PMBOK 5th Edition E-Book

Project Management Professional
PMBOK 5th Edition
WWW.KNOWLEDGELITE.COM 1
INTRODUCTION TO PMI & PMP
Introduction to PMI & PMP
Agenda of the module is to learn:
• What are PMI and PMBOK?
• Certification offered by PMI
• PMP certification and pre-requisites for the PMP exam
• PMP Exam Syllabus & Exam Structure
• Why do organization’s want certified Project Managers?
• What are your opportunities?
What are PMI and PMBOK?
 PMI: Project Management Institute
 PMI official website www.pmi.org
 PMI is the world’s leading not-for-profit membership association for the
project management profession.
 PMI offers PMP (Project Management Professional) examinations across the
world.
 PMBOK Guide: Project Management Body of Knowledge
 PMBOK Guide is the principal reference for the PMP exam and an Approved
 American National Standard (ANSI)
 Latest Edition of PMBOK is PMBOK 5th Edition
Certification offered by PMI
 Certified Associate in Project Management (CAPM)®
 Project Management Professional (PMP)®
 PMI Scheduling Professional (PMI-SP)®
 PMI Risk Management Professional (PMI-RMP)®
 Program Management Professional (PgMP)®
 Agile Certified Practitioner (PMI-ACP)SM
 Portfolio Management Professional (PfMP)SM credential
All Registered Trademarks and Service Marks are the property of the Project Management Institute
PMP certification and pre-requisites for the PMP exam
PMP exam is based on
 The PMBOK Guide (see PMP Exam Content Outline)
 PMI Code of Ethics and Professional Conduct & other current project
management practice
 Once certified PMP is valid for 3 years
 Holders must achieve 60 PDUs for renewal
 PDU: Professional Development Units
 1 PDU corresponds to 1 hour of professional development activity
Prerequisites for the PMP Exam
Category Formal Education PM Training PM Total

Experience Experience
1 Bachelors Degree or 35 contact 4,500 Hours 3years within
global equivalent hours last 6years
2 High school graduate 35 contact 7,500 Hours 5years within
or global equivalent hours last 8 years
PMP Exam Syllabus & Exam Structure
The PMP exam is based on the PMP Examination Specification, which describes
tasks out of six performance domains:
Initiating the project (11%)

Planning the project (23%)
Executing the project (27%)
Monitoring and controlling the project (21%)
Closing the project (9%)
Professional and social responsibility (9%)
Exam Structure
• There are 200 multiple choice questions to be answered in 4 hours.
• Only 175 answers count for examination purposes.
• 25 questions are randomly placed pretest (un-scored) questions.
• PMI grades the exam on each of the 10 Knowledge Areas
• Based on this grading declare a PMP pass or fail.
• Each right answer will earn 1 point.
• There is no penalty for wrong answers
Why do organization’s want certified Project Managers?
 Better control of financial, physical, and human resources

 Improved customer relations
 Shorter development times
 Lower costs
 Higher quality and increased reliability
 Higher profit margins
 Improved productivity
 Better internal coordination
 Higher worker moral
What are your opportunities?
15.7 million new project management
roles will be created globally across seven
project intensive industries
Increasing demand certified project

managers
INTRODUCTION TO PROJECT
MANAGEMENT & FRAMEWORK
Introduction to Project Management and Framework
• What is a Project?
• What is a Project-Portfolio-Program management?
• Project Management Office (PMO)
• Relationships among Portfolio management, Program management, Project
management, Organizational project management, Operations
management, & Organizational strategy
• Advantages of using formal Project management
• Role, responsibilities, competencies & interpersonal skills of the project
manager
• Project leadership and creating value
• Q and A, check your learning
What is a Project?
A project can be defined as “a
temporary endeavor undertaken
which has a beginning and an end
to create a unique product, service,
or result”
Operations is work done to sustain the business.
Projects end when their objectives have been reached or the project has been
terminated
In principal, projects are non-repetitive. Projects can be large or small and take
a short or long time to complete.
What is a Project-Portfolio-Program management?
Portfolio Management - Doing the right thing.
Project Management - Doing things right
Program Management - Getting the right results.
What is a Project-Portfolio-Program management?
Project Program
Specific scope & product Wide scope, blueprint & benefits
Minimize change Embrace change
Budget/Time/Quality Benefit delivery/ROI
Manage delivery team Manage by governance
Program management Portfolio management

Includes non project work Not a project; more an ongoing business
process
Bounded context Broad strategic focus
Audience defines by program goals Audience is senior executive level
Major themes Major Focus
• Benefit management • Alignment
• Stakeholder management • Decision making
• Governance • Doing the ‘right’ things
Project Management Office (PMO)
A project management office (PMO) is a management structure that
standardizes the project–related governance processes and facilitates the sharing
of policies, resources, methods, tools and techniques.
Supportive PMO
Controlling PMO
1. On demand support
Directive PMO
2. No executive control 1. Essential support
2. An agent- for- 1. Complete project
change control
2. Uniformity
Relationships among Portfolio management, Program
management, Project management, Organizational
project management, Operations management, &
Organizational strategy
Organization Strategy
An organization strategy
creates a Portfolio
Portfolio
A Portfolio can
have both Projects
& Programs
Projects Program
A Program can have many projects
Advantages of using formal Project management
• Better control of financial, physical, and human resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale (less stress)
Role of a Project Manager
Business Needs Business Product

Management Management Product Delivery
Project Constraints Project

Management
Managing project & Leading People
Project Life Cycle
Responsibilities of a Project Manager
The role of project manager comprises many responsibilities including:
• Planning and defining scope
• Resource planning
• Activity planning and sequencing
• Developing schedules
• Time estimating
• Cost estimating
• Developing a budget
• Creating charts and schedules
• Managing risks and issues
• Risk analysis
• Controlling quality
• Customer Liaison
• Team leadership
• Documentation
• Strategic influencing
• Scalability, interoperability and portability analysis
Competencies & interpersonal skills of a Project Manager
Competencies Interpersonal skills:
Leadership
Team Building
Knowledge Personal
Motivation
Communication
Influencing
Performance Decision making
Political & Cultural awareness
Negotiation
Trust Building
Conflict Management
Coaching
Project Leadership and Creating Value
Leadership factors Your personal action
1. Project Vision and Mission
2. Strategic Value
3. Visible Support
4. Emphasis on Planning
5. Consulting with the team and the client
6. Team Motivation
7. Assess Technical Ability
8. Client Acceptance and Exit Strategy
9. Monitoring and Control Process
10. Effective communication
11. Problem identification
12. A solid project management methodology
ORGANIZATIONAL INFLUENCES
& PROJECT LIFE CYCLE
Organizational influences and Project Life Cycle
• Organizational structures
• Organizational Process assets
• Enterprise Environmental factors
• Project stakeholder & Governance
• Project life cycle
Organizational structures
Functional organization structure
Functional organizations are entities that have a clear division regarding business
units and their associated responsibility.
Managing
Director
Director Director
Manager Manager Manager Manager Manager
Resource Resource Resource
Resource
Matrix organization structure
Matrix structures are organizations that have a blend of departmental duties and
employees together on a common project. The project team member to be from
multiple departments working toward the project completion. Team member will
report to multiple project managers and functional managers.
Managing Director
Director Director
Manager Manager Manager Project Manager
Resource Resource
Resource Resource
Resource Resource
Resource
Projectized organization structure
The project manager in a projectized structure may have complete power over
the project team. Project manager in a projectized structure enjoy a high level of
autonomy over their projects but also have a higher level of responsibility
regarding the project success.
Project
Manager
Team Team
Leader Leader
Resource Resource Resource Resource Resource
A composite organizational structure is frequently used by organizations where

all three types of structures are used at different levels or for different projects.
Organizational Process assets
Organizational process assets are the plans, processes, policies, procedures, and
knowledge bass specific to and used by the performing organization.
So Organizational Process Assets may include but not limited to all the
documents, formal and informal plans, processes, templates, policies,
procedures, plans, guidelines, knowledge base such as lessons learned and
historical data and information.
Organizational process assets may also include completed schedules, risk data,
and earned value data. Organizational process assets are inputs to most planning
processes. Throughout the project, the project team members may update and
need to add the organizational process assets as necessary.
Enterprise Environmental factors
Enterprise environmental factors refer to both internal and external factors that
surround or influence a project’s success. These factors may come from any or all
of the enterprises involved in the project. Enterprise environmental factors may
enhance or constrain project management options and may have a positive or
negative influence on the outcome. They are considered as inputs to most
planning processes.
Organizational environmental factors include the following:

• Culture and structure
• Infrastructure and resources
• Internal and external conditions
Project Stakeholder & Governance
Project Life cycle
The Project Life Cycle is a logical sequence of activities required to accomplish
the project’s goals or objectives.
Project Life cycle types
Topic Predictive Iterative Adaptive (agile)
Sequential, overlapping,
Phases Sequential, overlapping Sequential, overlapping
parallel
High-Level Scope Yes Yes Yes
Only for each phase or

Detailed Scope At beginning of project Only for each phase
iteration
High-Level Planning Yes Yes Yes
At beginning of project Only for each phase or

Detailed Planning Only for each phase
OR rolling wave iteration
Product is not well

Product is well Large and complex
When Used understood, rapidly
understood projects
changing environments
Beginning, when scope
Customer involvement changes, and project Periodic Continuous
end
PROJECT MANAGEMENT
PROCESS GROUPS
Project Management Process Groups
• Overview of PMBOK 5- 47 Processes Project Management
• Brief about Initiating Process group
• Brief about Planning Process group
• Brief about Executing Process group
• Brief about Monitoring & Controlling Process group
• Brief about Closing Process group
• Role of Knowledge areas
Overview of PMBOK 5- 47 Processes Project Management
There are 5 process groups:
1) Initiating
2) Planning
3) Executing
4) Monitoring & Controlling
5) Closing
10 Knowledge areas are:

1) Integration Management
2) Scope management
3) Time management
4) Cost management
5) Quality management
6) Human resource management
7) Communications management
8) Risk management
9) Procurement management
10) Stakeholder management
Initiating Process group
The processes that facilitate the formal authorization to start a new project or a
project phase.
Includes the following project management processes:
 Develop project charter to initiate & authorize the project.

 Identifying stakeholders by identifying all people or organizations
impacted by the project, and documenting relevant information regarding
•Their Interests,
•Involvement, and
•Potential impact on project success.
Planning Process group
This process group consists of those processes that:
 establish the total scope of the project,
 define and refine the objectives, and
 develop the course of action required to attain those objectives.
The planning processes develop the project management plan and the project
documents that will be used to carry out the project such as:
 Requirements traceability matrix.
 Activity lists,
 Activity attributes,
 Risk register,
 etc
Executing Process group
The executing process group is where all the project work related planning steps
are put into action.
Can be thought of as the "do" component of the plan-do-check-act cycle model.
Actions during execution process:
 Manage project execution
 Develop and Manage project team
 Manage stakeholder engagement
 Implementing quality standards and assurance
 Implement training needs
 Implement approved changes
 Conduct procurement as per the plan
 Manage communications
 Update project document
Monitoring & Control Process group
A project needs consistent monitoring and controlling in order to stay within
scope, be completed on time and within the allocated budget.
The monitoring and controlling process group concerns two main aspects of
project management:
 Monitoring and measurement of project performance, making
adjustments as needed with the end goal of maintaining the project on
its pre-planned course.
 Providing the checks and balances needed to determine how a project is
performing.
Closing Process group
The closing process group formalizes acceptance of the product, service, or
result and brings the project or project phase to an orderly end.
This group includes the processes used to formally terminate all activities of a
project or a project phase, to hand over completed work products, or to close a
cancelled project or project phase.
When a project comes to an end the following may occur:

Obtain acceptance by the customer
Measure customer satisfaction
Conduct end review
Study impacts of tailoring to any process.
Finalize and implement lessons learnt
Close out procurements.
Hand over project deliverables to operations team.
Role of Knowledge areas
PROJECT INTEGRATION
MANAGEMENT
Project Integration Management
• What’s project integration management?
• Role of a project team
• Role of project sponsor
• Develop project charter
• Develop Project Management plan
• Direct and manage project work
• Monitor and control project work
• Perform integrated change control
• Close project or phase
• Inputs
• Tools and techniques
• Outputs
• Project selection methods
What’s project integration management?
Combine
Define Unify
Identify Integration Coordinate
6 Processes of IM
Develop Project Direct & Manage

Develop PM plan
charter project work
Perform integrated Monitor & Control

Close project or phase
change control project work
Role of a Project Team
Project Communication Project Monitoring the project’s critical path

Manager
Change control Risk Management

Project
Team
Other
PM Team
individuals
Deliver project’s products Day to day management of the project
Role & responsibilities of a Project Sponsor
The Project Sponsor is the individual with overall accountability for the project.
Primary concern of the sponsor is to ensure that the project delivers the agreed
business benefits.
Typical responsibilities:
• ensuring that the business need is valid and correctly prioritised
• ensuring that the project is properly launched
• ensuring that the project remains a viable business proposition
• ensuring changes to the project are properly managed including risks
• establishing the project organisation, roles and reporting structure
• ensuring the project is under control
• approving key project deliverables
• initiating project reviews and supporting the process of review
• resolving issues (typically competition for resources and priority clashes) that
are beyond the control of the Project Manager
• resolving conflict and removing obstacles to progress
• overall quality of the project, both the methods used to develop it and the end
product.
Develop Project charter
Develop Project Charter - the process of developing a document that formally

authorizes the existence of a project and defines the responsibility and
authority of the project manager to apply organizational resources to project
activities.
Inputs 1. Project statement of work (SOW)

2. Business case
3. Agreements
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques 1. Expert judgment
2. Facilitation technique
Outputs 1. Project charter
Develop Project management plan
Develop Project management plan – is the process of documenting all actions
required to define, prepare, integrate, manage and coordinate all subsidiary
plans. Which includes schedule, costs, communication, and quality of the
project.
Inputs 1. Project charter

2. Outputs from other processes (regarding
cost, schedule, quality, risk, procurement
& resources)
2. Facilitation technique
Outputs 1. Project management plan
Direct & Manage project work
Direct & manage project work – is the process of leading and executing the
work defined in the project management plan and implementing approved
changes to achieve the project’s objectives.
Inputs 1. Project management plan

2. Approved change requests
2. Project management information systems.
3. Meetings
Outputs 1. Deliverables
2. Work performance data
3. Change requests
4. Project management plan updates
5. Project document updates
Monitor & Control project work
Monitor & control project work is the process of collecting, tracking, reviewing and
reporting the performance objectives defined in the project management plan.
2. Schedule forecasts
3. Cost forecasts
4. Validated changes
5. Work performance information
2. Analytical techniques
3. Project management information system.
4. Meetings
Outputs 1. Change requests
2. Work performance reports
Perform Integrated Change Control
Perform integrated change control is the process of reviewing all change requests;
approving changes and managing change to deliverables, organizational process
assets, project documents, and the project management plan; & communicating
their disposition.
3. Change requests
2. Meetings
3. Change control tools
Outputs 1. Approved change requests
2. Change log
Close Project or Phase
Close project or phase is the process of formally closing either the project or
project phase.

2. Accepted deliverables
2. Analytical technique
3. Meetings
Outputs 1. Final product, service or result transition
2. Organizational process assets updates
Project selection methods
Scoring Model
Scoring Model is an evidence centred Design process by which to assess work
products through the application of set of criteria with a weight or score
assigned to each criterion in accordance with managerial policy.
Different weights can be assigned to different criteria to represent the varied

degree of importance given to various criteria.
All projects are evaluated against this set of criteria and the project with the
maximum score is selected.
Both objective and subjective criteria can be included, such as financial data,
organizational expertise, market value, innovation and fit with the corporate
culture.
Cost Benefit analysis
A financial analysis tool used to determine the benefits provided by a project
against its costs.
Benefit Cost Ratio (BCR) can be calculated as Benefit ÷ Cost

For the benefit to exceed cost, the BCR must be greater than 1.
Example: If the projected costs and benefits of two projects are:

Project X with a cost of USD5,000, generating an expected income of
USD30,000. The BCR is equal to USD30,000÷USD5,000 = 6.
Project Y with a cost of USD10,000, generating an estimated income of
USD50,000. The BCR is equal to USD50,000÷USD10,000 = 5.
Using BCR, project A will be chosen over project B
Economic Model
An economic model is used to estimate the economic efficiency of a project,
and it involves a set of calculations to provide overall financial data about the
projects and projects that offer the best monetary benefits to the company
would be prioritized.
The common terms involved in economic models are:

Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by
the cost.
Cash flow - cash flow refers to both the money coming in and the money going
out of an organization.
Internal Return Rate (IRR) - Another way of interpreting the benefit from the
project. It looks at the cost of the project as the capital investment & translates
the profit into the interest rate over the life of that investment.
Economic Model
Present Value (PV) and Net Present Value (NPV)
Net Present Value is the sum of the of all the cash flows of the project
(including both costs and benefits), each adjusted to today’s value (=Present
Value) according to estimated future inflation.
Alternative Projects can be compared using the NPV, even if they are not
expected to be completed during the same time frame and benefits are reaped
over different periods of time.
Constrained Optimization methods
Constrained optimization methods are concerned with predicting the success of
the project. These methods are based on complex mathematical models that
use formulae and algorithms to predict the success.
These models use the following kinds of algorithms:
• Linear
• Nonlinear
• Dynamic
• Integer
• Multiple objective programming
PROJECT SCOPE
MANAGEMENT
Project Scope Management
• What’s project scope management?
• Product scope Vs Project Scope
• Plan scope management
• Collect requirements
• Define scope
• Create WBS
• Example of Work breakdown structure
• Validate scope
• Control scope
• Inputs
• Outputs
What’s Project Scope Management?
Risk Time Risk
Scope
Quality Resource
Risk
6 Processes of SM
Plan scope Collect
Define scope
management requirements
Control scope Validate scope Create WBS
Product scope Vs. Project scope
Product scope - is the set of functions and features that characterize a product,
service, or result to be delivered by the project.
Project scope - is the work required to deliver the product scope.
The major goal of scope management is to ensure that all the required work
and only the required work is included and performed in the project. This goal
is accomplished by the following processes:
Collecting
Define scope Create WBS Verify scope Control scope
requirements
Plan scope management
Plan scope management is the process of creating a scope management plan
that documents how the project scope is defined, validated and controlled –
provides guidance and direction on who’s scope will be managed throughout the
project life cycle.

2. Project charter
2. Meetings
Outputs 1. Scope management plan
2. Requirements management plan
Collect requirements
Collect requirement defines and documents the product and project features that
are required to meet the expectations and requirement of project stakeholders.
Inputs 1. Scope management plan
2. Requirements management plan
3. Stakeholder management plan
4. Project charter
5. Stakeholder register
Tools & Techniques 1. Interviews
2. Focus groups
3. Facilitated workshops
4. Group creativity techniques
5. Group decision making technique
6. Questionnaires and surveys
7. Observations & prototypes
8. Benchmarking
9. Context diagrams & document analysis
Outputs 1. Requirements documentation
2. Requirement traceability matrix
Define scope
Define scope process defines and documents the project and product features and
functions needed to fill stakeholder's needs and expectations.

2. Project charter
3. Requirements documentation
2. Product analysis
3. Alternatives generation
4. Facilitated workshops
Outputs 1. Project scope statement
Create WBS (Work breakdown structure)
WBS is a deliverable-oriented hierarchical decomposition of the work to be
executed by the project team to accomplish the project objectives and create
the required deliverables, with each level of the WBS representing an
increasing detailed definition of the project work.
Create WBS is the process of sub-dividing project deliverables and project work
into smaller, more manageable components.

2. Project scope statement
Tools & Techniques 1. Decomposition
2. Expert judgment
Outputs 1. Scope baseline
Create WBS (Work breakdown structure) Example
WBS Example - Banquet
Provide
Level 1 1.0
Banquet
Level 2
1.1 1.2 1.3 1.4 1.5 1.6
Plan and Room and

Dinner Guests Staff Speakers
Supervise Equipment
1.3.1
1.1.1 Create 1.2.1 Make 1.4.1 Make 1.5.1 Hire
Identify Site/ 1.6.1 Invite
Plan Menu Guest List Shoppers
Room
1.2.2
1.4.2
1.1.2 Make Create 1.3.2 Set up 1.5.2 Hire 1.6.2
Receive
Budget Shopping Tables/Chairs Cooks Transport
RSVPs
List
1.1.3 Prepare 1.6.3
1.3.3 Lay out 1.4.3 Create 1.5.3 Hire
Disbursements/ 1.2.3 Shop Coordinate
Settings/Utensils Name Tags Servers
Reconciliation Topics
1.1.4
1.4.4 Review 1.5.4 Hire 1.6.4 Backup
Coordinate 1.2.4 Cook 1.3.4 Decorate
Special Needs Hosts for No-shows
Activities
Level 3 1.3.5 Prepare

1.2.5 Serve 1.5.5 Hire 1.6.5 Send
Equipment, Pots,
Dinner Cleanup Thank Yous
Etc.
Validate Scope
Validate scope is the process of formalizing acceptance of the completed project
deliverables.

3. Requirements traceability matrix
4. Verified deliverables
Tools & Techniques 1. Inspection
2. Group decision making techniques
Outputs 1. Accepted deliverables
2. Change requests
4. Project documents updates
Control Scope
Control scope is the process of monitoring the status of the project, product
scope and importantly changes to scope baseline.

3. Requirements traceability matrix
Tools & Techniques 1. Variance analysis
Outputs 1. Work performance information
2. Change requests
updates
PROJECT TIME
MANAGEMENT
Project Time Management
• What’s project time management?
• What is a project schedule?
• Plan schedule management
• Define activities
• Sequence activities (Precedence network diagram, Float, Leads & Lags)
• Estimate activity resources
• Estimate activity durations
• Develop schedule
• Control schedule
• Inputs
• Outputs
• Gantt Charts
• Network Diagram
• Schedule network analysis techniques
• PERT, PERT analysis, Critical Path Method and Schedule compression
What’s Project Time management?
Scope
Goal
Target
Time Cost
Goal Goal
7 Processes of TM
Plan Schedule Define Sequence Estimate Activity
Management Activities Activities Resources
Develop Estimate Activity

Control Schedule
Schedule Durations
What is a project schedule?
Project specific
data (e.g., WBS,
For constraints,
example dependencies etc.)
CPM Schedule
Model
Project
Scheduling Scheduling
Method Tool Information
Output
Project Schedule
Plan schedule management
Plan schedule management is the process of establishing the policies, procedures,
and documentation for planning, developing, managing, executing, and
controlling the project schedule.

2. Project charter
3. Meetings
Outputs 1. Schedule management plan
Define activities
Define activities is the process of identifying and documenting specific actions to
be performed to produce the project deliverables.
Inputs 1. Schedule management plan

2. Scope baseline
Tools & Techniques 1. Decomposition
2. Rolling wave planning
3. Expert judgment
Outputs 1. Activity list
2. Activity attributes
3. Milestone list
Sequence activities
Sequencing activities is where activities are put in order of when they should be
performed by defining the relationships between them.

2. Activity list
4. Milestone list
Tools & Techniques 1. Precedence diagramming
2. Dependency determination
3. Leads and lags
Outputs 1. Project schedule network
Precedence diagramming Method (PDM)
PDM is a tool for scheduling activities in a project plan. It is a method of
constructing a project schedule network diagram that uses boxes, referred to as
nodes, to represent activities and connects them with arrows that show the
dependencies
Float, Leads & Lags
Estimate activity resources
Estimate activity resources are the process of estimating the type & quantities of
resources required to perform each activity.
2. Activity list
4. Resource calendars
5. Risk register
6. Activity cost estimates
2. Alternative analysis
3. Published estimating data
4. Bottom-up estimating
5. Project management software
Outputs 1. Activity resource requirements
2. Resource breakdown structure
Estimate activity durations
Activity duration estimation is the process of identifying the time needed (work
period) to complete individual activities with estimated resources.
2. Activity list
6. Risk register
7. Resource breakdown structure
2. Analogous & parametric estimating
3. Three – point estimating
4. Group decision techniques
5. Reserve analysis
Outputs 1. Activity duration estimates
Develop Schedule
Develop schedule is the process of analyzing activity sequences, durations,
resource requirements and schedule constraints to create the project schedule.
Inputs 1.Schedule management plan 2.Activity list
3. Activity attributes 4. Project schedule network
5. Activity resource diagrams
requirements 6. Resource calendars
7. Activity duration estimates 8. Project scope statement
9. Risk register 10. Project staff assignments
11. Resource breakdown 12. Enterprise environmental
structure factors
13. Organizational process
assets
Tools & Techniques 1. Schedule network analysis
2. Critical path method & Critical chain method
3. Resource optimization techniques
4. Modeling techniques
5. Leads and lags, Schedule compression & Scheduling tool
Outputs 1.Schedule baseline 2. Project schedule
3. Schedule data 4. Project calendars
5. Project management plan 6. Project document updates
updates
Control Schedule
A process of monitoring the status of project activities to update project progress
and manage changes to the schedule baseline to achieve the plan.
2. Project schedule
4. Project calendars
5. Schedule data
Tools & Techniques 1. Performance reviews
3. Resource optimization techniques
4. Modeling techniques 5. Leads and lags
5. Schedule compression 7. Scheduling tool
2. Schedule forecasts
3. Change requests
Estimating Techniques
Analogous Estimating
Analogous estimating is a technique for estimating a variety of project
parameters and measures of scale.
Parametric Estimating
An estimating technique that uses a statistical relationship between historical
data and other variables to calculate an estimate for activity parameters, such as
scope, cost, budget, and duration.
Three Point Estimating

Three-point estimation technique is used to construct an approximate
probability distribution representing the outcome of future events, based on
very limited information.
Resource leveling & Resource Smoothing
30Hours 10Hours 20Hours 20Hours 20Hours 20Hours

WEEK 1
WEEK 2
WEEK 3
WEEK 1
WEEK 2
WEEK 3
Gantt Charts
A Gantt chart is a type of bar chart, that illustrates a project schedule. Gantt
charts illustrate the start and finish dates of the terminal elements and
summary elements of a project.
Network Diagrams
Network Diagram - bringing order to project work flows.
A network diagram is a sequence of steps (activities), commonly represented by
blocks, that are linked together in the logical sequence they need to be carried out
Fill kettle
Empty
with cold
Kettle water
Boil Warm
water Teapot
Add
Add tea Infuse
boiled
leaves water tea brew
Put Remove
Get cup & Pour
saucers strainer in strainer
cup tea from cup
Get milk Put milk Enjoy &

& sugar in cup Relax
Schedule network analysis techniques
PERT - Program Evaluation and Review

Technique
Scenario analysis technique
Monte Carlo Analysis
Critical Path Method
Critical path method is a analysis technique used to predict total project
duration. Three main purposes of critical path method are:
• To calculate the project's finish date

• To identify to what extent each activity in the schedule can slip (float)
without delaying the project
• To identify the activities with the highest risk that cannot slip without
changing the project finish date
To calculate the project overall duration, the CPM uses two calculation.
Forward Pass Backward Pass
Critical Path Example
Activity1 Activity3 Activity 4
Float = 2 Float = 0 Float = 0
Start Finish
Activity2 Activity5
Float = 0 Float = 5
3 7 2
Activity1 Activity1 Activity1
ES = 1 EF = 3 ES = 06 EF = 12 ES = 13 EF = 14
Start LS = 3 LF = 5 LS = 06 LF = 12 LS = 13 LF = 14
Start
5 4
Activity1 Activity1
ES = 1 EF = 5 ES = 06 EF = 09
LS = 1 LF = 5 LS = 11 LF = 14
Critical Chain Method
Critical Chain is a method of project management in which the primary emphasis
is placed upon the management of the resources involved in executing these
projects.
Schedule Compression
Schedule compression techniques are used to shorten the schedule duration
without reducing the project scope, in order to meet schedule constraints,
imposed dates, or other schedule objectives.
Activity Original Crash Time Original Crash cost Extra cost Cost per
duration in duration Saving cost month
months
A 14 12 2 10000 14000 4000 2000
B 9 8 1 17000 27000 10000 10000
C 3 2 1 25000 26000 1000 1000
D 7 5 2 14000 20000 6000 3000
Activities Cost
A-B 14000
A-C 5000
B-D 16000
Activity A-C looks least expensive hence it is the best option

to crash the project.
Fast tracking is performing two tasks in parallel that were previously scheduled to
start sequentially. Fast track will only work for activities that can be overlapped.
PERT Analysis
Program Evaluation Review Technique is a technique for estimating that applies
a weighted average of optimistic, pessimistic, and most likely estimates when
there is uncertainty with the individual activity estimates.
Most Likely Time (MLT) Optimistic Time (OT) Pessimistic Time (PT)
OT = Optimistic Time
PERT weighted average OT+4*MLT+PT MLT = Most Likely Time
6 PT = Pessimistic Time
PERT analysis steps
• Define the goal of the project and the tasks required to complete it
• Place tasks in a logical order and determine the critical path
• Calculate per activity the estimated durations using PERT = (OT+4*MLT+PT)/6]
• Compete this calculation for all tasks; making sure to group tasks on the
critical path separately
• Calculate per activity the standard deviation (SD) (SD=PT-TO/6) variance (V)
(V=SD2)
• Probability predictions can now be made using this information.
PERT Example
Let us see how to demonstrates how to use PERT to compute the weighted
average duration, and the variance of each activity in a given project.
ID Description Predecessor(s) OT MLT PT PERT 2
σ σ
1 Codify accounts None 16 19 28 20 2 4
2 File articles of unification None 30 30 30 30 0 0
3 Unify price and credit policy None 60 72 90 73 5 25
4 Unify personnel policies None 18 27 30 26 2 4
5 Unify data processing 1 17 29 47 30 5 25
6 Train accounting staff 1 4 7 10 7 1 1
7 Pilot run data processing 5 12 15 18 15 1 1
8 Calculate P & L & balance sheet 6, 7 6 12 24 13 3 9
9 Transfer real property 2 18 27 30 26 2 4
10 Train sales force 3 20 35 50 35 5 25
11 Negotiate with unions 4 40 55 100 60 10 100
12 Determine capital needs 8 11 20 29 20 3 9
13 Explain personnel policies 11 14 23 26 22 2 4
14 Secure line of credit 9, 12 13 16 19 16 1 1
15 End 10, 12, 14 0 0 0 0 0 0
The available paths and their durations are:
Path 1,5,7,8,12,15 with duration: 20 + 30 + 15 + 13 + 20 + 0 = 98 days
Path 1,5,7,8,12,14,15 with duration: 20 + 30 + 15 + 13 + 20 + 16 + 0 = 114 days
Path 1,6,8,12,15 with duration: 20 + 7 + 13 + 20 + 0 = 60 days
Path 1,6,8,12,14,15 with duration: 20 + 7 + 13 + 20 + 16 + 0 = 76 days
Path 2,9,14,15 with duration: 30 + 26 + 16 + 0 = 72 days
Path 3,10,15 with duration: 73 + 35 + 0 = 108 days
Path 4,11,13 with duration: 26 + 60 + 22 = 108 days
∑σ2 = 4 + 25 + 1 + 9 + 9 + 1 + 0 = 49
Z = (112 – 114)/7 = – 2/7 = – 0.285.
PROJECT COST
MANAGEMENT
Project Cost Management
• What’s project cost management?
• Plan cost management
• Estimate costs
• Determine budget
• Control cost
• Inputs
• Outputs
• Earned Value Management
• Earned value management illustration
• Forecasting
What’s project Cost Management?
Cost
Control
Cost Cost Resource

Budgeting Management Planning
Cost
Estimating
4 Processes of CM
Plan Cost Determine
Estimate Costs
management Budget
Control Costs
Plan cost management
Plan cost management is the process that establishes the policies, procedures,
and documentation for planning, managing, expending and controlling project
costs.

2. Project charter
3. Meetings
Outputs 1. Cost management plan
Estimate costs
Cost Estimating is the process of "developing an approximation of the monetary
resources needed to complete project activities".
Inputs 1. Cost management plan
2. Human resource management plan
3. Scope baseline
4. Project schedule
5. Risk register
Tools & Techniques 1.Expert judgment 2. Analogous estimating
3. Parametric estimating 4. Bottom-up estimating
5. Three-point estimating 6. Reserve analysis
7. Cost of quality 8. PM software
9. Vendor bid analysis 10. Group decision making
techniques
Outputs 1. Activity cost estimates
2. Basis of estimates
Cost baseline Vs Project Budget
Project Cost Baseline is an Project Cost Budget is sum of

"authorized time-phased" project cost estimates, contingency
project budget. reserve and management reserve
Determine Budget
Cost budgeting is the process of aggregating the estimated costs of individual
activities or work packages and negotiating to establish an authorized cost
baseline for assigning project cost.
Inputs 1.Cost management plan 2. Scope baseline

3. Activity cost estimates 4. Basis of estimates
5. Project schedule 6. Resource calendars
7.Risk register 8.Agreements
9. Organizational process
assets
Tools & Techniques 1. Cost aggregation
2. Reserve analysis
3. Expert judgment
4. Historical relationships
5. Funding limit reconciliation
Outputs 1. Cost baseline
2. Project funding requirements
Control costs
Control costs is the process of monitoring the status of the project to update costs
and managing changes to the cost baseline.

2. Project funding requirements
Tools & Techniques 1. Earned value management
2. Forecasting
3. To-complete performance index (TCPI)
4. Performance reviews
6. Reserve analysis
2. Cost forecasts
3. Change requests
Earned Value Management
Earned value management is a methodology that combines cope, schedule, and
resource measurements to assess project performance and progress. It is a
commonly used method of performance measurements for projects.
Three pieces of important data:
Planned value (PV) - The authorized budget for a planned piece of work. Also
called budgeted cost of work scheduled (BCWS).
Earned value (EV) - The authorized budget for work actually completed. Also
knows as Budgeted Cost of Wok Performed (BCWP).
Actual Cost (AC) - The costs actually incurred in completing the work actually
achieved. Sometimes called actual cost of work performed (ACWP)
Deriving PV, EV, AC
$500
A 100% $600
$1000
B 80% $1100
$2000
C 20% $300
$1000
D
PV (BCWS) = $ 2500
EV (BCWP) = $ 1700
AC (ACWP) = $ 2000
Calculating variance and index values (SV, CV, SPI, CPI)
PV (BCWS) = $2500
$
AC (ACWP) = $2000
EV (BCWP) = $1700
Time
SV = EV - PV SV = 1700 - 2500 = -800

CV = EV - AC CV = 1700 - 2000 = -300
SPI = EV/PV SPI = 1700 / 2500 = 0.68
CPI = EV/AC CPS = 1700 / 2000 = 0.85
Forecasting / Looking ahead (EAC, ETC, VAC, TCPI)
EAC ($)
BAC
$ EAC (Dur)
AC
EV
Time
Scenario1 EAC($) = BAC /CPI (c)

Scenario2 EAC($) = AC (c) + New ETC
Scenario3 EAC($) = AC (c) + BAC – EV(c)
EAC (dur) = BAC (dur) / SPI (c)
ETC ($) = (BAC-EV(c)) / CPI (c)
ETC ($) = New Estimate
ETC ($) = ETC = BAC –EV (c)
TCPI = (BAC-EV)/(BAC-AC)
Earned Value Management Illustration
Problem: A project has a budget of USD10M and schedule for 10 months. It is
assumed that the total budget will be spent equally each month until the 10th
month is reached. After 2 months the project manager finds that only 5% of the
work is finished and a total of USD1M spent.
Solution:
PV = USD2M
EV = USD10M * 0.05 = £0.5M
AV = USD1M
CV = EV-AC = 0.5-1 = -0.5M
CV% = 100 * (CV/EV) = 100*(-0.5/0.5) = -100% overrun
SV = EV-PV = 0.5-2 = -1.5 months
SV% = 100 * (SV/PV) = 100*(-1.5/2) = -75% behind
…continued
Earned Value Management Illustration
Problem: A project has a budget of USD10M and schedule for 10 months. It is
assumed that the total budget will be spent equally each month until the 10th
month is reached. After 2 months the project manager finds that only 5% of the
work is finished and a total of USD1M spent.
Solution:
CPI = EV/AC = 0.5/1 = 0.5
SPI = EV/PV = 0.5/2 = 0.25
EAC = BAC/CPI = 10/0.5 = £20M
ETC = (BAC-EV) / CPI = (10-0.5)/0.5 = £19M
Time to compete = (10-0.5)/0.25 = 38 Months
This project will take TOTAL £20M (19+1) and 40 (38+2) Months to complete.
EVM key Terms and Formula at glance
EVM Formulas and Interpretation
Name Formula Interpretation
Cost variance (CV) EV – AC NEGATIVE is over budget, POSITIVE is
under budget
Schedule variance (SV) EV - PV NEGATIVE is behind schedule, POSITIVE is
ahead of schedule
Cost Performance Index EV/AC I am [only] getting _____ cents
(CPI) out of every $1
Schedule Performance EV/PV I am [only] progressing at ___% of
Index (SPI) the rate originally planned
Estimate at Completion BAC/CPI As of now, how much do we expect the
(EAC) total project to cost. Used if past trends
are expected to continue into future.
AC+ETC Actual plus a new estimate for remaining

work. Used when original estimate was
fundamentally flawed
EVM Formulas and Interpretation
Name Formula Interpretation
Other ways to calculate AC+BAC- Actual to date plus remaining budget.
EAC EV Used when past results are not typical of
expected future results
Other ways to calculate AC+(BAC- Actual to date plus remaining budget
EAC EV)/CPI modified by performance. Used if past
trends are expected to continue into
future
Estimate To Complete EAC-AC How much more will the project cost?
Variance At Completion BAC-EAC How much over budget will we be at the
end of the project?
Forecasting
Forecasting is the process of predicting future project performance based the
current performance to date. PDU for PMI credit will include forecasting
method concepts.
Time series Method: This method uses historical data to estimate future
outcomes.
Causal/Econometric Methods: This method assumes that it is possible to

identify the underlying factors that might influence what is being forecasted.
Judgmental Methods: These methods incorporate intuitive judgments,

opinions, and probability estimates.
Communication Methods: Status review meetings can be used to discuss

information and the progress and performance of the project. A reporting
system provides a way for the project manager to convey information to the
stakeholders.
PROJECT QUALITY
MANAGEMENT
Project Quality Management
• What’s quality and project quality management?
• Cost of quality
• Plan quality management
• Perform quality assurance
• Control quality
• Inputs
• Outputs
• Seven basic tools of quality
What’s quality and project Quality Management?
Decrease Cost
Increase
Increase Profits
Productivity
Increase
Happy Client
Traceability
3 Processes of QM
Plan Quality Perform Quality

Control Quality
management Assurance
Cost of quality
Cost of quality can be defines as costs associated with not creating a quality
product.
Cost of Non-conformance - The money (and time) that will be spent due to the
failure of a deliverable from your project.
Cost of Conformance - The figure that is determined to be necessary to avoid
those failures in the first place.
Cost of
Quality
Cost of Poor Cost of Good

quality quality
Internal External Appraisal Prevention

Failure costs Failure costs Costs Costs
Plan quality management
The goal is to identify all relevant standards that apply to your project as well as
the quality requirements that you need to meet.
3. Risk register
Tools & Techniques 1. Cost-benefit analysis
2. Cost of quality
3. Seven basic quality tools
4. Benchmarking
5. Design of experiments
6. Statistical sampling
7. Additional quality planning tools
8. meetings
Outputs 1. Quality management plan
2. Process improvement plan
3. Quality metrics
4. Quality checklists
Perform quality assurance
Quality assurance ensures the proper implementation of the quality system.
Inputs 1. Quality management plan

2. Process improvements plan
3. Quality metrics
4. Quality control measurements
5. Project documents
Tools & Techniques 1. Quality management & control tools
2. Quality audits
3. Process analysis
Control quality
Control quality is the process of monitoring and recording results of executing the
quality activities so as to assess performance and recommend necessary changes.
2. Quality metrics
3. Quality checklists
6. Deliverables
Tools & Techniques 1. Seven basic quality tools
2. Statistical sampling
3. Inspection
4. Approved change requests review
Outputs 1. Quality control measurements
2. Validated changes
3. Validated deliverables
5. Change requests
Quality Planning Vs. Quality Assurance Vs. Control Quality
Quality Planning Quality Assurance Quality Control
Determine a plan for Determine if the project is Measures specific project

quality complying with the results (product) against
organizational policies standards
and procedures
A major task is A major task is conducting A major activity is to
preparation of the quality regular project audits. inspect and verify the
management plan project’s product defect
Results of the audit are repair, and measuring
corrective or preventive whether the quality
actions indicators are improving
or not
Seven basic tools of quality
Start
FLOWCHARTS
Do
A pictorial representation that uses
graphic symbols to depict the nature and
flow of the steps in a process in sequential
order. Decide Do
Benefits of using flowcharts:

• Promote process understanding Do
• Provide tool for training
• Identify problem areas and End
improvement opportunities
Start/end Process step Decision Connector Measurement

No M
Yes
Cause & Effect Diagram
A graphic tool that helps identify, sort, and

display possible causes of a problem or
quality characteristic. Cause A Cause C
Benefits of using cause & effect diagram:

• Helps determine root causes
• Encourages group participation Effect
• Uses an orderly, easy-to-read format
• Indicates possible causes of variation
• Increases process knowledge
• Identifies areas for collecting data Cause B Cause D
Check Sheets
Also known as Tally sheets and can be used as a checklist while gathering data.
Facts are organized in a manner, which is facilitate the effective collection of
useful data about a potential quality problem.
Histogram
A histogram is a vertical bar chart showing how often a particular variable

occurred.
Pareto Chart
Pareto chart is a bar chart arranged in descending order of height from left to
right. Bars on left relatively more important than those on right.
Scatter Diagram
Scatter diagram graphs pairs of numerical data, with one variable on each
axis, to look for a relationship between them. If the variables are correlated,
the points will fall along a line or curve. The better the correlation, the tighter
the points will hug the line.
Control Charts
Control charts also knows as shewart charts is a statistical tool used to

distinguish between process variation resulting from common causes and
variation resulting from a special cause. Control charts has a central line for the
average, an upper line for the upper control limit and a lower line for the lower
control limit.
UCL
observed data
Mean
LCL
time sequence
PROJECT HUMAN RESOURCE
MANAGEMENT
Project Human Resource Management
• What’s project human resource management?
• Functional manager Vs Project manager
• Plan human resource management
• Acquire project team
• Manage project team
• Inputs
• Outputs
• Conflict management
• Motivational theories
What’s project human resource management?
Organize Project
Team
HRM
Manage Project
Lead Project Team
Team
4 Processes of HRM
Plan Human Resource Develop Project
Acquire Project Team
management Team
Manage Project
Team
Functional manager vs. Project manager
Functional Manager Project Manager
A manager responsible for activities in a A manager or individual responsible for

specialized department or function. managing a project.
A functional manager is responsible for Project manager is responsible for the
one of the principle elements of the whole project and each phase.
organization, such as production,
marketing, finance, etc.
Functional manger tends to emphasize his Project manager is the person responsible
own function or department and his for accomplishing the project objectives
authority level is limited to his within the constraints of the project.
department or function.
Functional manager is likely to be a part The project manager is involved in the
of the function or department planning & planning, controlling and monitoring, and
controlling. managing the assigned project resources
to best meet project objectives.
Plan human resource management
A process of identifying & documenting project roles, responsibilities,
required skills, reporting relationships and creating a staffing management plan.

2. Activity resource requirements
Tools & Techniques 1. Organization charts & position descriptions
2. Networking
3. Organizational theory
4. Expert judgment
5. Meetings
Outputs 1. Human resource management plan
Organization Charts (Hierarchical, Matrix, RACI & Text-oriented)
Hierarchical - An organizational structure where every entity in the organization,
except one, is subordinate to a single other entity.
Matrix - The Matrix, which is used most often is called the responsibility
assignments matrix (RAM). These can be shown as a table with the left hand
column listing the various work packages, and the remaining columns describing
the various roles.
RACI – RACI charts describes within each cell, whether the resource is given an ‘R’
for responsible, ‘A’ for accountable, ‘C’ for consult, and ‘I’ for inform. Care should
be taken to ensure by the only one person is accountable for each work package.
Text oriented - A document describing the position role within the project, what
their responsibilities will be, what the job involves and the qualifications needed
to fill such a position.
Acquire project team
Acquire project team, it is the process of confirming human resource availability
and obtaining the team necessary to complete the project activities.
Inputs 1. Human resource management plan

Tools & Techniques 1. Pre-assignment
2. Negotiation
3. Acquisition
4. Virtual teams
5. Multi-criteria decision analysis
Outputs 1. Project staff assignments
Develop project team
Develop project team refers to improving competencies, team interaction and the
overall team environment to enhance project performance."

2. Project staff assignments
Tools & Techniques 1. Interpersonal skills
2. Training
3. Team-building activities
4. Ground rules
5. Colocation
6. Recognition & rewards
7. Personnel assessment tools
Outputs 1. Team performance assessments
2. Enterprise environmental factors updates
Manage project team
Manage Project Team process involves the tracking and appraisal of team
member performance, providing feedback, resolving issues, managing conflict
and coordinating changes to enhance project performance.
2. Project staff assignments
3. Team performance assessments
4. Issue log
Tools & Techniques 1. Observation & conversation
2. Project performance appraisals
3. Conflict management
4. Interpersonal skills
4. Enterprise environmental factors updates
Conflict Management
Five Modes of conflict resolution:
Confronting - is also described as problem solving, integrating, collaborating or win-
win style. It involves the conflicting parties meeting face-to-face and collaborating to
reach an agreement that satisfies the concerns of both parties.
Compromising - is also described as a "give and take" style. Conflicting parties

bargain to reach a mutually acceptable solution. Both parties give up something in
order to reach a decision and leave with some degree of satisfaction.
Smoothing - is also referred to as accommodating or obliging style. In this approach,

the areas of agreement are emphasized and the areas of disagreement are
downplayed.
Forcing - is also known as competing, controlling, or dominating style. Forcing

occurs when one party goes all out to win it's position while ignoring the needs and
concerns of the other party.
Avoiding - is also described as withdrawal style. This approach is viewed as

postponing an issue for later or withdrawing from the situation altogether.
Motivational Theory – McGregor Theory X & Y
Motivation is an internal drive to meet a set of objectives.
Theory X Managers Theory Y Managers

Take a pessimistic view of employees Take an optimistic view of employees
Assume that employees dislike work Assume that employees take a voluntary,
and avoid responsibility active interest in their work
Must therefore be coerced into Employees don’t view work as a burden
pursuing the organization’s goals imposed on them.
Theory X similar to Employees can be the source of valuable
Taylorism/scientific insights and innovations
Overly centralized, command and control
management structures harm the
organization.
If treated fairly employees will voluntarily
pursue the organization’s goals
Motivational Theory – Maslow’s Hierarchy of Human
Needs
Self
actualization
Self Esteem
(Confidence,
achievement, respect)
Love & belongingness

(friendship, family, sex intimacy)
Safety & Security

(for job, family, health property)
Physiological Needs:
Air, water, food, shelter, sleep and sex
Motivational theory - David McClelland's Need theory
Motivational theory - William Ouchi's Theory Z
Motivational theory - Frederick Herzberg's Motivation -
Hygiene Theory
Working Conditions
Dissatisfiers Motivators
Policies &
administrative
practices
Salary & Benefits

Recognition
Supervision
Achievement
Status
Advancement
Job Security
Growth
Co-workers
Responsibility
Personal Life
Job Challenge
Motivational theory - Victor Vroom's Expectancy Theory
Leadership Theory - Fred Fiedler's Contingency Theory
PROJECT COMMUNICATION
MANAGEMENT
Project Communication Management
• What is communication?
• Communications methods, technology and channels
• Basic communication model
• Plan communication management
• Manage communications
• Control communications
• Inputs
• Outputs
What is communication?
Communication is the activity of conveying meaningful information.
Communication requires a sender, a message, and an intended recipient.
Basic communication model
Types of Communication Channels & Methods
Formal
Channels = n times (n-1)/2 Communication

Informal
Channels
Push Unofficial
Communication
Communication Pull
Methods Communication
Interactive
Communication
Plan communication management
Plan communications management is the process of developing an appropriate
approach and plan for project communications based on stakeholder's
information needs and requirements and available organizational assets.

Tools & Techniques 1. Communication requirements analysis
2. Communication technology
3. Communication models
4. Communication methods
5. Meetings
Outputs 1. Communications management plan
Manage communications
Manage communications is the process of creating, collecting, distributing,
storing, retrieving, and the ultimate disposition of project information in
accordance to the communication management plan.
Inputs 1. Communications management plan

Tools & Techniques 1. Communication technology
2. Communication models
3. Communication methods
4. Information management systems
5. Performance reporting
Outputs 1. Project communications
Control communications
The process of monitoring and controlling communications throughout the entire
project life cycle to ensure information needs of the project stakeholders are met.
This helps in optimal information flow among all participants.

2. Project communications
3. Issue log
Tools & Techniques 1. Information management systems
2. Expert judgment
3. Meetings
2. Change requests
PROJECT RISK
MANAGEMENT
Project Risk Management
• What is project management risk’s?
• Risk classification
• How is risk and EMV calculated?
• Plan Risk Management
• Identify Risk
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses
• Control Risk’s
• Inputs
• Outputs
• Decision Tree analysis
• Risk and Contingency reserve
What is project Management Risk’s?
Objectives
& Process
Risk is “an uncertain event or

condition that, if it occurs, has a
positive or negative effect on a Monitoring
& control
Risk
Management
Risk
analysis
project’s objectives.”
Action!
6 Processes of RM
Perform Qualitative
Plan Risk Management Identify Risks
Risk Analysis
Perform Quantitative
Control Risks Plan Risk Responses
Risk Analysis
Risk Types
Possibility of gain
or loss
Business Risk
May either be a
threat or
opportunity
Direct Property
Types of Risk
Damage risks
Indirect Property
Damage or losses
Only possibility of
Pure risks
loss
Legal Liabilities
Personnel Related
Risk & Expected monetary value (EMV)
EMV = Probability x Impact (in units of money)
EMV calculates the average result of positive (opportunity) and negative

(threat) risks.
The EMV of opportunities are expressed as positive values, while those of

threats are negative.
EMV for a project is calculated by multiplying the value of each possible

outcome by its probability of occurrence and adding the products together.
A common use of this type of analysis is in decision tree analysis.
How is risk and EMV calculated?
An investor has a certain amount of money to invest. Three alternative portfolio
selections are available. The estimated profits depend on the economic
conditions as follows:
Profit ($’000) Portfolio Selection
A B C
Economy declines $0.5 -$2 -$7
No Change $1.0 $2 - $1
Economy expands $2.5 $5 $22
The probabilities of the occurrence of the economic conditions are:
P(economy declines) = 0.3
P(no change) = 0.5
P(economy expands) = 0.2
Determine the best portfolio for the investor.

EV(A) = (0.5)(0.3) + (1.0)(0.5) + (2.5)(0.2) = 1.15
EV(B) = (-2.0)(0.3) + (2.0)(0.5) + (5.0)(0.2) = 1.40
EV(C) = (-7.0)(0.3) + (-1.0)(0.5) + (22.0)(0.2) = 1.80
Further Project Risk Classification
Regulatory
risks
External risks
Weather
Risk
Categories
Funding
Internal risks
Project
management
Plan Risk Management
Plan risk management is the process of defining how to conduct risk management
activities for a project.

2. Project charter
Tools & Techniques 1. Analytical techniques
2. Expert judgment
3. Meetings
Outputs 1. Risk management plan
Identify Risk
Identifying risks is the process of identifying and documenting the risks that might
occur for a given project.
Inputs 1. Risk management plan
2. Cost management plan
3. Schedule management plan
4. Quality management plan
5. Human resource management plan
6. Scope baseline
8. Activity duration estimates
11. Procurement documents
Tools & Techniques 1. Documentation reviews
2. Information gathering techniques
3. Checklist analysis
4. Assumption analysis
5. Diagramming techniques
6. SWOT analysis
7. Expert judgment
Outputs 1. Risk register
Perform Qualitative Risk Analysis
Perform qualitative risk analysis is the process of estimating the overall probability
for risks to occur and their impact and to prioritize them accordingly for further
analysis.

2. Scope baseline
3. Risk register
Tools & Techniques 1. Risk probability & impact assessment
2. Probability & impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment
Outputs 1. Project document updates
Perform Quantitative Risk Analysis
Perform quantitative risk analysis is the process used to analyze numerically the
effect of prioritized risks on meeting the project objectives.

2. Cost management plan
3. Schedule management plan
4. Risk register
Tools & Techniques 1. Data gathering & representation techniques
2. Quantitative risk analysis & modeling techniques
3. Expert judgment
Outputs 1. Project document updates
Data gathering & representation techniques
Interviews: This technique is the same as that presented in the quantitative risk
analysis, interviews with people who participated in other projects, with
stakeholders, customers, suppliers, users and risk experts may be helpful during
the risk quantitative analysis.
Probability distributions: Continuous probability distributions particularly beta

and triangular distributions are commonly used in perform quantitative risk
analysis.
Quantitative risk analysis & modeling techniques
Sensitivity analysis is a quantitative method if analysing the potential impact of
risk events on the project and determining which risk event has the greatest
potential for impact by examining all the uncertain elements at their baseline
values.
Expected monetary value analysis

Expected monetary value analysis is a statistical technique that calculates the
average, anticipated future impact of the decision.
Modelling and simulation

A project simulation uses a model that translates the specified detailed
uncertainties of the project into their potential impact on project objectives,
Simulations are typically performed using Monte carlo techniques.
Plan Risk Responses
Plan risk responses is the process used to prepare a risk response plan in order
to increase the positive impact and/or decrease the negative impact of risks on
the project.

2. Risk register
Tools & Techniques 1. Strategies for negative risks or opportunities
2. Strategies for positive risks or opportunities
3. Contingent responses strategies
4. Expert judgment
Outputs 1. Project management plan updates
Control Risk
Control risk is the process of implementing risk response plans, tracking identified
risks, identifying new risks, executing risk response plans, and evaluating the
effectiveness of executing responses throughout the lifecycle of the project.
2. Risk register
Tools & Techniques 1. Risk reassessment
2. Risk audits
3. Variance and trend analysis
4. Technical performance measurement
5. Reserve analysis
6. Meetings
2. Change requests
Decision Tree analysis
A decision tree is a graphical tool for chronological representation of the decision
problem. This tool describes:
1. the actions available to the decision-maker,
2. the events that can occur, and
3. the relationship between the actions and events.
To use decision tree analysis in project risk management, you need to:
• Document a decision in a decision tree.
• Assign a probability of occurrence for the risk pertaining to that decision.
• Assign monetary value of the impact of the risk if it occurs.
• Compute the expected monetary value for each decision path.
Decision Tree analysis
A company is deciding whether to develop and launch a new product. Research
and development costs are expected to be $400,000 and there is a 70%
chance that the product launch will be successful, and a 30% chance that it
will fail. If it is successful, the levels of expected profits and the probability of
each occurring have been estimated as follows, depending on whether the
product’s popularity is high, medium or low:
Probability Profits
High: 0.2 $500,000 per annum for two
years
Medium: 0.5 $400,000 per annum for two
years
Low: 0.3 $300,000 per annum for two
years
If it is a failure, there is a 0.6 probability that the research and development

work can be sold for $50,000 and a 0.4 probability that it will be worth nothing
at all.
Decision Tree Example
$0
DO NOT DEVELOP
PRODUCT
High
0.2
D Success
$1,000,000
Medium
0.5
DEVELOP
PRODUCT
0.7
A $800,000
$600,000
$(200,000) Low
0.2
C
Sell Work
0.6 $50,000
Failure
0.3
B
Worth Nothing $0
0.4
EV at A = (0.2x$1,000,000) + (0.5x$800,00) + (0.3x$600,000) = $780,000
EV at B = (0.6x$50,000) + (0.4x$0) = $30,000
EV at C = (0.7x$780,000) + (0.3x$30,000) = $555,000
$0
DO NOT DEVELOP
PRODUCT
High
0.2
D Success EV $780,000
$1,000,000
Medium
0.5
DEVELOP
PRODUCT
0.7
A $800,000
$600,000
$(200,000) EV $555,000 Low
0.2
C
Sell Work
0.6 $50,000
Failure
0.3
B
EV $30,000
Worth Nothing $0
0.4
Recommendation, develop the product as the expected value of the profits is $145,000
Risk and Contingency reserve
Risk Reserve Contingency Reserve
Budgeted Cost Contingency Reserve is:
Management reserve • Established to deal with unknown risks and

accepted known risks.
Planned cost • Might be in the form of additional time, money
or resources.
Contingency reserve • Covers risk events that are not accounted for in
the project baseline for duration and cost
Project estimations.
Control A/c • Determined by the potential impact of the risk
but should include enough to implement any
Works contingency plans as well as a buffer for dealing
Activities with unidentified risks.
PROJECT PROCUREMENT
MANAGEMENT
Project Procurement Management
• What’s project procurement management?
• What is contract?
• Plan procurement management
• Conduct procurements
• Control procurements
• Close procurements
• Inputs
• Outputs
• Different types of contract
• Advantages and disadvantages of types of contracts
What’s project procurement management?
Procurement
Services
Procurement
Project Contract
Procurement Management
4 Processes of PM
Plan Procurement Conduct Control
Management Procurements Procurements
Close
Procurements
What is contract?
A legally enforceable agreement between two or more parties. Contracts
contain terms and conditions that set the rights and obligations of
the contracting parties.
The aim of a procurement contract is to obtain the services or products as

agreed in the contract to the satisfaction of all parties to the contract.
Procurement Management helps us ensure that the products and components

that we do not make ourselves, but purchase from outside the project will not
negatively impact on the quality of our project’s final product.
The procurement manager or office (contract manager) is normally responsible

for creating and managing the procurement contract.
Different types of contract
Fixed Price (FP or FFP - "firm fixed price") also called "Lump Sum“. The simplest
type of contract. The buyer specifies the work required and the supplier quotes a
price. The seller assumes almost all of the risks of this contract.
Time and Materials (T&M) - Also sometimes called as unit price contracts.
Simple billing at pre-negotiated rates for labor and materials on a project. Rates
normally include a certain percentage markup for overhead or profit. In this
arrangement the buyer carries most of the risk.
Cost Reimbursable (CR) – in this type of contract the buyer agrees to reimburse
the seller’s actual costs. Added to that is a fee that typically represents the
seller’s profit. In this type of contract the buyer carries most of the risk.
Advantages and disadvantages of Fixed Price Contracts
Advantages of fixed price contracts:
• Less work for buyer to manage.
• The seller has a strong incentive to control costs.
• Companies normally have experience with this type of contract.
• The buyer knows the total price at project start.
Disadvantages of fixed price contracts include:

•The seller may under-price the work and try to make up profits on change
orders.
•The seller may not complete some of the contract statement of work once
the contact becomes unprofitable for him.
•More work for the buyer to write the contract statement of work
•Can be more expensive than cost reimbursable contract.
•The seller will have to provide for risk in his price quoted.
Advantages and disadvantages of Time & Materials
Contracts
Advantages of time & materials contracts include:
•Quick to create
•Good choice when you are hiring "bodies" or people to augment your staff.
Disadvantages of time & materials contracts include:

• Seller has no incentive to control cost
• Requires monitoring of daily output
• More suitable for small projects only
Advantages & disadvantages of Cost Reimbursable contracts
Advantages of cost reimbursable contracts include:
•Simpler contract statement of work.
•Usually requires less work to define the scope than fixed price.
•Generally lower cost than fixed price because the seller does not have to
add for risk.
Disadvantages of cost reimbursable contracts include:

• Require auditing of the seller's invoices.
• Require more work for the buyer to manage.
• Seller has only a moderate incentive to control costs.
• Total price is unknown.
Plan procurement management
Procurement planning is the process that enables you procure products and
services from external or internal suppliers.

3. Risk register
4. Activity resource requirements
5. Project schedule
Tools & Techniques 1. Make-or-buy analysis
2. Expert judgment
3. Market research
4. Meetings
Outputs 1. Procurement management plan
2. Procurement statement of work
4. Source selection criteria
5. Make-or-buy decisions
6. Change requests & Project document updates
Conduct Procurements
Conduct Procurements is the process of obtaining responses from sellers,
selecting sellers, and awarding contract(s) to the selected seller(s).
Inputs 1. Procurement management plan
3. Source selection criteria
4. Seller proposals
6. Make-or-buy decisions
7. Procurement statement of work
Tools & Techniques 1. Bidder conference
2. Proposal evaluation techniques
3. Independent estimates
4. Expert judgment
5. Advertising
6. Analytical techniques and procurement negotiations
Outputs 1. Selected sellers
2. Agreements
4. Change requests
Control Procurements
Control procurements is the process of managing procurement relationships,
monitoring contract performance, and making changes and corrections to
contracts as appropriate.
2. Procurements documents
3. Agreements
Tools & Techniques 1. Contract change control system
2. Procurement performance reviews
3. Inspection and audits
4. Performance reporting
5. Payment systems
6. Claims administration
7. Records management system
2. Change requests
Close Procurements
Close procurement is the process of completing each procurement.

2. Procurements documents
Tools & Techniques 1. Procurement audits
2. Procurement negotiations
3. Records management system
Outputs 1. Closed procurements
PROJECT STAKEHOLDER
MANAGEMENT
Project Stakeholder Management
• What’s project stakeholder management?
• What is a stakeholder register?
• Identify stakeholders
• Plan stakeholder management
• Manage stakeholder engagement
• Control stakeholder engagement
• Inputs
• Outputs
• Various Analytical Techniques for Stakeholder Analysis
What’s project Stakeholder Management?
4 Processes of SM
Plan Stakeholder Manage Stakeholder Control Stakeholder

Identify Stakeholders
Management Engagement Engagement
What is a stakeholder register?
A Stakeholder Register is a project management document, which contains the
information about all project stakeholders. It identifies and lists the people, groups
and organizations impacted by the project.
A Stakeholder Register may have following information:

What is the name of the stakeholder?
What is the title held by the stakeholder?
What is the role of stakeholder in the project and/or in the organization?
What is the contact information of the stakeholder?
What are his requirements from the project?
How do the stakeholders like to communicate?
How often would the stakeholder like communicate?
What are his expectations from the project?
How can he influence the project?
How about his interest, whether it is high, medium, or low?
Classification information; e.g. whether he is an internal, external, positive,
supporter, resistor or a neutral stakeholder.
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, analysing and documenting relevant information regarding their
interests, involvement, interdependencies, influence and potential impact on
project success.
Inputs 1. Project charter

Tools & Techniques 1. Stakeholder analysis
2. Expert judgment
3. Meetings
Outputs 1. Stakeholder register
Plan stakeholder management
Plan stakeholder management is the process of developing appropriate
management strategies to effectively engage stakeholders throughout the
project life cycle, based on the analysis of their needs, interests, and potential
impact on project success.

2. Meetings
Outputs 1. Stakeholder management plan
Manage stakeholder engagement
Manage stakeholder engagement is the process of communicating and working
with stakeholders to meet their needs and expectations, address issues as they
occur, and foster appropriate stakeholder engagement in project activities
throughout the project life cycle
Inputs 1. Stakeholder management plan

2. Communication management plan
3. Change log
Tools & Techniques 1. Communication methods
2. Interpersonal skills
3. Management skills
Outputs 1. Issue log
2. Change requests
Control stakeholder engagement
Control stakeholder engagement Process of monitoring overall project
stakeholder relationships and adjusting strategies and plans for engaging
stakeholders

2. Issue log
4. Projects documents
Tools & Techniques 1. Information management systems
2. Expert judgment
3. Meetings
2. Change requests
Various Analytical Techniques for Stakeholder Analysis
Power/Interest grid, grouping the stakeholders based on their level of authority
or power and their level or interest regarding the project outcomes.
Power/influence grid, grouping the

stakeholders based on their level of
authority or power and their active
involvement that is influence in the
project.
Influence/impact grid, grouping the

stakeholders based on their active
involvement or influence in the project
and their ability to effect changes to
the project's planning or execution
or impact.
Salience model, describing classes of stakeholders based on their power or

ability to impose their will, need for immediate attention and legitimacy
PMI CODE OF ETHICS &
PROFESSIONAL CONDUCT
PMI Code of Ethics and Professional Conduct
• Vision and Applicability
• Responsibility
• Respect
• Fairness & Honesty
• Code of Ethics
• Balance stakeholder’s interest
• Mapping The Code of ethics to the PMBOK Knowledge Areas
Vision and Applicability
• Vision and purpose
• Persons to whom the code applies
• Structure of the code
• Values that supports this code
• Aspirational and mandatory conduct
Responsibility
• Description of Responsibility
• Responsibility: Aspirational Standards
• Responsibility: Mandatory Standards
• Ethics Complaints
Respect
• Description of Respect
• Respect: Aspirational Standards
• Respect: Mandatory Standards
Fairness & Honesty
• Description of fairness
• Fairness: Aspirational Standards
• Fairness: Mandatory Standards
• Favoritism and Discrimination
• Honesty
Code of Ethics
Eight guidelines to help you establish a strong ethics foundation for your
professional activities:
 Recognize that managing ethics is a process – it is the process of reflection and
dialog that produces deliverables such as codes, policies and procedures.
 The goal of an ethics management initiative is preferred behavior in the project
environment.
 The best way to manage ethical dilemmas, like negative project risks, is to
avoid their occurrence in the first place.
 Make ethics decisions in teams, and make decisions public, as appropriate.
 Integrate ethics management with other project practices. Define preferred
ethical values in the project management plan.
 Use cross-functional teams to develop your ethics management plan. Benefit
from varied input.
 Value forgiveness - help project personnel recognize and address their mistakes
and then support them to continue to try to operate ethically
 Give yourself credit for trying - attempting to operate ethically and making a
few mistakes is better than not trying at all. All projects are comprised of
people and people are not perfect.
Balance stakeholder’s interest
• Strive for fair resolution in order to satisfy competing needs and objectives.
• Follow this order to resolve conflicting objectives:
 The reason why the project was initiated
 The project charter including the project’s needs and objectives.
 The constraints.
• Review the competing needs and objectives
• Look for alternatives by crashing, fast tracking, re-estimating, brainstorming
and other related techniques.
• Hold meetings, interviews and facilitate discussions to resolve competing
objectives
• Make decisions and changes
• Bring suggested changes to the project charter to management’s attention
for approval
• Deal with problems & conflicts when they arise
Mapping The Code of ethics to the PMBOK Knowledge
Areas
We We are truthful We provide We make
We strive to create an
earnestly in our accurate commitments and
Knowledge environment in which
seek to communications information in promises, implied
areas others feel safe to tell the
understan and in our a timely or explicit, in good
truth
d the truth conduct manner faith
Integration
Scope
Time
Cost
Quality
Human Resource
Communications
Risk
Procurement
Stakeholder
MOCK EXAM QUESTIONS
CHAPTER WISE
Q & A Module1
1. Which of the following is NOT a characteristic of a project?
A. Constrained by limited resources
B. Planned, executed, and controlled
C. Creates a unique product or service
D. On-going and repetitive
2. Many organizations have different definitions for Project

Management because the profession encompasses so many
industries. Consequently, the Project Management Institute
(PMI) describes Project Management as
A. The processes and tools in order to complete a project
B. The use of knowledge, tools, and techniques to meet
requirements
C. Industry specific because the definition changes based
upon whatever industry the company is involved with
D. Initiation, planning, execution, control, and closeout of a
project
Q & A Module1
3. You are managing the release of a new drug into market. Your role is
that of a:
A. Functional Manager, because you have good functional knowledge of
the pharmaceutical industry
B. Project Manager, because you are creating a unique product within
specific time schedules
C. Operations Manager, because you have to do several repetitive tasks
D. Program Manager, because you have to manage several projects to do
your job effectively
4. Your company is responsible for developing a new software. You are

responsible for managing both the individual product releases and the
coordination of multiple releases. Your role is that of a:
A. Program manager
B. Project Manager
C. Functional Manager
D. Operations Manager
Q & A Module1
5. You are working in the Project Management Office (PMO) of your
organization. Your job responsibility is to:
A. Manage the operational activities in the company
B. Manage human resource and risk management issues for individual
projects.
C. Provide support functions to project managers in the form of training,
providing software, standardizing policies, etc.
D. Provide subject matter expertise in the functional areas of the project
6. Which of the following statements is NOT true about a project life cycle?
A. All project life cycles are usually identical.
B. The level of risk is highest at the start of the project and decreases as the
project progresses.
C. The ability of the stakeholders to influence the final characteristics is
highest at the start and gets progressively lower as the project continues.
D. Cost and staffing requirements usually peak during the intermediate
phases.
Answer Keys
Question1
Answer D is correct because PMBOK says A project is a temporary
endeavor undertaken to create a unique product, service, or result. The
temporary nature of projects indicates that a project has a definite
beginning and end.
Questions2
Answer B is correct because the PMI definition of Project Management is
“the application of knowledge, skills, tools, and techniques to project
activities to meet project requirements.” Consequently, Answers A, C, and
D are incorrect.
Question3
Answer B is correct because every project creates a unique product,
service, or result. A project can create a service or a capability to perform a
service (e.g., a business function that supports production or distribution).
Answer Keys
Question4
Answer D is correct because a program is defined as a group of related
projects, subprograms, and program activities managed in a coordinated way
to obtain benefits not available from managing them individually. Programs
may include elements of related work outside the scope of the discrete
projects in the program.
Question5
Answer C is correct because a project management office (PMO) is a
management structure that standardizes the project-related governance
processes and facilitates the sharing of resources, methodologies, tools, &
techniques. The responsibilities of a PMO can range from providing project
management support functions to actually being responsible for the direct
management of one or more projects.
Question6
Answer A is correct. Although many projects may have similar phase names
with similar deliverables, few are identical.
Q & A Module 2
1. Which of the following statements describes the relationship between
project phases and the project life cycle?
A. The project lifecycle contains the iterative incremental elements inside a
project phase.
B. Collectively, the project phases are known as the project life cycle.
C. The project lifecycle is regarded as a sequence of project activities while
phases are defined to control the overlapping of activities.
D. The project lifecycle contains the repetitive elements inside a project Phase
2. A project is managed by a project coordinator. Which of the following

statements is most likely to be true?
A. The performing organization is a weak matrix.
B. The performing organization is doing "management by projects".
C. The performing organization is a strong matrix.
D. The performing organization is projectized.
Q&A
3. A project manager would find team development the most difficult in
which form of organization?
A. Weak Matrix organization
B. Balanced Matrix organization
C. Projectized organization
D. Tight Matrix organization
4. What does the acronym RAM commonly stand for in project management?
A. Responsibility Assignment Matrix.
B. Remotely Applied Measurements.
C. Risk Aware Management.
D. Randomly Accessible Material.
Q&A
5. During the full life cycle of the project, a plot of the project’s expected
expenditures will usually follow a characteristic ..S.. shape. This indicates that:
A. There is a cyclic nature to all projects.
B. Problems will always occur in the execution phase.
C. There are high expenditures during closeout.
D. The bulk of the project budget will be spent in the execution phase.
6. Which are the phases of adaptive (agile) lifecycle ?

A. Sequential, overlapping, parallel.
B. Sequential and overlapping
C. Overlapping and parallel.
D. None of the options.
Answer Keys
Question1
Answer B is correct. Collectively, the project phases are known as the project life
cycle.
Question2
Answer A is correct. The performing organization is a weak matrix.
Question3
Answer A is correct. In a functional organization, the project team members have
dual reporting to two bosses - the project manager and the functional manager.
In a weak matrix organization, the power rests with the functional manager.
In a balanced matrix organization, the power is shared between the functional
manager and the project manager. A projectized organization is grouped by
projects and the project manager has complete control on the project and its
team. A Tight matrix organization refers to co-locating the project team and has
nothing to do with a matrix organization. Therefore, a project manager would find
it difficult to drive team development in a weak matrix organization.
Answer Keys
Question4
Answer A is correct. RAM stands for Responsibility Assignment Matrix .
Question5
Answer D is correct. The bulk of the project budget will be spent in the execution
phase.
Question6
Answer A is correct. Sequential, overlapping, parallel are phases of adaptive life
cycle.
Q & A Module 3
1. What are the Five Project Management Process Group in order?
A. Initiating, Planning, Monitoring & Controlling, Executing, and Closing.
B. Initiating, Monitoring & controlling, Planning, Executing, and Closing
C. Initiating, Executing, Planning, Monitoring & controlling, and Closing
D. Initiating, Planning, Executing, Monitoring & controlling and Closing
2. You are a Project Manager currently . You have finalised the list of Stakeholders,
Which Process Group you are working in?
A. Planning
B. Executing
C. Monitoring & controlling
D. Initiating
3. Which statement relates to definition of Planning Process?

A. Defines and Authorises Project or Phase
B. Coordinate resources to carry out the plan
C. Defines and refines the project objectives
D. Ensuring that project objectives are
Q & A Module 3
4. Which Process Group has the highest No of Processes?
A. Initiating
B. Planning
C. Executing
D. Planning & Controlling
E. Closing
5. You are working on a large project which has several smaller projects within it. This
is:
A. Program
B. Project Life Cycle
C. Project Subprojects
D. Operating of Portfolios
6. Which of the following is not true about Process Group.

A. Process Groups are not discreet, one time event
B. Process Groups are linked by the results they produce
C. Process Groups are Project Phases
D. Where large or complex projects may be separated into phases or sub-projects, all
of the Process Group processes would normally be repeated
Answer Keys
Question1
Answer D is correct.
Question2
Answer D is correct.
Question3
Answer C is correct.
Question4
Answer B is correct.
Question5
Answer C is correct.
Q&A
1. During the Control Scope phase, analysis of the scope performance resulted in a
change request to the scope baseline. This change request will be processed for
review and disposition in the:
A. Monitor and control project work phase
B. Validate scope phase
C. Control quality phase
D. Perform Integrated change control phase
2. A project manager was assigned to a project as the project charter was being
developed. Which of the following is an input that the project manager will utilize
to develop the project charter?
A. Make or Buy analysis
B. Project acceptance criteria
C. Project scope statement
D. Organizational process assets
Q&A
3. An asphalt company is demanding a code change to a software module your
team is creating for them to generate Safety Data Sheets. The change will only add
one week to the critical path. What is your next step, as the project manager?
A. Advise the client of the change
B. Issue a change request
C. Modify the scope of the project
D. Compress the schedule to make up the week lost
4. A new CEO has come into your company and has promptly shut down your
project because it no longer met the business needs of the company. While not
pleased with the decision, you document the level and completeness of the
project to date. What activity or process is this part of?
A. Close procurements
B. Control scope
C. Validate scope
D. Close project or phase.
Q&A
5. The list of identified risks is found in the risk register. However, the high-level
risks are first listed in the:
A. Requirement document
B. Scope statement
C. Project charter
D. Risk management plan
6. Why are the approved change requests input to the Direct and Manage Project
Work process?
A. Approved change requests are sent to the Change Control Board during the
Direct and Manage Project Work process.
B. Approved change requests may be rejected by the project team during the
C. Approved change requests are implemented by the project team during the
D. Approved change requests are reviewed by the project team during the Direct
and Manage Project Work process.
Answer Keys
Question 1
Answer D is correct. Analysis of Scope performance is done as part of the Control
Scope phase. Determining the cause and degree of variance relative to the scope
baseline is an important aspect of this activity (called Variance Analysis). Change
requests that result from this activity are processed in the Perform Integrated
Change Control phase.
Question2
Answer D is correct. When developing the project charter, the project manager
can draw from the assets that are part of the organizational process assets. There
may be formal / informal policies, procedures, plans, and guidelines whose effects
must be considered. Organizational process assets also represent the
organization’s learning from previous projects such as completed schedules, risk
data and earned value data. These are invaluable in developing the project
charter.
Answer Keys
Question 3
Answer B is correct. You need to issue a change request first. Once the change
request is approved the required action can be taken.
Question4
Answer D is correct. Documenting the completeness of the project to date in case
of premature termination of a project is an activity under the Close Project or
Phase process.
Question5
Answer C is correct. The project charter is a document that authorizes the project.
Along with details such as the purpose of the project, project objectives, high-level
requirements etc., it also contains the high-level risks which are used as a starting
point later on while identifying risks in detail.
Question6
Answer C is correct. Approved change requests are implemented by the project
team during the Direct and Manage Project Work process. The rest of the choices
are incorrect statements regarding the Direct and Manage Project Work process.
Q&A
1. Midway through the Collect Requirements process, a project manager finds
that there are lots of unresolved issues. Which of the following is usually the best
way to discover and resolve issues?
A. Use of a stakeholder register
B. Interviewing
C. Questionnaires
D. Facilitated workshops
2. Which of the following correctly depicts the most common order in which the
project management processes are executed?
A. Control Quality is done before Validate Scope
B. Validate Scope is done before Control Quality
C. Control Quality is done after Close Project or Phase
D. Perform Quality Assurance is done after Validate Scope
Q&A
3. You are the Project Manager for Fast Cars Inc. and you and your team members
are using facilitated workshops as part of the Collect Requirements phase to
define product requirements. Which other process also uses this technique?
A. Develop Scope
B. Develop Project Charter
C. Define Scope
D. Create WBS
4. Which of the following Project Scope Management processes documents a

configuration management system?
A. Control Scope
B. Plan Scope Management
C. Define Scope
D. Verify Scope
Answer Keys
Question4
Answer B is correct. Configuration management activities are documented as part
of the requirements management plan which is an output of the Plan Scope
Management process
Question5
Answer B is correct. Creating the WBS is a very important process, but often a
previous WBS can be used as a template to save time and the potential rework of
forgetting something important.
Question 6
Answer B is correct. The requirement traceability matrix provides a structure to
trace requirements to product design.
Q&A
1. A project manager uses precedence diagramming method (PDM) to
constructing a project schedule network and draws up a network diagram for the
purpose. He decides to use the most common type of precedence relationship for
all activities. Which of the following relationships would he use?
A. Start-to-finish (SF)
B. Start-to-start (SS)
C. Finish-to-start (FS)
D. Finish-to-finish (FF)
2. During a work breakdown structure meeting you have decomposed the

deliverable into work packages and created your WBS dictionary. However, you
now want to decompose the work packages to assist you in estimating, executing
and control the project. These decomposed work packages are called?
A. Work Packages can't be decomposed into smaller units
B. Activities
C. Milestones
D. Control Accounts
Q&A
3. A project manager is determining dependencies that will require a lead or a lag
to accurately define the logical relationship. Which of the following correctly
describes leads or lags?
A. A lag directs a delay in the predecessor activity.
B. A lag allows an acceleration of the successor activity.
C. A lead allows an acceleration of the successor activity.
D. A lead allows a successor activity to be delayed.
4. Progressive elaboration is least applicable to which of the following processes?

A. Control Schedule
B. Estimate Activity Duration
C. Develop Schedule
D. Create WBS
Q&A
5. As the project manager, you have needed to estimate certain activity duration
before all project team members were acquired. On acquisition of the project
team, you find that the actual competency levels of the acquired team members
are much lower than what you had anticipated. In such a case, you will:
A. Make changes to activity duration and schedule incorporating the changed
competency levels.
B. Ask the project team members to meet the original schedule by putting in
overtime if required.
C. Make no changes to the schedule.
D. Inform the customer that the project is behind schedule.
6. Which of these is accurate regarding the Develop Schedule process?

A. The critical path method is a schedule network analysis technique that is
performed using the schedule model
B. Schedules are optimized such that all non-critical activities have a 0 total float.
C. Schedule network analysis is a technique that is carried out once the schedule
is approved.
D. Schedule compression shortens the project schedule while changing the
project scope
Answer Keys
Question 1
Answer A is correct. Finish-to-start (FS) is the most commonly used type of
precedence relationship. In contrast, the start-to-finish (SF) relationship is rarely
used.
Question2
Answer B is correct. Activities represent the effort needed to complete a work
package and are an output of the Define Activities process. During this process,
the work packages are further decomposed into project activities.
Question3
Answer C is correct. The project management team determines dependencies that
will require a lead or a lag to accurately define the logical relationship. A lead
allows an acceleration of the successor activity.
Answer Keys
Question 4
Answer A is correct. Progressive elaboration applies when only a certain amount
of information is available initially and additional information is obtained as the
project or phase progresses. It is the progressive detailing of the project
management plan and relates more closely to the processes from the planning
process group.
Question5
Answer A is correct. The appropriate action is to make changes to the project
schedule and activity durations depending on the actual competency of the team.
Asking the project team members to put in overtime or informing the customer
that the project is late are too drastic in nature given the stage of the project.
Question6
Answer A is correct. The accurate statement regarding the Develop Schedule
process is that the critical path method is a schedule network analysis technique
that is performed using the schedule model. The rest of the statements are not
accurate.
Q&A
1. A project is estimated to cost $ 50,000 with a timeline of 50 days. After 25
days, the project manager finds that 50% of the project is complete and Actual
costs are $ 50,000. What is the Cost Performance Index (CPI) ?
A. The CPI is 2
B. The CPI is 1
C. The CPI is 0.5
D. The CPI is 1.5
2. Lucy is currently preparing a high-level cost estimate for her project in the
initiation phase. Given the limited detail available to her, what would you expect
the range of her estimate to be and what would you call such an estimate?
A. -25 to +25 %, Rough Order of Magnitude
B. -5 to +10 %, Narrow
C. -1 to +1 %, Definitive
D. -25 to +75 %, Rough Order of Magnitude
Q&A
3. The Cost Performance Baseline is a time-phased budget and is used as a basis
to measure, monitor, and control overall cost performance of the project. It is
usually displayed in the form of:
A. An inverted S curve.
B. An S-curve
C. A Z curve
D. Pie-chart
4. Contingency Reserves are estimated costs to be used at the discretion of the

project manager to deal with:
A. Anticipated but not certain events.
B. Scope creep
C. Unanticipated events
D. Anticipated events
Q&A
5. An estimating technique that uses a statistical relationship between historical
data and other variables (for example, square footage in construction, lines of
code in software development) is known as:
A. Analogous Estimating
B. Parametric Estimating
C. Bottom-up Estimating
D. Historical Analysis
6. Funding requirements for a project are usually in incremental amounts that are
not continuous, and these appear as a step function in the graph depicting Cash
flow, Cost baseline and Funding. Any gap at the end of the project, between the
funds allocated and the cost baseline represents:
A. Management reserves
B. Cost variance
C. Charting error
D. Contingency reserves
Answer Keys
Question1
Answer C is correct. The correct answer is 0.5. The Cost performance Index (CPI)
is given by the formula CPI = EV/AC where EV is the Earned Value and AC is the
Actual Cost. Earned Value = 50% of $ 50,000 = $ 25,000 since 50% of the project is
complete. Hence CPI = 25,000 / 50,000 = 0.5.
Question2
Answer D is correct. During the initial stages of the project, the level of
information available will be limited. Hence the Rough Order of Magnitude (ROM)
estimate is usually prepared and has an accuracy range of -25% to +75%.
Question3
Answer B is correct. The correct response is ‘S’ curve. The Cost Performance
Baseline is a time-phased budget and is used as a basis to measure, monitor, and
control overall cost performance of the project. It is usually displayed in the form
of: an S curve and is developed by summing estimated costs by period.
Answer Keys
Question 4
Answer A is correct. Contingency Reserves are estimated costs to be used at the
discretion of the project manager to deal with anticipated, but not certain
events. These are also called as “Known unknowns”.
Question5
Answer B is correct. This technique is known as Parametric Estimating and can
produce higher levels of accuracy depending on the sophistication, as well as the
underlying resource quantity and cost data built into the model.
Question6
Answer A is correct. Management reserves are included in the project’s total
funds but they are not included in the project’s cost performance baseline.
Q&A
1. There is a serious defect in the finished product of a project that was completed
a few months back and this results in a recall campaign to recall the defective
products. What would be the best classification for these types of costs?
A. Cost of non-conformance
B. Cost of conformance
C. To complete performance index (TCP)
D. Cost variance
2. Gordon has recently taken over a project as the project manager. The project is
already halfway through the execution. Reviewing the project management plan,
Gordon found outs that the project’s WBS is not aligned with the project
management plan and the 100% rule was ignored. What does this mean?
A. The project management plan can never be 100% complete
B. The project is not halfway through the execution.
C. The project cannot be completed on time.
D. The WBS doesn't contain all of the project and product work mentioned in
the project management plan
Q&A
3. Which of the following tools is used during Trend Analysis?
A. Earned Value Analysis
B. Decision Tree Analysis
C. Scatter Diagram
D. Cause and Effect Diagram
4. You are the project manager of a project and have come up with a bar graph of
problems and their frequencies. This kind of a chart is called a:
A. Ishikawa diagram
B. Pareto chart
C. Deming chart
D. Control chart
5. Which of the following relates to Root Cause Analysis?

A. Pareto Chart
B. Performance Measurements
C. Process Analysis
D. Quality Control Measurements
Q&A
6. An automotive designer uses a certain technique to determine which
combination of suspension and tires will produce the most desirable ride
characteristics at a reasonable cost. In order to do this, she works with a statistical
framework and systematically changes all of the important parameters instead of
changing the factors one at a time. This is known as:
A. Design of Experiments
B. Nominal Group Technique
C. Statistical Sampling
D. Force Field Analysis
Answer Keys
Question1
Answer A is correct. The correct response is Cost of Non-Conformance. This
includes all costs incurred due to internal and external failures.
Question2
Answer D is correct. The WBS must contain all of the project and product work
including the project management work. This is also called as 100% rule.
Question3
Answer A is correct. Earned value analysis is used as a trend analysis technique
for monitoring overall project performance.
Question4
Answer B is correct. This is an example of a Pareto chart or Pareto diagram.
Question5
Answer C is correct. The process analysis includes root cause analysis.
Answer Keys
Question6
Answer A is correct. The correct response is Design of Experiments and this plays a
key role in optimization of products or processes.
Q&A
1. Ken is managing a project where the morale of the team is very low. The team
members have been on the project for more than a year and though the project is
due to end in a few weeks’ time, they do not know what is in store for them. What
should Ken have planned better to avoid such a situation?
A. Ground rules
B. 360-degree feedback
C. Job rotation within the project.
D. Staff release plan
2. You are the project manager of a project whose team has interacted with a
number of stakeholders. You feel that in order to have a very objective project
performance appraisal, you would like to obtain feedback for the project team
members from all the people they have worked with, including superiors, peers
and subordinates. Project performance appraisals are carried out during which of
the following processes?
A. Manage Project Team
B. Acquire Project Team
C. Develop Project Team
D. Close Project or Phase
Q&A
3. You are managing a project and find that you need to apply resource leveling.
Which of the following tools can help you identify resources that are over
allocated?
A. Resource Histogram
B. Network diagram
C. Resource Assignment Matrix
D. Resource Breakdown Structure
4. You are managing a project. An audit team wants to know where they can find
information on training plans for the project team members and certification
requirements. This would be found in the:
A. Resource Breakdown Structure
B. Staffing Management Plan
C. Communications Management Plan
D. Staff Release Plan
Q&A
5. Conflict management is a tool and technique of which of the following
processes?
A. Identify Stakeholders
B. Close Project or Phase
C. Control Procurements
D. Manage Project Team
6. Ground rules are established to set clear expectations regarding acceptable

behavior by the project team members. Whose responsibility is it to enforce
ground rules?
A. The project manager
B. The project manager and senior team members
C. The HR team
D. All project team members share the responsibility for enforcing the rules
once they are established
Answer Keys
Question1
Answer D is correct. The correct response is the staff release plan. While job
rotation is a good way of ensuring high morale within the team, it is more of an
on-going effort and within the project team. The project manager needs to
determine the method and timing of releasing team members (release criteria).
Smooth transitions to upcoming projects helps improve the morale.
Question2
Answer A is correct. Project performance appraisal are carried out during the
Manage Project Team process.
Question3
Answer A is correct. The Resource Histogram is a tool for charting human
resources and illustrates the number of hours that a person, department or entire
project team will be needed each week or month over the course of the project.
The chart can include a horizontal line that represents the maximum number of
hours from a particular resource. This can be used for a resource leveling strategy.
Answer Keys
Question4
Answer B is correct. The correct response is the Staffing Management Plan. This
lists the time periods that team members are expected to work on the project
along with information such as training plans, certification requirements and
compliance issues.
Question5
Answer D is correct. Conflict Management is a tool and technique of the Manage
Project Team process. The Control Procurements process has Claims
Administration that somewhat relates to conflict management.
Question6
Answer D is correct. All project team members share responsibility for enforcing
the rules once they are established.
Q&A
1. A communications management plan should include all of the following,
EXCEPT:
A. Person that will issue weekly reports
B. Escalation List/Contacts
C. Risk Register
D. Glossary of Common Terminology
2. You are holding a kick off meeting for the build out of a new data center. This
will be the largest, most costly and most complex project you have worked on in
your career. You have counted up the number of stakeholders, vendors and project
team members to be 52. In order to stress to the group how important and
difficult communication will be on the project you want to tell them how many
channels of communication exist on the project. What would you tell them?
A. 2704 channels exist on the project
B. 52 channels exist on the project
C. 1326 channels exist on the project
D. 2625 channels exist on the project
Q&A
3. You are working on a project with a fixed fee contract, therefore
communications should tend toward?
A. Formal Written Communication
B. Formal Verbal Communication
C. Informal Verbal Communication
D. Informal Written Communication
4. An external auditor is auditing the quality of your project’s management

processes. Which of the following processes this activity relates to?
A. Validate Scope
B. Control Quality
C. Perform Quality Assurance
D. Control Procurements
Q&A
5. Your project calls for communication with a very large audience. What
communication method would be appropriate under such circumstances?
A. Interactive communication
B. Pull communication
C. Two-way communication
D. Push communication
6. Successful project managers generally spend an inordinate of time, doing what?

A. Updating the Project Management Plan
B. Working Scheduled Activities
C. Communicating
D. Managing Risks
Answer Keys
Question1
Answer C is correct. The Risk Register is part of Risk Management and is not
included in the Communications Management Plan.
Question2
Answer C is correct. Communication Channel formula is: n(n-1)/2. N=Number of
people involved on the project. 52(52-1)/2 52*51=2652 2652/2=1326
Question3
Answer A is correct. Anytime contracts are involved in a project, the project
manager/team should use formal written communication methods.
Answer Keys
Question4
Answer C is correct. This is an example of a quality audit by an external auditor.
This is a tool and technique of the Perform Quality Assurance process.
Question5
Answer B is correct. The situation in the project would call for pull
communication. This is suited for very large audiences and would allow them to
access information content at their own discretion.
Q&A
1. Which of these is an input of the Control Risks process?
A. Change requests
B. Risk audits
C. Work Performance Reports
D. Work performance information
2. Your project sponsor has asked you to present your project’s high-level risk
register to him in the next project update meeting. Which of the following
processes must be started to have your high level risk register?
A. Perform Qualitative Risk Analysis
B. Identify Risks
C. Control Risks
D. Plan Risk Management
Q&A
3. Which of the following is true about risks?
A. Risk impact should be considered, but probability of occurrence is not
important
B. The risk register documents all the identified risks in detail
C. Risks always have negative impact and not positive
D. Risk Response Plan is another name for Risk Management Plan.
4. During which stage of risk planning are risks prioritized based on their relative
probability and impact?
A. Perform Qualitative risk analysis
B. Plan Risk Responses
C. Identify Risks
D. Perform Quantitative risk analysis
Q&A
5. Which of these statements about Risk in a project is correct?
A. Risks are always negative in nature and are threats that need to be managed
well
B. A risk is always induced external to the project.
C. Risks need not be planned for in all projects
D. Risk responses reflect an organization's perceived balance between risk taking
and risk avoidance
6. If a project has a 60% chance of a U.S. $100,000 profit and a 40% chance of a
U.S. $100,000 loss, the expected monetary value of the project is?
A. $60,000 loss
B. $40,000 loss
C. $20,000 profit
D. $100,000 profit
Answer Keys
Question1
Answer C is correct. Work Performance Reports are the inputs to the Control Risks
process.
Question2
Answer B is correct. A high-level risk register contains the identified risks only. The
risk register is created during the Identify Risks process.
Question3
Answer B is correct. The risk register contains details of the identified risks.
Question4
Answer A is correct. Perform Qualitative Risk Analysis assesses the impact and
likelihood of identified risks. During this process the risks are prioritized based on
their relative probability and impact.
Answer Keys
Question5
Answer D is correct. Risk responses reflect an organization’s perceived balance
between risk taking and risk avoidance. The other choices are incorrect. Risks
need not be induced only external to the project. For example, adopting a fast
track schedule may be a conscious choice and result in some risks. This may
however be in balance with the reward gained by taking the risk. Risks need not
always be negative in nature. They may be positive as well. All projects need to
plan for Risks.
Question6
Answer C is correct. EMV=Probability x Impact .6 x $100,000=$60,000 … .4 x
($100,000)=($40,000) … $60,000-$40,000=$20,000 profit.
Q&A
1. Which of the following is not a tool or technique of the Control Procurement
process?
A. Records management system
B. Contract change control system
C. Configuration management system
D. Payment system
2. Which of these is not an input to the Control Procurement process?

A. Change requests
B. Agreements
C. Work performance reports
D. Work performance data
Q&A
3. You have received a proposal against a RFP that was sent to vendors. One of
the vendors has indicated that they can do the project for $12,500. The cost for
the project is $10,000 and their profit will be $2,500. Which type of the contracts
is most suitable to be used in this situation?
A. Cost Plus Percentage of Cost
B. Cost Plus Incentive Fee
C. Cost Plus Fixed Fee
D. Fixed price
4. Your company requires that before you purchase any routers or switches for
the data center you are building, you need to solicit quotes from three separate
suppliers prior to submitting the purchase request to the finance department.
This policy belongs to?
A. Organizational Process Assets
B. Make-or-Buy Decision
C. Enterprise Environmental Factors
D. Procurement Management Knowledge Area
Q&A
5. Different types of contracts are appropriate for different types of purchases.
Which of these is not one of the three broad categories of contracts?
A. Cost-reimbursable
B. Fixed-price or lump-sum
C. Fixed-assessment
D. Time and Material
6. The types of contracts that can be used in a project are documented in the:
A. Request for Proposal (RFP)
B. Procurement management plan
C. Procurement statement of work
D. Work breakdown structure (WBS)
Answer Keys
Question1
Answer C is correct. The configuration management system is not a tool and
technique of the Control Procurements process. The rest of the choices are valid
tools and techniques of this process.
Question2
Answer A is correct. Change requests are not the inputs of the Control
Procurement process. The rest of the choices are valid inputs of this process.
Question3
Answer D is correct. Apparently it looks like the vendor is asking for a cost plus
fixed fee contract. However, the vendor is actually looking for a fixed price
contract when they asked for a fixed $12,500. The cost and fee are just the
components the vendor has estimated to come up with a final price.
Answer Keys
Question4
Answer A is correct. Any type of corporate policy or formal procurement
procedure is an organizational process asset.
Question5
Answer C is correct. Fixed-assessment is not a category of contracts.
Question6
Answer B is correct. The types of contracts that can be used in a project are
documented in the Procurement Management Plan.
Q&A
1. John is currently managing a bridge construction project. The project is in the
execution phase. During the planning phase of the project, John developed a
comprehensive stakeholder management plan for the project. However, the
frequency of the plan review has not been defined. How often should the
stakeholder management plan be reviewed by John?
A. On a regular basis; frequency needs to be decided by John.
B. On a weekly basis.
C. The stakeholder management plan cannot be reviewed during the execution
of the project.
D. On a monthly basis.
2. Jim is managing a road network design project for a government agency. He is

currently carrying out the Plan Stakeholder Management process for the project.
Which of the following documents will provide the list of project stakeholders to
Jim for this process?
A. Enterprise environmental factors
B. Project management plan
C. Organizational process assets
D. Stakeholder register
Q&A
3. Gordon is currently developing his project’s stakeholder management
strategy. All enterprise environmental factors should be considered during this
process. Which of the following enterprise environmental factors should be
paid special attention during this process?
A. Commercial databases
B. Project templates
C. Lessons learned from past similar projects
D. The organization's culture and structure
4. The Project Stakeholder Management knowledge area is focused on engaging

project stakeholders with the project. What is the objective of effectively
keeping the project stakeholders engaged with the project?
A. Using consistent project management methodology across organizational
projects.
B. To motivate the project team members.
C. To manage their expectations so that the project objectives are achieved.
D. To demotivate the negative stakeholders.
Q&A
5. Sandra is managing a new supersonic aircraft design project. This is a huge
project and the success of this project is very critical for her organization. For
such mission-critical projects, which of the following is the most desirable
engagement level for all major project stakeholders?
A. Neutral stakeholders
B. Resistant stakeholders
C. Leading stakeholders
D. Supportive stakeholders
6. Greg’s project is in the initiating stage. The sponsor of the project has asked
Greg to present a list of the identified project stakeholders in the next project
update meeting. He has also asked Greg to present the project stakeholders
current and desired engagement levels so that they can brainstorm on the
stakeholder management strategy. Which of the following is a presentation tool
that can help Greg summarize all of this information in a tabular format?
A. Communications management plan
B. Stakeholder management plan
C. Stakeholders engagement assessment matrix
D. Stakeholder register
Answer Keys
Question1
Answer A is correct. As projects progress, project stakeholders, their interests,
needs, expectations and engagement levels may change. The stakeholder
management plan should be regularly reviewed by the project manager. The
frequency of the review should be decided by the project manager if that has not
been imposed by the top management.
Question2
Answer D is correct. The stakeholder register, an output of the Identify
Stakeholders process, documents all of the identified project stakeholders and
related information. The stakeholder register (an input to the Plan Stakeholder
Management process) will provide the necessary information to Jim.
Question3
Answer D is correct. The lessons learned and the project templates are not
enterprise environmental factors, these are organizational process assets. The
commercial databases can provide very limited information to develop the
stakeholder management plan. During the Plan Stakeholder Management
process, the organization’s culture and structure are of particular importance.
Answer Keys
Question4
Answer C is correct. The core objective for stakeholder engagement management is
to ensure that the project stakeholders are kept satisfied and their expectations are
being met throughout the course of the project. Keeping the project team members
motivated and using a consistent project management methodology are generic
objectives of project management.
Question5
Answer D is correct. It would be an ideal situation for any project if all of the major
stakeholders are supportive of the project. This will ensure smooth project progress
and timely resolution of issues. In the real world this might not be achievable;
nevertheless, it is the most desirable state for all major stakeholders. On the other
hand, if all major stakeholders assume a leading role that will lead to conflicts.
Question6
Answer C is correct. Both the communications and stakeholder management plans
are detailed textual documents. However, the stakeholders engagement assessment
is the best tool to be selected in this situation as it only presents the information
required by the project sponsor in a tabular format.
Q&A
1. You are a project manager of a company and your project is currently in
execution phase. The customer has requested you for additional work. This work
will affect the budget, but not the schedule of the project. What should you do
next?
A. Add the additional requirements to the project plan.
B. Ignore the request.
C. Explain the change procedure and ask to submit a request for change.
D. Discuss with the project team about the change.
2. Your company policy allow to gift exchange with customer within certain limit.
By mistake, you have given a gift to the customer's representative already which is
beyond the limit mentioned in your company policy. What should you do?
A. Forget it and don't tell anyone.
B. Contact your company's senior management and ask for assistance.
C. Ask your customer to return the gift.
D. Ask your customer to give you a gift which has the same cost
Q&A
3. Your company policy allows accepting gifts from customer within certain limit.
Your customer is giving you a gift which is beyond limit of your company policy.
You have given a gift to the customer's representative already which has similar in
value. What should you do?
A. Accept it and don't tell anyone.
B. Contact your company's senior management and ask for assistance.
C. Ask your customer about company policy.
D. Refuse it.
4. You are a project manager of Software Product company. After a person is

hired, you come to know that many of this person's ideas were developed by a
competitor company. Are you going to implement the same ideas?
A. Accept the new ideas.
B. Ignore the ideas because it may be violation of the code of conduct.
C. Ask to sign NDA.
D. Tell the person that he should not mention that the ideas came from another
company.
Q&A
5. You are managing a project that is in the execution phase. A large and
unexpected problem occurs that will cause a delay in the schedule. What should
you do?
A. Look for tasks in the project where there is an ability to reschedule to free
resources for this problem.
B. Make overtime mandatory for the project team.
C. Discuss with the stakeholders about getting additional time and budget for the
project.
D. Reduce testing time.
6. Some of your team members want to work on a flexible schedule and others
want all team members to agree on a fixed time schedule. What should you do?
A. Allow them for flexible time schedules.
B. Allow them for fixed time schedules.
C. Arrange a meeting and allow them to decide.
D. Ask your senior management to decide.
Answer keys
Question1
Answer C is correct. Explain the change procedure and ask to submit a request for
change is the best choice.
Question2
Answer B is correct. Best option is to contact your company's senior management
and ask for assistance.
Question3
Answer B is correct. Best option is to contact your company's senior management
and ask for assistance.
Answer keys
Question4
Answer A is correct. Unless the employee signed the NDA with his or her previous
organization, there is no obligation for him or her not to share knowledge that
was gained while working for the competitor.
Question5
Answer A is correct. The first thing that you should do is to look for tasks in the
project where there is an ability to reschedule to free resources for this problem.
Question6
Answer C is correct. The best option is to arrange a meeting and allow them to
decide.

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Project Management Professional

PMBOK 5th Edition

Prerequisites for the PMP Exam

Category Formal Education PM Training PM Total

Initiating the project (11%)

 Better control of financial, physical, and human resources

Increasing demand certified project

Operations is work done to sustain the business.

Program management Portfolio management

A Program can have many projects

Business Needs Business Product

Project Constraints Project

Project Life Cycle

Manager Manager Manager Manager Manager

Resource Resource Resource

Resource Resource Resource

Resource Resource Resource

Manager Manager Manager Project Manager

Resource Resource Resource Resource Resource

A composite organizational structure is frequently used by organizations where

Organizational environmental factors include the following:

High-Level Scope Yes Yes Yes

Only for each phase or

High-Level Planning Yes Yes Yes

At beginning of project Only for each phase or

Product is not well

10 Knowledge areas are:

Includes the following project management processes:

 Develop project charter to initiate & authorize the project.

When a project comes to an end the following may occur:

Identify Integration Coordinate

Develop Project Direct & Manage

Perform integrated Monitor & Control

Project Communication Project Monitoring the project’s critical path

Change control Risk Management

Deliver project’s products Day to day management of the project

Develop Project Charter - the process of developing a document that formally

Inputs 1. Project statement of work (SOW)

Inputs 1. Project charter

Inputs 1. Project management plan

Inputs 1. Project management plan

Different weights can be assigned to different criteria to represent the varied

Benefit Cost Ratio (BCR) can be calculated as Benefit ÷ Cost

Example: If the projected costs and benefits of two projects are:

The common terms involved in economic models are:

These models use the following kinds of algorithms:

Control scope Validate scope Create WBS

Inputs 1. Project management plan

Inputs 1. Scope management plan

Inputs 1. Scope management plan

Plan and Room and

Level 3 1.3.5 Prepare

Inputs 1. Project management plan

Inputs 1. Project management plan

Develop Estimate Activity

Inputs 1. Project management plan

Inputs 1. Schedule management plan

Inputs 1. Schedule management plan

Three Point Estimating

30Hours 10Hours 20Hours 20Hours 20Hours 20Hours

Get milk Put milk Enjoy &

PERT - Program Evaluation and Review

Scenario analysis technique

Monte Carlo Analysis