PMP & CAPM Exam Preparation

February 5, 2013

Sessions
1. 2. 3. 4. 5. About the exam Integration & Scope Management Time & Cost Management Quality & HR Management Communication & Risk Management 6. Procurement Management

Last Session Key point

Project Integration Management Develop Project Charter Develop Project Management Plan Direct and Manage Project Execution Manage and Control Project Work Perform Integrated Change Control Close Project or Phase

Last Session Key point contd

Project Scope Management Collect Requirements Define Scope Create WBS Verify Scope Control Scope

Project Time Management

Project Time Management

Define Activities

Project Time Management

Define Activities I
Scope baseline (project scope statement, WBS, WBS Dictionary) EEF OPA

Project Time Management

Define Activities TT
Decomposition
Subdividing the project work packages into smaller, more manageable components called activities

Rolling wave planning

A form of progressive elaboration (near term work activities are defined in detail leaving the future work planned in high level detail)

Templates Expert judgment

Project Time Management

Define Activities O
Activity list Activity attributes
Extended description of activity list Show association with each activity Usually composed of Activity ID, WBS ID, Activity Name, Activity Codes, Description, Leads, Lags, Resource Requirements, etc

Milestone list
Significant point of event and its importance (mandatory/optional)

Project Time Management

Sequence Activities

Project Time Management

Sequence Activities I
Activity list Activity attributes Milestone list Project scope statement (esp. product characteristics) OPA

Project Time Management

Sequence Activities TT
Precedence Diagramming Method (PDM)
Used in Critical Path Methodology (CPM) to construct project network diagram Also called Activity On Node (AON)

Project Time Management

Sequence Activities TT (contd)
Precedence Diagramming Method (PDM)

Project Time Management

Sequence Activities TT (contd)
Dependency Determination
Mandatory dependencies
Contractually required / inherent in nature of the work Dependencies often involves physical limitations Also called / referred as Hard Logic

Discretionary dependencies
Also called / referred as Preferred Logic or Soft Logic Established based on best practices (although many sequences options are acceptable) Can create subjective total float values Is subject to review / modification / removal when fasttracking method is employed

Project Time Management

Sequence Activities TT (contd)
Dependency Determination
External dependencies
Usually caused by non-project activities / activities outside the project E.g.: development of housing construction is dependent to material delivery E.g.: software patching is dependent to the patch availability / purchasing confirmation

Project Time Management

Sequence Activities TT (contd)
Applying Leads and Lags

Project Time Management

Sequence Activities TT (contd)
Schedule Network Templates

Project Time Management

Sequence Activities O
Project schedule network diagrams PD U (e.g.: activity list, attributes, risk register)

Project Time Management

Estimate Activity Resources

Project Time Management

Estimate Activity Resources I
Activity list Activity resources Resource calendars
Availability, capabilities, skills

EEF OPA

Project Time Management

Estimate Activity Resources TT
Expert judgment Alternative analysis
Level of resource Resources skills / capabilities Size and type of machines / tools Make-or-buy decision

Published estimating data

Rates based on geographical location Delivery rates

Project Time Management

Estimate Activity Resources TT (contd)
Bottom-Up Estimating
Used when activities cannot be estimated with a reasonable degree of confidence Uses aggregation/grouping of several activities

Project Management Software

Project Time Management

Estimate Activity Resources O
Activity Resources Requirements Resource Breakdown Structure PD U

Project Time Management

Estimate Activity Durations

Project Time Management

Estimate Activity Durations I
Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement (existing conditions, informations availability, reporting periods, contractual pre-assignment) EEF OPA

Project Time Management

Estimate Activity Durations TT
Expert judgment Analogous estimating
Uses historical information (the actual duration of previous, similar projects) Timeless, costless, accurate-less Usually used when there is limited detail / information about the project

Project Time Management

Estimate Activity Durations TT (contd)
Parametric estimating
Uses statistical relationship between historical information and other variables such as cost, budget, and duration A quantitative method (using multiplication) Relatively higher in accuracy (depending on the underlying data used for estimation)

Project Time Management

Estimate Activity Durations TT (contd)
Three-Point Estimates

Project Time Management

Estimate Activity Durations TT (contd)
Reserve analysis
Inclusion of the actual durations Usually called contingency reserves / time reserves / buffers Is subject to be used / reduced / eliminated Must be documented in schedule information

Project Time Management

Estimate Activity Durations O
Activity duration estimates PD U

Project Time Management

Develop Schedule

Project Time Management

Develop Schedule I
Activity list Activity attributes Project schedule network diagrams Activity resource requirements Resource calendars Activity duration estimates Project scope statement (might have certain constraints / assumptions that impact schedule development)

Project Time Management

Develop Schedule I (contd)
EEF OPA

Project Time Management

Develop Schedule TT
Schedule network analysis Critical path method
Calculates early start, early finish, late start, and late finish dates for each activities with disregard to any resource limitations by performing forward and backward pass analysis through the schedule network Have ZERO float and usually the longest path in the network diagram Might be more than 1 critical path in any given network diagram

Project Time Management

Develop Schedule TT (contd)
Critical path method
Produces free float: a certain time length which an activity can be delayed without delaying the early date of its immediate successor activity within the network path

Project Time Management

Develop Schedule TT (contd)
Critical path method

Project Time Management

Develop Schedule TT (contd)
Critical path method

Project Time Management

Develop Schedule TT (contd)
Critical chain method
Accounts resource limitation Also called Resource-Constrained Critical Path

Resource leveling
Used AFTER critical path method Used when shared or critical resources are only available at certain times, in limited quantities, or to keep resource usage at constant level Used when resources are over-allocated Can cause change to original critical path

Project Time Management

Develop Schedule TT (contd)
What-If scenario analysis

Project Time Management

Develop Schedule TT (contd)
Applying Leads and Lags Schedule compression
Crashing
Approve overtime Add more resources Only work if additional of resources can shorten the duration May increase cost and/or risk

Fast tracking
Perform work in parallel (when default in sequential) May increase risk of rework Only work if overlapped activities can shorten duration

Project Time Management

Develop Schedule TT (contd)
Scheduling tool

Project Time Management

Develop Schedule O
Project schedule
Milestone charts Bar charts Project schedule network diagrams

Schedule baseline Schedule data (resource requirements, alternative schedules, contingency reserves, etc) PD U

Project Time Management

Control Schedule

Project Time Management

Control Schedule I
PMP Project schedule WPI OPA

Project Time Management

Control Schedule TT
Performance reviews
Earned value management is applied Difference between buffer needed and the buffer remaining can determine whether corrective action is necessary

Variance analysis Project management software Resource leveling

Project Time Management

Control Schedule TT (contd)
What-If scenario analysis Adjusting leads and lags Schedule compression Scheduling tool

Project Time Management

Control Schedule O
Work performance measurements OPA U CR PMP U
Schedule baseline Schedule management plan Cost baseline

PD U

Project Cost Management

Project Cost Management

Estimate Cost

Project Cost Management

Estimate Cost I
Scope baseline Project schedule HR Plan Risk Register EEF OPA

Project Cost Management

Estimate Cost TT
Expert judgment Analogous estimating Parametric estimating Bottom-up estimating Three-point estimates Reserve analysis Cost of Quality

Project Cost Management

Estimate Cost TT
Project management estimating software Vendor bid analysis

Project Cost Management

Estimate Cost O
Activity cost estimates
Labor, material, equipment, services, etc

Basis of estimates
Documentation of basis of the estimate, assumptions, constraints, confidence level, etc

PD U

Project Cost Management

Determine Budget

Project Cost Management

Determine Budget I
Activity cost estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts OPA

Project Cost Management

Determine Budget TT
Cost aggregation
Accumulated component cost (usually from WBS)

Reserve analysis Expert judgment Historical relationship (used in analogous and parametric estimation) Funding limit reconciliation

Project Cost Management

Determine Budget O
Cost performance baseline

Project Cost Management

Determine Budget O (contd)
Project funding requirement PD U

Project Cost Management

Control Cost

Project Cost Management

Control Cost I
PMP
Cost performance baseline Cost management plan

Project funding requirements WPI OPA

Project Cost Management

Control Cost TT
Earned value management (EVM)
PV, EV, AC CV= (EV-AC) and SV= (EV-PV) CPI= (EV/AC) and SPI= (EV/PV)

Project Cost Management

Control Cost TT (contd)
Forecasting (link to formula)
Estimate At Completion (EAC) Estimate To Complete (ETC) To-Complete Performance Index (TCPI)

Performance reviews
Trend analysis (improving / deteriorating) Earned value performance (baseline vs. actual)

Project Cost Management

Control Cost TT (contd)
Variance analysis Project management software

Project Cost Management

Control Cost O
Work performance measurements Budget forecasts OPA U CR PMP U
Cost performance baseline Cost management plan

PD U
Cost estimates

Sample Questions
1. Which of the following is not an input item to the Define Activities process? A. The WBS B. The activity duration C. The project scope statement D. The WBS dictionary

Sample Questions
2. Why should you monitor the activities on the critical path more closely? A. Because each activity on the critical path has a zero float time and thereby poses a schedule risk. B. Because the activities on the critical path need to be performed before the activities on other paths. C. Because the activities on the critical path are critical to the organizations strategy. D. Because the activities on noncritical paths depend upon the activities on the critical path.

Sample Questions
3. You estimate the duration of an activity as five days because an expert told you that it took five days to complete a similar activity in a previous project. Which of the following methods have you used for your activity duration estimate? A. Parametric estimating B. Expert judgment C. Analogous estimating D. Delphi technique

Sample Questions
4. You have developed the schedule for your project, and youve called the kickoff meeting. A team member who is responsible for an activity comes to you and tells you that the activity cannot be performed within the allocated time because some pieces were left out during activity definition. The revised estimate will add two more days to the activity duration, but the activity is not on the critical path. Which of the following actions will you take? A. Go to the team members functional manager and find out whether the team members estimate is correct. B. Accept the new estimate but do not change the schedule. C. Accept the new estimate and update the schedule accordingly. D. Put the new estimate through the integrated change control process.

Sample Questions
5. The amount of time by which an activity can be delayed without changing the project finish date is called: A. Float time B. Lag time C. Grace time D. Activity gradient

Sample Questions
6. Which of the following is the most commonly used network diagramming method? A. Critical path method (CPM) B. Critical chain method (CCM) C. Precedence diagramming method (PDM) D. Arrow diagramming method (ADM)

Sample Questions
7. What is the crashing technique used for? A. Network diagramming B. Duration compression C. Cost reduction D. Activity sequencing

Sample Questions
8. Which of the following is a true statement about the critical path? A. Each activity on the critical path has zero float time. B. It controls the project finish date. C. It controls the project start date. D. It is the shortest sequence in the network diagram.

Sample Questions
9. In your research project on tourism, you must collect data before the tourist season ends because the project involves interviewing tourists. The datacollection activity has which of the following kinds of dependency? A. Mandatory B. External C. Internal D. Discretionary

Sample Questions
10. You know from a network diagram that Activity B cannot start until Activity A is finished. Which of the following are true? A. Activities A and B have a start-to-finish dependency. B. Activities A and B have a finish-to-start dependency. C. Activity B has a mandatory dependency on Activity A. D. Activities A and B are on a critical path.

Sample Questions
11. You are the project manager of a project that is running behind schedule. The project sponsor is very unhappy at the new finish date that you proposed, but he has accepted it. However, you also requested extra funds to support the extended time of work, and the sponsor has refused to supply more funds and is threatening to cancel the project if you cannot finish the project within the planned budget. What are your options? A. Crashing B. Fast tracking C. Asking the executive management for a new sponsor D. Speaking with the customer directly without involving the sponsor to see whether the customer can increase the budget

Sample Questions
12. Consider the following network diagram. Which of the following is the critical path?

Sample Questions
13. What is the float for Activity G? A. 3 B. 2 C. 1 D. 0

Sample Questions
14. What is the length of the critical path in the network diagram? A. 20 B. 21 C. 22 D. 31

Sample Questions
15. You use a three-point estimate for activity duration estimating. An activity has a duration of 9 days for an optimistic scenario, 18 days for a pessimistic scenario, and 12 days for the most likely scenario. Which of the following will you take as the duration estimate for this activity if you use the PERT analysis? A. 13 days B. 12.5 days C. 12 days D. 18 days

Sample Questions
16. Which of the following processes will you perform first? A. Plan Procurements B. Determine Budget C. Estimate Costs D. Develop Schedule

Sample Questions
17. Your supervisor has asked you to put some contingency reserve into your project plans. Which of the following is not true about contingency reserve? A. These are the funds and not the time. B. These are not included in the cost baseline. C. These are included in the budget. D. These are not used in earned value measurements.

Sample Questions
18. You are a project manager at a company that is a seller for another company. You are conducting a weekly and presenting that the project has CPI = 1.3 and SPI = 1.8 What does it mean for the project? A. Behind schedule and under cost B. Ahead of schedule and over budget C. Behind schedule and over budget D. Ahead of schedule and under budget

Sample Questions
19. Ron Collins is the project manager for a biotechnology company. He is outsourcing a part of the project to a foreign company for over 3 months when he is called for a steering committee meeting because of cost irregularities. Ron notices that many charges are made to the project budget without his approval. What should Ron calculate? A. CV B. SPI C. SV D. CPI

Sample Questions
20. Management has asked you to produce a chart that depicts the resource needs for all the activities in the project. Which of the following charts is management referring to? A. The project organizational chart B. The WBS C. The roles and responsibilities chart D. The responsibility assignment matrix

Sample Questions
21. Which of the following is not an output of the Determine Budget process? A. Cost performance baseline B. Project funding requirements C. Project schedule D. Project document updates

Sample Questions
22. Which of the following is a true statement about the estimate cost process? A. It is created by the human resources department. B. It is a tool for team development. C. It is created by the project manager with help from project team to produce output of the cost management planning efforts. D. It is provided by the project sponsor.

Sample Questions
23. You are in the process of developing the cost baseline for your project. What is the name of this process? A. Determine Budget B. Develop Cost Baseline C. Estimate Costs D. Develop Budget

Sample Questions
24. Your project is in the planning stage. You first want to make the cost estimates for the planned project activities, and then you want to aggregate those costs. Which process will you perform first? A. Determine Budget B. Develop Human Resource Plan C. Estimate Costs D. Develop Budget