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Project Management Professional (PMP) Exam Preparation Free Sample

(Based on Guide to PMBOK 5th Edition) By Ready to Present


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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 to project activities to meet project requirements
Project Management is accomplished through the application and integration of the processes such as

Initiating Planning Executing Monitoring and Controlling

Closing

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The Triple Constraint of Project Management


It is the project managers duty to balance and achieve

these three often-competing goals.

Scope

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Constraint of Project Management


Cost

Project

Customer Satisfaction

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Project, Program, Portfolio

Project E

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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) Project Phases are marked by the completion of a deliverable (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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Project Life Cycle


Construction: Feasibility-> Planning -> Design -> Production -> Turnover -> Startup IT Project: Requirement -> Design -> Program -> Test -> Implement

Initiation
Handoff Project Phase 1 Gates Project Phase 2 Gates Handoff Project Phase 3 Gates Handoff Project Phase 4

Conclusion

Deliverables

Deliverables

Deliverables

Project phases differ from project to another


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Fast Tracking
There are times when phases are

overlapped to shorten or compress the project 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. schedule. This is called Fast

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Project Stakeholders

An important part of a project managers responsibility is to manage stakeholder expectations, which can be difficult because

stakeholders often have very different or conflicting objectives. Part of the project managers responsibility is to balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner.

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Stakeholders Influence Over Time

Initial Phase Cost and staffing level

Intermediate Phase(s)

Final Phase

influence of stakeholders

cost of changes

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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.9:53 AM 6/1/2013
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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 teams 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 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 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 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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Economic Model
1. Present 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 Year 0 1 2 FV $50,000 $35,000 $15,000 PV $50,000 $31,819 $12,397

Assume a 10% interest (or discount) rate PV (Year 1) = FV / (1 + r)t =$35,000/(1 + 0.1)1= $31,819

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Economic Model
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 0 1 2 3 Total

Income or revenue 0 50 100 300

Present Value at 10% interest rate 0 45 83 225 353

Costs

Present Value at Costs 10% interest rate 200 91 0 0 291

200 100 0 0

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NPV=353-291=62

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Collect Requirements Outputs


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.

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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 bottomup 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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Estimate Activity Durations : Tools & Techniques


PERT Calculations
Activity
A

O
14

M
27

P
47

PERT

SD

Variance

Range

B
C D

41
39 29

60
44 37

89
48 42

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


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Estimate Activity Durations : Tools & Techniques


PERT Calculations
Activity
A B C D

O
14 41 39 29

M
27 60 44 37

P
47 89 48 42

PERT
28,167 61,667 43,833 36,500

SD
5.5 8 1.5 2.167

Variance
30,25 64 2.25 4.694

Range
28.167+/-5.5 61.667+/-8 43.833+/-1.5 336,5+/-2.167

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


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Estimate Activity Durations : Tools & Techniques


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.

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Estimate Activity Durations : Tools & Techniques


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

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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


Duration ES EF

Forward pass

Backward pass

LS

LF

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
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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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Develop Schedule: Tools and Techniques 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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Develop Schedule: Tools and Techniques 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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Sample PMP Certification Questions

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 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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Exercise
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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Chapter 7
Project Cost Management

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Control Costs- Tools and Techniques


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.

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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 projects activities. Competency. The skill and capacity required to complete assigned activities constraints.
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Acquire Project Team


The process of confirming human resource availability and obtaining the team necessary to complete project activities.

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Acquire Project Team: Tools & Techniques


Multi-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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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: McGregors X & Y Theory


Theory X
People tends to be negative, passive e.g. Avoid responsibility, need to be watched Extrinsic Motivation

Theory Y
People tends to be positive e.g. Want to achieve, willing to work without supervision, can direct their own effort Intrinsic Motivation

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Herzbergs 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


Team Building Activities: Such
activities can vary from a five minute agenda item in a status review meeting to an off-site, professionally facilitated experienced designed to improve interpersonal relationships. Informal communication and activities

supported building trust and


establishing good working relationships.

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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

N ( N 1) 2

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Plan Communication : Tools & Techniques


Communication Methods: Interactive communication - Between two or more parties in multidirectional (Phone calls, meetings, interviews). Most effective way. Push communication - Sent a specific information to specific recipients. 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-learning


etc. Recipients has to access the communication content (Pull out information) at their own discretion.
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Chapter 11
Project Risk Management

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Perform Quantitative Risk Analysis Tools & Techniques


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.

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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 D QR 120 D - QR 20 D = QR 1000 QR 100 D = QR 1000 D = QR 1000 / QR 100 D = 10 The least cost will be the same as the purchase cost after ten days.
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Legal Contractual Relationships


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

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Chapter 13
Project 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.

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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

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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?

Responsibility

Respect

Fairness

Honesty

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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 PMIs code of ethics and professional conduct

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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.
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the project is running late.

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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 businesswhich 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 youve been friends for years.
B. Allow the friend to buy because lunch isnt really a gift. C. Dont allow the friend to buy because your company does not allow any gifts

from vendors.
D. Insist that you purchase your friends 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 Years Day. Many of the project team members, however, have requested vacation during that week. What is the best way to continue? A. Refuse 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.

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Tricks for the PMP Exam


Bring the authorization letter from PMI to the test site Bring snacks, you can not eat in the test room, but you can out of the room. The exam will not be adapted according to you, 200 Qs will be

selected in the beginning and it will not be changed


You can mark questions in order to return to it back Most of the questions are situational

You can re-take the exam for 2 times only.

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