project) to a third party. With sharing, however, a third party is brought in to help the project team pursue the opportunity.Make sure that when you read risk response questions you clearly understand the specific risk in question before choosing a response. For example, if there is a potential labor strike looming, then you likely are facing the risk of having your project delayed. If there is a chance you may

Common Confusions


lose a key team member, then you may face increased costs from having to hire and train a replacement. By focusing on the specific risk stemming from the uncertain event, you will be in a better position to identify the appropriate response strategy.

18. Corrective Actions vs. Preventive Actions

These terms are often confused because they both seek to avoid future failures. The difference, however, is that Corrective Actions follow a failure of some sort, to ensure it does not happen again. Preventive Actions, on the other hand, are designed to avoid failures in the first place.

For example, if a piece of machinery malfunctions and causes a defect in a deliverable, we would either repair or replace the machinery in question so that it does not cause problems again in the future. This is a Corrective Action, because a failure has already occurred.

Preventive actions, however, are just that. They are actions taken “on the front end” to prevent failures from occurring in the first place. For example, we could have performed some preventive maintenance to the machinery mentioned above, or had it inspected and tested to help make sure it would not malfunction.

In short, think of Preventive Actions as those taken to prevent failures and Corrective Actions as those taken to correct failures that have already occurred. 19. Quality Audits vs. Inspection Again, these terms may often be confused because of how they may be used in our workplaces. A quality audit is a tool and technique of Perform Quality Assurance, whereas Inspection is a tool and technique of Perform Quality Control. Remember that with Quality Assurance, we want to ensure that we are following the quality control procedures we set forth initially, and a quality audit helps us do this. It will also help us determine whether those procedures are yielding good results. The quality audit therefore looks at the processes we are following, but not the deliverables. Inspection, on the other hand, does focus on the deliverables. It is used to verify that the quality requirements are actually reflected in the deliverables. This is where we inspect the items we have produced.

Be sure to set your real-world terminology aside when it comes to the quality terminology, as organizations use widely varying terms to describe their quality activities. Some students like to remember that the “A” in Quality Audit should match up with the “A” in Quality Assurance. This helps us remember that Quality Audits are used in Quality Assurance to ensure we are following the appropriate processes and procedures, but we do not use them to analyze the deliverables themselves.

20. Team Performance Assessments vs. Project Performance Appraisals The wording chosen for these terms is misleading, at best, and therefore students often have trouble distinguishing the two terms.

Team Performance Assessment, an output of Develop Project Team, is an assessment of the team’s overall efficiency, and may reference items such as adherence to the schedule, staff turnover rate, enhancement of professional competencies, etc. There are two main things you need to remember: First, it is an output, not a tool and technique. We use other things such as training and team building to get our team to function at a high level, and we use the Team Performance Assessment to essentially describe how well we did in that regard. Secondly, you must remember that only the team is being assessed here, not the individual.

Common Confusions


The individual assessments are performed using Project Performance Appraisals, and these are a tool and technique (of Manage Project Team). Think of this as the equivalent of your annual review at work (though it isn’t “annual”). Here we are looking to provide feedback, identify areas of strength and weakness, clarify the individual’s role in the organization, outline plans for professional development, etc. Some students like to match up the “P’s” in Project Performance Appraisal with the “P” in “Person” to help them remember that here we are assessing a person and not the team. Also remember that Project Performance Appraisals are a tool and technique of Manage Project Team, while Team Performance Assessments are an output of Develop Project Team. 21. Requirements vs. Constraints This confusion arises, again, because of the difference between everyday language and PMBOK terminology. You may see a question which tells you that you must have a particular project complete by a given date because there is a trade show or some other hard deadline approaching. You may then be asked how this deadline should be characterized. Some students will characterize this deadline as a requirement, because you are “required” to have it finished by that date, but this is not correct. This deadline is not a “requirement,” but rather is a “constraint.” A constraint is anything which limits your project team’s options. We most often see constraints as time, budget, scope, resources, etc., and those are great examples, but there could be any number of constraints a project team must work within.

“Requirements” on the other hand, refer to the features and functionality that a deliverable must include. In a new automobile project, the requirements might be things like miles per gallon, braking distance, crashworthiness, size, speed, etc. We may have a tight deadline, a small budget, limited resources, tough legal regulations, etc., but we must find a way to meet all these requirements for the automobile even though we face these constraints.

In short, think of requirements as “features” and this should help you keep the terms straight. 22. The EAC formulas and when to use them EAC (Estimate at Completion) provides a forecast of what the total costs for the project will be upon project completion. There are four formulas for EAC, though only three of them are true “formulas.”

The first “formula” for EAC is simply AC + Bottom-up ETC. While not a true formula, this exercise simply requires the project manager to determine all costs incurred to date (AC), then perform a bottom-up cost estimate for all activities remaining in the project. This yields an accurate result, but may be time consuming. It is unlikely you would have to employ this “formula” on the exam, as you won’t be able to perform the bottom-up ETC that is needed. If you are lucky enough to have the AC and bottom-up ETC figures given to you, then you simply add them and that will provide you the most accurate ETC.

The second formula is used when there has been a variance in cost performance to date, but which is not expected to continue. Imagine a supply shortage of a critical material, which has driven up your project costs and slowed your progress. To get the most reliable EAC value, you must determine if this shortage (variance) is typical or atypical. In other words, should you expect it to continue hindering your performance in the future, or is it no longer an issue? If it is no longer an issue, you will use the following formula: AC + (BAC – EV). This formula assumes you will return to the budgeted rate of cost performance, and thus the poor performance level to date is not factored into the equation (keep in mind the variance could be a helpful thing as well, such as

Common Confusions


an unexpected drop in material costs).

The third formula is used when the variances you have encountered thus far are expected to con-tinue. Here you will build your present cost performance into the formula you use, since whatever is helping or hurting you will continue to do so. The formula for EAC in this circumstance is simply BAC / CPI.

The fourth and final EAC formula is best used when schedule requirements are affecting the rate at which the remaining work will be done, i.e. when you have a hard deadline looming. This for-mula also factors in current cost performance, along with the schedule considerations, to yield an estimate which is most accurate under the circumstances. You should use this formula when you are asked to calculate an ETC that is based on current schedule and cost performance. The formula for this scenario is: AC + [(BAC-EV) / (CPI x SPI)]. Keep in mind the order of processes here. You must calculate the (BAC-EV) / (CPI x SPI), then add the AC to that figure.

23. EAC vs. BAC Estimate at Completion (EAC) and Budget at Completion (BAC) sometimes cause confusion because both terms are used in calculating earned value measurements, and because they both deal with the budget. EAC is essentially a forecast. Our goal with EAC is to determine what our project will end up costing, in total. It is a realistic assessment of what the total project will end up costing, taking into account any factors that may have helped or hurt our budget performance along the way.

BAC, on the other hand, is simply our Cost Performance Baseline (the original budget we established). BAC shows the total amount we planned to spend, while EAC shows the total amount we actually will spend (assuming our forecast is accurate). Naturally we want the EAC to be lower, or at least not higher than, the BAC. 24. Verified Deliverables vs. Accepted Deliverables These items are often confused because they describe the same deliverables, but at different stages of the project. Verfied deliverables are deliverables that have gone through the quality control process and are deemed to be correct. An output of the Perform Quality Control process, Verified Deliverables then become an input to the Verify Scope process. Accepted deliverables are deliverables that have gone through the Verify Scope process and been accepted by the customer or sponsor. An output of the Verify Scope process, Accepted Deliverables become an input to the Close Project or Phase process. The terminology used here is helpful in keeping the two items straight. When you see Accepted Deliverables, you know that someone (sponsor, customer, etc.) has actually “accepted” them. Note here that the Verify Scope process may be combined with the Perform Quality Control process for certain projects, which would cause the deliverables to be both “verified” and “accepted” in one process.

25. Procurement Performance Reviews vs. Procurement Audits These terms confuse many students because they are both tools used in the Project Procurement Management knowledge area, and they both involve some type of audit. Procurement Performance Reviews, which are a tool and technique of Control Procurements, are used to assess the seller’s performance with regard to scope, quality, cost, schedule, etc. In

Common Confusions


other words, we use Procurement Performance Reviews to ensure we are getting what we pay for. Inspections and audits of the seller’s work may be used here, especially as they pertain to quality matters. Thus, Procurement Performance Reviews do have an auditing component. The important thing to remember with Procurement Performance Reviews is that they are focused on an individual seller’s performance. Procurement Audits, on the other hand, focus on the entire procurements process, from Plan Procurements onward, to identify successes and failures throughout the project. This audit is not limited to any individual seller, and would include the project team’s performance as well. This is a tool of Close Procurements, and generates lessons learned To remember the distinction, it may help to focus on the “Performance Review” language in the Procurement Performance Review. Just as we all have Performance Reviews in our work, the individual sellers with whom we do business must also be reviewed to ensure proper performance.


Chapter Three

A Study Approach for Success

A Study Approach


Sometimes students struggle with how to effectively allocate study time between the course completion and exam day. While there is no “one size fits all” approach, the following is a framework that will help ensure you are prepared and confident when you sit for the exam.

1. Allow Sufficient Time to Prepare

Some training providers set an expectation that you should take the exam immediately after completing the course (i.e. pass on the 5th day). That method worked very well several years ago when the PMP exam was much easier. Unfortunately, each year the PMP exam gets more difficult and thus you will need extra preparation time. Therefore, we strongly suggest that you take 1-2 weeks to study on your own before taking the exam. There are a few reasons for this.

First, you will likely feel mentally fatigued after the 4-day boot camp training, and therefore are not in a position to perform your best immediately following the course completion. Second, the exam is difficult, and you will need time to study on your own so that you can solidify your understanding of the materials. Finally, you will want to take additional practice exams after the class to ensure you are truly prepared to take the exam.

Some students choose to ignore this advice and try to take the exam within a couple days of the course completion. The success rate for these students is dramatically lower than for those who allow at least a week of individual study time. Sometimes students feel constrained by their schedules, and feel they have no choice but to take the exam immediately. However, scheduling concerns should not force you to take the exam prematurely, because if you fail the exam then you will have to find time to re-take it anyway. It is much better to put yourself in a strong position to pass on your first attempt. 2. Understand the Big Picture Our course provides a large amount of information over a fairly short period, so your first step should be to solidify your understanding of the course materials. To do this, we recommend reviewing your in-class binder, your laminates and your notes to make sure you understand the broader concepts. Make sure you are familiar with each of the 47 processes, and that you can describe in one sentence what each process is meant to achieve. By doing this, you should be able to see how certain processes inter-relate with others, and hopefully recognize how each process is used to maximize project success and avoid project failures. You might begin this process by memorizing each of the 47 processes and the process groups to which they belong. You should refer here to your white laminate showing all of the processes in a grid format. You will need to re-create this grid from memory during the “brain-dump” period when you sit down to take the exam, so you will want to get started early on this. Along with memorizing the names of the processes and where they fit in, you should also be memorizing the outputs of each. Don’t get hung up on inputs and tools and techniques just yet, as that will come later on. Understanding the outputs of each process will go a long way towards helping you later fill in the inputs and outputs. As you work towards memorizing each process and its outputs, make sure you understand why that process is important. You will likely be given scenarios on the exam where certain failures have occurred, and the question will then ask you how they may have been avoided. Therefore, think about what types of problems may occur if certain processes are skipped over or performed improperly. For example, if we ended up creating a deliverable which functioned properly but did not include all of the functionality the stakeholders were seeking, then we likely had some type of breakdown during the Collect Requirements process, or perhaps we did not properly define / control scope.

Once you have a basic understanding of the 47 processes, then you can start filling in details.

A Study Approach


3. Use the PMBOK® Guide Strategically Some of you may have read the PMBOK before class and that hopefully helped you better absorb the material. Unfortunately, the PMBOK can be somewhat confusing to many students because it does not follow any chronological order, and because it uses terminology which may be very different than what is used in your workplace. If you read the PMBOK before class and found yourself scratching your head, then this would be a good time to go over it again. By now you should have a pretty good sense of the broad concepts, chronology, terminology, etc., so it should make more sense this time around. For those who did not read the PMBOK before class, this is the time to do so. Because the PMBOK is not organized chronologically, you may want to read it in conjunction with your in-class binder. For each section of the binder you will see a number (i.e. 2.1), which corresponds to a PMBOK chapter. It may help to read the PMBOK chapters in the order they are set forth in the binder, so you get a sense of context and chronology. Just make sure you check off each chapter as you read it, so you can make sure you have covered the whole book. The material in the PMBOK will form the basis for much of the exam (though the examiners may test on other items they expect you to have learned from your work experience). As such, you should spend a good deal of time reading and understanding the PMBOK, but you should not spend all your time simply re-reading it. Once you have read and understood the entire book, you should then use it as a reference guide to help reinforce your understanding of key concepts, and to fill gaps in your knowledge. For example, when you miss a practice question and realize you are a little hazy on that topic, go right to that section of the book and read up on it. Then put a flag on that page as a reminder that you had some confusion on that issue, and perhaps keep a separate log showing areas of confusion that you need to clarify before exam day. 4. Identify and Fill Gaps in Your Knowledge Since this is a pass/fail examination, you will be able to pass without knowing every single minute detail for every topic in the PMBOK. It would be great if you did achieve this level of understanding, but we need to be realistic and use our time strategically. Instead, you should make sure there are no significant gaps in your understanding of the material, as these can very easily cause you to fail the exam. The best way to identify gaps in your knowledge is to do lots of practice questions. Sometimes you will miss the question because you didn’t read it carefully or because it contained a trick. When you miss a question because you don’t understand the material, however, you need to fill that knowledge gap.

Sometimes reading the answer explanation is sufficient, but oftentimes you will need to delve deeper into the material to make sure you really understand the topic in question. There is nothing wrong with missing a lot of practice questions. Indeed, you should view a missed practice question as a good thing, because it identifies gaps in your knowledge which you can now go back and address. Make the mistakes during your preparation, not on the exam. The key here is to review every practice question carefully, whether you got it right or wrong. Sometimes you will get the answer right, but you chose it for the wrong reason, or maybe you just got lucky. Remember, answering the practice questions is only part of the exercise. The learning occurs when you closely review every question and answer.

To help you identify areas of weakness, you should keep a log showing the type of questions you missed. This log will identify trends in your performance, thereby allowing you to focus your study efforts on those areas where you are weakest. Try to be specific when you create this log. For example, instead of simply noting a missed question on risk management, note that you missed a question about the difference between qualitative and quantitative risk analysis. The idea here is to pinpoint these areas of weakness, then use the PMBOK and/or your course materials to clarify

A Study Approach


those areas so you do not miss that type of question again.

Remember that you have online access to video lectures covering every topic from the PMBOK, so you should use these as needed to help clarify your understanding. Sometimes this will be the most efficient way to fill the gaps in your knowledge, as the book often glosses over certain areas or uses confusing language.

5. Understand Inputs, Tools and Techniques and Outputs

You will likely get several questions on the exam requiring you to identify inputs, tools and techniques, or outputs (ITTO’s) for a given process. For many students, these may be among the hardest questions to answer, because many processes have so many ITTO’s that it is nearly impossible to memorize them all.

There may be some students who can memorize every ITTO for all 47 processes, but for the large majority that is simply not realistic. You should instead consider a more strategic approach to the ITTO questions, keeping in mind that it is OK to miss a few of them on the exam.

As mentioned earlier, you should start by memorizing the outputs to each process. This is important for other types of questions as well, but it also puts you in a good position to handle questions asking for inputs to a particular process, since we know that outputs to one process nearly always become inputs to later processes. Memorizing all outputs often allows us to use chronology to help us navigate through these questions. For example, we know that Quality Control Measurements are an output of Perform Quality Control. Since we know we must perform the Plan Quality process before we can actually Perform Quality Control, we can easily eliminate Quality Control Measurements as an answer to a question asking for the inputs to the Plan Quality process.

The tools and techniques present a tougher challenge, because some processes employ so many of them, and because some tools and techniques are used in multiple processes. Your first step here should be to focus on those processes which use only a few tools and techniques. There are 22 processes which employ 3 or fewer tools and techniques, so it is worth your time to memorize the tools for each of these, at a minimum.

Another way to prepare for the ITTO questions without having to memorize so much material is to simply spend some time understanding each tool and technique you come across. Take “Make or Buy Analysis” for example. We know this is used to determine what we can produce ourselves and what we need to acquire from outside the organization. Therefore, we could easily eliminate Make or Buy Analysis as an answer choice to a question asking for tools used in the Control Procurement process. Naturally, we would have already made our Make or Buy Decisions before we entered into the procurement relationship, so it simply does not fit.

You might grab a notebook and simply jot down in your own words a one or two sentence summary of each tool and technique you come across, then refer back to these notes frequently during your preparation. Having a basic understanding of what each tool and technique accomplishes will help you effectively navigate through these ITTO questions (and others) without having to memorize every tool and technique used in each of the 47 processes.

6. Study Terminology, Formulas and Charts/Diagrams

By this time you should have a pretty good understanding of the material as a whole, so you should focus now on the more discrete items such as unique terminology, charts, formulas, etc. To do this, you should rely heavily on your laminated course materials. If something is listed in the laminated materials, you should understand it. Therefore, keep your laminates handy and refer to them often. If you take the train or bus to work, study your laminates on the way. You might also want to look at them during your lunch break, or other times when you want to study without committing a large block of time.

A Study Approach


Pay special attention to the charts, as you likely will see several questions asking you which type of chart will assist you in a given situation. Along with the laminates, there is a helpful summary of each chart (located in your binder and online in the Bonus training module) which you should understand thoroughly. In particular, make sure you understand the following items for each chart: 1) the information it contains; 2) what it looks like; 3) the purpose of it, 4) the area(s) in which it is used, and 5) the specific name(s) used to identify the chart.

Let’s use the Cause and Effect Diagram as an example. First of all, we need to know that it shows all factors we believe may be causing a particular outcome or defect, and the factors are lined up along diagonal lines which connect to a horizontal line leading up to the outcome in question (hence the “fishbone” structure). Because we are looking at factors causing certain outcomes, we will use Cause and Effect Diagrams both in Quality Management and Risk Management (to uncover causes of defects and risks). Finally, we need to know that this chart is also called a “Fishbone Diagram” or “Ishikawa Diagram.” Keeping track of synonyms is always important on the exam, because if you see two answer choices that mean the exact same thing, you can eliminate them both, since there is only one correct answer.

You should also understand all of the formulas and when to use each one. The earned value formulas are especially important, and you may see several questions requiring you to perform these types of calculations. In some cases, you may simply need to plug the numbers from the question into your formulas and do the math. Sometimes, however, you will need to determine which formula is appropriate based on the facts provided in the question. For example, if a question is asking about EAC and it states that the project has faced difficulties which are now resolved, we know the variances are atypical and we would therefore use the following formula: AC+(BAC-EV).

Apart from memorizing the formulas, make sure you understand what a particular earned value measurement means to your project. For example, you may be told that your project has a Cost Variance (CV) of $1,000 and a Schedule Performance Index (SPI) of 0.8, and you must identify what that means for your project. In this case, those values show you are under budget (since CV is a positive number) and behind schedule, since SPI is less than 1.

You may also be given an earned value figure and then be asked what that means for another earned value measurement. For example, if the question states that your Cost Performance Index (CPI) is 0.5, you must know that your Cost Variance (CV) will be negative. Specifically, the CPI is telling you that you have only “earned” 50 cents for each dollar you spent. Again, remember that simply memorizing the formulas will not help you much if you don’t understand what the values are telling you.

7. Take Practice Exams

In addition to the mock exam from class, you should do at least two (and often more) full-length practice exams online. Since these questions are shorter and more straightforward than those you are likely to see on the real exam, it is imperative that you score above 85% on a full-length, online practice exam before you sit for the real thing. If you happen to score above 85% on your first try, take another one to validate the first score and get more practice.

Of course you need to understand the materials to succeed on the exam, but you also need to get comfortable with taking a long exam. It is not easy to keep focused and alert throughout a 200-question exam, so you should work on conditioning your mind so it will hold up during what is likely to be a long and challenging four hours.

When you are taking the practice questions, especially the online questions, keep in mind that these are not designed to mimic what you will see on the exam. Instead, these questions are designed to help you learn the material as quickly and efficiently as possible, and to help you identify gaps in your knowledge. As such, the online practice questions can be a bit shorter and

A Study Approach


more straightforward. Do not assume the questions on the real exam will be like this. It is a difficult exam, and you should therefore be prepared for longer, more confusing questions.

If you want to practice with some of the longer and trickier questions, you should refer back to the in-class practice questions, which are provided in the online training portal (go to the “Bonus” tab, then click on “Study Aids”). These questions are designed to be trickier and more complex, and the explanations will identify the particular tricks being used so you can be prepared to spot them on the exam. You may also want to re-take your mock exam from class, as this also contains longer and trickier questions.

8. Practice Your Brain Dump

By now you are ready to take the exam, and you just need to make sure you can write out the materials to which you will refer during the exam. When you sit down to take the exam, you will have a 15-minute introductory period that does not count against your 4-hour testing time. There will be a tutorial provided which shows you how to take the exam (i.e. click on the answer, then click on “Next”). You will not need 15 minutes for this tutorial, so you will want to use that time instead to write down key information on your scratch paper.

There are two things you will want to write down on your scratch paper during this period: 1) all of the formulas and 2) the grid showing the 47 processes. This will likely take you the full 15 minutes, and maybe a few minutes longer. You should practice doing this at least twice before the exam, and time yourself to see how long it takes you. Your brain dump will be an invaluable resource as you go through the exam, so make sure you are in a position to get the maximum possible benefit.


Chapter Four

What to Expect on Exam Day



1. You Must Arrive 30 Minutes Early Your e-mail confirmation from Prometric may not include this requirement, but it is very important. You must arrive to the test center 30 minutes before your exam is scheduled to begin, or they may refuse to admit you. Be sure to allow plenty of time for unexpected delays such as traffic, etc. You should be in a good frame of mind when you sit for the exam, so you certainly don’t want to be rushing to the test center. 2. No Personal Items Are Allowed in the Testing Room You will have to place all of your personal belongings in a locker before going into the exam room, so you should plan accordingly. This will include purses, pens, paper, watches, wallets, gum, candy, water, etc. Ear plugs are the only exception. You will enter the exam room with the clothes on your back, along with the paper and pencils you are provided and ear plugs (if you bring them). The calculator you will use is provided on the computer. To make sure you take nothing into the room, you may be scanned with the same type of security wands used for airport security screenings. Because you will not have access to water, food, etc., you may want to have something small to eat and drink beforehand. You can of course take breaks to use the bathroom and get a drink of water, however, the 4-hour clock continues to run so you want to avoid or minimize such breaks if possible. You may not be given a lot of scratch paper when you enter the exam room. You should expect to receive about 4 sheets. If you think you will need more, go ahead and ask for it initially. If you use up all of your scratch paper and need more, don’t be afraid to ask for it. There is no guarantee they will give you more, but it likely won’t be a problem. 3. The Room May Be Noisy Depending on the testing center you may have to deal with much more noise and distractions than you might expect. Some students report having construction going on in exterior hallways, or proctors who converse loudly as they check students in and out, etc. Unfortunately, there is nothing you can do about this except for bringing ear plugs (or using the headphones that some of the centers will provide). If you are especially sensitive to noise distractions, you should avoid this risk and bring your own ear plugs rather than relying on the testing center to provide headphones. 4. The Room May be Hot or Cold Because the testing room is full of running computers, it may be uncomfortably warm. The center may try to combat this with excessive air conditioning, thus making the room too cold. Your best approach is to dress in layers, so that you can easily adapt to either situation.

5. Your Identification Must Match Exactly the Name Provided at Registration You must bring a valid, government-issued photo identification (i.e. driver’s license, state I.D. card, passport or military identification card) to the testing center, or you will not be admitted. Moreover, the name shown on that card must match exactly the name you provided at registration. Women who were recently married but whose ID cards show their maiden name would not be admitted if they used their married name to register for the exam. For those who go by different first names, again, make sure you register for the exam using the exact same name shown on your identification card. 6. The Exam Will Take Longer Than You Expect This is a long exam, and you should be prepared for it to take most if not all of your 4-hour allotment.



Do not assume you can finish the exam in the same amount of time as your practice exams took – it likely will take you significantly longer. You will want to keep an eye on the time remaining, which is shown on your computer screen, but don’t obsess over it. Above all, do not hurry through the questions. It is far better to take your time and carefully complete only 190 questions than it is to hurry through all 200.

Of course, if time is literally running out, you will need to blindly select an answer for each remaining question, so you have at least a 25% chance of getting it right. You should not resort to this tactic, however, until there are only one or two minutes remaining. Your score is calculated based on the number of questions you correctly answer, so you do want to answer every question. There is no penalty for guessing and getting the answer wrong.

While time is a consideration, you should stop for a stretch and a few deep breaths whenever you need it. Remember, a large part of succeeding on this exam is managing your anxiety and “keeping your head in the game.” If you feel like you are fading out, stand up and stretch. Get a quick drink of water if you need one. Do whatever is needed to re-gain your focus and composure – only then should you return to the questions. If the exam seems overly difficult or there are questions which seem unfair, do not let it upset you. Remember that other people have to deal with it as well, and that it is a pass/fail exam.

7. You May be Tempted to Change Many of Your Answers

There is a “Mark for Review” feature on the testing software which works exactly like the one you have seen on our practice exams. Use it strategically, perhaps even sparingly. If you are behind on time you may encounter some questions that just are not worth the time commitment. For example, questions requiring you to create a schedule network diagram may take longer to answer than 3 other questions combined. Feel free to mark these for review and move on (making sure you first select an answer, even if it is a pure guess). If you finish with time leftover, you can go back and devote the time needed to get that question right.

You want to resist the temptation to go back and change a lot of answers, so use the Review function primarily for those questions where you think having more time to answer will be helpful to you. Since the exam is tricky and you will often see more than one answer choice that looks correct, you may be tempted to overuse the Review function, thereby needlessly second-guessing yourself. If you find an objective reason for changing an answer, i.e. you originally glossed over an important word in the question, by all means change it. But try not to change answers based merely on gut feelings, as your first instinct will lead you to the correct answer more often than not.


Chapter Five

Additional Study Aids


Charts and GraphsChart Name Description How it’s used Where it’s used

Control Chart

Graphic display of process over time and against control limits

Determine whether or not a process is stable or has predictable performance.

Plan Quality, Perform QA, Control Quality

Run Chart

Similar to control chart but without displayed limits

Show history and pattern of variation with data points plotted in order they appear

Plan Quality, Perform QA, Control Quality

Histogram

A vertical bar chart show how often events occur

Show frequencies of errors or periodic staffing levels.

Perform QA, Control Quality, Plan HR

Resource Histogram

A vertical bar chart showing number of hours per person per period

Identify need for a resource leveling strategy

Plan HR, Develop Schedule, Control Schedule

Scatter Diagram

Shows relationship between two variables

Identify possible relationships between independent and dependent variables

Control Quality

Pareto Chart

Histogram sorted by frequencies

Determine the most prevalent errors to focus corrective action

Control Quality

Flowchart

Graphical representation of a process

Identify and anticipate process problems

Plan Quality, Control Quality, Identify Risk

Organization Chart

Graphical representation of organization

Show position relationships and roles and responsibilities

Plan HR, Acquire Project Team, Plan Communications

Bar Chart

Graphical representation of schedule

Document project schedule showing activities, start and end dates, and expected durations

Develop Schedule

Milestone Chart

Graphical representation of major deliverables and key external interfaces

Show project schedule at high-level for executives

Develop Schedule

Resource Assignment

Matrix

Matrix-based chart showing connections between work packages and team members

Show all activities associated with each person and vice versa. Uses RACI designation

Plan HR


Formulas you need to know for the PMP® ExamTitle Formula PMBOK® Chapter

Present Value FV (1 + i)n

Ch. 4 - Integration Management

Expected Activity Duration (Triangular) O + M + P3

Ch. 6 - Time Management Ch. 7 - Cost Management

Expected Activity Duration (Beta/PERT) O + 4M + P6


Standard Deviation of an Activity (SD) P - O6


Activity Variance SD 2 Ch. 6 - Time Management Ch. 7 - Cost Management

Range of Activity Duration EAD +/- SD Ch. 6 - Time Management Ch. 7 - Cost Management

Early Finish (EF) ES + Duration Ch. 6 - Time ManagementLate Start (LS) LF - Duration Ch. 6 - Time ManagementTotal Float LS - ES, or LF - EF Ch. 6 - Time ManagementCritical Path Sum of longest duration path Ch. 6 - Time ManagementCost Variance (CV) EV - AC Ch. 7 - Cost ManagementSchedule Variance (SV) EV - PV Ch. 7 - Cost ManagementCost Performance index (CPI) EV / AC Ch. 7 - Cost ManagementSchedule Performance Index (SPI) EV / PV Ch. 7 - Cost ManagementEstimate At Completion (EAC), using the most accurate method AC + Bottom-up ETC Ch. 7 - Cost Management

Estimate At Completion (EAC), assuming variances are typical BAC / CPI Ch. 7 - Cost Management

Estimate At Completion (EAC), assuming variances are atypical AC + (BAC - EV) Ch. 7 - Cost Management

Estimate At Completion (EAC), assumes poor cost performance and a need to hit a firm completion date

AC + (BAC - EV) (CPI X SPI) Ch. 7 - Cost Management

Estimate To Complete (ETC) EAC - AC Ch. 7 - Cost ManagementVariance At Completion (VAC) BAC - EAC Ch. 7 - Cost ManagementTo Complete Performance Index (TCPI), standard method

BAC - EVBAC - AC Ch. 7 - Cost Management

To Complete Performance Index (TCPI), assumes original budget is not possible

BAC - EVEAC - AC Ch. 7 - Cost Management

Communication Channels N (N - 1)2

Ch. 10 - Communication Management

Expected Monetary Value (EMV) Probability x Impact Ch. 11 - Risk Management

Point of Total Assumption [(Ceiling Price - Target Price) / Buyers Share Ratio] + Target Cost

Ch. 12 - Procurement Management


Chapter Six

PMP Exam Readiness Checklist


PMP EXAM READINESS CHECKLISTRead and understand the PMBOK Guide

Read and understand A PMP Strategy Guide

Review class materials/notes and fully understand all materials from the laminates

Identify areas of weakness/confusion and close any knowledge gaps

Understand Earned Value Management and Schedule Network Diagramming completely

Be able to describe the purpose of each of the 47 processes and identify the outputs

Be able to identify all 47 processes by process group and knowledge area

Take at least 3 full-length practice exams

Score 85% or better on online practice exams

Practice doing your brain dump in under 15 minutes

©2008-2012 Project Management Academy®. All rights reserved. Project Management Academy is a registered trademark of eCity Market inc. PMBOK, PMI and PMP are registered trademarks of the Project Management Institute, Inc.

a pmp strategy guide - koenig-solutions.comrms.koenig-solutions.com/sync_data/trainer/qms/...pmp...

Documents