Pmp project management professional free sample

Project Management Professional (PMP)
Exam Preparation
Free Sample
(Based on Guide to PMBOK 5th Edition)(Based on Guide to PMBOK 5th Edition)
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Chapter 1
Introduction to Project Management
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What is Project Management?
• The application of knowledge, skills, tools and technique toThe application of knowledge, skills, tools and technique to
project activities to meet project requirementsproject activities to meet project requirements
• Project Management is accomplished through the application and
integration of the processes such as
– InitiatingInitiating
– PlanningPlanning
– ExecutingExecuting
– Monitoring and ControllingMonitoring and Controlling
– ClosingClosing
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The Triple Constraint of Project Management
Cost
ScopeTime
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It is the project manager’s duty to balance and achieveIt is the project manager’s duty to balance and achieve
these three often-competing goals.these three often-competing goals.

Constraint of Project Management
Scope
Scope
Time
Time
CostCost
CustomerCustomer
SatisfactionSatisfaction
Risk
Risk
ProjectProject
Quality
Quality
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Project, Program, Portfolio
Project EProject E

Project, Program, Portfolio
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Project-Based Organizations
Project-based organizations (PBOs) refer to various
organizational forms that create temporary systems for
carrying out their work. (as in telecommunications, oil and
gas, construction, consultancy, and professional Services)
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Chapter 2
Project Life Cycle and Organization
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Project Life Cycle (Technical Work)
• Project Life Cycle is a collection of generally sequential and
sometimes overlapping project phases.(not black box).(not black box)
• Project Phases are marked by the completion of a deliverabledeliverable
(Tangible, verifiable work product).
– Review of deliverables and approval/denial-phase end
review- are “phase exits, stage gates, or kill points???”
• All projects are divided into phases, and all projects, large
or small, have a similar life cycle structure.
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Initiation Conclusion
Handoff Handoff Handoff
GatesGatesGates
Deliverables Deliverables Deliverables
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Project Life Cycle
Project phases differ from project to another
Construction: Feasibility-> Planning -> Design -> Production -> Turnover -> Startup
IT Project: Requirement -> Design -> Program -> Test -> Implement

Fast Tracking
• There are times when phases are overlapped
to shorten or compress the project schedule.
This is called Fast Tracking.
• Fast tracking means that a later phase is
started prior to completing and approving the
phase, or phases, that come before it.
• This technique is used to shorten the overall
duration of the project.
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Project Stakeholders
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• An important part of a project manager’s responsibility is to manage
stakeholder expectations, which can be difficult because
stakeholders often have very different or conflicting objectives.
• Part of the project manager’s responsibility is to balance these
interests and ensure that the project team interacts with
stakeholders in a professional and cooperative manner.

Costandstaffinglevel
Time
Initial Phase Intermediate Phase(s) Final Phase
cost of changes
influence of stakeholders
Stakeholders Influence Over Time
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Project Success
The success of the project should be measured in terms of
completing the project within the constraints of scope, time,
cost, quality, resources, and risk as approved between the
project managers and senior management.
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Organizational Structure- Functional
Organization
• The organization is grouped by areas of specialization within different
functional areas.
• Projects generally occur within a single department.
• Information required from other department will be routed through
departmental heads.
• Team members complete project work in addition to normal department
work.06/02/13 10:23 18

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Organizational Structure- Balanced
Matrix Organization
• Two Bosses
• Team members reports to
Project Manager and Functional
Manager
• Team members do project work
in addition to normal
departmental work
• Power is shared between the
functional and project manager
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Iterative and Incremental Life Cycles
Ones in which project phases (also called iterations)
intentionally repeat one or more project activities as the
project team’s understanding of the product increases,
while increments successively add to the functionality of
the product.
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Chapter 4
Project Integration Management
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Project Integration Management
Project Integration Management includes the processes
and activities to identify, define, combine, unify, and
coordinate the various processes and project management
activities within the Project Management Process Groups.
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Develop Project Charter
• Project CharterProject Charter is the process of developing a
document that formally authorizes the existence of a
project and provides the project manager with the
authority to apply organizational resources to project
activities.
• The Project ManagerThe Project Manager should always be assigned prior
to the start of planning, and preferably while the project
charter is being developed.
• The Project Charter is Issued by a sponsor, not the
project manager, but preferred to be participated in
developing it.
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Project Selection Methods
Project selectionProject selection is generally the responsibility of Portfolio Managers,
Steering Committees. In smaller companies, Presidents and Vice- Presidents.
These methods generally fall into one of two broad categories:
•Benefit measurement methods (comparative approach) that are comparative
approaches:murder board, peer review, scoring models, benefit contribution,
or Economic models.
•Constrained optimization methods (Mathematical approach) that use
programs; linear, nonlinear, dynamic, integer, or multi-objective programming
algorithms
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1.1. Present valuePresent value
Present value :PV = FV/(1 + r)n
•FV = amount of money t years from now
•r = interest rate (also called “discount rate”)
•n = time period
Assume a 10% interest (or discount) rate
PV (Year 1) = FV / (1 + r)t =$35,000/(1 + 0.1)1= $31,819
Economic Model
Year FV PV
0 $50,000 $50,000
1 $35,000 $31,819
2 $15,000 $12,397
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2. Net present value:2. Net present value: This Means the total benefits (income or revenue) less
the cost. To calculate NPV you need to calculate the present value of each
of the income and revenue figures then add up the present values.
Time
Period
Income or
revenue
Present Value
at 10% interest
rate
Costs Present Value
at Costs 10%
interest rate
0 0 0 200 200
1 50 45 100 91
2 100 83 0 0
3 300 225 0 0
Total 353 291
NPV=353-291=62
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Economic Model

Requirements Traceability Matrix
• A grid that links product requirements from their origin to the deliverables that satisfy
them.It provides a mean to track requirements throughout the project life cycle.
• Matrix helps to ensure that requirements approved in requirements documentation
are delivered at the end of the project.
• Attributes associated with each requirement can be recorded in the requirements
traceability matrix.
Collect Requirements – Outputs
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Create WBS
• The WBS is a deliverables-orientated
decomposition of the work to be executed by
project team to accomplish the project
objectives and create the required
deliverables.
• The planned work is contained within the
lowest level WBS components (work
packages) which can be scheduled, cost
estimated, monitored and controlled.
• The top most level of each WBS is the total
project itself
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Question
You're the project manager for an advertising campaign. The stakeholders,
including the client, approved your completed WBS. Later, after some of the
artwork has been printed, the client wants to add a registered trademark
symbol, which will cost a considerable amount of money. The client says that
your company's salesperson, prior to signoff on the WBS, promised this
feature would be included. Who should pay for the change?
A. Your company managing the project
B. Both the client and your company should pay part of the cost
C. The change should not be implemented
D. The client
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Create WBS – Outputs
• A WBS structure may be created through various approaches. Some of the
popular methods include the top down approach, the use of organization-
specific guidelines, and the use of WBS templates. A bottom-up approach
can be used during the integration of subcomponents
• The WBS is a hierarchical decomposition of the total scope of work to be
carried out by the project team to accomplish the project objectives and
create the required deliverables.
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Validate Scope
Validate Scope is the process of formalizing acceptance of the completed
project.
•The Validate Scope process differs from the Control Quality process in that
the former is primarily concerned with acceptance of the deliverables, while
quality control is primarily concerned with correctness of the deliverables
and meeting the quality requirements specified for the deliverables.
•Control Quality is generally performed before Validate Scope, although the
two processes may be performed in parallel.
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Three Point Estimates (PERT)
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PERT Calculations
• If all activities are on critical, then total estimated project duration = sum of
PERT values for each activities.
• Standard Deviation shall not be added. Add variance of each activities and
take square root of sum to get standard deviation for total project.
• In the example above, range will be 170.167 +/-10.060
Estimate Activity Durations : Tools &
Techniques
Activity O M P PERT SD Variance Range
A 14 27 47
B 41 60 89
C 39 44 48
D 29 37 42
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PERT Calculations
• If all activities are on critical, then total estimated project duration = sum of
PERT values for each activities.
• Standard Deviation shall not be added. Add variance of each activities and
take square root of sum to get standard deviation for total project.
• In the example above, range will be 170.167 +/-10.060
Techniques
Activity O M P PERT SD Variance Range
A 14 27 47 28,167 5.5 30,25 28.167+/-5.5
B 41 60 89 61,667 8 64 61.667+/-8
C 39 44 48 43,833 1.5 2.25 43.833+/-1.5
D 29 37 42 36,500 2.167 4.694 336,5+/-2.167
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Group Decision-Making Techniques
• Team-based approaches, such as brainstorming, the Delphi or nominal
group techniques, are useful for engaging team members to improve
estimate accuracy and commitment to the emerging estimates. By involving
a structured group of people who are close to the technical execution of
work in the estimation process, additional information is gained and more
accurate estimates obtained.
Techniques
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Reserve Analysis
• Contingency Reserve time —also called buffer or time reserves
• Reserve is added to account for schedule risk.
• You might choose to add a percentage of time or a set number of work
periods to the activity or the overall schedule.
• If not done properly can lead to padding
• Contingency reserve shall be clearly identified and documented for future
analysis
Techniques
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Develop Schedule-Tools & Techniques
Schedule Network Analysis
• Schedule network analysis is a technique that generates the project
schedule.
• It employs a schedule model and various analytical techniques, such as
critical path method, critical chain method, what-if analysis, and resource
levelling to calculate the early and late start and finish dates for the
uncompleted portions of project activities.
Critical Path Method
• A method used to estimate the minimum project duration and determine the
amount of scheduling flexibility on the logical network paths within the
schedule model
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Example of Critical Path Method
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Network Diagram Nodes
• ES = Earliest date an activity can be started
• EF = Earliest date an activity can be completed
• LS = Latest date an activity can start
• LF = Latest date an activity can be completed
ES
LS LF
EF
Duration
Forward pass
Backward pass
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Critical Chain Method
• Critical Chain is a schedule method that allows the project team to
place buffers on any project schedule path to account for limited
resources and project uncertainties.
• The resource-constrained critical path is known as the critical path.
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Develop Schedule: Tools and Techniques
Resource Optimization Techniques
1. Resource
leveling. A
technique in which
start and finish
dates are adjusted
based on resource
constraints with the
goal of balancing
demand for
resources with the
available supply.
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Modeling Techniques
1. What-If Scenario Analysis. is the process of evaluating scenarios
in order to predict their effect, positively or negatively, on project
objectives.
2. Simulation. involves calculating multiple project durations with
different sets of activity assumptions, usually using probability
distributions constructed from the three-point estimates
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Schedule Compression
• Fast Tracking
 Performing critical path tasks in parallel and
riskier than crashing
 Eg,.Design is half finished and start coding
• Crashing
 Analyze cost and schedule trade-offs
 Determine most compression for least cost
 Crash the tasks that cost the least first,
focusing on minimizing project cost
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Milestone Chart
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Project Calendars
• project calendar identifies working days and shifts that are available
for scheduled activities. It distinguishes time periods in days or parts
of days that are available to complete scheduled activities from time
periods that are not available. A schedule model may require more
than one project calendar to allow for different work periods for
some activities to calculate the project schedule. The project
calendars may be updated.
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50
Sample PMPSample PMP
CertificationCertification
QuestionsQuestions

Exercise
Q1. The estimate for a task is O = 3 days, P = 7 days, M = 4 days. What is the standard
deviation of the task?
– A. 5/6 of a day -B. 2/3 of a day -C. 1 ½ days -D. 5 2/3 days
Solution: SD = (P-O)/6 = (7-3)/6 = 2/3
Q2. You are the project manager for a new project and have figured out the following
dependencies:
• Task 1 can start immediately and has an estimated duration of 3 weeks
• Task 2 can start after Task1 is completed and has an estimated duration of 3 weeks
• Task 3 can start after Task 1 is completed and has an estimated duration of 6 weeks
• Task 4 can start after Task 2 is completed and has an estimated duration of 8 weeks
• Task 5 can start after task 4 is completed and after Task 3 is completed . This task
takes 4 weeks.
• What is the duration of the critical path?
– A. 18.5 weeks -B. 19 weeks -C. 20 weeks -D. 18 weeks
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• You are the project manager for
a project with the following
network diagram. Studying the
diagram, which path is the
critical path?
A. ABCD
B. EBCD
C. EFH
D. EGH
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Exercise

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Chapter 7
Project Cost Management
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Forecasting
• Using the earned value analysis, team can now forecast the project
performance.
• Estimate at completion (EAC) may differ from Budget at Completion (BAC)
• Estimate to complete (ETC) is the estimate of remaining work. Now
Estimate at completion = AC + ETC.
Control Costs- Tools and Techniques
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Plan Human Resource Management:
Outputs
Human Resource Management Plan - which includes:
 Roles and Responsibilities
• Role. The function assumed by or assigned to a person in the project.
• Authority. The right to apply project resources, make decisions, sign
approvals, accept deliverables, and influence others to carry out the work of
the project.
• Responsibility. The assigned duties and work that a project team member is
expected to perform in order to complete the project’s activities.
• Competency. The skill and capacity required to complete assigned activities
within the project constraints.06/02/13 10:23 56

Acquire Project Team
The process of confirming human resource availability and obtaining the team
necessary to complete project activities.
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• Multi-Criteria Decision AnalysisMulti-Criteria Decision Analysis
 Knowledge. Consider if the team member has relevant knowledge of the customer,
similar implemented projects, and nuances of the project environment.
 Skills. Determine whether the member has the relevant skills to use a project tool,
implementation, or training.
 Attitude. Determine whether the member has the ability to work with others as a
cohesive team.
 International factors. Consider team member location, time zone and
communication capabilities.
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Acquire Project Team: Tools &
Techniques

Develop Project Team
• Develop Project Team is the process of improving competencies,
team member interaction, and overall team environment to enhance
project performance.
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Motivation Theory: McGregor’s X & Y Theory
Theory XTheory X
• People tends to be negative, passive e.g. Avoid responsibility,People tends to be negative, passive e.g. Avoid responsibility,
need to be watchedneed to be watched
• Extrinsic MotivationExtrinsic Motivation
Theory YTheory Y
• People tends to be positive e.g. Want to achieve, willing toPeople tends to be positive e.g. Want to achieve, willing to
work without supervision, can direct their own effortwork without supervision, can direct their own effort
• Intrinsic MotivationIntrinsic Motivation
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Herzberg’s Theory
• Job Satisfaction due to lack of hygiene factors
• Job satisfaction due to motivation factors
Hygiene Factors
Working condition
Salary
Personal life
Relationship at work
Security
status
Motivations Factors
Responsibility
Self actualization
Professional growth
recognition
Personal life
Relationship at work
Security
status
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Develop Project Team: Tools &
Techniques
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Develop Project Team: Tools and
Techniques
Team Building Activities
One theory states that there are 5 stages of development that the teams may
go through. Usually these stages occur in an order .
1. Forming : this phase is where the team meets and learns about the project
and what their formal roles and responsibilities are . Team members tend to
be independent and not as open in this phase
2. Storming : During this phase , the team begins to address the project work,
technical decisions , and the project management approach . If team
members are not collaborative and open to differing ideas and perspectives
the environment can become destructive.
.
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Plan Communications Management: Tools and
Techniques
• Communication Requirements Analysis
The total number of potential
communication channels is n(n – 1)/2,
where n represents the number of
stakeholders
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2
)1( −NN

Communication Methods:Communication Methods:
• Interactive communication - Between two or more parties in
multidirectional (Phone calls, meetings, interviews).(Phone calls, meetings, interviews). Most effective way.
• Push communication - Sent a specific information to specific recipients.
Examples are letters, memos, e-mails, faxes etc.Examples are letters, memos, e-mails, faxes etc. This ensures that
message is sent but will but will not certify that it is actually received or
understood. (Push the message to recipient)
• Pull communication – Used for large volume of information and large
audiences. Examples are internet sites, company data bases, e-learningExamples are internet sites, company data bases, e-learning
etc.etc. Recipients has to access the communication content (Pull out
information) at their own discretion.
Plan Communication : Tools & Techniques
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Chapter 11
Project Risk Management
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• Modelling and Simulation: Project simulations allow the project team to
play “what-if” games without affecting any areas of production. The Monte
Carlo technique is the most common simulation.
• Monte Carlo, typically completed through a computer software program,
completely simulates a project with values for all possible variables to
predict the most likely model.
Perform Quantitative Risk Analysis – Tools &
Techniques
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Control Risks
Control Risks is the process of implementing risk response plans, tracking
identified risks, monitoring residual risks, identifying new risks, and evaluating
risk process effectiveness throughout the project.
Control Risks – Tools & Techniques
Reserve Analysis: it compared the amount of the contingency reserves
remaining to the amount of risk remaining at any time in the project
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Chapter 12
Project Procurement Management
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Project Procurement Management
• Plan Procurement Management is the process of documenting project
procurement decisions, specifying the approach, and identifying potential
sellers.
• PM must be involved in the creation of the contracts
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Project Procurement Management– Tools &
Techniques
Make-or-Buy Analysis
It is a general management technique used to determine whether particular
work can best be accomplished by the project team or must be purchased
from outside sources.
•You are trying to decide whether to lease or buy an item for your project. The
daily lease cost is Dhs. 120. To purchase the item investment cost is Dhs.
1000 and the daily cost is Dhs. 20. How long will it take for the lease cost to be
the same as the purchase cost?
•Let D equal the number of days when the purchase and lease costs are
equal.
•QR 120 D = QR 1000 + QR 20 DQR 120 D = QR 1000 + QR 20 D
•QR 120 D - QR 20 D = QR 1000QR 120 D - QR 20 D = QR 1000
•QR 100 D = QR 1000QR 100 D = QR 1000
•D = QR 1000 / QR 100D = QR 1000 / QR 100
•D = 10D = 10
The least cost will be the same as the purchase cost after ten days.
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Contract Types:
Contract is a mutually binding legal agreement that
obligates the seller to provide the specified products,
services or results, and obligates the buyer to
compensate the seller.
• The contract may includes the following: An offer,
Acceptance, Pricing, roles and responsibilities,
penalties, warranty,
1. Purchase Order: Contract to purchase 30 linear
meters of wood at Dhs. 40 per meter
Legal Contractual Relationships
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Chapter 13
Project Stakeholder ManagementProject Stakeholder Management
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Identify Stakeholders
• Identify Stakeholders is the process of identifying the people,
groups, or organizations that could impact or be impacted by a
decision, activity, or outcome of the project, analyzing and
documenting relevant information regarding their interests,
involvement, interdependencies, influence, and potential impact on
project success.
• It is critical for project success to identify the stakeholders early in
the project or phase and to analyze their levels of interest, their
individual expectations, as well as their importance and influence.
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Identify Stakeholders: Tools and Techniques
• Stakeholder Analysis: is a technique of systematically
gathering and analyzing quantitative and qualitative
information to determine whose interests should be
taken into account throughout the project.
06/02/13 10:23 78

Identify Stakeholders : Tools &
Techniques
• Step 1:Identify all potential project stakeholders and
relevant information such as their roles, departments,
interest, knowledge levels, expectations and influence
levels .
• Step 2 :Identify the potential impact or support each
stakeholder could generate and classify them so as to
define an approach strategy.
• Step 3 : Access how key stakeholders are likely to react
in various situations and plan how to influence them for
their support and mitigate potential negative impact
06/02/13 10:23 79

Plan Stakeholder Management: Tools
and Techniques
• Analytical Techniques:
The engagement level of the stakeholders can be classified as follows:
 Unaware. Unaware of project and potential impacts.
 Resistant. Aware of project and potential impacts and resistant to
change.
 Neutral. Aware of project yet neither supportive nor resistant.
 Supportive. Aware of project and potential impacts and supportive
to change.
 Leading. Aware of project and potential impacts and actively
engaged in ensuring the project is a success.
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Chapter 13
Professional Responsibility
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Professional Responsibility
• About 18 questions on the exam cover this part.
• The PMP must adhere to a high set of principles, rules, and policies.
• On the PMP exam, always choose the answer which best supports the PMP
profession and the higher set of principles the PMP is expected to adhere to.
• Did you realize that it is unethical to manage a project if you have not been
trained in project management? Did you know that it is unethical to provide a
project schedule that you do not believe to be accurate?
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Responsibility- ownership of decisions
and actions
• Make decisions based on the best interests of the company and the team,
as well as society, rather than your own interest.
• Inform the sponsor of your real qualifications if its not matching the project
before accepting the assignment
• Do what you say you will do
• Acknowledge your own errors
• Respect confidentiality requirements
• Uphold laws
• Report unethical behaviour to the management
• Report violations of PMI’s code of ethics and professional conduct
06/02/13 10:23 84

Respect- the appropriate treatment of
people and resources
• Maintain an attitude of mutual cooperation
• Respect cultural differences
• Don't gossip or saying things that could damage another persons reputation
• Engage in good faith negotiations
• Respect others
• Be direct in dealing with conflict
• Do not use your power or position to influence others for your own [personal
benefit
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Q4
You are the project manager of the LKH Project. This project must be
completed within six months, but after two months the schedule has begun to
slip. As of now, the project is one week behind schedule. Based on your
findings, you believe you can make some corrective actions and recover the
lost time over the next month to get the project back on schedule for its
completion date. Management, however, requires weekly status reports on
cost and schedule. Which of the following should you do?
A. Report that the project is one week behind schedule, but will finish on
schedule based on cited corrective actions.
B. Report that the project is on schedule and will finish on schedule.
C. Report that the project is off schedule by a few days, but will finish on
schedule.
D. Report that the project is running late.
06/02/13 10:23 87

Q5
You are a project manager within an organization that completes technical
projects for other entities. You have plans to leave your company within the
next month to launch your own consulting business—which will compete with
your current employer. Your company is currently working on a large proposal
for a government contract that your new company could also benefit from.
What should you do?
A. Resign from your current job and bid against your employer to get the
contract.
B. Decline to participate due to a conflict of interest.
C. Help your employer prepare the proposal.
D. Inform your employer that you will be leaving their company within a month
and it would be inappropriate for you to work on the current proposal.
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Q6
Your company does not allow project managers to accept gifts from vendors of
any kind. A friend that you have known for years now works for a vendor that
your company may be doing business with. Your friend from the vendor asks
you to lunch to discuss an upcoming project and you accept. When the check
arrives at the lunch table, your friend insists on paying. You should:
A. Allow the friend to buy because you’ve been friends for years.
B. Allow the friend to buy because lunch isn’t really a gift.
C. Don’t allow the friend to buy because your company does not allow any
gifts from vendors.
D. Insist that you purchase your friend’s lunch and your friend buys yours.
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Q7
You are the project manager of the AAA Project. Due to the nature of the
project, much of the work will require overtime between Christmas and New
Year’s Day. ManyDay. Many of the project team members, however, have requested
vacation during that week. What is the best way to continue?
A. Refuse all vacationRefuse all vacation requests and require all team members to work.
B. Only allow vacation requests for those team members who are not needed
during that week.
C. Divide tasks equally among the team members so each works the same
amount of time.
D. Allow team members to volunteer for the overtime work.
06/02/13 10:23 91

Tricks for the PMP Exam
• Bring the authorization letter from PMI to the test siteBring the authorization letter from PMI to the test site
• Bring snacks, you can not eat in the test room, but you can out ofBring snacks, you can not eat in the test room, but you can out of
the room.the room.
• The exam will not be adapted according to you, 200 Q’s will beThe exam will not be adapted according to you, 200 Q’s will be
selected in the beginning and it will not be changedselected in the beginning and it will not be changed
• You can mark questions in order to return to it backYou can mark questions in order to return to it back
• Most of the questions are situationalMost of the questions are situational
• You can re-take the exam for 2 times only.You can re-take the exam for 2 times only.
06/02/13 10:23 92

06/02/13 10:23 93

Pmp project management professional free sample

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