PMP Study Guide
Process – inputs, tools and techniques and outputs
Phases – it is a set of work that has a set of deliverables that create a exit gate or Kill point where you decide, if the project should go on.
Project – a temporary group of related tasks to create a unique product, service, or result.
Program – it is a coordinated group of projects in order to gain some benefit that you would not gain if the projects were not grouped together.
Portfolio – it is all of a company’s projects and programs. They should be aligned around the company’s strategic goals.
Progressive Elaboration – you do not know all the characteristics of a project when you start it.
Project Management - using skills, knowledge and resources to satisfy project requirements
Baseline – is the original plan plus any approved changes
Regulation – guidelines that must e followed.
Standard – guidelines that are recommended, but not mandatory
System – all the formal processes and tools put in place to manage something. This can be equipment, policies and procedures
Project Manager – is ultimately responsible for the project. They exist in matrix and projectized organizations.
Project Coordinator – this role is weaker than project manager. They are found in weak matrix or functional organizations.
Project Expeditor – This is the weakest role and has little or no formal authority and they report to an executive who has formal authority over the project.
Senior Management – anyone more senior than the project manager. Senior Management’s role is to prioritize projects and make sure the project manager has authority and resources to complete the project. Senior management may also be called upon to resolve conflicts.
Functional Manager – is the department manager that manages the people assigned to a project.
Stakeholder – these are the people who will be positively or negatively impacted by a project. The key stakeholders are the most important or influential on the project.
Sponsor – is the person paying for the project. They are sometimes called the project champion. They provide due dates, milestones, features, constraints and assumptions. They can also step in when the customer had a problem.
Project office – This office usually provides support to project managers with tools, training and setting standards.
Types of Organizations
Functional – a company is organized by functions and projects have very little power.
Weak Matrix – Project managers have some power, but functional teams have most of the power.
Balanced Matrix – project managers and functional teams share power
Strong Matrix – project managers have most of the power, but functional teams have some power.
Projectized – projects gain great control over resources and projects. The downsides are Higher overhead, chain of command confusion, contention, less loyal to project managers.
Project Manager skills
leading, communicating, negotiating, problem solving, and influencing
Conceptual -> Planning -> Construction -> Testing -> Implementation -> Closure
Triple Constraint or Iron Triangle – Time, Cost and Scope are all interrelated.
Project Management Methodology – PMBOK does not describe a methodology. It describes 42 processes used to manage a project.
Work Authorization System (WAS) – It is part of a Project Management Information System (PMIS). It is used to ensure that work is performed at the right time by the right people.
Enterprise Environmental Factors – These are things that impact the project, but are not part of the project itself, like org structure, company values, org infrastructure, etc.
Organizational Process Assets – information, documents and tools your company has to help plan your project.
a single document that guides the execution, monitoring, control and closure of a project. The plan is a combination of several documents.
Scope Management Plan
Requirements management Plan
Schedule management Plan
Cost management plan
Process improvement plan
Quality management plan
Process improvement plan
Human resource plan
Communications management plan
Risk management plan
Procurement management plan
Cost performance baseline
Work Performance Information – this is information that comes out of performing the project
Expert Judgment – This is expertise relied on when the project manager or team do not have expertise in an area and need help from an expert outside the team.
Project Management Information System – it is an automated system that helps the project manager to produce and keep track of documents and deliverables.
Change Requests – All requests to increase or decrease the scope of the project should be brought before the Integrated Change Control.
Updates – these come out of planning, executing, monitoring and controlling processes.
Processes – inputs, tools and techniques and outputs create a process.
Each of the 42 PMI processes can be found in the five foundational processes and also categorized in the knowledge areas.
Progressive Elaboration – as you work through a project, you may need to do a process several times to get it right.
Integration management focuses on the big picture and coordinating the project. The philosophy behind integration management is two things. First, the team should be engaged during planning, but decisions during execution should be managed by the project manager. Second, processes are not always discrete. They may overlap and change.
Statement of Work (SOW) – a written description of the project’s product, service, or result. This will be supplied by the customer.
Business Case – explains why the project is being undertaken, the problem it will solve and the benefits. Projects can be undertaken for market demand, business need, customer request, technology advance, legal requirement, ecological impact, or social need.
Project Selection methods:
Benefit Cost Ratio (BCR) – If you can make something for $100 and sell it for $150, the BCR is 1.5.
Economic Value Add (EVA) – calculates the cost of an investment with the interest rate versus the investiment cost and profits.
Internal Rate of Return (IRR) – It expresses the returns of an investment as an interest rate.
Present Value (PV) – checks the cost of a project in terms of today’s dollars. Money today is worth more than the same money tomorrow. The bigger this number is the more attractive the project is.
Net Present Value (NPV) – This is the PV minus the cost of the project. The bigger this number is the more attractive the project is.
Return on Investment (ROI) = (benefit – cost) / cost
Return on Capital Investment (ROIC) = Net income / total capital invested
Project management plan – is a single written document that is an approved project plan by the organization. There is a project manager, project sponsor and functional manager providing resources. The plan defines how the project is managed, executed and controlled.
Collect Requirements – requirements document
Define Scope – project scope statement
Create Work Breakdown Structure (WBS) – WBS
Verify Scope – accepted deliverables
Control Scope – change requests
The project manager should always be in control of the scope and scope changes should be handled in a structured, procedural and controlled manner.
Scope – this is the work required to complete the project.