Project Management
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© Copyright 2003 - 2020 by Andy Crowe. Printed and bound in the United States of America. All
rights reserved. No part of this book may be reproduced or transmitted in any form or by any means,
electronic or mechanical, or incorporated into any information retrieval system, electronic or
mechanical, without the written permission of the copyright owner.
Although the author and publisher have made every effort to ensure accuracy and completeness of
information entered in this book, we assume no responsibility for errors, inaccuracies, omissions, or
inconsistencies included herein. Any slights of people, places, or organizations are completely
unintentional.
“PMI,” “PMP,” and “PMBOK” are certi�cation marks in the United States and other nations, registered
to the Project Management Institute, Inc.
All inquiries should be addressed to (e-mail): [email protected]
First Edition, May, 2003; Second Edition, June, 2004; ird Edition, October, 2005; Fourth Edition,
April, 2009; Fih Edition, May, 2013; Sixth Edition, 2018,
Sixth Edition Plus Agile,
First Printing April, 2020;
Second Printing December, 2020;
ird Printing March, 2021
International Standard Book No. ISBN-13: 978-1-7320557-1-1
ATTENTION CORPORATIONS, UNIVERSITIES, COLLEGES, AND PROFESSIONAL
ORGANIZATIONS. Quantity discounts are available on bulk purchases of this book. For
information, please contact [email protected].
To Bill Yates, Louis Alderman, and Adriana Greene. Your patience, expertise,
and talent brought order to chaos and helped make this book what it is.
Also by Andy Crowe
THE PMI-ACP EXAM
How to Pass On Your First Try
e most trusted book on the PMI-ACP exam with everything you need to
prepare and pass conveniently organized in a single reference.
ALPHA PROJECT MANAGERS
What the Top 2% Know at Everyone Else Does Not
Imagine having access to the top project managers from organizations and
industries around the world and having the chance to uncover what they do,
how they approach their challenges and what they know. is book gets you
inside the minds of these top managers and shares their practices, their
attitudes and their secrets.
Available on Amazon.com
Contents
Forward
About the Author
About Velociteach
Introduction
Conventions Used in this book
01 THE EXAM
What the Exam Tests
A Passing Grade
e Exam Material
Getting to the Test (Application)
Requirements to Apply with a College Diploma
Requirements to Apply without a College Diploma
Ongoing Education
e Testing Environment
e Time Limit
Question Formats
02 FOUNDATIONAL CONCEPTS
Philosophy
Importance
Preparation
Essential Terms
Project Roles
Project Context
Common Inputs, Tools, Techniques, and Outputs
Understanding Agile
Methodologies
Traditional Waterfall Projects
e Agile Way
Predictive, Agile, and Hybrid Approaches
e Manifesto for Agile Soware Development
Agile Principles
Team and Roles
Planning with Agile
Product Vision Statement
Personas and Extreme Personas
Wireframes
Agile emes
User Stories and Story Cards
Story Maps
Features
Minimally Marketable Feature
Task
Value Streaming Mapping
Rolling Wave Planning
Test-First Development
De�nition of “Done”
Agile Estimating
Wideband Delphi Estimating
Planning Poker
Affinity Estimating
Idea Time
Iteration and Release Planning
Agile Modeling
Timeboxing
Continuous Integration
Working with Agile
Ground Rules
Servant Leadership
Which Approach is Best?
Summary
Foundational Terms and Concepts Questions and Answers
03 PROCESS FRAMEWORK
Importance
Preparation
Essential Terms
Organization
Process Group 1 - Initiating
Process Group 2 - Planning
Process Group 3 - Executing
Process Group 4 - Monitoring & Controlling
Process Group 5 - Closing
Processes of Project Management
04 INTEGRATION MANAGEMENT
Philosophy
Importance
Preparation
Processes
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project Work
Manage Project Knowledge
Monitor and Control Project Work
Perform Integrated Change Control
Close Project or Phase
Agile Perspective
Integration Management Questions & Answers
05 SCOPE MANAGEMENT
Philosophy
Importance
Preparation
Processes
Plan Scope Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
Agile Perspective
Scope Management Questions & Answers
06 SCHEDULE MANAGEMENT
Philosophy
Importance
Preparation
Processes
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Durations
Develop Schedule
Control Schedule
Agile Perspective
Special Focus: Critical Path Method
Summary of Key Terms
Exercises & Answers
Schedule Management Questions & Answers
07 COST MANAGEMENT
Philosophy
Importance
Preparation
Processes
Important Concepts
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
Agile Perspective
Special Focus: Earned Value
Exercises & Answers
Cost Management Questions & Answers
08 QUALITY MANAGEMENT
Philosophy
Importance
Preparation
De�nition of Quality
Processes
Quality Terms and Philosophies
Plan Quality Management
Manage Quality
Control Quality
Agile Perspective
Quality Management Questions & Answers
09 RESOURCE MANAGEMENT
Philosophy
Importance
Preparation
Processes
Plan Resource Management
Estimate Activity Resources
Acquire Resources
Develop Team
Manage Team
Control Resources
Agile Perspective
Resource Management Questions & Answers
10 COMMUNICATIONS MANAGEMENT
Philosophy
Importance
Preparation
Processes
Project Manager’s Role in Communications
Plan Communications Management
Manage Communications
Monitor Communications
Agile Perspective
Exercises & Answers
Communications Management Questions & Answers
11 RISK MANAGEMENT
Philosophy
Importance
Preparation
Processes
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Implement Risk Responses
Monitor Risks
Agile Perspective
Risk Management Questions & Answers
12 PROCUREMENT MANAGEMENT
Philosophy
Importance
Preparation
Processes
Roles
Contracts
Plan Procurement Management
Conduct Procurements
Control Procurements
Agile Perspective
Procurement Management Questions & Answers
13 STAKEHOLDER MANAGEMENT
Philosophy
Importance
Preparation
Processes
Identify Stakeholders
Plan Stakeholder Engagement
Manage Stakeholder Engagement
Monitor Stakeholder Engagement
Agile Perspective
Stakeholder Management Questions & Answers
14 HOW TO PASS THE PMP EXAM
e PMP Exam
Reading the Questions
A Guessing Strategy
Spotting Tricks and Traps
Don’t Get Stuck
Exam Time Management
Scratch Paper
Budgeting Your Time
Managing Your Review
General Advice
Managing Anxiety
Professional Conduct
15 FINAL EXAM
Final Exam Questions
Final Exam Answers
Glossary of Terms
Foreword
is edition of the PMP Exam: How To Pass On Your First Try is an
expansive update for the January 2021 exam change. is book has helped
people all over the world to pass the infamous PMP exam.
In order to pass the PMP exam, you have to demonstrate your knowledge
and your ability to apply that knowledge in difficult situations. In the most
frustrating scenarios, there is no answer that is clearly correct, or if there is,
it is not represented in the choices. Studying for PMP certi�cation takes a
signi�cant amount of commitment and effort, but knowing what to study
should be effortless. at’s where this book comes in.
Agile concepts were �rst introduced in the PMP exam in early 2018, but
with the January 2021 exam update, they represented a full 50% of the exam.
is is an acknowledgement of the growth of agile and hybrid models that
blend agile and traditional approaches, and these approaches can frequently
be at odds with the traditionally predictive, “waterfall” approach.
Understanding how to read and decode these questions is one of the most
important skills you can develop.
is edition also has accompanying video segments. People learn through a
variety of styles, and video is used to reinforce key points.
Several resources exist for PMP exam preparation, so why should this be the
one volume you use? Because it is designed from page one to be better. It is
clearly organized and presents the material in an easily understandable
format without insulting the reader’s intelligence. Every process, input, tool
and technique, and output is clearly explained, and the reasons underlying
each are addressed. Agile and hybrid concepts are clearly explained with a
focus on the exam. ere is also a glossary of terms in the back that is an
excellent reference by itself.
is book works well as a stand-alone resource, but there are other resources
available that will enhance and complement it. ere is a laminated quick
reference guide that organizes key concepts. ere are audio resources
where exam content is discussed. ere is also an app that delivers
�ashcards. Combined with the online companion website,
insite.velociteach.com, you’ll �nd more than enough to help you prepare to
pass the PMP exam. I believe you will �nd this end result to be the most
complete, concise, and up-to date study resource.
Here’s to your success!
ANDY CROWE, PMP, PgMP, PMI-ACP
About the Author
About the Author
Andy Crowe, PMP, PgMP, PMI-ACP speaks, writes, and researches
proli�cally on project management. In addition to this book, he has
authored Alpha Project Managers: What e Top 2% Know that Everyone
Else Does Not and e PMI-ACP Exam: How To Pass On Your First Try.
Crowe is founder and CEO of Velociteach, a company passionate about the
sharing the best practices in project management, headquartered in
Kennesaw, GA. He spends much of his time writing in the Blue Ridge
Mountains.
About Velociteach
About Velociteach
Velociteach, a Kennesaw, GA company, has been named e Project
Management Institute’s Continuing Professional Education Provider of
the Year and one of the US Chamber of Commerce’s top 100 small
businesses. Velociteach offers training around the world, teaching
certi�cation and advanced project management theory and practice. Full
details on this and other course offerings are available online at
www.velociteach.com.
Stay Current
Get updates from Velociteach at twitter.com/velociteach.
Ask exam-related questions, participate in discussions, and stay on top
of trends and best practices in project management by communicating
with Andy and the Velociteach team via their project management blog
at savvypm.velociteach.com.
Get exam tips, free content, and special offers by liking this book at
facebook.com/PMPExam
“Manage is, the Podcast by Project Managers for Project Managers”, is
an easy and free way for you to earn your PDUs while listening to
thought leaders in the project management industry. Start earning free
PDUs today! https://www.velociteach.com/category/podcast/
Introduction
e best part of my job has to be hearing from people who bought this
book, took an online class, or attended one of our project management
boot camps. Practically every day I get email from someone who passed
the PMP exam, and it always brightens my day. I read them all, and I try
to respond to each of them. Being on the receiving end of hundreds of
“thank you” letters each year is incredibly rewarding and also quite
humbling.
I wrote the �rst edition of this book in 2002, and I have worked on it
constantly to keep it accurate and relevant. It is a labor of love.
is edition is packed with new content, new questions and more
diagrams. e most signi�cant update is the introduction of more agile
content. Each question was carefully craed to be compatible with the
January 2021 exam change. ose who are familiar with earlier editions
will �nd this edition to be an upgrade in virtually every way.
ere is an old saying, “If it were easy, everyone would do it.” Among the
many certi�cations available today, the PMP stands out as the most
prestigious, in part because it is considered highly difficult to attain.
is book will cut down on the difficulty factors and demystify the
material. In the following chapters, you will �nd exactly what you need
to study for the test, how to learn it, how to apply it, and why it is
important. e PMP Exam: How to Pass on Your First Try is a complete
resource to help you prepare fully for the PMP certi�cation exam.
In order to get the most from your efforts, you should read the material
in this book, practice the examples, and then take and re-take the sample
exam, reading the explanations that accompany each question.
Additionally, Chapter 14 was written to help you know when you are
ready to take the exam.
All in all, you should �nd your preparation for PMP certi�cation a
highly rewarding experience. Aside from the �nancial and career
bene�ts that accompany it, PMP certi�cation is a very worthy goal. e
PMP is one of the most recognizable certi�cations you can earn,
recognized by nearly every industry and in over 120 countries around
the world.
Conventions Used
Conventions Used in this Book
e 6th edition of e PMP Exam: How to Pass on Your First Try is
structured differently than other exam preparation materials. Some of the
key features that will help you get the most from this book are listed below:
In order to create a comprehensive reference, every process, input, tool
and technique, and output is included, but to help you prioritize your
study, key information for the exam is designated by a symbol next to
topics of particular importance.
ere is a structure and priority to the material. e book will guide
you, and by the time you have read a chapter or two and taken a couple
of the quizzes, you will start to understand. By studying the right
information with the proper emphasis, you can be con�dent of passing.
You will also �nd many topics not even mentioned in the PMBOK®
Guide expanded on quite heavily in this book. ese come from
recognized sources and volumes on which the exam relies.
e philosophy behind each knowledge area and many of the sub-
topics is explained. Because several questions on the PMP Exam
require you to apply the information instead of simply regurgitating it,
you must understand “why” the information is structured the way it is,
instead of merely memorizing it.
A large portion of the PMP Exam relies on understanding key terms
related to project management. Many test-takers go awry by relying on
their own experiences to interpret terminology instead of
understanding PMI’s de�nitions. PMI’s use of a term or concept may be
very different than that of someone who has not had exposure to PMI’s
philosophy. Key terms are given special attention where necessary to
help readers become acquainted with PMI’s usage of project
management terms and concepts.
With the January 2, 2021 exam, half the questions are dedicated to agile
or hybrid topics. In the Glossary, key agile terms are designated by a
symbol for easy identi�cation.
1 e Exam
is chapter will explore the PMP certi�cation exam, what it is like, and the
material it covers. It will clarify exactly what the test is, how it is structured,
and an overview of the contents. Speci�c strategies on how to pass the exam
will be discussed in Chapter 14 – How to Pass the PMP on Your First Try.
WHAT THE EXAM TESTS:
Before we discuss what the PMP certi�cation exam does test, let’s clear up a
few misconceptions about the exam.
e PMP certi�cation exam does not test:
Your project management experience or competence
Your common sense
Your knowledge of industry practices
Your knowledge of how to use soware tools
What you learned in management school
Your intelligence
e PMP certi�cation exam does test:
Your knowledge of PMI’s processes
Your understanding of the many terms that are used to describe the
processes
Your ability to apply those processes in a variety of situations
Your ability to apply key formulas to scheduling, costing, estimating,
and other problems
A PASSING GRADE:
Not to scare you right away, but the cold, hard truth is that many who take
the PMP Exam do not pass. ose who do not pass come from a broad
cross-section of people, ranging from those who have approached the exam
with extensive preparation, including books and training classes, to those
who have barely expended any effort. By using this book, you are tilting the
scales decidedly in your favor!
Although PMI no longer discloses the exact score you will need to pass, it is
estimated that you need to correctly answer at least 106 questions out of the
175 graded questions on the test (more on graded questions later). at
translates to 61%, and if your �rst reaction to the 61% mark is that it does
not sound very impressive, consider that this exam revision is tougher. 61%
is a great score, and each year, tens of thousands of project managers do not
pass.
Some people �nd it very difficult to understand why they cannot study and
make a perfect score on the PMP. It is a good thing to want to do well on the
exam, but considering the incredible breadth of material, simply passing it is
a terri�c accomplishment! Experts disagree over some of the questions, and
there will be some that you will feel absolutely certain you got right that you
likely missed. is has more to do with the way the questions are
constructed and worded than it does with the study effort you put in, your
intellectual powers, or your test-taking abilities.
Your goal in taking the PMP should be to do your absolute best and to make
sure that your best effort falls within PMI’s passing score limits.
THE EXAM MATERIAL:
Your PMP Exam will be made up of more than 175 questions, covering a
broad variety of material, but only 175 of those questions will count toward
your score. e other 25 questions are considered experimental questions
that PMI is evaluating for use on future exams. e good news is that these
25 questions do not count toward your grade. e bad news is that you will
never know which questions count and which do not since they are
scattered randomly throughout the exam.
PMI does provide some guidelines as to how the material will be presented.
e exam was signi�cantly updated January 2, 2021. e exam includes
approach questions about predictive, or traditional waterfall projects, agile
projects, as well as hybrid projects—the combination of predictive and agile
approaches. e exam is also categorized by the domains of process, people,
and business environment. e above diagram references the ratios of exam
coverage by these two topical views of the question types. e numerical
breakdown of questions is shown in the tables below.
Category # of Questions % of Exam
Process 87 50%
People 74 42%
Business Environment 14 8%
Total: 175 100%
Category # of Questions % of Exam
Predictive 87 50%
Hybrid 47 27%
Agile 41 23%
Total: 175 100%
e approaches shown (predictive, agile, and hybrid) will be dispersed
throughout the test in the domains shown (process, people, and business
environment). e questions by approach will not be isolated to a speci�c
domain.
is fact shocks many people preparing for the exam:
e PMBOK® Guide (pronounced “pim’-bock”), which stands for a
Guide to the Project Management Body of Knowledge, is not a single
study source for the PMP® exam.
e current PMBOK® Guide does not provide information in the topical
views shown above for the exam question breakdown. e information
presented is an excellent de�nition and presentation of the project
management processes, knowledge areas, and associated process groups, but
it does not give you much help in knowing how that material will translate
to the exam. Many of those who do not pass the PMP® Exam tried to use the
PMBOK® Guide as their study guide and were surprised that there were
questions, terms, and concepts on the exam that were not in the PMBOK®
Guide. Additionally, agile and hybrid concepts, which make up 50% of the
updated exam, are dealt with very lightly in the current PMBOK® Guide.
e chapters in the book are organized by the process framework—
knowledge areas and process groups. e process group terms—initiating,
planning, executing, monitoring and controlling, and closing—will be
explained in Chapter 3 – Process Framework. Information about agile
projects and approaches is interspersed throughout the book to highlight
differences for exam preparation. Additionally, each knowledge area chapter
concludes with a section on agile perspectives.
GETTING TO THE TEST (APPLICATION)
It is highly recommended that you join the Project Management Institute
prior to signing up to take the test. At publication time, the new member fee
was $139.00 ($129.00 membership + $10.00 new member activation fee).
Application may be made online at www.pmi.org, or you may obtain an
application from PMI by calling (610) 356-4600.
Aer joining PMI, you will receive a membership number that you can use
to receive a $150.00 discount on the exam’s non-member fee, so you
instantly save money by joining. e Examination Fee will be $405.00 for a
member in good standing. If you elect not to join PMI, it will cost $555.00 to
apply to take the test.
In addition to the �nancial advantage, there are many other bene�ts that
come with joining PMI, including a subscription to PMI’s publications, PM
Network and PM Today; discounts on books and PMI-sponsored events;
and access to a wealth of information in the �eld of project management.
When you get ready to apply for eligibility for PMP certi�cation, you can
apply online or use printed forms. If at all possible, you should apply online.
Depending on the time of year, wait times have been known to stretch out
for weeks when using printed forms through the mail, while online
applicants usually report turnaround times within one to two weeks. e
length of time can vary, depending on the volume of applications that PMI is
processing. In any case, you must have your letter of eligibility from PMI to
sit for the PMP certi�cation exam.
To be eligible for PMP certi�cation, you will need to demonstrate that you
meet certain minimum criteria. e current quali�cations that PMI requires
are summarized below.
In short, if you hold a university degree, you should apply under the �rst
category. If not, you should apply under the second. See PMI’s official guide,
available online at www.pmi.org, for more details on this point.
Minimum Requirements to Apply with a College Diploma
A University Degree
36 months (3 years) of project management experience
35 hours of project management education (note that the online class
included on the key card in the back of this book can provide you with
eight of those contact hours)
Minimum Requirements to Apply without a College Diploma
A High school diploma or equivalent
60 months (5 years) of project management experience
35 hours of project management education
ONGOING EDUCATION
PMPs are expected to demonstrate not only knowledge and experience but
also their ongoing commitment to the �eld of project management. To
promote such commitment, PMI requires that all PMPs maintain their
certi�cation status by completing at least 60 Professional Development Units
(PDUs) every 36 months. e requirements for PDUs are de�ned in further
detail in the PMI Continuing Certi�cation Requirements Program
Handbook given to all PMPs, and these requirements are similar in nature
to requirements that legal, medical, and other professions have adopted. In
order to maintain the value of this certi�cation, PMI requires its PMPs to
maintain a project management focus and a continued commitment to the
�eld of project management.
THE TESTING ENVIRONMENT
e PMP certi�cation exam is administered in a formal environment. ere
is no talking during the exam, and you cannot bring notes, books, paper, cell
phones, PDAs, or calculators into the examination room with you. e PMP
is considered a “high-stakes” or “high-security” exam and is very carefully
monitored. Test-takers are constantly observed by the test proctor and are
under recorded video and audio surveillance. is can be distracting as well
as unnerving, so it is important to be mentally prepared as you walk into the
exam.
e test is delivered on a Windows-based PC that runs a secure, proprietary
testing application. e computer setup is very straightforward, with a
mouse and keyboard and a simple graphical user interface used to display
the test. PMI can arrange special accommodations for those test-takers who
have special physical needs. To get a feel for how the real PMP Exam looks
and feels, use the key found in the back cover of this book to gain access to
insite.velociteach.com for simulated PMP Exams and other content.
ough PMI has made provision for test-takers who do not live near a
testing center to take a paper version of the exam, they have also provided
an online version of the computerized exam to be administered within
speci�c security guidelines. Exam content is the same in each case, and your
preparation should not be any different. More information on exam options
may be found online at www.pmi.org.
e exam ends either when the 4-hour time limit has been reached (more
on this in a moment) or when you choose to end the exam. With the online
exam option, approximately half-way through the exam, a 10-minute break
is provided. Going back to review or change the �rst-half questions aer the
break is not permitted. Once the exam is over, you will know your score
within a few seconds, and those results are electronically transmitted to
PMI. If you passed, you are immediately a “PMP,” and you may start using
that designation aer your name. PMI will mail you all of the official
information, including your PMP lapel pin and certi�cate, within a few
weeks. If you did not pass, you may take the exam up to three times in a
calendar year. If you do not pass on your third attempt, you must wait one
year from your last attempt to reapply.
THE TIME LIMIT
Taking a test while the clock is ticking can be unnerving. e PMP Exam is
a long exam, but you are given a signi�cant block of time to complete the
test. From the time you begin the exam, you will have 240 minutes (4 hours)
to �nish. For most people, this is enough time to take the test and review the
answers. e allocation works out to 72 seconds per question if no breaks
are taken. While a few of the more complicated questions will certainly
require more than 72 seconds, most will take much less time.
e subject of time management for the exam, along with a suggested
strategy for managing your time, is covered later in Chapter 14 – How to
Pass the PMP on the First Try.
QUESTION FORMATS
Most exam questions are given in a multiple choice format, with four
possible answers, marked A, B, C, and D, and only one of those four answers
is correct. New question formats have been introduced, such as multiple-
select (select all 4-6 answers that apply), matching, and selecting the correct
spot or region on an image. Unlike in some exams, there is no penalty for
guessing, so it is to your advantage to answer every question on the PMP
Exam, leaving none of them blank.
Many of the questions are quite short in format; however, the PMP Exam is
famous (or infamous) for its long, winding questions that are difficult to
decipher. To help you prepare, you will see different question styles
represented in this book. Going through all the sample questions provided
in this volume is an excellent way to prepare for the types of questions you
will encounter on the actual exam.
e best place to begin preparing for the PMP Exam is for you to
understand exactly what a project is and how it differs from operations, a
program, or other activities your organization might undertake. You will
also need to understand what a project manager does and how different
organizational structures can in�uence a project manager’s role and power.
A solid grasp of these and a few other concepts will help you absorb the rest
of the material in this book.
We will start by looking at some fundamental concepts related to predictive
projects. en we will discuss how agile does things differently later in the
chapter. Some of the concepts, covered in the next few pages, could be
applied on either predictive or agile projects.
Most of the chapters in this book focus on the 49 processes of project
management, but this chapter will help you build an important foundation.
e concepts in this book will make more sense once you understand this
chapter.
PHILOSOPHY:
Projects are carried out by organizations. Sometimes this is referred to as the
“organizational context.” It is important because the type of organization and
other environmental factors can greatly in�uence how the project is carried
out.
Every project is going to be unique in its own way. ey may have different
stakeholders, different team members, or unique goals. An effective project
manager must be able to navigate these differences and still get to a
successful outcome. Even apparently slight differences between
organizations can have disproportionately large impacts on the project. For
example, if your senior management strongly supports the project team, that
can provide a tremendous advantage over a senior manager that only offers
lukewarm support.
IMPORTANCE:
is chapter is foundational to your understanding, so it is highly
important.
ere will be many questions on your exam that test your understanding of
project managers, stakeholders, and sponsors. You will also need to be able
to identify the different types of organizations and to recognize the
difference between a project and other activities. Take the time to
understand the terms in this chapter.
PREPARATION:
ere is a lot of material to learn in this chapter, and much of it is marked as
important. Memorizing these terms will help, but understanding and
applying them will bene�t you even more.
ESSENTIAL TERMS:
Let’s begin by mastering a few terms that you will see frequently throughout
this book.
Process - Most of this book is about the 49 processes of project
management, and you will see this term a lot. A process does or creates
something necessary and valuable for the project. For example, there is a
process we will cover in chapter four named Develop Project Management
Plan, and it does exactly what it sounds like. Another process named
Identify Risks is the process where the list of risks is created.
Processes consist of only three types of ingredients: inputs, tools and
techniques, and outputs. e outputs of one process oen become the inputs
to one or more other processes. To make it easier, some of the most
common inputs, tools and techniques, and outputs are covered in this
chapter.
One important thing to understand, and one that trips up many learners, is
that every process may be performed more than one time on a single
project. In fact, you could conceivably perform most of the processes more
than one time within a single phase (don’t worry, phases are covered next).
For example, just because you have created the project’s schedule, it does not
mean that you will not revisit the process of Develop Schedule if the scope
of the project increases or if the budget were changed. In reality, you may
perform that process multiple times, and most processes are the same way.
Do not think about these 49 processes happening sequentially or by
themselves. Many processes may be carried out in parallel and may be
revisited oen.
Phase - Most larger projects are broken down into units known as
phases. ese phases may have names like “requirements gathering,”
“design,” “construction,” “testing,” and “implementation.” When preparing
for the exam, it is easiest to think of phases as being carried out one aer the
other even though they could possibly have some overlap in real practice.
Each phase of a project should produce one or more deliverables, and those
deliverables are evaluated to determine whether or not the next phase may
be begun. e following illustration shows how deliverables are reviewed to
determine whether the project should continue. is decision point is
known as an exit gate (sometimes called a stage gate). An exit gate is the
point at the end of a phase where the deliverables from that phase will be
evaluated to determine whether or not the team completed the phase
acceptably and the next phase may be started. is should be performed
using exit criteria de�ned in advance so that the project team is aware of
how each phase will be judged.
A kill point is very similar to a phase gate with one key addition: Kill points
are points in the project’s life cycle where a team or individual external to
the project makes the decision whether to continue the project or to stop
(kill) it. Typically these are carried out at the same point as an exit gate and
oen using the same or similar criteria.
Project - As you might guess, the de�nition of a project is very
important for the exam. A project is a temporary (�nite) endeavor
undertaken to create a unique product, service, or result. You may encounter
a question on the exam that describes a situation and asks you whether that
situation represents a project. For something to be a project, it needs to have
the following characteristics:
A project is time-limited (it has a de�nite beginning and end). is
means that projects do not include operations, since operations may go
on perpetually, and projects are �nite.
A project is unique (it has not been attempted before by this
organization).
Even though projects do not include operations, you should consider
operations when you are planning for your project. is means that the
project team should understand the needs of the group that takes over
operations or maintenance once the project team has delivered its product.
For the sake of space, this book oen refers to the project’s result as a
product, but it could be any product, service, or result. e point is that
projects ultimately create change, and that change can take on many forms.
Projects are the means by which organizations get things done, whether or
not the changes are visible or tangible.
Program - A program is a group of related projects that are coordinated
together. Unlike projects, programs may also include operations.
Organizations oen group projects into programs in order to realize some
bene�t that could not be achieved if those projects were not undertaken in
concert.
For example, building a new airport might be viewed as a program, made up
of numerous component projects, and this program would certainly take the
ongoing operations into consideration in order to make things run smoothly
and to keep ongoing costs under control.
Not every project will necessarily belong to a program, but all programs are
made up of projects.
Portfolio - A company’s project portfolio represents its entire
investment in projects and programs. Project portfolios should always be
directly aligned to the organization’s strategic goals. In fact, an organization’s
portfolio might be considered the truest expression of its real strategic goals.
Projects contribute to the organization’s portfolio, and ideally, the bene�t of
project investments should be expressed in how they meet or support the
organization’s strategic goals.
Progressive Elaboration - e concept of progressive elaboration has
always been important for the exam, but it just got a lot more important in
the latest updates. e reason has to do with the deeper incorporation of
agile methodologies.
e term “progressive elaboration” simply means that you do not know all of
the characteristics of a product when you begin the project. Instead, they
may be revisited and re�ned oen. You may gather some requirements,
perform some preliminary design, take the results to the stakeholders for
feedback, and then return to gather more requirements. e project is
accomplished through several iterations, or “progressively.”
Using progressive elaboration techniques, whenever you can, is highly
favored on the exam.
Project Management - ere is nothing special or tricky about the
de�nition of project management, but you will need to be able to recognize
it on the exam. Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet the project requirements.
Success - e de�nition of project success is delivering the product and
the project within the set boundaries of scope, cost, schedule, quality, and
customer satisfaction.
Historical Information - Historical information is an important
concept that runs throughout the exam, usually under the heading of
“Organizational Process Assets.” Historical information is found in the
records within your organization that have been kept on previous projects.
ese records can be used to help benchmark the current project. ey may
show previous estimates, what resources were used, and what lessons were
learned. More than anything, historical information is used to help predict
trends and avoid mistakes for the current project and to evaluate the
project’s feasibility.
Because continuous improvement and learning matter so much, historical
records are extremely important in project management, and they are used
heavily during planning activities. ey can provide useful metrics, be used
to validate assumptions, and help prevent repeated mistakes.
e term “historical information” is as old as project management itself, but
the term has recently given way to the more comprehensive “organizational
process assets,” covered under common inputs a bit further on in this
chapter. You may well see “historical information” pop up on the exam, but
know that it now �ts neatly under the broader heading of organizational
process assets. at is because any historical information you have is actually
an asset for the organization to use on future projects.
Baseline - e term “baseline” is used for certain plans: scope, schedule,
cost, performance management, and the project plan itself.
A baseline is simply a version of the plan that exists once the plan is
stabilized. While the plan is in its early development, you would not have a
baseline, but at some point it is put under control. is means that the plan
cannot just be changed at will but that any changes need to be approved and
documented through some kind of change control process. Baselining does
not mean that the process has to be difficult or bureaucratic.
A plan’s baseline is simply the original plan plus all approved changes. Many
people get tripped up on the concept that the baseline includes all approved
changes. Baselines are used as tools to measure how performance deviates
from the plan, so if changes to the plan are approved, the new plan becomes
the baseline.
Suppose you were running a one-mile race. at distance of one mile would
be your baseline.
Your plan was to run at a pace of just under eight minutes per mile. Now
suppose that the race length was changed to a three-mile race. You ran the
race and still �nished in a very respectable 26 minutes. Would you want
your progress measured against the original distance or the updated one? If
you did not update your baseline to three miles, your pace of 26 minutes
against the original distance of one mile would not be very impressive to
most people. Your performance measurements would only be meaningful if
you had an accurate baseline.
Remember that your project’s baseline is de�ned as the original plan plus all
approved changes. Even though the baseline changes as the plan changes, it
is a good idea to keep records that show how the plan has progressed and
changed over time.
Lessons Learned - e key word for you to remember when you think
of lessons learned is “variances.” Lessons learned are gathered at the end of
each phase or at the end of the project, and they focus on variances between
the plan and the results. e goal is to detail any information that should be
shared with future projects. Lessons learned from past projects are another
organizational process asset, which is an input into many planning
processes. It is important that lessons learned put a special emphasis on
what was planned to happen, what actually happened, and what you would
have done differently in order to avoid any variances. Lessons learned are
collected throughout the project for continuous improvement efforts and for
use on future projects.
In a lessons learned meeting, the team essentially asks “what would we do
differently if we had this project (or part of a project) to do again.”
Regulation - A regulation is an official document that provides
guidelines that must be followed. Compliance with a regulation is
mandatory (e.g., in the United States, wheelchair ramps are required for
many streets and buildings). Regulations are issued by government agencies
or another official organization.
You should expect never to see a question on the exam where the correct
answer has you skirt, bend, or break a regulation.
Standard - A standard is a document approved by a recognized body
that provides guidelines. Compliance with a standard is not necessarily
mandatory but may be helpful. For example, the size of copy paper is
standardized, and it would probably be a very good idea for paper
manufacturers to follow the standard, but there is not a law in most
countries requiring that copy paper be made the standard size. e PMBOK®
Guide provides a standard for project management.
For the exam, you should view standards as a good thing and as helpful. is
means that the correct answers will re�ect this perspective.
System - ere are several instances of “systems” in this book. A system
incorporates all the formal procedures and tools put in place to manage
something. e term “system” does not refer only to computer systems, but
to procedures, checks and balances, processes, forms, soware, etc. For
instance, the project management information system (discussed in Chapter
4 – Project Integration Management) may include a combination of high-
tech and low-tech tools such as computer systems, paper forms, policies and
procedures, meetings, etc.
PROJECT ROLES:
Another area of study regarding the project context is that of the roles and
responsibilities found on projects. You should be familiar with the following
terms related to project roles:
Project Manager -e project manager is the person ultimately
responsible for the outcome of the project. e project manager is:
Formally empowered to use organizational resources
In control of the project
Authorized to spend the project’s budget
Authorized to make decisions for the project
Project managers are typically found in a matrix or projectized organization
(more about types of organizations shortly). If they do exist in a functional
organization, they will oen be only part-time and will have signi�cantly
less authority than project managers in other types of organizations.
Because the project manager is in charge of the project, most of the project’s
problems and responsibilities belong to him or her. It is typically a bad idea
for the project manager to escalate a problem to someone else. e
responsibility to manage the project rests with the project manager, and that
includes �xing problems.
Project Coordinator - In some organizations, project managers do not
exist. Instead, these organizations use the role of a project coordinator. e
project coordinator is signi�cantly weaker than a project manager. is
person may not be allowed to make budget decisions or overall project
decisions, but they may have some authority to reassign resources. Project
coordinators are usually found in weak matrix or functional organizations.
Project Expeditor - e weakest of the three project management roles,
an expeditor is a staff assistant who has little or no formal authority. is
person reports to the executive who ultimately has responsibility for the
project. e expeditor’s primary responsibility lies in making sure things
arrive on time and that tasks are completed on time. An expeditor is usually
found in a functional organization, and this role may be only part-time in
many organizations.
Senior Management - For the exam, you can think of senior
management as anyone more senior than the project manager. Senior
management’s role on the project is to help prioritize projects and make sure
the project manager has the proper authority and access to resources. Senior
management issues strategic plans and goals and makes sure that the
company’s projects are aligned with them. Additionally, senior management
may be called upon to resolve con�icts within the organization.
Functional Manager - e functional manager is the departmental
manager in most organizational structures, such as the manager of
engineering, director of marketing, or information technology manager. e
functional manager usually “owns” the resources that are loaned to the
project, and has human resources responsibilities for them. Additionally, he
or she may be asked to approve the overall project plan. Functional
managers can be a rich source of expertise and information available to the
project manager and can make a valuable contribution to the project. Be
aware that functional managers are the most likely persons with whom
project managers experience con�ict on a project.
Stakeholder - Stakeholders are individuals who are involved in the
project or whose interests may be positively or negatively affected as a result
of the execution or completion of the project. ey may exert in�uence over
the project and its results. is de�nition can be very broad, and it can
include a vast number of people! Oen when the term “stakeholders”
appears on the exam, it may be referring to the key stakeholders who are
identi�ed as the most important or in�uential ones on the project.
Sponsor - e sponsor is the person paying for the project. ey may be
internal or external to the company. In some organizations the sponsor is
called the project champion. Also, the sponsor and the customer may be the
same person, although the usual distinction is that the sponsor is internal to
the performing organization and the customer is external.
e sponsor may provide valuable input on the project, such as due dates
and other milestones, important product features, and constraints and
assumptions. If a serious con�ict arises between the project manager and the
customer, the sponsor may be called in to help work with the customer and
resolve the dispute.
Project Office (also referred to as Project Management Office or PMO) -
is term refers to a department that can support project managers with
methodologies, tools, training, etc., or even ultimately control all of the
organization’s projects. Usually the project office serves in a supporting role,
de�ning standards, providing best practices, and auditing projects for
conformance.
Program Manager - As the title suggests, program managers are
responsible for programs. Earlier in this chapter, we covered the fact that a
program is multiple projects coordinated together, and the program
manager organizes and manages these at a higher level than the project
manager does. For instance, the project manager may be responsible for the
daily management of a given project, while the program manager is
responsible for coordinating several projects at once in order to create a
common bene�t. For the exam, you should think of it this way: you (the
project manager) manage the details of a project and report status and other
relevant information to the program manager.
PROJECT CONTEXT
Another area of study for the PMP Exam is the concept of a project context,
which is the organizational environment where the project is carried out. A
large part of the project context is determined by the organization’s structure
or type of organization.
Paying attention to the context is important since projects do not take place
in a vacuum. Practically every activity that occurs and every resource that is
used will touch the performing organization in some way.
For the exam, your general attitude should be that the project needs to
respect and adapt to the performing organization whenever possible. at is
true so long as the organization does not pressure you to cut corners,
misrepresent the truth, or to sidestep any of the processes covered in this
book. e best answers on the exam allow you to do things the right way
and in the right order but in such a way that �ts with the organization.
Types of Organizations - e way in which an organization is
structured will have an impact on the way its projects are managed.
e chart that follows summarizes essential information regarding the
various types of organizations. You should be very familiar with this
information before taking the exam, as you may see several questions that
describe a project or situation and require you to identify what type of
organization is involved.
Project Manager’s Power - Once you are comfortable in your
understanding of types of organizations and the roles that various types of
stakeholders play in a project, you can see that the organizational context in
which a project is carried out will have a great deal of in�uence on that
project. One way that the type of organization affects the project manager in
particular is in how much power he or she has to carry out decisions, apply
resources, and negotiate. e chart below illustrates the relationship between
a project manager’s level of empowerment and the type of organization in
which he or she works.
Project Manager’s Management Skills - Project management includes
many other disciplines. Since most projects are performed within an
organization, there are other management skills that make up the
foundation of project management. e way the project manager uses these
skills will probably have a signi�cant effect on the projects. e project
manager should have experience in:
Leading - Setting direction, aligning people to that direction, motivating
them, and inspiring them to commit and perform.
Communicating - Exchanging information clearly and correctly.
Communication skills are important to everyone involved with the project,
and they are critical to its success.
Negotiating - Working to reach a mutual agreement. Negotiations may
happen with groups or individuals inside and outside the organization. e
goal of negotiating is to create a win-win outcome that is sustainable for all
parties.
Problem-Solving - De�ning the problem and dealing with the core
factors that contribute to or cause it. Problem-solving is such an important
and highly favored skill for project managers that if it appears as one of the
choices on the exam, is quite likely the correct answer. At the very least you
should give that answer very careful consideration.
Influencing - Accomplishing something without necessarily having formal
power. In�uencing the organization requires a keen understanding of the
way the organization is structured, both formally and informally.
In�uencing is an important skill, especially in organizations where the
project manager does not have a high degree of authority.
Project Governance - Oentimes there is a group, either within the
performing organization or outside of the organization, that looks at how
the project work is being performed to ensure that it is being carried out the
right way. is typically takes place throughout the entire project life cycle.
Project governance may be used to de�ne processes used across the project
and to rate the project manager’s performance.
In some organizations, this may be known as the Project Office or the
Project Management Office (PMO). e project manager may formally
report to the PMO, or it may exist solely to help and support project
managers.
Project Life Cycle - e project life cycle is simply the phases that a
project typically goes through. ese phases are general, but they show the
expected �ow of activities on a project.
e six phases represented in the following graphic describe the way in
which a project typically progresses. It should be noted, however, that this
depiction is very general, and different phases and phase names are used by
different industries and projects.
e image also shows some other facts about the project life cycle that oen
appear on the exam in the form of questions. ese questions typically focus
on the fact that resource and cost levels rise early in the project and drop
over time, or how risk and stakeholders’ ability to in�uence the project is
highest early in the project and decreases as the project progresses.
e Triple Constraint - Another fundamental topic in project
management is commonly referred to as “the triple constraint.” It is based on
the realization that while changes do occur during a project, they do not
happen in a vacuum. When the scope of a project is changed, schedule and
cost are also affected. Of course, the same is true when changes are made to
cost or schedule. ose changes will have some impact on the other two
areas.
As many different types of changes will be requested in most projects, it is
essential in project management to be mindful of the triple constraint and to
help keep others aware of it. e project manager should not simply accept
all changes or change requests as valid; rather, the project manager should
evaluate how those changes affect the other aspects of the project.
e triple constraint, or as some know it, the iron triangle, is simply the
concept that scope, time, and cost are closely interrelated. Just as you cannot
modify one side of a triangle without changing one or both of the other
lengths, you cannot simply change one part of the triple constraint without
affecting the other parts.
However common a practice it may be in some organizations to slash a
budget without revisiting the scope or the schedule, the project manager
should not simply accept these mandates. e triple constraint is in place
whether or not the organization recognizes and accepts it.
Quality and risk are also factors that are linked to the triple constraint.
A good rule is this: whenever change is detected on the project, the project
manager should carefully investigate and review the other areas of the
project plan that may be affected and consider which components of the
plan should be updated.
Project Management Methodology - e topic of a project
management methodology is important because it underscores something
that is vital for you to understand as you prepare for the exam. e PMBOK®
Guide does not describe a methodology. e PMBOK® Guide describes 49
processes used to manage a project. ese processes are used by an
organization’s project management methodology, but they are not the
methodology.
To illustrate the difference between the 49 project management processes
and a project management methodology, consider the analogy of two
baseball teams. e Atlanta Braves and the New York Mets both have the
same set of rules when they play, but they likely have very different strategies
of how they will capitalize on those strengths and use those rules to their
advantages. In this analogy, the rules would equate to the processes, and the
strategy to methodology.
Different organizations will employ different project management
methodologies, while they will all adhere to the 49 processes. And just as a
team’s strategy may be more nuanced and rich than the simple rules on
which it is based, an organization’s methodology may be a very rich and
detailed implementation of the project management processes.
Work Authorization System (WAS) - is concept is very important,
even though it is not a formal part of any process. e Work Authorization
System (WAS) is part of the overall project management information system
(PMIS). e WAS is used to ensure that work gets performed at the right
time and in the right sequence. It may be an informal e-mail sent by the
project manager to a functional manager or a formal system used to get an
assigned resource released to complete scheduled work.
COMMON INPUTS, TOOLS, TECHNIQUES, AND OUTPUTS
roughout this book, several inputs, tools and techniques, and outputs of
the 49 project management processes are referenced repeatedly. Since there
are 1444 inputs, tools and techniques, and outputs (including their sub-
points), the decision was made to discuss the most frequently used of these
in the following paragraphs rather than repeat explanations time and again
throughout the book. is section should serve as a reference as you
encounter them, and spending extra time here should help improve your
overall understanding of the material.
In fact, this section is so important that you should read it now, and then
come back to reread it aer you have read chapters 4–13.
Project Management Plan - e project management plan is likely
the most important document discussed in this book. It may be thought
of as the culmination of all the planning processes. It is crucial that you
understand what it is, where it comes from, and how it is used.
For the purpose of the exam, the de�nition of the project management
plan is a single approved document that guides execution, monitoring
and control, and closure. e use of the word “single” in this de�nition is
a bit unusual, since the project management plan is actually made up of
several documents; however, once these component documents become
approved as the project management plan, they become fused together
as one document. Don’t assume that the project management plan is
always overly formal or detailed. e project management plan should
be appropriate for the project. at means that it may be documented at
a summary level, or it may be very detailed.
Following is a list of the components that make up the project
management plan. e project management plan is covered in more
detail in Chapter 4 - Integration Management under Develop Project
Management Plan. Additionally, each of these components is covered in
later chapters of this book.
Scope management plan
Requirements management plan
Schedule management plan
Cost management plan
Quality management plan
Resource management plan
Communications management plan
Risk management plan
Procurement management plan
Stakeholder engagement plan
Change management plan
Con�guration management plan
Development approach
Scope baseline
Schedule baseline
Cost baseline
Performance measurement baseline
Project life cycle description
Management reviews
Organizational Process Assets - What information, tools,
documents, or knowledge does your organization possess that could
help you plan for your project? Some of these might be quite obvious,
such as the project plan from a previous, similar project performed by
your organization, while some may be more difficult to grasp at �rst,
such as company policy. Consider, however, that both of these assets will
help you as you plan. For instance, company policy adds structure and
lets you know the limits your project can safely operate within, so you do
not have to waste time or resources discovering these on your own.
Organizational process assets are typically divided into the categories of
processes, procedures, and corporate knowledge.
A few examples of organizational process assets are:
Templates for common project documents
Examples from a previous project plan
Organizational policies, procedures, and guidelines for any area
(risk, �nancial, reporting, change control, etc.)
Soware tools
Databases of project information
Estimating data for budget or schedule components
Historical information
Lessons learned
Knowledge bases
Special corporate competencies
For the exam, consider anything that your organization owns or has
developed that can help you on a current or future project to be an
organizational process asset. An important part of your job on the
project is to contribute to these assets wherever possible on your project.
Project Documents - Almost all projects regularly produce and
update documentation. Even though “project documents” shows up
throughout the PMBOK® Guide, it is not particularly important for the
exam (remember – the exam tries to exploit your knowledge and
understanding, and project documents is not an area where that is
particularly easy to do in a fair way). For your preparation, review and
understand this list, but do not try to memorize it.
Project documents includes any and all of the following:
Activity attributes
Activity list
Assumption log
Basis of estimates
Change log
Cost estimates
Cost forecasts
Duration estimates
Issue log
Lessons learned register
Milestone list
Project calendars
Project communications
Project schedule
Project schedule network diagram
Project scope statement
Project team assignments
Quality control measurements
Quality metrics
Quality report
Requirements documentation
Requirements traceability matrix
Physical resource assignments
Resource breakdown structure
Resource calendars
Resource requirements
Risk register
Risk report
Schedule data
Schedule forecasts
Stakeholder register
Team charter
Test and evaluation documents
Enterprise Environmental Factors - is input can cover a lot of
ground, and it appears as an input into many planning processes. In fact,
it is used so frequently that you may be tempted to just skim right over
it, but be careful! Enterprise environmental factors are important to your
understanding of the exam material, and you should make sure you have
a solid grasp of why they are used so commonly.
Consider the things that impact your project that are not part of the
project itself. Just a few of these include:
Your company’s organizational structure
e corporate culture
Your organization’s values and work ethic
Laws and regulations where the work is being performed or where
the product will be used
e characteristics of your project’s stakeholders (e.g., their
expectations and willingness to accept risk)
e overall state of the marketplace for your project
Your organization’s infrastructure
e stakeholder or organization’s appetite for risk
In fact, enterprise environmental factors can be anything external to
your project that affects your project. at is why it is so important to
consider these factors when planning your project and to explore how
they will in�uence your project.
Project Charter - e charter is the project’s official birth certi�cate.
It is an important document and one that you will use many times
throughout its life cycle. e charter documents much of what is known
at the time the project is initiated, particularly if that information
informs the reasons why certain decisions are being made. For example,
some requirements will certainly be known, and a summary budget or
key milestone dates may already be speci�ed.
e project charter is created once an organization has selected a project
or a contract is signed to perform a project. Following are the key facts
you need to remember about the project charter.
e Project Charter:
It is created during the Develop Project Charter process.
It is created based on some need, and it should explain that need.
It is usually written by the sponsor and/or customer, but the
project manager who will be working on the project may assist in
developing it in some cases.
It is signed by the performing organization’s sponsor or other
senior management.
It names the project manager and gives him or her the authority to
spend money and to allocate resources to accomplish project
goals.
It should document risk as it is understood at this point.
It should include the high-level project requirements.
It oen includes a high-level milestone view of the project
schedule.
It is a high-level document that does not include project details;
the speci�cs of project activities will be developed later.
It includes a summary-level preliminary project budget.
Agreements - For purposes of the exam, you should equate
agreements to contracts.
ink of agreements as miniature project plans that are binding. ey
specify what is important (similar to a project plan). In addition to these
project plan-like components, agreements will also oen include formal
speci�cations for how the agreement may be amended or terminated,
speci�c quality targets, how much things will cost, how and when
payments will be made, as well as any insurance or bonding
requirements.
For purposes of the exam, you want to follow agreements in all
circumstances. You will never want to choose an answer that has you
break an agreement even if it bene�ts the project.
Work Performance Data - ere is a general �ow in this book that
will help you. It starts with (raw) data, which is processed into
information and eventually becomes reports.
ink of work performance data as raw data gathered as project work is
completed. It may include data about the work itself or about how the
work was performed such as the actual hours or costs it took to complete
items, any problems that the team encountered, or key performance
indicators (KPIs).
Work performance data is an output of the executing process, Direct and
Manage Project Work, and it is a common input to 10 monitoring and
controlling processes where it is re�ned into the more useful and
understandable form of work performance information.
Expert Judgment - If in doubt, ask someone who knows! e tool of
expert judgment is used time and again throughout this material. e
tool is exactly what it sounds like, and the reason it is so common is that
it can be used whenever the project team and the project manager do
not have sufficient expertise. For the exam, you do not need to worry
about whether the experts come from inside the organization or outside,
whether they are paid consultants or offer free advice. e most
important things to remember are that this tool is highly favored and is
very commonly used in planning processes.
Data Analysis - ere is a saying that “nothing speaks louder than
data.” Data analysis is a tool used in monitoring and controlling
processes to help you make sense of the work that has been carried out.
Data analysis is a versatile tool that is used in about two thirds of all
processes. It is used in initiating, planning, executing, and monitoring
and controlling processes.
Do not fall into the trap of making this tool unnecessarily complicated.
ink of data analysis as simply carefully reviewing information in order
to make a decision, and as you will discover in this book, taking regular
time to review and analyze is a good mindset to carry into the exam.
Meetings - Like it or not, meetings play an important part in the
management of a project, and this tool appears frequently in the 49
processes. ese meetings may be colocated or virtual in nature, and
they are almost unrestricted in terms of what is discussed and who
attends.
Meetings do not automatically solve things by themselves, but they do
give the project manager and the team time to get input from
stakeholders and experts on various aspects of the project.
Interpersonal and Team Skills - e concept of interpersonal skills and
team skills, commonly referred to as so skills, has become increasingly
more important in the �eld of project management. ese skills include
team leadership, communications and language, and persuasive ability.
So skills generally correlate to overall emotional intelligence
(abbreviated as EI or EQ).
For the exam purposes, so skills most generally refer to the project
manager’s building productive relationships with team members and
other stakeholders and persuading others to the bene�t of the project.
Data Gathering - When it comes to data gathering, keep two points in
mind:
1. Data gathering is a preferred technique since it feeds into the
contemplative, evaluative approach that is so favored on the exam.
You cannot fully consider something that you do not fully
understand, so getting more data is almost always a good choice.
2. Data gathering includes brainstorming, focus groups, interviews,
and checklists, but do not worry about memorizing this list for the
exam. Data gathering includes any technique used to get more
information about something.
e technique of data gathering is used across initiating, planning,
executing, and monitoring and controlling processes.
Decision Making - It has been pointed out earlier in this chapter
(and it will be stressed many times throughout this book) that you
should favor a contemplative approach on the exam. is means that
gathering data or thinking about a problem is a preferred option, but at
some point aer the experts have been consulted, the data have been
gathered, and the meetings have concluded, it is time to make a decision
and take action.
Project Management Information System (PMIS) - e Project
Management Information System (abbreviated PMIS) is an important
tool to know for the exam. It is an automated system to support the
project manager by optimizing the schedule and helping collect and
distribute information. It is your system that helps you produce and keep
track of the documents and deliverables. For example, a PMIS might
help your organization produce the project charter by having you �ll in a
few �elds on a computer screen. It might then create the project charter
and set up project billing codes with accounting. While the PMIS usually
consists primarily of soware, it will oen interface with manual
systems.
Another important element of the PMIS is that it will contain the
con�guration management system, which also contains a change control
system.
e point of a con�guration management system is to manage different
con�gurations of a product. Typically, a product will be baselined at a
point, and different con�gurations, versions, products, or branches, are
managed from that point.
For example, a soware company may create a base package that must
be implemented for each customer. e con�guration management
system is used to ensure that new base functionality does not break
existing custom features and that changes are evaluated across all
relevant versions of the product.
e PMIS can be considered to be an enterprise environmental factor,
since it is part of the environment in which the project is performed.
Updates (All Categories) - Various updates as process outputs occur
so oen that it makes it very difficult for the test-taker to keep it all
straight. For purposes of the exam, know that updates to plans come out
of planning, executing, and monitoring and controlling processes. Most
of these are common sense, and rather than take up valuable brain space
looking at each individual one, the concept is addressed here and
referenced throughout the book.
You may reasonably update most of the documents throughout the life
of the project. is is not only acceptable; it is encouraged. e team’s
understanding of nearly everything will grow and change as the project
progresses. Documenting that evolving understanding is a good thing.
Change Requests - As work is performed, it is common for changes
to be requested. ese changes can take on many forms.
For instance, there may be change requests to increase the scope of the
project or to cut it down in size. ere may be change requests to deliver
the product earlier or later, to increase or decrease the budget, or to alter
the quality standards.
Change requests occur frequently for most projects as work is executed
or monitored and controlled. Like the previous example, all requested
changes are brought into the process of Perform Integrated Change
Control where they will be evaluated for impact on the whole project
and ultimately approved or rejected. Approved change requests oen
modify the project management plan and components such as the
schedule, cost, and scope baselines.
Change requests are typically related to corrective action (any change to
bring future results in line with the plan), preventive action (changes
made to avoid the occurrence of a problem), or defect repair.
Work Performance Information (WPI) - Work performance
information is different from the aforementioned “work performance
data” in that it has undergone some analysis or processing. If you are
dealing with a summary �gure, a percentage, or another useful statistic,
you are likely looking at work performance information.
UNDERSTANDING AGILE
We’ll begin the thrust of this book by looking at the agile philosophy and
how agile projects differ from the traditional way of managing projects.
Exploring the similarities and differences between agile and traditional
project management will help you as you prepare for the exam.
ings can change slowly in the world of project management. Mostly, it’s a
straightforward profession. Needs are de�ned and are formed into goals. e
goals are translated into features and functionality. is, in turn, is broken
down into the tasks it would take to create the desired components. Progress
is communicated, work is performed, and everything is tested and delivered
to the customer. e beauty is that regardless of the methodology your
project follows, the aforementioned steps have to be accomplished.
Given the previous sentence, you may wonder how different methodologies
can be? Aer all, with so much in common, they must look more alike than
different; however, in actual practice, methodologies can differ so greatly
that they bear almost no resemblance to each other. People who attempt to
switch from one methodology to another oen �nd it very challenging to
make the transition. It can require not just a change in practice, but also a
radical change in thinking.
METHODOLOGIES
Before we go any farther, let’s de�ne what we mean by the word
“methodology.” A methodology is a set of processes and practices performed
a speci�c way in order to accomplish a project. For example, an organization
may have a particular methodology that prescribes a series of meetings with
de�ned deliverables that need to be produced. ese deliverables may follow
a work�ow to get approval. ere may be checklists and policies that are
followed regarding how the requirements are de�ned, how development and
testing is conducted, how plans are approved, and how payments are
authorized, and all of this needs to be done for each project of this type. All
of these would make up the organization’s methodology.
Methodologies are incredibly important. An organization which has a
mature, effective, and repeatable methodology has an advantage over
competitors who do not have this level of process. Some consulting
organizations prize their methodologies much the way top chefs treasure
their recipes (and for many of the same reasons), and some even build entire
marketing strategies around them.
Organizations with no methodology tend to rely on the heroic effort of their
employees. Successes are not repeatable, and lessons from failures are not
implemented back into future efforts.
A methodology can be thought of as being similar to a professional team’s
game strategy. It’s a way of working within the rules to achieve results and
goals, and it needs to provide focus for planning for an end result while
being �exible and adaptable to the present situation.
When we talk about “agile,” we are essentially referring to a family of
methodologies. You can make some assumptions about what an agile project
is like, but there are numerous agile methodologies such as Scrum, XP, Lean,
Kanban, Feature-Driven Development, and Extreme Programming, and
sometimes how they differ is as striking as are the things they have in
common.
TRADITIONAL PREDICTIVE PROJECTS
e focus of this section of the book is the agile approach, but before we go
too far down that path, let’s take a moment and discuss the traditional way.
If you’ve never practiced traditional project management, this will help you
to understand some of the reasons that agile is the way it is.
Since the end of World War II, project management has primarily followed a
path that became known as a “predictive” or “waterfall” approach. It derived
its name from the linear way in which activities �ow from high level to low
level. Predictive, like agile, really represents a whole family of methodologies
that follow that approach.
Much of the predictive approach came into being with the Deming Cycle of
Plan-Do-Check-Act. What may seem like common sense today was quite
revolutionary at the time it was introduced.
Deming’s Plan-Do-Check-Act Cycle
Predictive methodologies generally rely on a heavy up-front analysis and
documentation of the need and problems, along with the proposed solution.
A plan is formed, and then all or part of the solution is constructed, the
results are compared with the plan, and corrective action is taken as
necessary.
Perhaps no methodology illustrates the waterfall approach better than the
Systems Development Life Cycle (SDLC).
SDLC is a robust methodology that breaks the life cycle down into phases,
with the analysis, design, implementation, testing, and evaluation carried
out in each phase. Speci�c activities and deliverables are prescribed for each
phase.
e SDLC Waterfall
While traditional, predictive, project management does have its strong
points, practitioners began to notice that there are also corresponding
weaknesses. Projects oen become rigid and resistant to change, even if that
change is good for the project. Others noted that predictive projects can
sometimes become more about the process than the product. Organizations
that practice this for years can oen become more interested in how
something is done rather than why it is done or what the results are.
Another criticism of predictive projects is that they require so much up-
front analysis that the team commits to technical solutions too early in the
project, and many predictive projects keep the customers at bay, requiring
them to sign off on a requirements document that they may not fully
understand and wait months before they can put their hands on a product.
By the time they see and touch a product, it may be what they initially asked
for but far from what they wanted or needed.
THE AGILE WAY
One signi�cant update in the current standard is the way that agile
philosophies are incorporated. Agile represents a newer way of managing
projects that differs markedly from the traditionally predictive, or waterfall,
methods. While agile is still treated as somewhat of an aerthought in the
sixth edition of e PMBOK® Guide, it has made a signi�cant entry that will
only be increased in future editions.
When agile project management came into being in the mid 1990s, it
represented a true shi, both in thinking and in practice for project
managers. Many argue that it was the �rst signi�cant shi within project
management in recent history.
is new approach changes quite a bit. Under the old way, management
generally told everyone what to do. e manager was oen cynically
referred to as the “smartest person in the room” (and the smartest person
must also be the most senior person – right?).
at is not the agile way. Agile turns that approach around. Rather than the
smartest or most senior person dictating the work that is done, a team may
conduct a dozen experiments to see which way works best. e theory is
that one person may be smarter than any one of us, but no one is smarter
than all of us.
Teams are no longer organized hierarchically with direction coming from
the top down. Instead, agile projects value self-organizing teams with no
formal project manager. is means that the work is distributed by team
consensus rather than by an authority. Aer all, who is better to decide what
to work on than the people who will be doing the work? e project makes
decisions as a team with a continued focus on delivering value to the
customer. Meetings and the project work itself are conducted out in the
open, with communication �owing freely among all team members.
As work progresses, communication is out in the open. Daily stand-up
meetings are held each morning so that each team member can
communicate what they worked on yesterday, what is planned for today, and
what obstacles they are encountering. Information radiators (covered later)
are posted in highly visible locations and are kept updated to communicate
the project’s progress to everyone who sees them.
When problems arise, rather than escalating these to a manager, the team
works to resolve them internally, and because of the high degree of visibility
and transparency, it is difficult for team members to hide any poor
performance.
Agile projects are welcoming to change, and when product or functional
changes are introduced, the team embraces them. is is true even if the
changes are introduced late in the project or if they affect the architecture.
e team will meet, evaluate the change, and look at the impact and ways in
which it can be incorporated into the project.
Customer involvement is a key part of any agile methodology. is means
that the customer participates in meetings and has complete visibility into
the team’s progress. Customers communicate priorities by focusing on the
value a feature would provide and then balancing that against the amount of
work it would take to implement the functionality. Customers are not
punished or penalized when they change their minds. It is not only accepted
that priorities shi and change; it is expected.
Agile is said to be both incremental and iterative. ese are two approaches
that agile blends together.
Incremental development means that usable features are delivered in each
new version of the soware. Every version is usable and prioritizes new
value to the user. ese versions are sometimes referred to as “vertical
increments.”
Iterative development is the practice of performing small work cycles
(known as iterations or Sprints) that include some planning, development,
and control activities. In a way, each iteration may be thought of as its own
micro-project. Most projects consist of many iterations, typically lasting
about 21 days each, that are performed in succession.
Delivering results to the customer and to users in small, frequent releases
has numerous bene�ts. For one, it keeps the team’s focus very sharp by
giving it an immediate priority (to build a set of functionality into the next
iteration). Another bene�t is that it gets that functionality into the hands of
the customer quickly, allowing it to be used, tested, and providing a rapid
feedback loop. Still another bene�t is that the team integrates various
functions back into the overall system quickly, bringing any potential
architecture or integration issues to the surface more rapidly (e.g., if one
feature breaks or con�icts with another feature, this should be discovered
relatively quickly).
If a question arises about which path to take, the agile team may execute a
“spike,” or rapid experiment, to determine the best way to proceed. Spikes
are encouraged so that the team is highly dynamic, regularly reviewing the
best way to proceed, trying new practices and measuring the outcomes, and
generally experimenting and adapting.
When practicing agile, a retrospective is held at the end of each iteration and
each release. is provides time for the team to re�ect and communicate
what worked well in the previous cycle and what did not work. e point of
this is not merely to discuss any issues, but to address them with the
ultimate goal of continuous improvement (Kaizen).
Another key difference is that traditional methods of project management
typically involved the customer early in the process but tended to keep the
customer at arm’s length once the project team began executing work
packages. Agile projects are different. e customer is more closely involved
at the time the work is being performed.
By this time, you may be thinking that the agile approach sounds more like
“Ready. Fire. Aim!”, but that is not the case. Agile projects take small steps,
getting the information in the hands of the customer as quickly as possible
and evaluating not only the quality of the product but the quality of the
overall process. Work is still planned, but the steps are much smaller,
reducing the risk and the opportunity for mistakes.
So is agile always the best choice for managing a project? Not necessarily.
Agile works well in projects where there is a need for complex decision
making. If a project team already knows most of the details and things are
close to agreement and close to certainty, then a predictive methodology
may be the best choice. e same argument can be made for a chaotic
project environment, since a commanding and controlling style of
leadership could bring order. e illustration, known as a Stacey Diagram,
illustrates this spectrum of environments.
Much of the content in this book is oriented toward a more traditional,
predictive approach to project management, but agile concepts are included
as well, and it is important to know the agile perspectives on each topic.
PREDICTIVE, AGILE, AND HYBRID APPROACHES
A good starting point would be to explore the different approaches to
accomplishing projects. In order to do this, we are going to look at three
different project approaches: predictive, agile, and hybrid.
1. Predictive
e predictive approach to project management, which is what the 6th
Edition PMBOK® Guide mostly deals with, puts an emphasis on trying to
understand requirements and plan as much as possible. In other words, you
try to “predict” how things should unfold, and you execute against that plan
and make adjustments as needed.
e predictive approach is also commonly known as a “waterfall” approach,
since activities naturally cascade from planning to executing to monitoring
and controlling to closing. Activities �ow from a higher level to a lower level
throughout the project life cycle.
e predictive approach to projects became popular with W. Edwards
Deming’s cycle of Plan-Do-Check-Act. e predictive approach relies on a
signi�cant up-front analysis of the business requirements and the project
needs. e plan is then created, based on that analysis, and some part of that
plan is then executed. e results of the execution are compared with the
plan, and any corrective action is taken to bring future results in line with
the plan. It is important to note that corrective action may involve changing
the way you execute (e.g., adding more resources), or it could involve
modifying the plan. e goal is to make future results line up with the plan.
Closing activities include documenting lessons learned, creating project
archives, releasing the team, and preparing �nal reports.
2. Agile
Note: some of the content in this section was adapted from e PMI-ACP
Exam: How to Pass on Your First Try, by Andy Crowe.
is material is new for the PMP exam. Understanding it is critical to your
success.
Even though agile and predictive practitioners have the same goal of
delivering a successful product, service, or result, the way they approach
things is radically different. Agile projects have no project manager, and they
do not have what traditional project managers would call a project plan
(although they do plan). e approach they take could be described as “plan
a little, execute, deliver, and adapt. en repeat.” e components of agile are
broken down in this section, and they are important for this version of the
PMP exam.
In order to understand agile, it is important to look at its history and
development and the problems that agile founders were seeking to address.
Note that there are numerous speci�c agile methodologies in use. is book,
however, is going to focus on agile in general and not speci�c
methodologies. For more content on speci�c methodologies, consult e
PMI-ACP Exam: How To Pass On Your First Try by Andy Crowe.
THE MANIFESTO FOR AGILE SOFTWARE DEVELOPMENT
You will need to have a general understanding of the Manifesto and a solid
knowledge of the value sets it contains. You should expect to see several
questions on the PMP exam related to this material.
History
e draing of the Manifesto For Agile Soware Development represents a
milestone in agile’s history. Numerous agile methodologies had become
popular in the mid-1990s, and in 2001, a group of 17 of their advocates
came together in Snowbird, Utah, and draed the document that would set
out the organizing principles for agile. Essentially, this was to codify what
the different agile methodologies had in common.
Kent Beck James Grenning Robert C. Martin
Mike Beedle Jim Highsmith Steve Mellor
Arie van Bennekum Andrew Hunt Ken Schwaber
Alistair Cockburn Ron Jeffries Jeff Sutherland
Ward Cunningham Jon Kern Dave omas
Martin Fowler Brian Marick
When you read the Manifesto, you will notice that it is high-level. is is
because agile methodologies agree on the big picture, but the speci�cs will
differ from one methodology to another. For example, all agile
methodologies will support the concept of “Individuals and interactions
over processes and tools,” but these interactions will likely look very
different when looking at a Scrum project and an XP project (two of the
speci�c agile methodologies), and the processes and tools will probably vary
even more. e Agile Manifesto emphasizes what these methodologies all
have in common under the agile umbrella.
e Agile Manifesto
MANIFESTO FOR AGILE SOFTWARE DEVELOPMENT
We are uncovering better ways of developing soware by doing it and
helping others do it. rough this work we have come to value:
Individuals and interactions over processes and tools
Working soware over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
at is, while there is value in the items on the right, we value the items
on the le more.
How the Manifesto is Used
e Manifesto For Agile Soware Development (sometimes referred to as
the Agile Manifesto) is important in actual practice. It represents guiding
principles. It is expected that agile practitioners are going to disagree on
many implementation details, but if they are implementing something that
con�icts with the Agile Manifesto, then there is a problem. e good news is
that the document is broad enough to include many different methods and
practices and speci�c enough to give helpful guidance to component
methodologies.
In other words, if it ever comes down to a tiebreaker, the Agile Manifesto
wins.
Agile Manifesto Values
For agile questions on the PMP Exam, you will want to understand the four
paired core values (you do not need to know the names of the ones who
signed the document). Each pair is presented as something that is valued
more than something else.
You should expect to see these values on the exam, so learn them carefully.
Let’s take a look at each of the four pairs.
1. Individuals and interactions over processes and tools
Projects are accomplished through people. Processes and tools may help
people, but they do not get work done.
is �rst value pair is no small statement. Anyone who has ever worked
for a large, mature organization may have found themselves doing
something and wondering why. (One soware developer who was in the
military told this author of a time when he was required to paint a
building that was slated for demolition in nine days simply because
regulations called for it to be painted every three years.)
While processes and tools may be a good thing, they can sometimes get
in the way. By this time, you are probably coming to the conclusion that
agile is a fairly irreverent family of methodologies, and you would be
right. is is particularly true with Lean, which constantly evaluates and
ruthlessly disregards anything that does not add value. Agile is
ultimately pragmatic. It trades convention for what works, and when
processes and tools are part of that convention, they may be le out.
Agile projects put a heavy emphasis on teamwork, and one of the ways
in which teamwork is manifested is through shared ownership of the
code. Agile teams believe that all of the project’s code is collectively
owned by the team and not just by the person who wrote it.
But the idea of individuals and interactions goes beyond the previous
example or even the paired programming practices of XP. It is the very
fabric of agile projects. Tools and processes may or may not add value,
but without a strong team and healthy interactions, agile methodologies
do not work.
2. Working soware over comprehensive documentation
is is a very welcome value to most teams since it is a fact that most
soware developers do not relish writing documentation. Ideally, most
programmers like to believe they can write self-documenting code.
e value of working soware is important, because this supports the
goal. Aer all, it is working soware (not documentation) that delivers
high value to the customer and the users. In general, progress on an agile
project is tracked and reported by how much working soware is
developed over time.
A document expresses what is intended, but as the saying goes, “nothing
speaks louder than code.”
But that is not the end of the story. Some documentation is bene�cial
and necessary on most projects. Teams change, and memory is lost.
Agile wrestles with this by seeking to provide just enough
documentation. is is what agile pioneer, Alistair Cockburn, refers to
as “barely sufficient documentation.” e rule that drives this is that any
documentation that is created should be tied directly to the value it
creates for the customer, whether now or in the future.
3. Customer collaboration over contract negotiation
e point of this pair is that the closer you are to your customer, the
better. e customer, or product owner, is the best person to specify
what he or she wants, even when that process involves some trial and
error. Trying to force all of that to occur in the contract phase is not only
unrealistic - it’s unproductive.
Orientation is important too. Would you prefer to be pitted against your
customers across the negotiation table, haggling out a contract and
punishing them for each change or working with your customer on a
solution that bene�ts everyone?
Agile puts you and your customer on the same side of the table. at
does not mean that there won’t be a contract. It does mean that agile
teams prefer to expend energy pulling in the same direction as the
customer rather than to expend that energy opposing the customer or
haggling with them.
4. Responding to change over following a plan
Agile was originally created to be applied to soware projects, and
anyone who has worked on a soware project knows that it is the nature
of these projects to change. Even the underlying technology is changing
at such a rapid rate (e.g., Moore’s Law and the steady introduction of
new devices) that new avenues and possibilities are constantly being
opened.
But technology projects have been managed with the same
methodologies that were designed for construction projects and aircra.
While these top-down methodologies can work for technology projects,
they do not always handle change particularly well. Instead, there can be
great inertia to stick to the original plan where possible.
is makes sense, for instance, on the construction project for a new
office building. Everything from the civil engineering to the architecture
to the procurement of materials has to be done with a good
understanding of how the end result will look, so change is discouraged
on such a project. One large infrastructure engineering �rm had a noted
strategy for underbidding projects at a loss only to make their pro�t on
the ensuing, highly pro�table change orders.
AGILE PRINCIPLES
In addition to the Agile Manifesto, there is a supporting document of 12
principles that provides a bit more detail and helps �esh out some of these
concepts. ese are presented below. In many cases on the exam, you will
have narrowed things down to two potential correct answers, and
understanding these principles should help you get to the right answer.
PRINCIPLE ONE
Our highest priority is to satisfy the customer through early and
continuous delivery of valuable soware.
e three words to home in on here are “early,” “continuous,” and “valuable.”
ese words convey a lot. Agile teams get working soware into the
customer’s hands quickly and update it oen, and this is prioritized by the
value it brings the customer.
PRINCIPLE TWO
Welcome changing requirements, even late in development. Agile
processes harness change for the customer’s competitive
advantage.
is represents a very signi�cant departure from predictive project
management, which views changing requirements with unease. In fact, one
of the tenets of traditional project management is to seek to in�uence the
factors that cause change.
Agile views this differently. It expects that requirements will change and
actually welcomes those changes, even if they occur late in the project.
Responding quickly to change and adapting to it can give the customer a
signi�cant competitive advantage.
is can be a hard value for traditional practitioners to embrace, but it is a
very important concept to embrace for agile questions on the exam.
PRINCIPLE THREE
Deliver working soware frequently, from a couple of weeks to a
couple of months, with a preference to the shorter time scale.
Different agile methodologies specify different iteration cycles, but all of
them are relatively short. e point is to get a working product in the hands
of the customer quickly and to use that product to get meaningful feedback.
Some methodologies, such as Scrum, have iterations speci�ed at around one
month, while more rigorous ones like XP focus on very rapid, one-week
iterations.
Short iterations provide structure for the team and enforce a continual
disciplined focus on customer value.
PRINCIPLE FOUR
Business people and developers must work together daily
throughout the project.
ere was a time when projects strictly segregated the ones responsible for
the business value and the soware developers. e thinking was that each
group could focus on what they did best, and business analysts and project
leads could bridge the gap.
Agile projects do away with this model by bringing the customer and
developers together, oen having them work in the same physical space.
is way there is no gap between the developers and the business people.
is makes sense because in reality they share a common goal of working
soware that delivers value to the customer.
PRINCIPLE FIVE
Build projects around motivated individuals. Give them the
environment and support they need, and trust them to get the job
done.
While this may sound like common sense, traditional project management
earned a reputation for oen micromanaging employees, telling them how
to do something and not just what to do. is is an oen-unintended
consequence of top-down management.
Agile projects build a solid team and actively avoid micromanaging. at is
not to say that a developer will not ever be told how to do something, but
this should come organically from a self-organizing team and not from a
top-down edict.
PRINCIPLE SIX
e most efficient and effective method of conveying information
to and within a development team is face-to-face conversation.
Informal oral communication is much more popular on agile projects than
formal written communication is. e idea is that two people sitting down
together and working on a solution are more effective than if they are
messaging back and forth or exchanging paper.
Face-to-face communication is the backbone of agile projects. Unlike
traditional projects where a signi�cant amount of communication may take
place in breakout meetings, on agile projects communication takes place in
the open, and the entire team generally has access to all conversations.
e term “osmotic communication” describes the effect of how team
members pick up information just by being in the same room or general
area where a conversation is taking place.
PRINCIPLE SEVEN
Working soware is the primary measure of progress.
Plans and documents may be useful, but when the underlying goals change,
they may lose much of their value. Project teams can become so obsessed
with keeping documentation up to date that the documents become a
liability.
Real value is conveyed through results, and results are expressed through
soware that works.
PRINCIPLE EIGHT
Agile processes promote sustainable development. e sponsors,
developers, and users should be able to maintain a constant pace
indefinitely.
In this case, sustainable development is focused on the team. While many
projects have a big push at the end where the team works late hours and
weekends, agile projects do things differently. It is very likely that your agile
project will have a greater intensity than other projects (particularly with a
methodology like XP), but they attempt to keep a steady, sustainable pace of
work so that there are not intense pushes at the ends of iterations and cycles.
e ideal goal is to keep a pace that can be sustained inde�nitely so that
team members do not experience burnout or exhaustion and can perform at
an optimal level for an inde�nite period of time.
PRINCIPLE NINE
Continuous attention to technical excellence and good design
enhances agility.
is principle does not need much explanation. e better the design, the
easier it will be to maintain, and even change. More consistent and better
quality will allow the team to respond to change more rapidly than a shoddy
project will.
PRINCIPLE TEN
Simplicity—the art of maximizing the amount of work not done—
is essential.
is principle is one embraced by all agile methodologies, but particularly
by Lean. e key is to maintain a consistent focus on customer value and to
be ruthless about cutting activities that do not add value.
Keeping things simple is more than an aspiration; it is considered to be
essential.
PRINCIPLE ELEVEN
e best architectures, requirements, and designs emerge from
self-organizing teams.
Self-organization is one of the core components of an agile team. When a
team is self-organizing, it means that the team decides how work is allocated
and who will work on a particular component and not the human resource
department or management.
is is one of the most signi�cant areas of difference between predictive and
agile projects, and not only are the teams self-organizing, but largely cross-
functional as well.
PRINCIPLE TWELVE
At regular intervals, the team reflects on how to become more
effective, then tunes and adjusts its behavior accordingly.
e one thing that is predictable on agile projects is change. With traditional
projects it is common to have meetings to re�ect once the project or phase is
completed; however, agile tries to accomplish this more frequently through
retrospectives. In an agile retrospective, the team looks at the work that was
accomplished in the last iteration or release and evaluates how to improve
their practice the next time.
Daily stand-up meetings, where the team meets for about 15 minutes each
day, are another important way that team efforts are coordinated, and the
team assesses and self-tunes.
e Declaration of Interdependence for Modern Management
is declaration of interdependence was written by a group led by Alistair
Cockburn and Jim Highsmith in 2005. It is intended to help philosophically
guide agile development, and although this document is not a formal exam
reference, understanding it will help you with the agile questions on the
PMP exam.
is declaration is made up of six statements. Do not focus your energy on
memorization. Instead, make sure you understand the concepts and the
philosophy they represent.
We increase return on investment by making continuous �ow of value
our focus.
We deliver reliable results by engaging customers in frequent
interactions and shared ownership.
We expect uncertainty and manage for it through iterations,
anticipation and adaptation.
We unleash creativity and innovation by recognizing that individuals
are the ultimate source of value, and creating an environment where
they can make a difference.
We boost performance through group accountability for results and
shared responsibility for team effectiveness.
We improve effectiveness and reliability through situationally speci�c
strategies, processes and practices.
TEAM AND ROLES
It should not take you long to recognize that agile projects do things
differently in many ways, and the way the team works is no exception. As a
starting place, agile teams are self-organizing. ere is no project manager
telling people what to work on or how to get things done.
If this sounds surprising, consider that self-organization is nothing new.
Examples in nature are abundant, such as birds and �sh naturally organizing
into �ocks and schools, and natural occurrences of distributions as
represented in Boyle’s Law. Groups of people can and will self-organize in
most situations.
Ideally, an agile team should be made of up of around 8 +/- 3 team
members, including the development team, the product owner, and the agile
coach. Too many, and the team becomes unwieldy, group meetings become
too long, and iterations become difficult to manage. Too few, and the team
has difficulty making commitments for each other since the team is too
small to cover for each other.
e roles de�ned on an agile project are important, both for practitioners
and for exam takers.
Customer (also referred to as Product Owner) - e customer is a part of
the team and has quite a bit of responsibility as the stakeholder
representative (typically representing the users prominently) and is the
primary liaison to the outside world.
e customer will work with a sponsor to ensure the project is adequately
funded and will help create the initial backlog of features and a release plan.
e customer writes the user stories and has primary responsibility for the
product backlog and for grooming and prioritizing it as well as helping the
team understand these user stories and the value they represent to the end
users. e product backlog lists all functionality planned for the project.
Team - On an agile project, teams are self-organizing and self-managing,
and their primary job is to develop the product. Ideally, team members are
highly interchangeable (i.e., generalists rather than specialists). e team is
ultimately responsible for the results.
Agile team members should be cross-functional, and the most effective ones
are sometimes described as having “T-shaped” skills. A T-shaped team
member has a depth of knowledge in a speci�c functional area and also has
broad skills that make them versatile across other areas. For instance, Valerie
may be a great user-experience (UX) designer with considerable experience
and passion for that role. Although her �rst choice would be to do UX work,
Valerie is also able to create and implement test cases and also to train users
when new product features are released. is would be an example of a team
member with T-shaped skills.
A major reason that T-shaped skills are desirable on an agile project is that
commitments are made as a team, and team members oen need to cover
for each other in order to deliver on those commitments. Multiple team
members may need to swarm a problem, and someone with T-shaped skills
can contribute in multiple, valuable ways.
Contrast a team member with broad and deep T-shaped skills with a more
narrow specialist, sometimes described as having “i-shaped” skills. On an
agile project, having team members with T-shaped skills is more desirable
than having i-shaped team members.
e amount of work completed by the team in an iteration (known as the
“velocity”), is emphasized, while individual productivity is not. Focusing on
the individual may cause overall productivity problems, and ultimately the
team is responsible for delivering the work.
Agile Coach - An agile coach is a servant leader (servant leadership is
discussed later in this chapter), responsible for helping the team follow agile
practices. When a new team member joins, the coach helps this person
understand how agile is implemented on this project. Additionally, the
coach helps integrate agile into the corporate culture. Another function of
the agile coach on some projects is to help eliminate obstacles to progress
that the team identi�es. is role may be called a team facilitator, project
manager, scrum master, or project team lead. e importance lies in the role
and not the title.
Stakeholders - is is a topic covered in more detail in the predictive
approach, but it bears mentioning here, too. For purposes of the exam, a
stakeholder is anyone with an interest on the project. In a predictive
approach, this would include the team, but agile projects look at
stakeholders as generally being external to the team. Involving the right
stakeholders in the right way is a big part of project success.
e product owner and the customer will serve as the voice of the user. is
keeps the team from being overwhelmed by change requests and feedback.
ese roles, in turn, communicate with the stakeholders.
It is important to identify the right stakeholders and to understand their
needs early on.
PLANNING WITH AGILE
Agile projects do plan, but their planning looks different than it would on a
predictive project. e following section explores the way agile practitioners
approach planning.
How Much Accuracy?
Some estimates will naturally get sharper over time since uncertainty
decreases. Agile practitioners oen talk about the “cone of uncertainty.” It
illustrates that early on, there will probably be more variation in the
estimates than would be expected late in the project. e more the team
develops, the more the project evolves, and the more time that passes, the
estimates should become more re�ned and less uncertain.
Cone of Uncertainty
Customer Value - Delivering rapid value to the customer is where agile
projects shine. When you are on an agile project, making decisions based on
customer value is highly favored, both in actual practice and on the exam.
PRODUCT VISION STATEMENT
e product vision statement sets the expectations for where this product is
going, and its development is usually led by the product owner, although the
team would be involved.
e product vision statement describes what the product will be, why it is
being developed, who would use it, why someone would pay for it, and
where it �ts in the marketplace.
Sample Vision Statement: Biggest Fan app provides a mobile platform for
sports enthusiasts and fans who wish to locate and connect with others to
network, discuss team developments, watch games, socialize, and trade
merchandise. It will integrate seamlessly with the top six social media
platforms. Biggest Fan will deliver an unparalleled user experience for
fans of various sports and teams.
Product Roadmap - A next level of detail that can be developed is the
product road map. is gives an overview that shows each planned release
and the features that will accompany those releases. It is generally posted in
a very visible area for the team and stakeholders to see. is is an important
communication tool that shows the team’s current understanding of the
product. It is not a rigid plan that must be followed. e product roadmap
will evolve and change as the product, the marketplace, technology, and the
users’ needs evolve.
PERSONAS AND EXTREME PERSONAS
In order to help understand a product’s users and stakeholders, it may be
helpful to create personas. Let’s continue with the Biggest Fan app example.
End users might include individual fans, social event venues and organizers,
and merchandise vendors. Stakeholders might include sports teams, game
venues, and even the social media platforms that integrate with it.
Agile projects might create a �ctional persona to represent each stakeholder
group. is would include a name and a description of the role and
sometimes even a photograph. is way, when the team writes the user
stories (covered later in this chapter), they are not generic. ey are
connected to a speci�c persona. is has a way of bringing the user story to
life. In fact, many spirited discussions have broken out on agile projects
where team members advocated passionately for personas that began to
seem like real people.
Some agile projects use extreme personas for this, which is a way of creating
extreme characters to help elicit requirements. In many cases, the extreme
personas might be a sort of super user with highly tailored needs. ese can
help identify requirements that might otherwise be missed.
WIREFRAMES
Agile projects do not typically produce a lot of documentation. In fact, the
goal has been described as creating “barely sufficient documentation.”
Instead of a comprehensive written speci�cation, agile projects oen use
wireframes. A wireframe may be drawn by hand or by computer soware to
show the user interface and user experience (UI/UX) elements. ese
elements are numbered, and attributes or comments may accompany these
in the margins or on another page.
Wireframes are intended to be “quick and dirty” and not to be
comprehensive. It provides a useful starting point for conversations between
users and developers without using signi�cant development resources.
AGILE THEMES
An agile theme may mean slightly different things on different projects, but
as its name implies, a theme gives a description of the overall goal of a
particular iteration. For example, if the theme for Biggest Fan’s Iteration 4
was “Social Platform Connectivity and Integration,” that would suggest that
the features and user stories that would be implemented in that iteration
would generally revolve around connecting Biggest Fan to various social
media platforms. at does not mean that these are the only features that
will be implemented, but it would be expected that most of them would be
related to and support this theme.
USER STORIES AND STORY CARDS
e concept of user stories is an important one. User stories are a key way
that work is described, organized, and prioritized on agile projects.
User stories are focused on scenarios that impact the user. For example, with
Biggest Fan, a user might want to create a networking event at a local sports
bar to cheer on a particular team. A related, but separate, user story might
involve fans searching for one of these events and responding that they plan
to attend. Both of these functions would be considered features. A feature is
something the product can do, and these can sometimes involve several
steps. Consider the feature of organizing an event, which could include:
Selecting a speci�c location
Specifying a start and end time
Con�rming with the venue that the game will be on screen
Reserving the space
Notifying the fan base
Sending reminders
Each of these bullet points, related to a single feature, is a user story.
Individual user stories may not deliver value on their own, but they are
necessary to allow features to work, and features do add value.
Every user story should be clear and should be tied to value. ey do not
have to be detailed yet (that step is coming), but they do need to be clear.
e stories are written on note cards called “Story Cards” which may be
ranked by difficulty or by value, put on the wall, handed around, prioritized,
etc. It is not a requirement to use physical cards, but it is a common practice.
One well-known agile practitioner, Bill Wake, describes six attributes of a
good user story using the acronym INVEST:
( I )NDEPENDENT: is attribute refers to user stories being mutually
exclusive, meaning that they stand on their own and do not overlap with
other user stories.
( N )EGOTIABLE : A user story is not a rigid set of requirements. As
the user story is translated into reality, it is expected to change and grow.
Agile values collaboration, and this takes place between the customer
and members of the team. In this context, negotiable means that it is
expected to change as it is developed and moves from the developer’s
hands into the customer’s.
( V )ALUABLE : Agile methodologies prioritize based on customer
value. When creating a user story, it needs to be viewed from the
perspective of the value it will deliver to the customer.
( E )STIMABLE : While agile teams do not put a premium on precision
estimates, they do emphasize being able to generate quick estimates. A
user story should have adequate information for the team to be able to
estimate the effort involved using whatever technique(s) they employ.
( S )MALL : e best stories are small enough to be useful. Some stories
begin as epics (also known as capabilities), but they need to be
disaggregated into useful-sized pieces. Obviously, this could be carried
too far. User stories can always be broken down further, but the most
useful ones are easily grasped, estimated, and able to be consumed by
the team.
( T )ESTABLE : Good user stories have clearly-de�ned acceptance
criteria. is is the essence of what is meant by “testable.” If the story
passes the de�ned acceptance criteria, it will be “acceptable” to the
customer.
STORY MAPS
Sometimes user stories can be large and unwieldy. It is difficult for people to
comprehend very complex and large concepts, and so a time-honored
tradition is to break them down into logical components that may be more
readily understood. You may have encountered a work breakdown structure
(WBS) before. Later in this book, we will cover the WBS in detail. For now,
we will focus on the ways that an agile story map differs from the WBS.
Agile Story Map Traditional WBS
Broken down through disaggregation Broken down through decomposition
Component stories do not need to add up to
100% of original story, nor do estimates need
to add up to original story
Work packages and estimates must add up to
100% of total
Initial node is a large user story of an “epic” Top node is the high-level deliverable
Typically represented in two dimensions with
story cards breaking down the component
stories
Depicted in pyramid form
When you break down a story, you are disaggregating it (In the predictive
world, this is called “decomposing”). is process involves breaking the epic
story down into its logical components. Agile projects take a slightly looser
approach to this process than predictive practitioners do. With agile stories,
the components and the estimates do not have to perfectly align all the way
up the story map.
While this is a less rigid approach, it �ts the agile value of putting less
emphasis on estimating and planning and more of a focus on responding to
change. It takes a lot of work to get everything broken down to that level of
precision, and if change is introduced (and remember, agile embraces
change), it would require a lot of additional planning and estimating.
FEATURES
Features simply add value to the user. ey are small and require a limited
amount of effort to develop and implement. In agile, features are described
with the “Verb Noun” nomenclature. Using our Biggest Fan app, some
potential features might be:
Create Account
Verify Email
Reset Password
Create Event
Start New Discussion read
Post Reply
MINIMALLY MARKETABLE FEATURE
A minimally marketable feature (MMF) is the smallest grouping of
functionality that will add value to the user. is concept is important in
agile. An MMF is larger than a user story, but it should be as small as
possible. For example, a MMF might allow users to start new discussion
threads, like or upvote certain messages, reply to messages in the threads,
and allow moderators to delete some comments or close threads. If you take
away any of those features, the entire discussion board capability might not
be useful, but together, they can provide a powerful feature set. It is the
product owner’s job to de�ne the MMFs.
TASKS
Tasks, also called “Engineering Tasks,” are the speci�c activities the team
needs to undertake in order to build value into the system. One user story
for a soware application could break down into several tasks that are
ultimately performed by various team members. On agile projects, tasks are
distributed by the team rather than being assigned by a manager.
VALUE STREAM MAPPING
Lean manufacturing, pioneered at Toyota, had a heavy in�uence on agile
techniques. Lean speci�es a way to analyze an entire chain of processes in
order to eliminate waste. Analysts use maps to draw out activities and the
creation of value. Activities that do not add value are eliminated. For the
exam, know that this is a Lean technique that agile practitioners use and it is
used to analyze the �ow of information and materials through the system to
identify and eliminate waste.
ROLLING WAVE PLANNING
is is a term that has been around for a long time. Rolling wave planning
indicates a technique used to plan in stages instead of doing so early in the
project. e concept is that details will emerge as the team gets closer to the
functionality. By planning, executing, and monitoring and controlling in
multiple stages, the details can emerge more naturally.
Rolling wave planning predates agile and is an example of an agile-like tool
that was oen used on traditional projects.
TEST-FIRST DEVELOPMENT
In the history of soware development, most of it has followed the pattern of
“write �rst, test later.” is seems intuitive, since humans generally like to
build things and then inspect them; however, there is a way that turns this
approach around.
e philosophy that drives test-�rst development is that you should have
some idea of how a particular soware module or feature will be used and
that you should begin creating that module with that in mind. Let’s consider
the Biggest Fan app again. Suppose you have a function within your
application that will invite all fans of a given team to a local event if they live
within a 10-miles radius.
Test-�rst development would specify that you create the test cases before
writing any code. In this example, we’ll specify the following simpli�ed test
cases.
Scenario Result
Number of fans in geographic area = 0 Error message displayed. Invite button
disabled. Cancel button active.
Number of fans in geographic area >0 and
<2,500
Invite button enabled. Cancel button active.
No location speci�ed Error message displayed. Invite button
disabled. Cancel button active.
Invite button pushed with over 1,000 fans in
geographic invite area
Warning message displayed. “You are about
to invite over 1,000 people to this event. Are
you sure?” User has to con�rm to continue.
Once the test cases have been written, the developer or engineer can
structure the routines to �t those scenarios. e best test cases have pass/fail
outcomes, represented as either true or false. If the module or feature passes
the test, the outcome is true. Otherwise, the result is false.
DEFINITION OF “DONE”
Building and sharing a common vocabulary is part of working in any �eld.
Different organizations oen use the same words and acronyms in varying
ways, and meanings are oen entirely changed among industries. When
different cultures and languages are introduced into the mix, the results can
be chaotic.
Agile has its own vocabulary, and it’s important that words and meanings
are clearly understood by the team. One of the most important of these is
the de�nition of the word “done.”
A key part of agile is the idea of represented work�ow. Work and work�ow
should be transparent to the team, but much of that is self-managed. Team
members sometimes have to estimate where things are. ere is an old joke
about writing soware that says that the �rst 80% of the code takes 80% of
the time to write, and the last 20% of the code takes the other 80% of the
time. at’s why, in many organizations, progress is oen reported at 80% or
90% complete but then doesn’t move from that indicator for quite a while. It
is a human tendency for things to remain in an almost-�nished state.
is is why the de�nition of done is so important and why it has to be a
common de�nition throughout the entire project team. When an engineer,
designer, or developer (or any other team member) checks in or reports a
feature as “done,” the meaning needs to be clear to the entire team. Work
that is almost done may not be represented as done.
e empowered team decides on a de�nition of done for the project very
early on, and all team members will use this de�nition throughout the
project. e de�nition of done may be tied to certain acceptance tests, to
coding standards, to customer sign-off, or any number or combination of
other things.
AGILE ESTIMATING
Relative Sizing
Estimating is a tricky business on all projects, but agile uses some techniques
to avoid getting mired in the process and to keep things moving.
One of these techniques is relative sizing. While it may take on many forms,
the idea is to rank stories by their size relative to each other and eventually
to estimate based on those rankings.
Imagine a stack of stories written on index cards. Now imagine taking one of
medium difficulty and posting it in the center of a wall. Next, another card
will be quickly reviewed and ranked and posted to the le or right of that
card based on whether it is easier (placed to the le), or harder (placed to
the right) than the one we began with. Each subsequent story is ranked
relative to the stories already on the wall, so that at the end, we have an
arrangement of stories ranked roughly in relative order of difficulty. e goal
at this point is not to be highly precise, but to move quickly through the
stack of stories.
e key is that rather than estimating each story from scratch, the team
positions each one relative to the other stories, which should be
accomplished reasonably quickly.
Once the cards have all been evaluated, the team will assign points to each
story. A way to encourage momentum and not let analysis paralysis creep in
is to assign points using the number sequence, 0, 1, 3, 5, 8, 13, 20, 40, 100, or
the popular Fibonacci number sequence (similar to the previous sequence).
Relative sizing is most useful when planning for the next iteration so that
the team can decide which stories they can complete in that iteration.
WIDEBAND DELPHI ESTIMATING
You may already be familiar with the traditional Delphi technique. If not, it
is covered in detail in this book. Delphi is used to get expert estimates
without the experts knowing who the other members are. is prevents
groupthink from developing, and it can keep some group members from
lobbying others to get their way. e Delphi estimating technique has been
in use for over 70 years now.
e Wideband Delphi method builds on traditional Delphi. In Wideband
Delphi, the team is given estimation forms or cards and is brought together
to discuss functionality or user stories.
During the meeting, issues regarding estimating are discussed, but
particular estimates or levels of effort are not.
Aer the meeting and discussion, individuals depart and prepare their
estimates. It is important that they do so away from the group. Some
permutations of this actually make up a currency to assign rather than try to
use actual time or cost. Others use story points, which are measures that
only have meaning within the project (15 story points would take more
effort than 11 story points, but cannot be directly translated into time
without additional work).
Next, a team member gathers all of the estimates and lists them or plots
them on a graph, showing the distribution of values but with no names
associated with each estimate. Now the team discusses the range and tries to
reach a consensus. is continues until the range of estimates becomes
acceptably small or a time limit (usually around two hours) is reached.
e advantage of Wideband Delphi is that people may estimate in the
absence of any group pressure, while still leveraging the wisdom and
experience of the entire group to reach consensus.
As with all estimating techniques, large ranges in the distribution should
alert the team to uncertainty and will almost always re�ect greater risk.
PLANNING POKER
Similar to Relative Sizing, Planning Poker is an estimating technique used to
achieve consensus on work estimates.
Planning Poker can begin early in the project, aer the user stories have
been written. At that point, technical members of the team are brought
together for the exercise. It is important that not only one group has input
on this exercise.
For example, on a soware project, not only the programmers would work
on the estimates, even though they will be the ones primarily doing the
work. It is important that analysts, the ones responsible for testing, and any
others who have speci�c technical knowledge about the user story be
involved in the exercise.
Next, each team member is provided with a deck of ten numbered cards.
e numbers also follow a modi�ed Fibonacci number sequence of ?, 0, 1, 3,
5, 8, 13, 20, 40, and 100.
As the meeting progresses, the facilitator reads a user story or a functional
description. Each of the estimators are given time to ask questions. en
they each select a card that represents the relative level of effort for this story,
but they do not show their card to anyone else at this point.
Aer everyone has selected a card, all of the estimators show their cards at
once. en the team discusses the estimates, with particular attention paid
to the outliers (the highs and lows). It is oen necessary to time-limit the
discussions in order to keep things moving, although the discussions are a
critical part of the process. It is helpful to hear why different individuals may
consider something to be very easy or very difficult.
Assuming the estimates had signi�cant variances, the team then performs
another round of estimating poker for the same story, followed by more
discussion.
is continues until the estimates converge or they fall within an acceptable
range. Oen this occurs aer about three rounds, but it may take more than
that. Planning poker works well with teams of about ten estimators. If more
than that are involved, things oen begin to bog down, and it may be best to
divide the team into groups.
AFFINITY ESTIMATING
Estimating is a function of planning, and one of the concepts of agile is that
too much planning can quickly become counter-productive. Trying to
estimate a large number of user stories or features very precisely can
consume so many resources that it actually causes the project to �nish later
than it would if the team simply made a quicker pass at the planning and
began working.
Affinity estimating is a technique that was speci�cally designed to address
the issue of rapid estimating when the project has a large feature backlog.
is is a common situation that projects encounter early on, before much
work has been started. Rather than allowing the team to become
overwhelmed with the planning task, affinity estimating provides a way to
rapidly estimate your backlog.
In practice, there are different ways this is conducted; however, they all have
a few things in common. First, the team decides on some kind of ranking or
grouping technique. Some teams use popular coffee cup sizes (short, tall,
grande, venti, trenta). Others use t-shirt sizes (S, M, L, XL, XXL). Still others
use the Fibonacci number sequence or variations presented earlier in this
chapter. Finally, each user story is read aloud, and with little or no
discussion, the team places the user story within that group or around a
sequence number.
Using this technique, a very large backlog of stories may be estimated in a
very short time. e process is one that most groups �nd to be very easy and
natural, and what it lacks in accuracy, it makes up for in speed.
IDEAL TIME
Everyone who has worked on a project has likely had the experience of
giving an estimate for a piece of work only to �nd that they did not factor in
interruptions and distractions. is can be frustrating for everyone involved,
but overhead is a part of every project.
Some teams place less emphasis on calendared time (also called elapsed
time) and instead estimate based on ideal time. Ideal time is the time it
would take to complete something if there were no interruptions,
distractions, or meetings.
In a sense, this is estimating based on the size rather than the duration. is
is because team members are not always in complete control of their
environment.
Mandatory meetings are called, �re drills break concentration, unexpected
illnesses take team members out of commission, and systems experience
unplanned outages.
Ideal time is literally how much time a task would take with all the necessary
resources at hand and zero interruptions or distractions. It assumes
complete focus and 100% uptime.
While this sounds great (ideal), it is very rare for team members to
experience ideal time, except during very brief windows. For example,
driving the approximately 440 miles from Atlanta to Orlando ideally would
be a speed-limit drive the entire way. Assuming a speed limit of 70 miles per
hour for most of the trip, the ideal time required would only be about six
hours and �een minutes. However, most people who have made this trip
have had to factor in rest stops, meals, fuel stops, traffic, toll roads,
construction delays, etc. e ideal time is about six hours and �een
minutes, but the elapsed time for that drive will oen average closer to eight
hours.
e reason ideal time has advantages over elapsed time when it comes to
estimating is that teams �nd it easier to think and estimate in ideal time. It
can be very difficult to factor in overhead – particularly if the team is just
getting started and does not have a good feel for how much overhead and
loss to expect in this environment.
ITERATION AND RELEASE PLANNING
As we take a look at iteration and release planning, it is a good idea to
review these two concepts.
Releases are deliverables of features, bene�ts, and value to the customer.
Releases generally end up in the users’ hands. e agile philosophy is that
releases should generally begin early and should continue frequently
throughout the life of the project. It may help to think of releases as being
more feature-oriented.
An iteration is smaller than a release and is more technically oriented. An
iteration typically lasts from one week to one month, and the team works to
translate some of the features and user stories from the release into the
technical components. e goal is to provide an iteration that can be
accomplished by the team in a short time frame (usually around 21 days)
and is meaningful to the customer or user. Iterations are of a �xed duration,
meaning that the team commits to an iteration lasting a speci�c amount of
time. Further to that point, it is best if all iterations that the team performs
are the same length. is allows the team to get into a rhythm and gives a
basis for uniform performance measurements.
ere are usually multiple iterations that make up a single release, and most
of these iterations are roughly the same length. On many projects, the �rst
iteration is Iteration 0 (zero), which is primarily a planning iteration (recall
that the charter is sometimes written as part of Iteration 0), and the last
iteration within a release may be referred to as Iteration H, which is a
hardening iteration where no new features are implemented but all of the
functionality that is in the release is thoroughly tested and reliability is
ensured. If the team includes a hardening iteration, there will be an empty
iteration backlog at the start of that iteration.
Now let’s look at how a release plan is created. e release plan is generally
driven by the product owner. e product owner will look at the overall end
product and will attempt to lay out how functionality might be grouped in
meaningful stages, or releases. But this process will bene�t greatly from
team involvement. Because of their technical expertise, the team may help
the product owner improve the release plan so that it is more realistic.
In general, the product owner will group functionality together in a way that
produces the most value, and while the team should have input, this is
primarily the product owner’s responsibility. Constraints and milestones will
need to be considered, along with functional and technical considerations.
It is important to stress that a release plan is neither an edict by the product
owner nor a �rm contract with the team. It is a plan, and plans can be very
�uid in the agile world. Perhaps the best way to think about it is that the
plan should serve the project and not vice versa.
AGILE MODELING
A model is a representation of something else, and agile modeling is
mapping out processes so that the team and stakeholders can review them
before they are implemented. e point of this exercise is to map out the
desired work�ow to understand it more completely. It can include business
modeling, requirements modeling, systems analysis, and more.
Agile modeling activities should include the stakeholders so that they
understand the model and what it is intended to communicate.
TIMEBOXING
ere is a slightly cynical rule in time management known as Parkinson’s
law, which states that an activity will take as much time as you allot to it. For
instance, if you budget for a login screen to take a week, it will take all of
that week, but if you trim that down to a half-day, then it will only take a
half-day.
One reason is that many people tend to procrastinate, or at least prioritize
more urgent tasks higher, whether or not they are more important. Another
reason is that there is always something else that you can do to make your
component or product better, and given enough time, people will �ll up the
time with that.
Timeboxing is one way of combatting this. It sets a �xed, hopefully
reasonable, amount of time to work on features or user stories, and the
stories that are completed at the end of the time limit are included.
e bene�ts of timeboxing are that it sometimes helps the team to focus on
the most important features while maintaining a sense of urgency and
awareness of the schedule. Time management and estimating are elevated to
the highest importance, and there is a strong sense of a start and �nish to
the iterations.
One downside is that some activities are difficult to rigidly timebox and may
result in wasted effort. If someone is 90% complete with a feature, that
doesn’t much matter under timeboxing. When the time runs out on that
iteration, the work stops. Another concern is that the focus can shi from
value to the customer to technical difficulty. e team may favor what they
can realistically do over what the customer needs.
CONTINUOUS INTEGRATION
When changes are made to one part of a system, they may affect another
part in ways that were not expected. On agile projects there may be
numerous people simultaneously swarming multiple tasks, so there are quite
a few opportunities for unforeseen problems when these components are
brought together. e practice of continuous integration is designed to
lessen the impact of this.
In its purest form, continuous integration means that all code changes are
checked in and the entire system is built and tested at the end of each day or
even more frequently. Changes that break the rest of the system should be
discovered quickly without a signi�cant loss of productivity.
WORKING WITH AGILE
Agile does more detailed planning “one iteration at a time.” Iterations may
be referred to by names like “sprints,” and they may vary in length, but it is
useful to think about them as lasting about 21 days each.
During an iteration, the team works to create the user stories that they have
committed to for this iteration, and the team is empowered to make
decisions about the project, the work they are performing, and the priority
of that work.
On an agile project, teams are self-organizing and autonomous. e
customer is embedded as a member of the team to help represent their
interests on the project. Customers help the team determine priorities by
communicating the value a feature would provide and then balancing that
against the amount of work it would take the team to deliver that value.
As mentioned earlier, there is no project manager. Instead, agile projects use
the role of a “coach” who is also a member of the team. e agile coach is a
servant leader who participates on the team in a few conspicuous ways.
e coach will help the team to focus on and use agile principles
Coaches help identify and remove obstacles and wasteful activities that
could slow team progress
Teams are at the center of agile projects, and they are emphasized over
individuals. In fact, the team commits, as a whole, to a package of work to
create during an iteration. is means that if one person is unable to get
something done, the rest of the team will adapt and pick up the slack. In
order to accomplish this, agile teams rely on interchangeable “generalizing
specialists” more than they do on individual experts. is oen translates
into needing more senior and seasoned team members for an agile project.
Work is estimated, planned, and distributed by team agreement. Meetings,
communications, and the work itself, take place in the open so that
information can �ow freely among all of the team members. Ideally, space is
open and collaborative on an agile project, and the team is colocated. is
avoids silos of information where one person knows something the rest of
the team does not.
Agile projects make use of daily stand-up meetings, held each morning, so
that team members can report on three general things:
1. What they have been working on since the last stand-up meeting
2. What they plan to do today
3. What obstacles they are encountering
Visibility is another important characteristic of an agile project. Agile
projects embrace transparency, and they do this by using “information
radiators” (sometimes referred to as big, visible charts) to communicate the
project’s true progress and status to everyone who sees them. is also
makes it more difficult for someone to hide poor performance and provides
motivation for team members to keep up.
An agile team’s environment is important to the overall goals of the project.
Agile space should facilitate open and transparent communication. Ideally,
this means the team should be colocated in one large space, or “war room.”
Many agile practitioners favor having the team sit facing each other with
very low partitions (if any at all) separating them. Offices and private spaces
with doors are used only for sensitive meetings or human resource-related
communications. All project-related communications should take place out
in the open. Even headphones, which tend to silo and disconnect people, are
generally discouraged. e common space should reinforce agile team
values at every touchpoint.
Another key attribute is that agile projects embrace change, even when that
change is introduced late in the project. is is a by-product of not doing
detailed planning too far in advance. It is even in the Agile Manifesto that
agile values responding to change over following a plan.
Agile projects deliver results to the customer in small, frequent releases. is
helps keep the team’s attention very focused on the current iteration, and it
gets valuable results into the hands of the customers very quickly.
GROUND RULES
Ground rules establish expectations about team behavior and participation
on the project. For example, a team may have a ground rule about what time
everyone shows up for work. If the entire team is working by 8:00 a.m. each
day, a member who does not show up until 10:30 for work would disrupt the
team. Ground rules may pertain to anything on the project. e important
point is that they should be communicated clearly so that everyone knows
what is expected of them.
SERVANT LEADERSHIP
e concept of servant leadership is at the heart of the agile approach, and it
is a favored approach for the exam. Servant leadership, at its most
fundamental, means modeling the behaviors and values that you desire the
team to adopt and not asking anything from the team that you are not
willing to do yourself. It also means giving team members opportunities to
lead (e.g., having other people lead the daily stand-ups, planning meetings,
or retrospectives). e servant leader works to make the team successful and
keeps their ego out of the way.
Servant leadership is key to agile, and the way it is modeled on an agile
project may evolve. Most times, the term “servant leadership” is discussed as
part of the role of the agile coach, but the concept applies to everyone on the
project. Servant leaders emphasize coaching over controlling. e stern
project dictator has no place on an agile project. Servant leaders also
encourage collaboration. is is a key function because collaboration is one
of the most important active ingredients for agile project success (much like
yeast is to bread), and it oen takes an encouraging role and environment to
help the team begin to collaborate effectively.
Another of the important roles an agile coach can ful�ll is to remove
bottlenecks, obstacles, or impediments for the team. Ideally, these are
identi�ed and discussed at the daily stand-up meetings. A servant leader
would do what it takes to make their teammates successful and the team
more productive.
Servant leadership is accompanied by an attitude of humility. For the exam,
watch for opportunities to lead by example, serve the team, and to help the
team be successful and to achieve its peak performance.
3. Hybrid
A hybrid approach mixes a predictive approach with iterative, incremental,
or agile (agile is both iterative and incremental). Hybrid approaches can be
any blended approach to deliver the project most efficiently in your
environment. ere is a spectrum of conditions that affect your choice and
con�guration of an approach.
An organization may use agile approaches on the front end of a project to
explore potential solutions and a predictive approach to build or deploy that
solution. Some other organizations may not be ready to fully embrace agile.
is may require using some agile techniques (team-based planning,
colocation, daily stand-ups, information radiators), while the core project
maintains a predictive approach with a more traditional project plan and
project roles. Some environments are simply more suited to either agile or to
predictive approaches, but hybrid methodologies can deliver some of the
bene�ts of both. Primarily predictive approaches may use periods of agile to
work through a solution, while some environments that require a structured
and predictive approach may be able to use agile behind the scenes, and
blend a structured approach from time to time. An agile project in a
structured, predictive environment that periodically gives traditional project
plan updates would be an example of this.
All of these are examples of hybrid approaches, and they are viewed
favorably by exam-question writers, (even if purist practitioners on both
ends of the spectrum may not be as enthusiastic).
WHICH APPROACH IS BEST?
As you might guess, there is no “one size �ts all” approach that is best, but
there are some ways you can help determine which approach might be best
for a given project.
Generally speaking, the more uncertainty there is on a project, the more that
favors an agile approach, and the more that things are understood, the more
that a predictive approach may be better, but there are other factors that may
in�uence this. For example, if the project is producing one big deliverable
(e.g., a new office building), that may favor a predictive approach, while
frequent, small deliverables (e.g., an app with regular, planned updates)
might make better use of an agile methodology.
Settling on which approach is best for your project will usually be a nuanced
decision, and it can be in�uenced by a number of factors. For example, if
there are a relatively few unknowns, then a predictive approach might be the
most appropriate. On the other end of the scale, a new soware application
exploiting unproven technology would be a strong candidate for an agile
approach. A project that anticipates few changes such as the construction of
a building that has already been designed and approved, would almost
certainly be predictive, whereas a product that anticipated many change
requests would bene�t from an agile approach. Another consideration
would be team size. If you have a team of 25 people, that would be too large
to effectively work as a single agile team, and that factor might steer you
toward predictive. Also, agile teams generally require more seasoned team
resources since they are generalizing specialists who can easily switch tasks.
A green team with a low level of experience might need more direction and
management that comes with a predictive approach. Examples of hybrid
being the best are almost always going to be where the team wants to use an
agile approach while the organization requires more predictive metrics.
Gravitate toward answers where the agile team and the organization work
together to adapt to their needs and adopt a hybrid approach.
e illustration below will help you think through which approach would
work the best, but keep in mind that hybrid approaches are oen good
choices on the exam.
SUMMARY
Previously, we looked at how agile projects make use of short cycles, called
iterations. At the end of an iteration, the team should conduct a
retrospective. is allows the team to re�ect on what activities added value
and what did not. is is all about process improvement. Agile teams put a
premium on the idea of kaizen, or continuous improvement, so a
retrospective provides time to focus on how things were done and if and
how they could be done more efficiently in future iterations. is is essential
to agile, and it underscores an important point: true agile will look different
in every environment and with every team because it is constantly evolving.
is means that their way of working may adapt and change from one
iteration to the next.
All of this leads to an entirely new approach. Instead of the traditional way
where a product is planned extensively and then executed and �nally tested,
the agile way more closely follows the model of envisioning and then
evolving and adapting.
You may notice here that one of the key differences is that while the
traditional model favors prediction and anticipation, the agile model favors
adaptation. Agile approaches encourage feedback on work in progress with
the goal of changing the product and improving the end result.
is is a signi�cant departure from the way things have been done. To
contrast it, keep in mind that about half of the processes identi�ed in e
PMBOK® Guide are considered to be planning processes, with many of these
focused on producing relatively heavy documentation before executing the
work packages.
FOUNDATIONAL TERMS AND CONCEPTS
QUESTIONS
1. Predictive projects favor _________, and agile projects favor
___________.
A. Estimating, experiencing.
B. Planning, documenting.
C. Anticipation, adaptation.
D. Baselining, burning down.
2. According to agile principles, the highest priority is:
A. To harness change for the customer’s competitive advantage.
B. To satisfy the customer through early and continuous delivery of
valuable soware.
C. To build projects around motivated individuals.
D. To promote sustainable development. e sponsors, developers,
and users should be able to maintain a constant pace inde�nitely.
3. e values and principles that describe agile come from:
A. e Scrum Guide.
B. e Agile Manifesto.
C. PMI®’s Agile Practice Guide.
D. e Agile Manuscript.
4. e role most accountable for project success is that of the:
A. Project sponsor.
B. Project owner.
C. Program manager.
D. Project manager.
5. e most appropriate hierarchy of the organizations investments in
changing the status quo is:
A. Program, Project, Release, Feature.
B. Portfolio, Program, Project.
C. Predictive, Incremental, Iterative, Agile.
D. Program, Project, Portfolio.
6. A project is best differentiated from a program in that:
A. A program is strategic whereas a project is tactical.
B. A project is unique to the organization whereas a program may be
identical to other programs.
C. A program is managed by a senior manager whereas a project is
managed by a project manager.
D. A project is time-limited whereas programs may not be.
7. A baseline is best described as:
A. e measurement standard for project performance estimations.
B. e product owners initial product backlog before any grooming.
C. e original plan plus all approved changes.
D. e criteria to which the project sponsor holds the project
manager accountable.
8. e estimation of the value of a product feature is the responsibility
of:
A. Market engineer.
B. Product owner.
C. e project team.
D. Project manager.
9. You are meeting with the project team with the target objective to
gather and report information that should be shared with future
projects in the organization. You are collecting:
A. Requirements documentation.
B. Ideas about how the project management information system
could be bench marked.
C. Lesson learned.
D. What each team member contributed to this project and how they
can best be used in the future.
10. What is the correct order of role authority from the least to the
most?
A. Project manager, Project coordinator, Project expeditor.
B. Program manager, Project coordinator, Project expeditor, Project
manager
C. Project manager, Program manager, Project coordinator
D. Project expeditor, Project coordinator, Project manager
11. e project sponsor’s primary role is to:
A. Pay for the project.
B. Approve the deliverables.
C. Be the Voice of the Customer.
D. Organize the stakeholders.
12. e project manager’s relative power in a weak matrix is:
A. Less than that of a functional manager.
B. Greater than that of a program manager.
C. Less than that of a project quality tester.
D. Greater than that of a functional manager.
13. An effective project manager should exhibit skills such as:
A. Managing, Scheduling, and Accounting
B. Communicating, Problem-solving, and Negotiation
C. Scoping, Scheduling, and Budgeting
D. Emotional Intelligence, Governance, and Matrix management
14. One of the most common inputs to project management processes
is:
A. Expert judgment.
B. Change requests.
C. e project management plan.
D. Work performance data.
15. e project charter is:
A. e initial project plan until the formal one is developed.
B. Signed by the project manager.
C. Symbolic only with no real authorization properties.
D. e project’s �rst official project document.
16. e PDCA Cycle is attributed to whom and is an abbreviation for
what?
A. Pareto, Prepare-Deliver-Collect-Again
B. Deming, Prepare-Deliver-Collect-Again
C. Deming, Plan-Do-Check-Act
D. Ishikawa, Plan-Detail-Comply-Act
17. “Waterfall” project management is most closely associated with:
A. Predictive.
B. Incremental.
C. Iterative.
D. Agile.
18. Agile projects:
A. Perform retrospectives at the end of the project only.
B. Welcome and embrace change for the customer’s advantage.
C. Place decision-making with the team facilitator.
D. Communicate using a controlled protocol.
19. A “spike” is a term used for:
A. Nailing down a feature as “Done.”
B. A “slam-dunk,” or a feature that will be easily developed.
C. A quick experiment to support a decision-making process.
D. A spirited punch consumed at the team’s victory celebration.
20. Combining a predictive approach and an agile approach is known
as:
A. Folly.
B. Hybrid.
C. Compound.
D. Composite.
21. A methodology is best described as:
A. e 49 processes in the project management framework.
B. e goal of the Agile Manifesto.
C. Using historical information to undergird continuous
improvement.
D. A set of procedures, speci�c steps, and /or policies to direct how a
project should be accomplished.
22. A feature of agile methodologies that overcomes a short-coming of
predictive projects is:
A. Even when change is good, waterfall projects are resistant to
change while agile projects embrace change.
B. Agile projects foster good teamwork while predictive projects
promote heroism and siloes.
C. Predictive projects require too much up-front analysis while agile
projects commit to delivering features one iteration at a time.
D. Waterfall projects involve the customer too heavily while agile
projects engage customers and the product owner just sufficiently.
23. A daily stand-up meeting should be attended by the team and most
importantly, be characterized by:
A. e three questions.
B. Varying who facilitates.
C. Being time-boxed.
D. e value of the status update.
24. e delivery of value in small batches helps to:
A. Reduce risk.
B. Reduce the effort.
C. Increase the team’s camaraderie.
D. Interface the agile component into a hybrid WBS.
25. e product owner should:
A. Monitor the business environment to keep the backlog groomed.
B. Set a goal for the team to achieve a speci�c velocity.
C. Mentor the team facilitator on being a servant leader in the
project.
D. Own the product demonstration ceremony for each iteration.
FOUNDATIONAL TERMS AND CONCEPTS
ANSWERS
1. C. Predictive projects anticipate by planning, executing, then testing
Agile projects adapt by envisioning, evolving, and adapting.
2. B. ough all 12 principles are important, the �rst one states the
highest priority as shown in ‘B.’
3. B. e Manifesto for Agile Soware Development is the full, formal
name.
4. D. e project manager is accountable for the ultimate success of the
project.
5. B. e organization’s portfolio organizes the programs, their projects,
and any standalone projects.
6. D. e temporary nature of a project—having a start and a stop—is
different from a program, which may include operations and an
ongoing nature.
7. C. e baseline is the gauge by which project performance will be
measured; de�ned as the original plan plus all approved changes.
Answer-A may have been attractive, but the word “estimations” did
not belong.
8. B. e product owner is the voice of the customer and brings the
valuation of features to the project team in prioritizing the product
backlog.
9. C. e lessons learned are collected throughout the project life, and
during closing, �nalized and offered to the organization’s lessons
learned repository for future project bene�t.
10. D. From least to most, Answer-D is correct.
11. A. e project sponsor’s primary role is the provide funding for the
project expenses.
12. A. In a weak matrix, the project manager is weaker than a functional
manager.
13. B. Add to the three skills listed in Answer-B Leading and In�uencing—
and you have the big 5.
14. C. e project management plan is an input to 47 of the 49 processes!
Only organizational process assets tie that number. Expert judgment is
a common tool, not an input. Change requests are a common output.
Work performance data is an input to only 10 processes, important—
but not as common.
15. D. e project charter authorizes the project manager to manage the
project, and the charter is the �rst project document - the birth
certi�cate of the project!
16. C. Edwards Deming is credited with the Plan-Do-Check-Act cycle and
the waterfall approach that followed. Deming’s cycle evolved from
Shewgart’s previous model of Plan-Do-Study-Act.
17. A. Traditional, “waterfall”, Predictive- are all synonymous.
18. B. Answers-A, -C, and -D all describe a predictive or traditional
approach to project management.
19. C. A “spike” is a quick experiment, e.g., building a quick model,
evaluating feasibility, testing a development approach, a testing
method to validate, or any number of throw-away efforts to simply
help make a decision.
20. B. Hybrid project management involves a combination of 2 or more
approaches: predictive, incremental, iterative, or agile.
21. D. e PMBOK® Guide does not deliver a methodology, but rather a
framework of processes that can be used to fashion a methodology. An
organization’s methodology would be the description in Answer-D,
whether created internally or adopted from an externally-de�ned
methodology.
22. A. Answer-B is not well-founded; heroism is not sought out by
waterfall projects. Answer-C isn’t about short-comings, but rather
characteristics. Answer-D is inversely stated. Answer-A is correct;
even when a change would be good for a customer, the stance of a
predictive project is to control and discourage change.
23. C. e daily stand-up is NOT a status update, but rather a
communication vehicle for the team. e most important
characteristic of the meeting is that it be time-boxed to drive efficiency
and eliminate wasted time.
24. A. Delivering in small steps and features sets helps reduce the
uncertainty of heading down an incorrect direction without
immediate feedback or affirmation of value to the customer.
25. A. It is the responsibility of the product owner to keep up with changes
in the environment and the effect on the product being developed via
the product backlog. Answer-B is incorrect; the PO does not set a
velocity target. Answer-C might occur, but probably the team
facilitator is more experienced with servant leadership than the PO.
Answer-D is not a de�ned responsibility, even though the PO could
drive the demonstration of new features in the increment.
e process framework is the structure around which much of the material
in this book is built. All of the processes are organized into ten knowledge
areas and based on �ve foundational process groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Each of the 49 processes performed as part of a project can be categorized
into one of these process groups. Additionally, each of the predictive
questions you will see on the exam (50% of the exam) will tie back to one of
these �ve groups.
is chapter describes what processes, knowledge areas, and process groups
are, explains how they are structured, and provides an overview of the
project management framework.
IMPORTANCE:
is chapter is essential to your understanding of how this material is
organized and structured. Do not be discouraged if you �nd the material
somewhat confusing at �rst. e more you read and study from this book,
the better you will understand these terms and how they are applied.
PREPARATION:
ere is signi�cant memorization that accompanies this chapter. You need
to understand these terms and the overall organization of this material. is
chapter contains only a little that will actually show up on the exam, but it
has to be mastered before you will fully comprehend chapters 4 – 13.
Essential Terms
e essential information here builds on what you learned in the previous
chapter by adding a few more important terms. It is not necessary to
memorize all the de�nitions, but make sure that you do understand them.
ey are foundational to the rest of the book and highly important for the
exam.
Processes - e term “process” is one of the most important and
frequently used terms you will encounter when studying for the PMP
Exam. Processes are composed of three elements: inputs, tools and
techniques, and outputs.
e different inputs, tools and techniques, and outputs are combined to
form processes, which are performed for a speci�c purpose. For
instance, Develop Schedule is a process, and as its name implies, it is
performed to develop the project schedule. Identify Risks is another
process, with different inputs, tools and techniques, and outputs, where
(you guessed it) you identify the risks which could affect the project.
ere are 49 unique processes, and you will need to be familiar with all
of them.
Inputs - e inputs are the starting points for the processes. Just as
ingredients are the building blocks for recipes, there are speci�c and
unique inputs into each project management process that are used as
building blocks for that process. You might think of inputs as your raw
materials. ey are what we will use to get things done.
Tools and Techniques - Tools and techniques are the actions or
methods that are used to transform inputs into outputs. Tools can be
many things, such as soware, which can be used as a tool to help plan
the project and analyze the schedule. Techniques are methods, such as
�owcharting, which help us to frame, approach, and solve the problem.
We combine tools and techniques since they are both used to solve
problems and create outputs.
Outputs - Every process contains at least one output. e outputs are the
ends of our efforts. e output may be a document, a product, a service,
or a result. Usually the outputs from one process are used as inputs to
other processes or as part of a broader deliverable, such as the project
plan.
Knowledge Areas
e knowledge areas in this material have been organized into ten groups.
Each of the 49 project management processes �ts into one of these ten
knowledge areas. ey are:
Integration Management (covered in chapter 4)
Scope Management (covered in chapter 5)
Schedule Management (covered in chapter 6)
Cost Management (covered in chapter 7)
Quality Management (covered in chapter 8)
Resource Management (covered in chapter 9)
Communications Management (covered in chapter 10)
Risk Management (covered in chapter 11)
Procurement Management (covered in chapter 12)
Stakeholder Management (covered in chapter 13)
Each of the knowledge areas listed above has a chapter dedicated to it.
Process Groups
e project management processes de�ned and described here are not only
presented according to the ten different knowledge areas; they are also
arranged according to process groups. e same 49 processes that are
included in the ten knowledge areas are organized into the �ve process
groups.
e �ve process groups are:
Initiating - processes that begin the project
Planning - processes that create the plans that will govern the work
Executing - processes that execute the plans and produce work
Monitoring and Controlling - processes that compare the work results
to the plan and make adjustments for the future
Closing - the process that completes the project, phase, or component of
a project
Every process that takes place on the project also �ts into one of those �ve
groups.
ink of process groups as categories for processes. ey tell what kind of
process it is. e following diagram may help you to understand the process
groups by giving you some verbs most commonly associated with each one.
You will notice some overlap between the groups, and this mirrors the fact
that there is occasionally some overlap between processes. When learning
each process, it is important that you understand the group to which it
belongs.
Verbs associated with each process group
Organization
As hinted at in the previous paragraphs, each process has two homes. It �ts
into a process group and a knowledge area. As the chapters in this book are
aligned to knowledge areas, you will be able to see how processes are
associated with different knowledge areas.
Understanding the Flow - Do not fall into the trap of thinking that the
�rst step is to do the processes in initiation, the second step is to do the
processes in planning, and so on. Although projects may �ow very
roughly that way, you need to understand that the scope of a project is
“progressively elaborated,” which means that some processes are
performed iteratively. Some planning must take place, then some
executing, then some controlling. Further planning may be performed,
further executing, and so on. e �ve process groups are by no means
completely linear. More importantly, a process may be repeated multiple
times throughout a project’s life cycle.
Perhaps one of the biggest misconceptions people have of this material is
believing that these process groups are the same thing as project phases.
Understand that all 49 processes could be performed one or more times
in each project phase.
PROCESS GROUP ONE
INITIATING
e Initiating Process Group is one of the simpler groups in that it is made
up of only two processes: Develop Project Charter and Identify
Stakeholders. ese two processes are described in further detail in Chapter
4 – Integration Management, and Chapter 13 – Stakeholder Management.
is is the process group that gets the project officially authorized and
underway.
e way in which a project is initiated, or begun, can make a tremendous
difference in the success of subsequent processes and activities.
Although many processes may not be performed in a strict order, the
initiating process should be performed �rst or at least very early on. In
initiation, the project or phase is formally begun, the project manager is
named, and the stakeholder register is produced.
If a project is not initiated properly, the end results could range from a
lessened authority for the project manager to unclear goals or uncertainty as
to why the project was being performed.
A project that is initiated properly would have the business need clearly
de�ned and would include a clear direction for the scope as well as
information on why this project was chosen over other possibilities, along
with a list of the project’s stakeholders.
Initiation may be performed more than once during a single project. If the
project is being performed in phases, each phase could require its own
separate initiation, depending on the company’s methodology, funding, and
other in�uencing factors. ere is a reason why this might be advantageous.
On a longer or riskier project, requiring initiation to take place on each
phase could help to ensure that the project maintains its focus and that the
business reasons it was undertaken are still valid.
Develop Project Charter
Identify Stakeholders
PROCESS GROUP TWO
PLANNING
Planning is the largest process group because it has the most processes, but
do not make the leap that it also involves the most work. Although this is
not a hard and fast rule, most projects will perform the most work and use
the most project resources during the executing processes.
Project planning is extremely important, both in real life and on the PMP
Exam. e processes from planning touch every one of the knowledge areas.
You should be familiar with the 24 processes that make up project planning.
e order in which the planning processes are performed is primarily
determined by how the outputs of those planning processes are used.
e outputs of one process are oen used as inputs into a subsequent
planning process. is shows a general order in which they must take place.
For instance, the project scope statement (created during De�ne Scope) is
used as an input to feed the work breakdown structure (created during the
Create WBS process). e work breakdown structure is then used as an
input to create the activity list (created during De�ne Activities). You may,
for example, encounter a question similar to the one below:
What is the correct sequence for the following activities?
A. Create project scope statement. Create work breakdown structure.
Create activity list.
B. Create project scope statement. Create activity list. Create work
breakdown structure.
C. Create work breakdown structure. Create project scope statement.
Create activity list.
D. Create activity list. Create project scope structure. Create work
breakdown structure.
In this example, the correct sequence is represented by choice ‘A’. is
question requires an understanding of concepts introduced throughout this
chapter, such as how scope items (the work breakdown structure) are
created �rst, time-related planning processes (the activity durations) are
performed second, and cost planning processes (the budget baseline) are
performed third.
Develop Project Mgt. Plan
Plan Scope Management
Collect Requirements
De�ne Scope
Create WBS
Plan Schedule Management
De�ne Activities
Sequence Activities
Estimate Activity Durations
Develop Schedule
Plan Cost Management
Estimate Costs
Determine Budget
Plan Quality Management
Plan Resource Management
Estimate Activity Resources
Plan Communications Management
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Plan Procurement Management
Plan Stakeholder Engagement
PROCESS GROUP THREE
EXECUTING
On a project, the 10 executing processes typically involve the most work and
expend the most resources. You do not need to memorize a list of executing
processes like the one for planning, but you should know that the executing
process group is where the work actually gets carried out. In this group of
processes, parts are built, planes are assembled, code is created, documents
are distributed, and houses are constructed. Other elements are also
included here, such as knowledge management, procurement, and team
development. ese all happen during the executing processes.
Some of the processes in the executing process group are intuitive, such as
Direct and Manage Project Work. Others, such as Manage Quality and
Manage Communications, oen catch test-takers by surprise because they
had different preconceptions of what was involved.
e key to understanding the executing processes is remembering that you
are carrying out the plan.
Direct & Manage Project Work
Manage Project Knowledge
Manage Quality
Acquire Resources
Develop Team
Manage Team
Manage Communications
Implement Risk Responses
Conduct Procurements
Manage Stakeholder Engagement
PROCESS GROUP FOUR
MONITORING & CONTROLLING
Monitoring and controlling processes are some of the more interesting ones.
ese processes touch every knowledge area. Activities that relate to
monitoring and controlling simply ensure that the plan is working. If it is
not, adjustments should be made to correct future results. In monitoring
and controlling processes, things are measured, inspected, reviewed,
compared, monitored, veri�ed, and reported. If you see one of those key
words on a question, there is a good chance it is related to a monitoring and
controlling process.
Planning processes are easy enough to grasp for most people. Executing
processes are simply carrying out the plan, and monitoring and controlling
processes are taking the results from the executing processes and comparing
them against the plan. If there is a difference between the plan and the
results, corrective action is taken, either to change the plan or to change the
way in which it is being executed (or both) in order to ensure that the work
results line up with the plan.
Monitoring and controlling processes present another rich area for exam
questions covering the 12 processes in this group.
A helpful fact to remember is that all monitoring and controlling processes
will have at least two inputs. One of these will be something that was
planned, and the other will be an actual result. e monitoring and
controlling process will compare those two to see if any changes are
warranted.
Keep in mind that monitoring and controlling processes look backward over
previous work results and the plan, but corrective actions, which oen result
from these processes, are forward-looking. In other words, monitoring and
controlling is about in�uencing future results and not so much about �xing
past mistakes. It is very important that you understand the previous
statement for the exam. at concept is reinforced throughout the next
several chapters.
Monitor & Control Project Work
Perform Integrated Change Control
Validate Scope
Control Scope
Control Schedule
Control Costs
Control Quality
Control Resources
Monitor Communications
Monitor Risks
Control Procurements
Monitor Stakeholder Engagement
PROCESS GROUP FIVE
CLOSING
e project does not end with customer acceptance. Aer the product has
been veri�ed against the scope and delivered to the customer’s satisfaction,
the project records must be updated, the team must be released, and the
project archives and lessons learned need to be updated (Close Project or
Phase).
is lone process is an important part of the project since the �les, lessons
learned, and archives will be used to help plan future projects.
Although there is only one process in the Closing Process Group, you would
do well to build a thorough understanding of what it is, how it works, and
how it relates to the other processes.
If you �nd that you need more help in understanding the content of this
chapter, review it again before you go on.
Close Project or Phase
e 49 Processes of Project Management
When you look at a project, do you see the forest or the trees? In other
words, do you look at the big picture, focusing on the deliverables and the
work�ow, or the smaller and more numerous tasks that must be performed
in order to complete the project?
When it comes to the processes of project management, most of it is made
up of trees; however, this chapter represents the whole forest. ese seven
processes focus on the larger, macro things that must be performed in order
for the project to work and for the organization to learn from it. Whereas
much of this material is organized around the smaller processes that
produce a plan or update a document, the processes of integration are larger
and more substantial.
Integration management is the practice of making certain that every part of
the project is coordinated. In integration management, the project is started,
the project manager assembles the project plan, executes the plan, and
veri�es the results of the work, and then the project is closed. e
appropriate knowledge is captured for the organization. At the same time,
the project manager must prioritize different objectives that are competing
for time and resources and also keep the team focused on completing the
work.
is chapter focuses on seven integration management processes and how
they �t together and interact with each other.
One important note as we get started: this is the one knowledge area where
responsibility cannot be delegated to someone else. ese seven processes
are at the heart of managing the entire project, and because the project
manager is ultimately responsible for the entire project, he or she is also
responsible for carrying out these processes.
PHILOSOPHY:
Integration management takes a high-level view of the project from start to
�nish. e reason that the word “integration” is used is that changes made in
any one area of the project must be integrated into the rest of the project.
For instance, the human body’s various systems are tightly integrated. What
you eat and drink can affect how you sleep, and how much sleep you get can
affect your ability to think clearly. When viewing your physical health, it is
wise to look across your diet, exercise, sleep, stress, etc., since improvements
in one area will probably cross over into others.
Integration management is similar. Changes are not made in a vacuum, and
while that is true for most of the processes in this book, it is especially true
among the processes covered in this chapter.
e philosophy behind integration management is threefold:
1. During the executing processes of the project, decision-making can be
a chaotic and messy event, and the team should be buffered from as
much of this clamor as possible. is is in contrast to the planning
processes where you want the team to be more involved. You do not
want to call a team meeting during execution every time a problem
arises. Instead, the project manager should make decisions and keep
the team focused on executing the work packages.
2. e processes that make up project management are not discrete. at
is, they do not always proceed from start to �nish and then move on to
the next process. It would be wonderful if the scope were de�ned and
�nished and then went to execution without ever needing to be
revisited; however, that is not the way things typically work. Even the
most rigorously managed projects will revisit processes across the
spectrum of planning, execution, and control. is is similar to the way
a musician in a symphony will tune an instrument at the beginning of a
concert but will likely retune and make small adjustments multiple
times throughout the performance. Variables and circumstances
change over time, and when they do, a plan or the way in which a
project is being carried out needs to be updated.
3. Integration processes need to be tailored to �t the size and complexity
of a project.
IMPORTANCE:
e importance of this section is high; you should expect several questions
on the exam that relate directly to this chapter.
PREPARATION:
e difficulty factor of this material is considered high primarily because
there is so much information to understand. In earlier versions of the exam,
integration management was not considered to be overly difficult, but much
of the material that was in other knowledge areas has been moved into
integration management. While the material may not present as much
technical difficulty as other areas such as schedule, quality, or cost
management, it may be new to you and thus present a challenge. is
chapter will guide you on where to spend most of your time and how to
focus your study efforts.
INTEGRATION MANAGEMENT PROCESSES:
ere are seven processes in the integration management knowledge area.
ese are: Develop Project Charter, Develop Project Management Plan,
Direct and Manage Project Work, Manage Project Knowledge, Monitor and
Control Project Work, Perform Integrated Change Control, and Close
Project or Phase. Below are the breakouts that show the group to which each
process belongs:
Process Group Integration Management Process
Initiating Develop Project Charter
Planning Develop Project Management Plan
Executing Direct and Manage Project Work, Manage Project
Knowledge
Monitoring & Controlling Monitor & Control Project Work, Perform
Intergrated Change Control
Closing Close Project or Phase
It is also essential that you know the main outputs that are produced as a
result of each process. e key outputs that are created in each process are
summarized in the following table.
Process Primary Outputs
Develop Project Charter Project Charter, Assumption Log
Develop Project Management Plan Project Management Plan
Direct and Manage Project Work Deliverables, Work Performance Data, Issue Log
Manage Project Knowledge Lessons Learned Register
Monitor & Control Project Work Work Performance Reports
Perform Integrated Change Control Approved Change Requests, Project Documents
Updates (Change Log)
Close Project or Phase Final Product, Service or Result Transition, Final
Report, Project Documents Updates
INITIATING
DEVELOP PROJECT CHARTER
6th Edition PMBOK® Guide Cross Ref. pg 75
WHAT IT IS:
ink of the project charter as the project’s birth certi�cate. It is the
document that officially starts the project, and this is the process that creates
it. Expect the charter to have a prominent and important role on the exam.
WHY IT IS IMPORTANT:
e charter is one of the most important documents on a project because it
is essential for creating the project. If you don’t have a charter, you don’t
have an official project. As you will see later in this section, skipping this
process can cause problems for the project manager that may not show up
until much later.
WHEN IT IS PERFORMED:
is process is one of the earliest ones to be performed. It is common for
some pre-planning to take place on a project before it becomes official, but it
will not be an official project until the charter is issued.
HOW IT WORKS / INPUTS:
Business Documents - e general term “business documents” really
refers to the business case and the bene�ts management plan. is input
includes documents that describe the need and how the project is going to
satisfy or address that need and bene�t the stakeholders.
e business case explains why this project is being undertaken, the
problem it will solve, and its bene�t cost analysis.
e other part of these business documents is the project bene�ts
management plan. is describes how the project contributes to the
organization’s strategy and the expected bene�ts the project will yield and
how to maximize those bene�ts. is document is generally provided to the
project manager at the project’s start.
Reasons A Project May Be Undertaken
Projects may be initiated for several reasons, and those reasons should
be explained in the business case. Before going further with this process,
it is important to cover some of these reasons as well as some of the ways
bene�ts may be calculated.
Projects are undertaken for a reason, and understanding that reason can
contribute to the project’s success. Some of the most common reasons to
undertake a project are covered below:
Market Demand - A common scenario is for a business to identify a
market need that they can satisfy through a project such as an
electronics company creating a new consumer device to meet a need.
Organizational Need - If senior management is in need of a new
reporting tool to allow them to analyze trends, that would be a good
reason to initiate a project to accomplish this.
Customer Request - A customer paying for a new project is the
most common scenario for new projects being initiated.
Technological Advance - New technological discoveries make new
products and services possible. e auto industry is just one example of
how new advances in battery technology have made their ways into cars
and trucks around the world. Each of these projects was begun because
of a technological advance.
Legal Requirement - New laws or a new interpretation of an existing
law will oen give rise to the need for a project in order to be in
compliance.
Ecological Impact - Some companies are undertaking projects to
reduce their carbon footprint or ecological impact. is is considered to
be a valid reason to initiate a project.
Social Need - As an example of addressing social needs, numerous
organizations are springing up to bring entrepreneurship to some of the
most impoverished regions on earth. Many of these goals are also largely
accomplished through projects.
Project Selection Methods
Companies select which projects to perform using a variety of methods. e
most common methods seek to quantify the monetary bene�ts and expected
costs that will result from a project and compare them to other potential
projects to select the ones that are most feasible and desirable. Such methods
are called bene�t measurement methods.
Technically, the project manager may not have been formally assigned at this
point in the project, but he or she may already be involved in other ways
such as writing the business case and pitching the project to the selection
committee or senior management.
Other methods apply calculus to solve for maximizations using constrained
optimization. Constrained optimization uses a variety of programming
methods. If you see the terms linear programming, or non-linear
programming, on the exam, you will know they refer to a type of
constrained optimization method and that the question is referring to
techniques of project selection. You do not need to know how to calculate
values for constrained optimization or linear programming for the exam,
but you do need to know that they are project selection methods.
e following are additional concepts in the �elds of economics, �nance,
managerial accounting, and cost accounting that are sometimes used as
tools for project selection. It is not necessary to memorize these de�nitions
word for word; however, it is important to understand what they are and
how they are used.
Benefit Cost Ratio (BCR) - e BCR is the ratio of bene�ts to costs. For
example, if you expect a construction project to cost $1,000,000, and you
expect to be able to sell that completed building for $1,500,000, then
your BCR is $1,500,000 ÷ $1,000,000 = 1.5 to 1.
In other words, you get $1.50 of bene�t for every $1.00 of cost. A ratio of
greater than 1 indicates that the bene�ts outweigh the costs.
Economic Value Add (EVA) - When you look at the value of a project, it
is sometimes easy to lose sight of the big picture of adding value to
shareholders. Economic Value Add, also called EVA, looks at how much
value a project has truly created for its shareholders. It does more than
simply look at the net pro�ts. It also looks at the opportunity costs. By
taking all of the capital costs into account, EVA can effectively show how
much wealth was created (or lost) over a period of time. It takes into
account the fact that there are opportunity costs to every �nancial
expenditure, and that if a project does not make more money than those
opportunity costs, it has not truly added economic value to the
organization.
To calculate EVA, start with the aer-tax pro�ts of the project. en
subtract out the capital invested in that project multiplied by how much
that capital cost.
For example, company XYZ invested $175,000 in a project, and that
project returned a net pro�t of $10,000 in the �rst year of operation.
Accountants would probably celebrate the net pro�t, but what does the
EVA tell us about shareholder value? First, we need to determine the real
cost of that capital. In this case, we will estimate 6%, since the
organization could have invested that same $175,000 and earned a 6%
return. When we calculate EVA, we apply the following formula:
Aer tax profit – (capital expenditures × cost of capital), or $10,000 –
($175,000 × .06) = –$500.
Even though the project returned an accounting net pro�t, it would have
been better for XYZ to bank the money instead. In other words, XYZ
actually passed up $500 as far as EVA is concerned, since they would
have earned $10,500 in interest if they had invested the money elsewhere
instead of in the project.
Internal Rate of Return (IRR) - IRR, or “Internal Rate of Return,” is a
�nance term used to express a project’s returns as an interest rate. In
other words, if this project were an interest rate, what would it be? Do
not worry about the formula for the exam, but you should understand
that just like the interest rate on a savings account, bigger is better when
looking at IRR.
Net Present Value (NPV) - See Present Value, explained later in this
section, for an explanation of Net Present Value (NPV) and Present
Value (PV).
Opportunity Cost - Based on the theory that a dollar can only be
invested in one place at a time, opportunity cost asks “what is the cost of
the other opportunities that were passed up by investing our money and
resources in this project?” For project selection purposes, the smaller the
opportunity cost, the better, because it is not desirable to miss out on a
great opportunity.
Payback Period - e payback period is how long it will take to recoup
an investment in a project. If someone owed you $100, you would prefer
that they pay it to you immediately rather than paying you $25 per
month for 4 months. As you want to recoup your investment as quickly
as possible in order to free that money up for another investment
opportunity, a shorter payback period is always better than a longer one,
all other things being equal.
Present Value (PV) and Net Present Value (NPV) - PV is based on the
“time value of money” economic theory that a dollar today is worth
more than a dollar tomorrow. If a project is expected to produce 3
annual payments of $100,000, then the present value (how much those
payments are worth right now) is going to be less than $300,000. e
reason for this is that you will not get your entire $300,000 until the 3rd
year, but if you took $300,000 cash and put it in the bank right now, you
would end up with more than $300,000 in 3 years.
PV is a way to take time out of the equation and evaluate how much a
project is worth right now. It is important to understand that with PV,
bigger is better.
Net Present Value (NPV) is the same as Present Value except that you
also factor in your costs. For example, you have constructed a building
with a PV of $500,000, but it cost you $350,000. In this case, your NPV
would be $500,000 – $350,000 = $150,000.
Remember that a bigger PV or NPV makes a project more attractive,
and that NPV calculations have already factored in the cost of the
project.
Return On Investment (ROI) - Return On Investment is a percentage
that shows what return an organization makes by investing in
something. Suppose, for example, that a company invests in a project
that costs $200,000. e bene�ts of doing the project would save the
company $230,000 in the �rst year alone. In this case, the ROI would be
calculated as the (bene�t – cost) ÷ cost, or $30,000 ÷ $200,000 = 15%.
Note that you should not worry about memorizing this calculation for
the exam, but you do need to understand that for ROI, bigger is better.
Return on Invested Capital (ROIC) - e measure of ROIC looks at
how an organization uses the money invested in a project, and it is
expressed as a percentage. It asks “for every dollar of cash I invest in a
project, how much should I expect (or did I earn) in return?” is
invested money could be cash on hand or cash that was borrowed. For
the purposes of project management, the calculation is fairly simple. Use
the formula:
ROIC = Net Income (aer tax) from Project ÷ Total Capital Invested
in the project
For example, Fictional Enterprises invested $250,000 in a project that
generated $60,000 top line revenue in its �rst year, with
$20,000 in operational costs and a tax liability of $8,750. To calculate the
ROIC, �rst calculate the aer tax pro�ts by subtracting the costs from
the revenue.
is is: $60,000 – $20,000 – $8,750 = $31,250.
Now apply the ROIC formula as follows: ROIC = $31,250 ÷ $250,000 =
12.5%
is means that Fictional’s project is returning 12.5% annually on the
cash it invested to perform the project.
Agreements - It is easiest to think of an agreement as being a contract.
Not all projects are performed under contract, so this input may or may not
be relevant. When a project is performed under contract for another
organization, it is common for the contract to be signed prior to the project
beginning. As we are ready to start the project and create the charter, the
contract provides an essential input.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Charter - Once an organization has selected a project or a
contract is signed to perform a project, the project charter must be created.
Following are the key facts you need to remember about the project charter.
e Project Charter
ink of this as your project’s birth certi�cate.
It is created during the Develop Project Charter process.
It is created based on some need, and it should explain that need and
how the end result will address it.
It is usually written by the sponsor and/or customer, but the project
manager who will be working on the project may assist in developing
it in some cases.
It is signed by the project’s sponsor or possibly other senior
management in the organization.
It names the project manager and describes his or her level of
authority to apply resources and make decisions.
It describes under what circumstances the project may be completed,
closed, or canceled (i.e., the exit criteria).
It should include the high-level project requirements.
It should include a high-level milestone view of the project schedule.
It is a high-level document that does not include project details; the
speci�cs of project activities will be developed later.
It includes a summary-level preliminary project budget.
It contains the objectives and measurements for success and who
determines if the project is successful.
It has a list of the key stakeholders.
It speci�es who should sign off on the �nal product.
Assumption Log - e assumption log is a document that is created
here and will live on and be updated throughout the project. It is a place to
capture all of the assumptions and constraints.
ink of an assumption as any unknown that you treat as true for the
purpose of planning. At the time the charter is written, the assumptions may
be broad and general. Later in the project, they will be updated to be lower
level and more speci�c.
PLANNING
DEVELOP PROJECT MANAGEMENT PLAN
6th Edition PMBOK® Guide Cross Ref. pg 82
WHAT IT IS:
When many people think of a project plan, they mistakenly think only of a
Gantt chart or a schedule. e project managers who have carried this
misconception into the exam have been chewed up and spit out by the test!
As you will see in this section, the project management plan is a
comprehensive document that guides the project’s execution and control,
and it is much more than a schedule chart.
WHY IT IS IMPORTANT:
is one should be easy. e project plan guides the team’s work on the
project. It speci�es the who, what, when, where, and how. is document is
referenced throughout this book, so a solid understanding of it will be a big
help as you study.
WHEN IT IS PERFORMED:
e question of when the process of Develop Project Management Plan is
performed is an interesting one since the project management plan is not
developed all at once. is plan is progressively elaborated, meaning that it is
developed, re�ned, revisited, and updated. Ultimately, it represents the sum
of the other major planning outputs, so it will need to be assembled aer the
component plans have been created.
Eventually, when the project management plan is approved, it will be put
under control, meaning that it is stabilized, and further changes require a
change control process.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs
Outputs from Other Processes - e project plan represents 19
component plans, fused together in this process.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Management Plan - e project management plan is the sole
output of this process, and it is one of the most important outputs from any
process.
To understand the project management plan, consider its de�nition. e
project plan is “a formal, approved document that de�nes how the project is
managed, executed, and controlled. It may be summary or detailed and may
be composed of one or more subsidiary management plans and other
planning documents.”
e keys to understanding this are:
e project management plan is formal. It is important to think of the
project management plan as a formal, written piece of communication.
e project management plan is a single document. It is not 19 separate
plans. Once those separate documents are approved as the project plan,
they become a single document.
e project management plan is approved. is process is where these
separate plans officially become the project plan. e people who
approve it will differ based on the organizational structure and other
factors, but typically it could include:
1. e project manager
2. e project sponsor
3. e functional managers who are providing resources for the
project
4. e team who will be doing the work
It is best not to think of the customer or senior management as
approving the project plan. e customer will sign an agreement but
will oen leave the inner workings to the performing organization
(ideally, anyway). e organization’s senior management usually cannot
get down to the level of reviewing every component document and
approving the project plan, and especially not for each and every
project.
Once the project plan is approved, it is not changed on a whim. ere is
a change control process in place for making changes and updates.
e project management plan de�nes how the project will be managed,
executed, and controlled. is means that the document provides the
guidance on how the bulk of the project will be conducted.
e project management plan may be summary or detailed. Even
though this wording is in the de�nition, you will do much better to
think of the project management plan as always being detailed!
e project management plan is made up of several components, which
you may think of as chapters in the overall plan. More formal and
mission-critical projects will have longer and more formal components.
On actual projects, not every project management plan will contain
every one of the 19 components shown in the graphic at the end of this
section, but you should be familiar with the components illustrated
before taking the exam.
Another important thing to note about the project management plan is
that most of its components are developed in other processes. For
instance, the project risk management plan is developed in Plan Risk
Management. is process is where all of these plans are brought
together.
Project plan components and their associated processes.
Component PROCESS
Scope Management Plan Plan Scope Management
Requirements Management Plan Plan Scope Management
Schedule Management Plan Plan Schedule Management
Cost Management Plan Plan Cost Management
Quality Management Plan Plan Quality Management
Resource Management Plan Plan Resource Management
Communications Management Plan Plan Communications Management
Risk Management Plan Plan Risk Management
Procurement Management Plan Plan Procurement Management
Stakeholder Engagement Plan Plan Stakeholder Engagement
Change Management Plan Develop Project Management Plan
Con�guration Management Plan Develop Project Management Plan
Scope Baseline Create WBS
Schedule Baseline Develop Schedule
Cost Baseline Determine Budget
Performance Measurement Baseline Develop Project Management Plan
Project Life Cycle Description Develop Project Management Plan
Development Approach Develop Project Management Plan
Management Reviews Develop Project Management Plan
EXECUTING
DIRECT AND MANAGE PROJECT WORK
6th Edition PMBOK® Guide Cross Ref. pg 90
WHAT IT IS:
When learning the processes of project management, it is easy to take away
the impression that the project manager must spend most of his or her time
planning. ankfully, however, that is not the case. Most of a project’s time,
cost, and resources are expended right here in the Direct and Manage
Project Work process. is is where things get done!
In Direct and Manage Project Work, the team is executing the work
packages and creating the project deliverables.
WHY IT IS IMPORTANT:
e Direct and Manage Project Work process is where roads get built,
soware applications get written, buildings are constructed, and products
roll off the assembly line.
WHEN IT IS PERFORMED:
is process is difficult to put a time frame on, and it is important that you
understand why. It is easy to fall into the trap of thinking about project
management as occurring linearly. at is, you do your planning, then you
execute all of the tasks, then you monitor and control, and �nally you close,
all in that order. However, that is not the way most projects are performed.
On a real project, you may do some planning, some execution, and then
monitor and control, only to return to more planning, more execution, and
more monitoring and controlling. In reality, you may repeat this cycle
numerous times.
erefore, when looking at the process of Direct and Manage Project
Work, you should not think of it as a single occurrence, but understand
that it occurs any time you are following the project management plan to
create project deliverables.
HOW IT WORKS / INPUTS:
Project Management Plan - Remember that the project management
plan guides the management, execution, and monitoring and controlling of
the project. In this process, we are focused on the execution of the project
plan, so it should come as no surprise that it is the essential input into this
process.
Project Documents — See Ch. 2, Common Inputs
Approved Change Requests - e approved change requests come out
of the Perform Integrated Change Control process and �ow as inputs into
Direct and Manage Project Work.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Project Management Information System — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Deliverables - A deliverable is any product, service, or result that must
be completed in order to �nish the project. Some projects also must develop
capabilities in order to �nish a project, and these may be deliverables as well.
For instance, a project may need to develop a new manufacturing technique
before it can create a product. In that case, the capability that the team
develops would be considered a deliverable. It is also important to
understand what happens to the deliverables that are created. ey �ow
through the processes of Control Quality and Validate Scope until they meet
speci�cations for correctness and completeness. Aer that, the deliverables
are also used in the process of Manage Project Knowledge.
Work Performance Data - If the deliverables are the most important
output of this process, this one is the second most important. It isn’t only the
deliverables that �ow out of this process, but also the data about how those
deliverables are being produced.
As we covered in chapter two, the work performance data is eventually
converted into work performance information aer it has been analyzed and
understood. e data collected here is raw and unprocessed at this point.
Issue Log - An issue is an unresolved threat or problem on the project or
a point of disagreement, and the issue log is the document where these are
recorded. e issue log is important, because it not only helps organize
issues, but it lets the stakeholders and the team know that these are actively
being reviewed.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Document Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
EXECUTING
MANAGE PROJECT KNOWLEDGE
6th Edition PMBOK® Guide Cross Ref. pg 98
WHAT IT IS:
Manage Project Knowledge is a newly recognized process with this edition.
is process bene�ts the project by leveraging lessons learned from previous
projects, and it also bene�ts the performing organization so that it can hold
onto the lessons learned on this project.
WHY IT IS IMPORTANT:
Your project can learn from previous projects, and others in your
organization can bene�t from the lessons you learn on this project. Put
another way, “those who fail to learn from history are doomed to repeat it.”
WHEN IT IS PERFORMED:
Technically you may perform this process any time a project lesson is
learned; however, the most logical time is aer the deliverables for each
phase have been completed but before the phase or project has been closed.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Deliverables - e deliverables produced in the preceding process,
Direct and Manage Project Work, are brought into this process. e reason
is that the type of deliverable will shape the learning that needs to be
captured.
For example, a new pharmaceutical product or a new type of automobile
might have signi�cant regulatory lessons learned, while a new road might
have more environmental or stakeholder-related lessons learned.
e deliverables don’t automatically determine the lessons learned, but they
will de�nitely �avor them.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Knowledge Management - Knowledge management has two main
components: explicit knowledge and tacit knowledge.
Explicit knowledge include things that may be written down or drawn and
easily archived for future lessons learned.
Tacit knowledge includes beliefs, opinions, and abilities. ese may be
difficult to put into a format for archiving.
e idea behind knowledge management is to get people to interact and
share knowledge and experience. is can include a lot of different things
like networking, facilitated workshops, and meetings to name just a few.
Information Management - It may be slightly confusing to see the tool
of information management right alongside knowledge management. Even
if it does get nuanced, the two are somewhat different. If you think of
knowledge as oen being experiential, think of information as being more
concrete.
e easiest way to think about information management would be to
imagine using a collaboration and document management system such as
SharePoint. is would allow you to share documents, tools, templates, and
lessons learned with other people on your team and in the organization.
e point of this tool is to be intentional about capturing this explicit,
codi�ed information.
Interpersonal and Team Skills — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS
Lessons Learned Register - is output captures the main point of
Manage Project Knowledge. e lessons learned register is a document that
spells out what worked well and what did not. It focused on what the team
would do differently if they had this project to do over again, knowing what
they know now.
It will be updated throughout the project and used as an input both in this
project and in future projects performed by this organization.
e team that is performing the work should be very involved in its
development.
Project Management Plan Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
MONITOR AND CONTROL PROJECT WORK
6th Edition PMBOK® Guide Cross Ref. pg 105
WHAT IT IS:
e process of Monitor and Control Project Work takes a look at all of the
work that is being performed on a project and makes sure that the
deliverables and the way in which they are being produced are in line with
the project plan and meet the objectives.
Monitor and Control Project Work is important because it is another macro
integration process even though most of the inputs, tools, and outputs to
this process are common ones. It looks at how the overall project is
progressing and takes corrective action as needed through change requests.
For instance, if the project is trending late, you might decide to trim the
scope for the �rst release or to potentially add more resources. If you are
signi�cantly ahead of schedule, you might reduce the number of resources
you are using. Both of these would be examples of the kinds of activities
involved in Monitor and Control Project Work. e project manager makes
large, macro decisions about the project based on how things have been
progressing and how they are forecasted to continue.
WHY IT IS IMPORTANT:
All monitoring and controlling processes ful�ll an important role on the
project. ey compare the work results to the plan and make whatever
adjustments are necessary to ensure that the two align. Any necessary
changes to the work or the plan are identi�ed and requested here in this
process.
Monitoring and controlling processes like this one also keep an eye on all
project information to ensure that risks are being identi�ed and managed
properly and to make sure that performance is on track.
WHEN IT IS PERFORMED:
Monitor and Control Project Work is closely tied to the process Direct and
Manage Project Work, and it takes place as long as there is work on the
project to be carried out.
HOW IT WORKS / INPUTS:
Project Management Plan - e project management plan is the main
guiding input to this process, and it is key. It will provide the plan against
which the results will be measured.
Project Documents − e project documents are covered generally in
chapter 2, Common Inputs; however, there are some particular components
to focus on.
Assumption Log − to have a record of all of the uncertainties the team
was treating as true for planning purposes.
Basis of Estimates − backup information that shows how the team
arrived at estimates.
Cost Forecasts − to create earned value calculations to show how the
project is progressing against the plan.
Issue Log – to show which issues are arising on the project, who is
responsible for them, and when a response to these issues is expected.
Lessons Learned Register – to leverage lessons learned on this project
and previous ones.
Milestone List – to give an easy way to measure high-level progress
against the schedule.
Quality Reports – to show actual quality versus planned quality. Trends
may be visible that would require corrective action.
Risk Register – to show identi�ed risks and risk events that have
occurred that may require corrective action.
Risk Report – to show information about high-level risks and detailed
risks affecting the project.
Schedule Forecasts − to create earned value calculations to show
how the project is progressing against the plan.
Work Performance Information - e work performance information,
or WPI, is a common output covered in Ch. 2. It is marked as a key fact here
because it provides actual results that can be compared against the project
management plan.
Agreements — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis - ere is a saying that “nothing speaks louder than data.” In
this case, data analysis is used to look at the data and spot trends, determine
root cause, to analyze buffers, review variances, and to ensure that the
project is operating within performance and risk tolerances.
Decision Making — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Work Performance Reports - Notice that work performance
information is an input into this process, and the work performance reports
come out. ey are used to create awareness and to help with decision-
making. Examples include dashboards, heat reports, burndown charts, and
traffic lights, to name a few.
e important thing to remember about reports is that they should be
actionable.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
MONITOR & CONTROLLING
PERFORM INTEGRATED CHANGE CONTROL
6th Edition PMBOK® Guide Cross Ref. pg 113
WHAT IT IS:
Some processes are more important than others for the exam, and this one
quali�es as one of the most important.
Every change to the project, whether requested or not, needs to be processed
through Perform Integrated Change Control. It is in this process where you
assess each change, whether it already occurred or it has been requested, to
assess the impact on the project.
WHY IT IS IMPORTANT:
Perform Integrated Change Control brings together (i.e., integrates) all of
the other monitoring and controlling processes. When a change occurs in
one area, it is evaluated for its impact across the entire project.
For example, suppose you came in to work one morning and found that a
new legal requirement meant that the quality of your project’s product
needed to be improved. Would you only look at the quality processes on the
project? No. Aer understanding the quality impact of this change, you
would likely need to evaluate the impact on the scope of the project, the
activity duration estimates, the overall schedule, the budget estimates, the
project risks, contract and supplier issues, etc. In other words, you would
need to integrate this change throughout the other areas of the project.
One way in which Perform Integrated Change Control differs from the
previous process, Monitor and Control Project Work, is that Perform
Integrated Change Control is primarily focused on managing change to the
project, while Monitor and Control Project Work manages the way the work
is carried out.
For example, consider a new construction project for a hospital. If a change
request were submitted that added a new wing to the hospital building, then
that change request would be evaluated through Perform Integrated Change
Control to understand its impact on the whole project. If, however, the
project team members were performing slower than planned, that would be
factored into Monitor and Control Project Work, and corrective action
would be requested to ensure that the plan and the execution lined up. Even
though both are monitoring and controlling processes, each has a different
focus.
WHEN IT IS PERFORMED:
Like the integration processes Direct and Manage Project Work and
Monitor and Control Project Work, the process of Perform Integrated
Change Control takes place as long as there is work on the project to be
carried out.
Some organizations have a Change Control Board (CCB) that reviews
change requests and formally approves or rejects them.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Reports — See Ch. 2, Common Outputs
Change Requests - Although change requests are a common input and
output of some processes, they are the key to Perform Integrated Change
Control. ey provide the main content here.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Change Control Tools - Tools here are used to manage the �ow of
information for the Change Control Board and the project manager. e
number of tasks and the associated work�ow may become difficult to
manage without some type of system in place.
Data Analysis — See Ch. 2, Common Tools
Decision Making — See Ch. 2, Common Tools
Meetings - e Change Control Board is a formally constituted committee
responsible for reviewing changes and change requests. e level of
authority of a Change Control Board varies among projects and
organizations; however, its level of authority should be spelled out in the
project management plan. e change control meetings are the forums for
formally evaluating these changes.
HOW IT WORKS / OUTPUTS:
Approved Change Requests - is output would more aptly be named
“approved or rejected change requests.”
All formally requested changes must be approved or rejected. e approved
change requests are channeled back into Direct and Manage Project Work.
Rejected change requests should be routed back to the requesting party.
e change log is the central place to keep track of all changes and change
requests that occur on a project. ey are documented as part of this output
and are communicated to the stakeholders.
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - e project’s change log is the most
important document that gets updated as a part of this process.
CLOSING
CLOSE PROJECT OR PHASE
6th Edition PMBOK® Guide Cross Ref. pg 121
WHAT IT IS:
One of the key attributes of a project is that it is temporary. is means that
every project eventually comes to an end, and that is exactly where this
integration process comes into play.
Close Project or Phase is all about shutting the project (or a particular phase,
which is oen like a mini-project) down properly.
is includes creating the necessary documentation and archives, capturing
the lessons learned, and updating all organizational process assets.
Another important thing to note is that the team is released as part of this
process.
Most of the tasks are administrative, �nancial, and legal. e exam may
occasionally refer to these activities as Administrative Closure.
WHY IT IS IMPORTANT:
Projects that skip this process oen are le open, limping along for months
without official closure. Taking the time to perform this step, and to do it
properly, will ensure that the project is closed as neatly and as permanently
as possible and that records are properly created and archived. ese records
become organizational process assets for use on future projects the
organization undertakes.
WHEN IT IS PERFORMED:
By looking at the name of this process, you can probably deduce that it is
performed at the very end of the project or at the end of each phase. Projects
that have six phases would likely perform this process seven times (once
aer each phase, and once for the project as a whole). In real practice, you
might well perform some of the activities in this process before the project
or phase ends, but for the exam, think of it as the last process performed on
a project or phase.
HOW IT WORKS / INPUTS:
Project Charter - e charter described why this project was being
undertaken in the �rst place as well as the exit criteria.
It also has a place for someone to formally sign off on the project.
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Accepted Deliverables - ese �ow out of the Validate Scope process. At
this point, the deliverables will be complete, correct, and signed off.
Business Documents - is includes the business case and the bene�ts
management plan. e business case provides an excellent yardstick to
determine whether or not the project hit its targets and the bene�ts were
realized as expected. ese documents were brought into the process
Develop Process Charter, and this process of Close Project or Phase is the
corresponding project bookend.
Agreements - Remember to think of agreements as contracts when
preparing for the exam. Any well-written agreements will specify exit
criteria, so it is natural to bring them as inputs into this process.
Procurement Documentation — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Documents Updates - e lessons learned register is the main
documented that would be updated here. Lessons learned are anything the
team would do differently if they had the project to perform over again.
Final Product, Service, or Result Transition - is output represents
not so much the product itself, but the acceptance and handover of
responsibility to the receiving party (e.g., the customer, operations, support
group, or another company). e transition implies that the product has
been accepted and is ready for this handover.
Final Report - e �nal report is a summary of the project or phase. It
will likely include information about scope, schedule performance, cost
performance, bene�ts realization, and a summary of risks.
Organizational Process Assets Updates - In the course of a project, lessons
will be learned, information will be gleaned, tools will be purchased or built,
knowledge and experience will be gained, and documents (some of which
may be reused one day) will be created. All of this should be updated as an
organizational process asset and delivered to the appropriate group or
individual(s) responsible for maintaining them. Oen this will be the project
management office.
Examples of organizational process assets that might be updated from this
process include the customer’s or sponsor’s formal acceptance
documentation, project closure documents, project �les, and historical
information. e lessons learned should be recorded as well.
THE AGILE PERSPECTIVE ON
INTEGRATION MANAGEMENT
Projects that use adaptive methodologies such as Scrum, Lean, or others,
rely more heavily upon the team than the project manager. In the
preceding seven processes covered in this chapter, the project manager
makes key decisions on integration activities, but on an agile project, it is
the team that is empowered to make these decisions and to determine
how the elements integrate. Agile teams favor “generalizing specialists” on
the team over highly specialized individuals, so team members are
generally aware of the needs of the project and are closely tied to the
project, making it manageable to handle integration issues at the team
level.
Develop Project Charter
is process translates nicely to agile. e project charter is an important
document regardless of how you are approaching the work. Also, much of
the analysis that is performed in this process would be of use to predictive
and agile projects alike. e other key output, the assumptions log, is
probably slightly less important in an agile world.
Develop Project Management Plan
e importance of a project management plan is greatly diminished on
agile projects. Predictive projects seek to control and manage risk
through planning, which makes the project management plan very
important to them, but agile manages risk by being adaptive and
responsive. Agile practitioners may create release plans and story maps,
but they would not create anything close to the project management plan
used by their predictive colleagues.
Direct and Manage Project Work
is process also translates generally well to agile. ere are three
primary outputs to Direct and Manage Project Work: the deliverables, the
work performance data, and the issue log. Agile produces deliverables in
smaller, rapid iterations, which correspond to this process. e work
performance data are also collected, aggregated, and posted in highly
visible locations so team performance may be transparently viewed.
Manage Project Knowledge
e point of Manage Project Knowledge is to update the lessons learned
register, and this has strong applicability to agile projects. All projects
should seek to improve performance and avoid repeating mistakes but
also to share best practices with other projects.
Monitor and Control Project Work
is process is applicable to agile, although it would look very different in
actual practice. It generates the work performance reports and change
requests. e work performance reports translate nicely to team velocity
charts, and agile teams embrace constant change and adaptation as the
work is performed, looking for ways to work better and more efficiently.
Perform Integrated Change Control
Perform Integrated Change Control is difficult to apply to agile the way it
exists today. On the predictive side, it is used to make sure that changes,
planned or unplanned, go through the necessary planning process in
order to integrate them into the project. On agile, change is embraced, so
while they still need to integrate the changes, the team does not do all of
the requisite planning that exists on a predictive project.
Close Project or Phase
is is a mixed bag from the agile perspective. All projects, whether agile
or predictive, come to an end. Delivering the �nal product, service or
result transition would certainly apply. A �nal report and the project
documents updates would be applicable if required by the organization,
but agile projects have a culture of producing “barely sufficient”
documentation, so this would receive less emphasis on most agile
projects.
IMPORTANT
In addition to this quiz, use your Key to InSite, found on the inside back
cover of this book, to access additional content, including new exam
questions, expanded content, and simulated PMP exams. If your book did
not come with a Key to InSite on the inside back cover, it may not be
authentic. If you do not have a Key to InSite, you may purchase one at
insite.velociteach.com.
INTEGRATION MANAGEMENT
QUESTIONS
1. Producing a project plan may BEST be described as:
A. Creating a network logic diagram that identi�es the critical path.
B. Using a soware tool to track schedule, cost, and resources.
C. Creating a document that guides project plan execution.
D. Creating a plan that contains the entire product scope.
2. e project management office has re-assigned you from managing
a construction project to now serve as the facilitator of a new
website development team. ey have counseled you that your
immediate transition focus is:
A. To shi from a servant leadership position to that of a trusted
advisor.
B. To shi from a command-and control approach to that of a coach
and peer within the team.
C. To shi from an autocratic leadership position to that of a
benevolent dictator.
D. To adjust your leadership style from that of eory-X to a true
eory-Y manager.
3. You are meeting with a new project manager who has taken over a
project that is in the middle of executing. e previous project
manager has le the company and the new project manager is
concerned that change requests are streaming in from numerous
sources including his boss, the customer, and various stakeholders.
e project manager is not even aware of how to process all of these
incoming change requests. Where would you refer him?
A. e project scope statement.
B. e project management plan.
C. e previous project manager.
D. e project charter.
4. Centurion Corporation has initiated a new project to modernize
their human resources records and to bring them into compliance.
A manager at Centurion is draing the project charter for review.
Which of the following would be the most important item that she
would need in order to complete this task and why?
A. Managerial approval to proceed, because it may affect whether or
not the project moves forward.
B. A scope statement, because it will set the parameters for the
product scope.
C. A scope statement, because it will set the parameters for the
project scope.
D. A business case, because it explains the justi�cation for the
project.
5. e project charter is:
A. Developed before the business case, and aer the project
management plan.
B. Developed aer the business case, and before the project
management plan.
C. Developed before the contract, and aer the project management
plan.
D. Developed before the contract, and before the project
management plan.
6. e project management information system would likely include
all of the following EXCEPT:
A. A scheduling tool.
B. An information distribution system.
C. A system for collecting information from team members.
D. A system for identifying stakeholders.
7. A defect in the product was brought to the project manager’s
attention, and now the project team is engaged in repairing it.
Which project management process would be the most applicable
to this?
A. Perform Integrated Change Control.
B. Monitor and Control Project Work.
C. Direct and Manage Project Work.
D. Close Project or Phase.
8. If you are creating a single document to guide project execution,
monitoring and control, and closure, you are creating:
A. e execution plan.
B. e project management plan.
C. e integration plan.
D. e project framework.
9. Change control meetings are held as part of which process?
A. Direct and Manage Project Work.
B. Monitor and Control Project Work.
C. Perform Integrated Change Control.
D. Evaluate Requested Changes.
10. Which of the following statements is false regarding the project
charter?
A. e project charter justi�es why the project is being undertaken.
B. e project charter assigns the project manager.
C. e project charter speci�es any high-level schedule milestones.
D. e project charter speci�es the types of contracts that will be
used.
11. Which of the following represents the project manager’s
responsibility regarding change on a project?
A. To in�uence the factors that cause project change.
B. To ensure all changes are communicated to the change control
board.
C. To reduce change wherever possible.
D. To prioritize change below results.
12. Your agile project team needs an additional contributor; your
organization has two available: (1) an expert in the interface to the
database being used, or (2) a capable developer with similar team
experience. Which would be a better choice and why?
A. Choice #2 since agile favors general skills over a highly specialized
contributor.
B. Choice #1 because nobody else on the team has database skills.
C. Choice #2 because such a specialist would be expensive.
D. Choice #1 because the other team members are already
contributing based on their own specializations.
13. When changes are approved and made to the project, they should be:
A. Tracked against the project baseline.
B. Incorporated into the project baseline.
C. Included as an addendum to the project plan.
D. Approved by someone other than the project manager.
14. Which statement about project agreements is true?
A. Agreements are draed between the project manager and the key
stakeholders prior to resources being expended.
B. Agreements are generally created only when one or more portions
of the project are being procured from outside the organization.
C. Agreements are inputs to create the project charter.
D. Agreements are broadly considered to be an enterprise
environmental factor.
15. Work performance information is used for all of the following
reasons EXCEPT:
A. It provides information on resource utilization.
B. It provides information on which activities have started.
C. It shows what costs have been incurred.
D. It is used to help identify defects.
16. You are a project manager, and your team is executing the work
packages to produce a medical records archive and retrieval system.
Two of the project’s customers have just asked for changes that each
says should be the number one priority. What would be the BEST
thing to do?
A. Have the project team meet with the customers to decide which
would be easiest and prioritize that one �rst.
B. Assign someone from the team to prioritize the changes.
C. Prioritize the changes without involving the team.
D. Deny both changes since you are in project execution.
17. e program manager is asking why your project is scheduled to
take sixteen months. He claims that previous projects in the
organization were able to be completed in less than half of that
time. What would be the BEST thing to do?
A. Look for historical information on the previous projects to
understand them better.
B. Refer the program manager to the schedule management plan.
C. Refer the program manager to the project management plan.
D. Explain to the program manager that estimates should always err
on the side of being too large.
18. You work for a defense contractor on a project that is not
considered to be strategic for the company. Although the project is
not the company’s top priority, you have managed to secure many
of the company’s top resources to work on your project. At today’s
company meeting, you find out that your organization has won a
very large, strategic project. What should you do FIRST?
A. Contact management to �nd out if you can be transferred to this
project because it is strategic to the company.
B. Contact management to �nd out how this new project will affect
your project.
C. Hold a team meeting and explain that since the resources have
been allocated to your project, they are not eligible to go to the
new project.
D. Fast track your project to accelerate its completion date.
19. Each time that the project sponsor requests a change to the project,
the project manager calls a meeting of the change control board.
Which of the following is TRUE?
A. is represents a collaborative style of management.
B. is represents withdrawal by the project manager.
C. is represents Perform Integrated Change Control.
D. is represents the lack of an effective project management
information system.
20. Alex has received an inquiry from a functional manager about how
the team is performing. In reality, the team’s productivity has been
lagging for the past two months, but Alex is confident that this
problem can be resolved. Which process would most likely produce
the information the functional manager has requested?
A. Direct and Manage Project Work.
B. Monitor and Control Project Work.
C. Report Performance.
D. Perform Integrated Change Control.
21. Your organization has a policy that any project changes that
increase the project’s budget by more than 1.5% must be signed off
by the project office. You have a change that was requested by the
customer that will increase the budget by 3%; however, the
customer has offered to pay for all of this change and does not want
to slow it down. Which option represents the BEST choice?
A. Approve the change yourself.
B. Ask the customer to take the change to the project office and
explain the situation.
C. Do not allow the change since it increases the budget by over
1.5%.
D. Take the change to the project office.
22. e person or group responsible for evaluating change on an agile
project is:
A. e project team.
B. e product owner.
C. e change control board.
D. e team facilitator.
23. e output of the Direct and Manage Project Work process is:
A. e work packages.
B. e project management information system.
C. e deliverables.
D. e work breakdown structure.
24. Two projects are being considered by the project office: Project
Clarity, and Project New Scale. e Chief Project Officer is
planning to evaluate the projected Return On Investment Capital
for both projects. In order to do that, what information would be
most helpful?
A. e total projected capital investment and net income.
B. e total projected bene�t and cost.
C. e total projected capital expenditures and cost of capital.
D. e total projected return on investment, the cost of capital, and
the current interest rate.
25. Which component of the project management plan is created in
Develop Project Management Plan?
A. Change Management Plan.
B. Requirements Management Plan.
C. Process Improvement Plan.
D. Stakeholder Engagement Plan.
INTEGRATION MANAGEMENT
ANSWERS
1. C. e project plan is a single, approved plan that drives execution,
monitoring and control, and closure. Note that the de�nition in
answer ‘C’ was not perfect, but it was the best choice. ‘A’ is incorrect
since it is only a part of planning. ‘B’ is incorrect because that will not
make up the entire project plan. ‘D’ is incorrect since scope may or
may not be a part of the project plan, but it does not make up all of it.
2. B. A major difference between traditional predictive projects (such as
construction) and agile projects is that the team self-manages the
project with the guidance of a coach to facilitate the process and serve
as a liaison to the larger organization. Answer-A is incorrect because
servant leadership is a role of the coach. Answer-C is incorrect because
a benevolent dictator is still a command-and-control leader. Answer-D
is incorrect because a eory-Y manager would still be managing the
team rather then the team being self-managed.
3. B. e project management plan would contain the methods for
processing change requests to the project.
4. D. e business case is one of the business documents that is an input
to the process of Develop Project Charter, where the charter is created,
making this the best choice. e business case provides the reasons
why the project needed to be initiated. ‘A’ is not a very good choice
here because the charter, which is being created here, represents
managerial approval, so that would not be needed to complete this
task. Rather, that would be an outcome of this task. Both ‘B’ and ‘C’ are
not good choices, because the scope statement is an output that is
created later.
5. B. Questions like this will be on the exam, and in order to answer
them, you have to understand the rough order in which the
deliverables are produced and processes are conducted. In this case,
the typical order among the items listed is the business case, contract,
project charter, and project management plan. If you analyze the
inputs and outputs used by the integration processes, you will gain a
better understanding of this order.
6. D. e project management information system (PMIS) is an
automated system to support the project manager by optimizing the
schedule and helping collect and distribute information. ‘D’ would not
be a function of the PMIS. It is generally a manual process performed
by the project manager and the team.
7. C. Direct and Manage Project Work is the only process in the list
where defects are repaired. Approved change requests are an input,
and deliverables are an output.
8. B. is is the de�nition of the project management plan.
9. C. As you think about this one, ask yourself which process group
would use a tool like change control meetings. e answer to that
question is “monitoring and controlling.” Now, you can immediately
narrow it down to two processes represented in answers ‘B’ and ‘C’.
Keep the �ow of these processes in mind. Change requests �ow out of
Monitor and Control Project Work and into Perform Integrated
Change Control, where they are evaluated in meetings. Answer ‘D’
may sound great, but it is not the name of a real process.
10. D. e project charter does not specify anything about contracts. A
contract with your customer would have been an input into the
Develop Project Charter process, and any contracts you may use
during procurement won’t be identi�ed until later in the project. ‘A’ is
incorrect because the project charter does specify why the project is
being undertaken and oen even includes a business case. ‘B’ is
incorrect because the project charter is the place where the project
manager is named. ‘C’ is incorrect because the project charter speci�es
any known schedule milestones and a summary level budget.
11. A. e project manager must be proactive and in�uence the factors
that cause change. is is one of the key tenets of monitoring and
controlling processes in general and Perform Integrated Change
Control in particular.
12. A. An agile team shares collective ownership of the deliverable by use
of generalizing specialists rather than using silos of highly specialized
team members. Team members can work together on similar levels of
expertise to deliver value more quickly rather than having unique
dependencies on speci�c team members.
13. B. Did this one fool you? Approved changes that are made to the
project get factored back into the baseline. Many people incorrectly
choose ‘A’, but the purpose of the baseline is NOT to measure approved
change, but to measure deviation.
14. C. Agreements are one of four inputs used to create the project charter.
‘B’ might look tempting, but agreements may be on any kind of
project. ‘D’ is incorrect since you want to think of enterprise
environmental factors as things within your organization that
in�uence your project. An agreement is more binding than that.
15. D. e work performance information is all about how the work is
being performed, but it is not used in identifying defects. ‘A’ is
incorrect because it does provide detail on what resources have been
used and when. ‘B’ is incorrect because it provides information on
which activities have been started and what their status is. ‘C’ is
incorrect because it provides information on what costs were
authorized and what costs have been incurred.
16. C. Prioritizing the changes is the job of the project manager. ‘A’ is
wrong because you do not want to distract the team at this point –
they should be doing the work. ‘B’ is wrong because it is the project
manager’s responsibility to help prioritize competing demands. ‘D’ is
incorrect, because changes cannot automatically be denied simply
because you are in execution.
17. A. Historical information (an organizational process asset) was
covered in Chapter 2 – Foundational Terms and Concepts, and it may
provide an excellent justi�cation for why your project is taking sixteen
months, or perhaps it will show you how someone else accomplished
the same type of work in less time. Either way, it provides a great
benchmark for you to factor in to your project. ‘B’ is incorrect since
the schedule management plan only tells how the schedule will be
managed. ‘C’ is incorrect because the project plan will not speci�cally
address the program manager’s concern about why the project is
taking longer than he expects. ‘D’ is wrong because estimates should
be accurate with a reserve added on top as may be appropriate.
18. B. Always evaluate things thoroughly before you act! You need to know
if your project is going to be affected before taking action. Many
people incorrectly choose ‘D’, but fast tracking the schedule increases
risk, and that would not be necessary or appropriate until you fully
understood the situation.
19. C. Change control boards meet to evaluate change requests. ey do
this during the process of Perform Integrated Change Control.
20. B. Monitor and Control Project work is the correct answer, since its
main function is to produce the work performance reports, and these
explain how the team is performing against the plan. ‘C’ is not a real
process (interestingly, it used to be, but it is has been phased out).
21. D. As discussed in Chapter 2 – Foundational Terms and Concepts,
organizational policies must be followed. None of the other options
presents an acceptable alternative. ‘A’ would break company policy
even though it looks harmless. Choice ‘B’ would be asking the
customer to do the project manager’s job.
22. A. e agile team welcomes and embraces change targeted for the
customer’s advantage and increased value. e team is empowered to
manage change. Neither the team facilitator nor the product owner is
in authority over the team or change requests. A change control board
may exist in the governance of a predictive project, but would not
usurp the agile team’s authority.
23. C. e deliverables are the most important output of the entire project,
and these are created in the Direct and Manage Project Work process.
24. A. e formula for Return On Investment Capital (ROIC) is Net
Income / the Total Capital Investment. is makes ‘A’ the best choice.
25. A. e change management plan, the con�guration management plan,
and the performance measurement baseline, are among the plans
created in the process of Develop Project Management Plan. ‘B’ and
‘D’ are created elsewhere and are brought into this process to be
compiled into the project management plan
Good news! Scope management is not a particularly difficult area to master,
and it pays big dividends for the exam. It can be more intuitive than other
areas, and there are no complex formulas to memorize and no particularly
difficult theories. Instead, scope management is a logical group of processes
to help you understand requirements, de�ne, break down, and control the
scope of the project, and verify that the product was completed correctly.
e term “scope” can be a bit tricky. It may refer to the scope of the entire
project or just the scope of the product. e product scope is everything that
must be completed in order to meet product requirements, while the project
scope includes everything in the entire project plan. For example, you may
document lessons learned at some point. at would be considered part of
the project scope, because it does not really have anything to do with
producing the product, but the lessons learned might be helpful for future
projects.
PHILOSOPHY:
e philosophy behind scope management can be condensed down to these
two statements:
e project manager should always be in control of the scope by
thoroughly de�ning it and carefully managing the processes.
Changes to the scope should be handled in a structured and controlled
way.
It is important to begin with the end in mind when it comes to scope
management so that each requirement and its acceptance criteria is
documented. Good scope management makes sure that the scope is well
de�ned and clearly communicated and that the project is carefully managed
to limit unnecessary changes. e work is closely monitored so that when
change does happen on the project, it is detected, evaluated, and
documented. Project managers should work pro-actively to identify and
in�uence the factors that cause change.
e overall goals of scope management are to de�ne the need, to set
stakeholder expectations, to deliver to the expectations, to manage changes,
and to minimize surprises so that the product will ultimately gain approval.
IMPORTANCE:
e topic of scope is very important on the exam. When we refer to the
project “scope,” we are referring to the work needed to successfully complete
the project and only that work. Many companies have a culture in which
they try to exceed customer expectations by delivering more than was
agreed upon; this practice, oen referred to as “gold plating,” increases risk
and uncertainty and may add potential problems into the project. Given the
choice, you always want to avoid gold plating.
PREPARATION:
While this section requires less actual memorization than some other
knowledge areas, many of the test questions can be very tricky, requiring a
solid and thorough understanding of the theories and practices of scope
management.
SCOPE MANAGEMENT PROCESSES:
As a starting point, you should understand that the knowledge area of scope
management consists of the following elements:
Planning the overall scope-related efforts
Gathering the requirements for the product and the project
De�ning and documenting the deliverables that are a part of the
product and the project (the scope)
Creating the work breakdown structure (WBS) and baselining the
scope
Checking the work being done against the scope to ensure that it is
complete
Ensuring that all of what is “in scope” and only what is “in scope” is
completed and that changes are properly managed
ere are six processes in the scope management knowledge area. ese are
Plan Scope Management, Collect Requirements, De�ne Scope, Create WBS,
Validate Scope, and Control Scope.
Process Group Scope Management Process
Initiating (none)
Planning Plan Scope Management, Collect Requirements,
De�ne Scope, Create WBS
Executing (none)
Monitoring & Controlling Validate Scope, Control Scope
Closing (none)
In the knowledge area of scope management, it is also essential that you
know the main outputs that accompany each process. e different key
outputs that are created are summarized in the chart below.
Process Key Output(s)
Plan Scope Management Scope Management Plan, Requirements
Management Plan
Collect Requirements Requirements Documentation, Requirements
Traceability Matrix
De�ne Scope Project Scope Statement
Create WBS Scope Baseline
Validate Scope Accepted Deliverables
Control Scope Work Performance Information
PLANNING
PLAN SCOPE MANAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 134
WHAT IT IS:
Plan Scope Management is a process that looks at the other (subsequent)
�ve scope processes and plans the overall approach as to how they will be
carried out.
WHY IT IS IMPORTANT:
is process has a very signi�cant impact on the success of the project since
the requirements are the main means of understanding and managing
stakeholder expectations. Also schedule, budget, quality speci�cations, risk
factors, and resource planning will tie back to the work done here.
WHEN IT IS PERFORMED:
is process is a bit unusual in that it appears to be part of a loop. One of the
outputs of Plan Scope Management is the Scope Management Plan, but the
Scope Management Plan is part of the Project Management Plan, which is
an input into Plan Scope Management. To understand this, consider that
this process has several parts that are developed together. e un�nished
Project Management Plan is brought in, and the Scope Management Plan is
produced.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 4, Develop Project Charter
Project Management Plan - e project management plan, although
un�nished at this point, is brought in to help determine how the scope will
be gathered, de�ned, broken down, validated, and managed.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Scope Management Plan - e scope management plan is one of the 19
components of the project plan. It describes how the scope documents will
be prepared and how the remaining �ve scope processes will be carried out.
Requirements Management Plan - e requirements management plan
(another of the 19 components of the project plan) de�nes what activities
the team will perform in order to gather and manage the project
requirements. is document is only the plan for how the requirements will
be managed and does not contain the requirements themselves.
e requirements management plan is important because it shows how
requirements will be gathered, how decisions will be made, how changes to
the requirements will be handled, and how the requirements will be
documented.
PLANNING
COLLECT REQUIREMENTS
6th Edition PMBOK ® Guide Cross Ref. pg 138
WHAT IT IS:
e process of Collect Requirements is about understanding what is needed
to satisfy the stakeholders and then documenting that understanding. is is
true for both the scope of the product and the scope of the entire project.
How much time and resource is invested in Collect Requirements will vary
from project to project. Some projects do not need to invest signi�cant time
and resources in this process, and that is acceptable.
WHY IT IS IMPORTANT:
Collect Requirements has a signi�cant impact on the success of the project
since documenting a common understanding of the project gives the project
manager a great tool to set and manage stakeholder expectations. Also,
schedule, budget, quality speci�cations, risk factors, and resource planning
will tie back to these requirements.
WHEN IT IS PERFORMED:
is process typically takes place quite early in the project because of the
impact requirements have on the rest of the project. Some iterative
methodologies repeat this process throughout much of the project.
e requirements will factor heavily into the project plan and should
certainly be gathered and accurately documented before any execution takes
place.
Develop Project Charter and Identify Stakeholders must be performed
before it is possible to complete the Collect Requirements process since the
charter gives the project manager authority to work on the project and the
stakeholder register identi�es the right people to involve in this process.
HOW IT WORKS / INPUTS:
Project Charter - e charter is brought into Collect Requirements because
it provides a high-level description of the project’s product, service, or result.
is description is used as guidance to help de�ne the requirements. It also
gives the project manager formal organizational authority to carry out this
work.
Project Management Plan
Scope Management Plan - Even though the requirements management
plan is brought into this process, the scope management plan also brings
clarity to the types of requirements that the team will gather.
Requirements Management Plan - e requirements management plan
describes how the requirements will be collected and documented.
Stakeholder Engagement Plan - e stakeholder engagement plan
informs how deeply the stakeholders should be involved in the
requirements process and how this should be carried out.
Project Documents
Assumption Log - e assumptions log lists the things you are treating
as true for purposes of planning. For example, if you were managing the
creation of a new type of medical device, you might have an assumption
that the prototype passes clinical trials by a particular date. is
documents the assumption and lets you proceed even though the
prototype has not yet passed the trials.
Lessons Learned Register - is gives you information on best practices
in your organization for gathering requirements. is particular input
takes on greater importance with agile projects.
Stakeholder Register - e stakeholder register contains a list of all of
the project stakeholders, and it is these stakeholders who can explain the
requirements and the underlying needs. Since the requirements will be
built to ultimately satisfy these stakeholders, it is important to involve
the right people early in the project and to ensure that they have the
appropriate voice from the start.
Business Documents - e business case could help direct the process of
Collect Requirements since it explains the particular reasons this project is
being undertaken.
Agreements — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data-Gathering
Brainstorming - ese techniques are where ideas are shared in a rapid-
�re setting and are not discussed or ranked until everyone is out of ideas.
e goal is to gather numerous, creative responses.
Interviews - ese are typically conducted by the project manager or
business analyst with a subject matter expert. e subject matter expert
can help explain what features or attributes the product should contain
and why they matter.
Focus Groups - Whereas interviews are generally conducted oneon-one,
focus groups are conducted by someone on the project team who meets
with a group of stakeholders to discuss their needs and requirements.
Focus groups are intended to create a safe environment for stakeholders
to discuss their expectations of the project.
Questionnaires and Surveys - is technique works well with large
groups of people, allowing the team to gather opinions and requirements
rapidly. Because the questionnaire or survey is generally in a standard
format, aggregation and analysis is easier than with some other forms.
Benchmarking - is technique is all about looking outside of the
project to understand best practices and gain inspiration. It is generally
best to look at organizations or projects that have something in common
with this project.
Data Analysis - Do not worry about the list of different types of documents
or data you might want to analyze. In this case, data analysis includes
anything that might help you understand the requirements.
Decision Making
Voting - One of the more difficult aspects of a project manager’s job can
be to get various stakeholders to make a decision. ere are numerous
techniques that a project manager can use to help drive decisions
forward. ese techniques include Unanimity, Majority, Consensus,
Plurality, and Autocratic Decision Making. Each of these techniques is
explained further in the glossary. It would be a good idea to pause here
and look up each of those �ve terms before going further.
Multicriteria Decision Analysis - A technique that uses a weighted
matrix to assign values to each criterion and then rate them accordingly.
is technique works well since some factors will almost always be more
important than others. e multicriteria decision analysis yields a score
that may be compared against other scores.
Data Representation
Affinity Diagrams - An affinity diagram takes the ideas that came from
brainstorming and organizes them into logical groups or categories.
Mind Mapping - A technique of diagramming ideas and creating
meaningful associations in a graphical format. A mind map helps the
team see relationships among ideas.
Interpersonal and Team Skills
Nominal Group Technique - A group technique where ideas are
brainstormed and are voted on and sorted by priority.
Observation and Conversation - Also known as “job shadowing,”
observation is where a worker is studied as he performs his job. e goal
is to understand how the worker performs and to capture any
requirements that may not be evident through interviews or other
methods. Conversation with the worker can also be an important
component of this.
Facilitation - e goal behind facilitated workshops is to colocate all of
the key stakeholders together and to elaborate the requirements. In
order to have a successful facilitated workshop, it is essential to have a
skilled facilitator. Problems can generally be dealt with in the sessions
since all of the relevant people may already be there.
Examples of facilitated workshops are: Joint Application Development,
Quality Function Deployment, and User Stories.
Context Diagram - A context diagram is the generic term for a use case
diagram that shows systems and the “actors” that interact with each system.
Each actor may be a user or another system.
Prototypes - ese are an interactive model of the product. e advantage
of a prototype is that the idea becomes tangible and can be used by people,
allowing the project team to understand what works and does not work.
Prototypes receive varying degrees of emphasis, depending on the end
product and on the project methodologies. ey are especially friendly to
the project management idea of progressive elaboration, which stresses that
a deliverable can be revisited repeatedly before it is �nalized.
Another way of prototyping is to storyboard the �ow of the product. is
could be anything from wireframe screen mockups for a soware
application to the stages in a new robotic assembly line.
HOW IT WORKS / OUTPUTS:
Requirements Documentation - is is simply a document that
describes what needs to be performed and why each requirement is
important on the project. e requirements documentation should include a
description of:
e root business problem being solved
e source of the requirement
e way each requirement addresses the problem
How the business processes interact with the requirements
Associated measurements for each requirement
Business, legal, and ethical compliance
Constraints and assumptions
Anticipated impact of the requirement on others
Requirements Traceability Matrix - Once a requirement is collected, it
is important to be able to identify the source. at is what this document
does. e source could originate from a stakeholder or departmental
request, a legal, contractual, or ethical need, an underlying requirement, or
any number of other sources. e thing to remember here is that if a
requirement is important enough to be documented, it is important to list
the source here. e requirements traceability matrix can also include
information about who owns the requirement, the status of the requirement,
etc.
PLANNING
DEFINE SCOPE
6th Edition PMBOK ® Guide Cross Ref. pg 150
WHAT IT IS:
At some point, every successful project must develop a clear understanding
of the requirements to be executed, veri�ed, and delivered. e scope of the
project must be understood and documented in detail.
WHY IT IS IMPORTANT:
e scope of the project is what ultimately drives the execution of the
project, and De�ne Scope is the process where the project’s requirements are
more thoroughly understood and documented. e importance of this
process is directly related to how important the requirements are. A large,
mission-critical project will perform this process very thoroughly, while a
smaller project, or one that is highly similar to a project that has been
performed previously, will probably be less formal and detailed. Likewise, a
project that has extremely high material costs (e.g., an offshore drilling
platform) will likely spend more time and effort on De�ne Scope than a
project with less risk will.
WHEN IT IS PERFORMED:
is process may be started as soon as the Collect Requirements process has
been completed. Because projects are generally progressively elaborated, this
process, along with the requirements, may be revisited many times
throughout the life of the project; however, it is usually begun very early in
the project life cycle.
Develop Project Charter, Identify Stakeholders, and Collect Requirements must be performed
before it is possible to perform De�ne Scope.
HOW IT WORKS / INPUTS:
During the De�ne Scope process, the project manager re�nes the
requirements collected earlier in the project by performing additional
analysis, factoring in any approved changes, and adding detail. e project
scope statement, which is the output of this process, has detailed
information about the project scope and the requirements.
Project Charter - e project charter is the organization document formally
creating the project and outlining its goals. Since this process will create a
detailed view of the scope, the project charter is needed. If the project
charter does not exist, then the project manager should still capture the
project’s overall goals, a brief description of the scope, and the known
constraints and assumptions before performing De�ne Scope.
Project Management Plan - e scope management plan, one of the
components of the project plan, is the part to focus on here. It describes how
all of the scope activities will be managed, including this one.
Project Documents
Assumption Log - e assumption log is a list of everything that the
team is treating as true even though it is uncertain at this point in the
project.
Requirements Documentation - e stakeholder requirements
provide the primary fuel for this process. Requirements de�ne what the
project has to do and the degree to which it must perform. e process
of De�ne Scope then turns those requirements into a more detailed
project scope statement.
Risk Register - e risk register contains a list of all identi�ed risks and
planned responses that may in�uence the scope.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment - is tool involves having experts work with the project
team to develop portions of the project scope statement. ese are typically
experts on the technical matters that need to be documented.
Data Analysis - Alternatives analysis is one means of data analysis
where the requirements are reviewed to look at different ways of achieving
the goals.
Decision Making — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Product Analysis - Product analysis is a detailed analysis of the project’s
product, service, or result, with the intent of improving the project team’s
understanding of the product and helping to capture that understanding in
the form of requirements. e tools that may be used in product analysis
will vary among industries and organizations, but common ones include:
Product breakdown
Requirements analysis
Systems analysis
Systems engineering
Value analysis
Value engineering
HOW IT WORKS / OUTPUTS:
Project Scope Statement – e project scope statement is the document
used to level-set among the project’s stakeholders. e project scope
statement contains many details pertaining to the project and product
deliverables, including: the goals of the project, the product description, the
requirements for the project, the constraints and assumptions, and the
identi�ed risks related to the scope. e objective criteria for accepting the
product should also be included in the project scope statement.
Product Scope Description – this is a narrative description of the scope
that is kept up to date throughout the project.
Deliverables – this includes a clear and measurable description of what
the product is going to look and feel like. Every characteristic or
attribute that matters should be documented here.
Acceptance Criteria – a checklist of the tests and measurements that
will be performed before the product is accepted.
Project Exclusions – sometimes it is important to document what is out
of scope with the project. For example, if a new car were being designed,
and this car would speci�cally not be self-driving, that would be
recorded here.
Project Documents Updates — See Ch. 2, Common Inputs
PLANNING
CREATE WBS
6th Edition PMBOK ® Guide Cross Ref. pg 156
WHAT IT IS:
is process probably gets the award for the most confusing name. You
would think that Create WBS would be all about producing the work
breakdown structure, but the WBS is not listed as one of its outputs.
Actually, this process does create the WBS, but at the same time it combines
it with two other documents to create the Scope Baseline. While the main
product of this process is the work breakdown structure, the main output
will be the Scope Baseline. You will learn more about what a baseline is
when we get to that output.
WHY IT IS IMPORTANT:
e work breakdown structure, or WBS, is a very important topic for the
exam. e reason for its importance is tied to how it is used. Aer its
creation, the WBS becomes a hub of information for the project, and
arguably becomes the most important component of the project plan. Risks,
activities, costs, quality attributes, and procurement decisions all link back
to the WBS, and it is a primary tool for verifying and controlling the
project’s scope.
WHEN IT IS PERFORMED:
Create WBS is typically performed early in the project, aer the
requirements have been collected and the scope has been de�ned, but before
the bulk of the work is executed.
Develop Project Charter, Identify Stakeholders, Collect Requirements, and De�ne Scope must
be performed before it is possible to perform Create WBS.
HOW IT WORKS / INPUTS:
Project Management Plan - e important component of the project
management plan is the Scope Management Plan. is is because there are
multiple approaches a team can take to create the WBS and baseline the
scope. e scope management plan describes which one the team will use
on this project and how it will be carried out.
Project Documents
Project Scope Statement - e project scope statement describes the
scope of the project. It will be used in this process as a primary starting
point from which to create the WBS.
Requirements Documentation - is output of the Collect
Requirements process ties each requirement back to a speci�c business
need or bene�t, and like all planning documents, this one is oen
progressively elaborated.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
Organizational process assets can take on different meanings in different
contexts. In the case of Create WBS, the most common assets would consist
of methodologies that spell out how to create the work breakdown structure,
soware tools to create the graphical chart, WBS templates, and completed
WBS examples from previously performed projects.
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Decomposition - e main tool used in creating the WBS,
decomposition, involves breaking down the project deliverables into
progressively smaller components. In a WBS, the top layer is very general
(perhaps as general as the deliverable or product name, or some even go so
far as to make the top node the overall program), and each subsequent layer
is more and more speci�c. e key to reading the WBS is to understand that
every level is the detailed explanation of the level above it.
Decomposition may be thought of as being similar to the arcade game
Asteroids™ from years ago. Large pieces are progressively broken down into
smaller and smaller pieces.
So, how do you know when you have decomposed your work enough? As
you have probably realized, the nodes could be decomposed to ridiculously
low levels, wasting time and actually making the project difficult to
understand, manage, and change. ere are many things to consider when
deciding how far to decompose work, but three of the best questions to ask
are:
1. Are your work packages small enough to be estimated for time and
cost?
2. Are the project manager and the project team satis�ed that the current
level of detail provides enough information to proceed with subsequent
project activities?
3. Is each work package small enough to be able to be assigned to a single
person or group that can be responsible for the results?
If you can answer “yes” to those three questions, your work packages are
probably decomposed far enough.
Many projects, including almost all agile projects, use a rolling wave
technique to decompose requirements. is simply means that
decomposition is not performed all at once. Instead, some of the WBS may
be created and then that work may be carried out in the form of product
development. en more of the WBS is decomposed so that these activities
repeat like rolling waves. e advantage to this approach is that it does not
try to look too far into the future. Instead, it deals with things in the
relatively short term and gets product into the hands of the users to make
the creation of the WBS easier and more accurate.
HOW IT WORKS / OUTPUTS:
Scope Baseline - A baseline (whether for scope, schedule, cost, or
quality) is the original plan plus all approved changes. In this instance, the
scope baseline represents the combination of the project scope statement,
the WBS, the WBS dictionary, work package, and planning package. When
the scope baseline is created, it is placed under control, meaning that
changes to the scope are made according to the scope management plan.
WBS
e writers of the current edition of the PMBOK® Guide currently advocate
that the work breakdown structure always be based on the project
deliverables, rather than the tasks needed to create those deliverables, and
that it be built from the top down.
e WBS is primarily constructed through decomposition, the practice of
breaking down deliverables (product features, characteristics, or attributes)
into progressively smaller pieces. is process continues until the
deliverables are small enough to be considered work packages. A node may
be considered a work package when it meets the following criteria:
e work package cannot be easily decomposed any further
e work package is small enough to be estimated for time (effort)
e work package is small enough to be estimated for cost
e work package may be assigned to a single person
If the node is being subcontracted outside of the performing organization,
that node, regardless of size, may be considered a work package, and the
subcontracting organization builds a “sub-WBS” from that node.
e resulting WBS is a graphical, hierarchical chart, logically organized
from top to bottom. Each node on the WBS has a unique number used to
locate and identify it.
Each level of the WBS is mutually exclusive and cumulatively exhaustive.
is means that there are no gaps and no overlap in the work packages. No
piece of scope is eliminated, and nothing is duplicated.
Elements of a Good Work Breakdown Structure (WBS):
It must be detailed down to a low level. e lowest level consists of
work packages that de�ne every deliverable on the project.
It is graphical, arranged like a pyramid, where each sub-level rolls up to
the level above it.
It numbers each element, and the numbering system should allow
anyone who reads the WBS to �nd individual elements quickly and
easily.
It should provide sufficient detail to drive the subsequent phases of
planning.
It may oen be borrowed from other projects in the organization as a
starting point. ese starting points are known as templates.
It is thorough and complete. If an item is not in the WBS, it does not
get delivered with the project.
It is central to the project.
e project team, and not just the project manager, creates the WBS.
Developing the WBS can also be a means of team-building.
It is an integration tool, allowing you to see where the individual pieces
of work �t into the project as a whole.
It helps de�ne responsibilities for the team.
It is a communication tool.
Work Package - Described in detail earlier in this chapter, the work
packages are the lowest level of the work breakdown structure.
Planning Package - Planning packages are nodes on the WBS that are larger
than work packages but that cannot be broken down into work packages at
this time. Typically this would be true because not enough information is
known at this time.
Control Account - Also known as a “cost account,” a control account is a
node on the WBS where the scope, time, and cost are measured. Control
accounts contain usually contain several work packages and are used to
measure earned value. A project may have numerous control accounts
placed on the WBS at nodes where it would be particularly meaningful to
measure the earned value of those parts of the project.
WBS Dictionary
e WBS dictionary is a document that details the contents of the WBS. Just
as a language dictionary de�nes words, a WBS dictionary provides detailed
information about the nodes on a WBS.
Because the WBS is graphical, there is a practical limit to how much
information can be included in each node. e WBS dictionary solves this
problem by capturing additional attributes about each work package in a
different document that does not have the graphical constraints that the
WBS does.
For each node in the WBS, the WBS dictionary might include the number of
the node, the name of the node, the written requirements for the node, to
whom it is assigned, and time, cost, and account information.
PROJECT : Online Ordering Application
Work Package ID: 1.1.3 Work Package Name: Configure New
Hardware
Work Package Description: All new hardware should be con�gured, including any hardware
settings and preparation such as formatting of storage. e correct operating system should be
loaded, and the appropriate patches should be applied. Any security settings, including virus
scanning soware, should be applied. e hardware should be added to the company domain
and should be compliant with all company policy regarding hardware and security.
Assigned to: Lee Abbott Department: I.T
Date Assigned: 4/15/13 Date Due: 4/22/13
Estimated Cost: $3,800.00 Accounting Code: HMIT-0229
Sample WBS Dictionary Entry
Project Documents Updates - rough the process of creating the scope
baseline and WBS, the understanding of the project oen changes and
improves. is change in understanding should be documented back in the
appropriate place. For instance, if decomposition uncovered a missing
requirement aer validating that requirement with the stakeholders, the
project manager should update the requirements documentation.
MONITORING & CONTROLLING
VALIDATE SCOPE
6th Edition PMBOK ® Guide Cross Ref. pg 163
WHAT IT IS:
Validate Scope is easily confused with other processes. Many people fall into
the trap of thinking that this process involves verifying that the scope is
documented accurately; however, this is not correct. Validate Scope is the
process of ensuring that the product, service, or result of the project matches
the documented scope.
In general, controlling processes compare some plan with the results to see
where they differ and take action if it is required. is �ts Validate Scope
very well since the product is compared with the scope to ensure the two
match.
Validate Scope has quite a few similarities to the process of Control Quality
(covered in Chapter 8, Quality Management) in that they both inspect the
product against the scope; however, there are some key differences between
them.
Control Quality is performed before Validate Scope.
Validate Scope is primarily concerned with completeness, while
Control Quality is primarily concerned with correctness.
Validate Scope is concerned with the acceptance of the product by the
project manager, the sponsor, the customer, and others, while Control
Quality is concerned with adherence to the quality speci�cation.
One more important note about Validate Scope is that if the project is
canceled before completion, Validate Scope should be performed to
document where the product was in relation to the scope at the point when
the project ended.
WHY IT IS IMPORTANT:
Once the process of Validate Scope is successfully completed, the product is
accepted by the project manager, the customer, the sponsor, and sometimes
by the functional managers and key stakeholders. is acceptance is a
signi�cant milestone in the life of the project.
WHEN IT IS PERFORMED:
is process would be performed aer at least some of the product
components have been delivered, although it may be performed several
times throughout the life of the project. As mentioned previously, Validate
Scope is performed aer Control Quality. While it may be performed several
times (iteratively), it would at least be performed once late in the project life
cycle as the product is ready to be delivered.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Verified Deliverables - Veri�ed deliverables �ow out of the Control
Quality process and into this one. Validate Scope is all about comparing the
deliverables with the documented scope to ensure that everything was
completed. is comparison may be performed several times during the life
of the project.
Work Performance Data - Sometimes a team can achieve the right
outcome, but the path to get there was unacceptable. For instance, if the
team delivered a good product but individuals averaged 70-hour work weeks
to accomplish the results, it is likely not acceptable. Work Performance Data
tells more about “how” the deliverables were created, which needs to be
considered along with the product itself.
HOW IT WORKS / TOOLS:
Inspection - Inspection involves a point-by-point review of the scope
and the associated deliverable. For instance, a pre-occupancy walkthrough
by a building inspector would be an example of the tool of inspection. User-
acceptance testing of a soware product could be another example where
the tool of inspection was used to make sure the deliverables matched the
documented scope.
Decision Making — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS
Accepted Deliverables - Acceptance of the deliverables is the primary
output of the process of Validate Scope and one of the most important in the
project. is process is typically performed by the project manager, the
sponsor, the customer, and the functional managers, and the result is a
formal, written acceptance by the appropriate stakeholders
Work Performance Information - e work performance data �ows into
this process, and the more re�ned work performance information �ows out.
e WPI tells about how something was created, including whether it was
on time, within budget, how the resources used compared with estimates,
and other metrics of interest.
Change Requests — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
CONTROL SCOPE
6th Edition PMBOK ® Guide Cross Ref. pg 167
WHAT IT IS:
Control Scope is a process that lives up to its name. is process is about
maintaining control of the project by preventing scope change requests from
overwhelming the project, and also about making certain that scope change
requests are properly handled. is ensures that the scope baseline is always
kept current (remember that the scope baseline will usually change over
time on most projects).
One of the more challenging concepts behind Control Scope can be
resolving disputes. Many disputes over project scope or product
requirements are not simple, but the customer’s interests should always be
weighed heavily. at does not mean that the customer is always right.
Instead, it means that the customer is one of the most important
stakeholders. All other things being equal, disputes should be resolved in
favor of the customer.
WHY IT IS IMPORTANT:
Anyone who has managed a project where scope change was a problem
knows the importance of Control Scope. is process makes certain all
change requests are processed, and also that any of the underlying causes of
scope change requests are understood and managed. It is important not only
to manage scope change requests, but also to prevent unnecessary ones.
WHEN IT IS PERFORMED:
Control Scope is an ongoing process that begins as soon as the scope
baseline is created. Until that point, the scope is not considered stable or
complete enough to control; however, once the scope baseline is created,
each scope change request must be carefully controlled and managed.
Additionally, this process should be performed any time the work results are
known to differ from the documented scope, whether or not the scope
change was requested in advance.
HOW IT WORKS / INPUTS:
Project Management Plan - e project management plan contains the
scope management plan and the scope baseline, and these are the most
interesting components for Control Scope. Scope baseline consists of the
WBS, the WBS dictionary and the project scope statement, and it is the
documented source for what the project team is supposed to create. e
scope baseline provides the baseline that the project manager will control.
Project Documents — See Ch. 2, Common Inputs
Work Performance Data - is input is very similar in nature to the
performance reports (discussed in chapter 10, Communications
Management). It provides information on all aspects of the work completed
as it relates to the project plan. One example might be the volume of change
requests �owing into the project. Note here how the raw work performance
data is an input and the more re�ned work performance information is the
output.
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Data Analysis - Data analysis can cover a lot of ground, but in this case
we are interested in variance analysis and trend analysis. Variance analysis
measures differences between what was de�ned in the scope baseline and
what was created and to investigate the root causes behind any differences.
Trend analysis would help identify areas that are about to become problems.
HOW IT WORKS / OUTPUTS:
Work Performance Information - Work performance information
(WPI) is work performance data that has been processed and put into an
actionable format.
Change Requests - As changes are made to the scope baseline, these must
be factored into updates to the WBS. If the change represents a new piece of
scope, the work must be decomposed in the WBS down to work package
level and then brought into the other appropriate processes.
Project Management Plan Updates - e project management plan must
be kept up to date throughout the life of the project. Any change in scope
should be re�ected in the project management plan, along with any other
resulting changes in cost, schedule, risk, quality, procurement, etc.
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON SCOPE MANAGEMENT
e six processes of scope management are handled very differently on
projects that use agile (adaptive) methodologies. ese projects employ
short “iterations” to prioritize the next sets of features to be developed.
Backlogs of important features are “groomed” so that they are arranged
by priority. is priority is dictated by what would give the stakeholders
the highest value, and that is expected to evolve over time.
While a predictive approach would seek to identify all of the scope of the
project and then control change, an adaptive, agile approach seeks to get
the product into the users’ hands so that new requirements may be
discovered and incorporated. Predictive would seek to control change,
but adaptive embraces and reacts to change, viewing their speed and
�exibility as a competitive advantage.
e stakeholders are very closely involved throughout each of these
processes on an agile project. Agile projects may also capture large
usability scenarios, known as user stories, in the form of an agile epic
story. ese epic stories may even capture scenarios that span more than
one project or product.
Prototypes and wireframes also play an important part in many agile
projects. A prototype allows a user to interact with the system without
having to create the entire system to observe and understand how it
might function. is allows the team to elicit user feedback more rapidly.
Agile projects do not try to de�ne all of the functionality up front.
Instead, they favor small, frequent releases and encourage the users to
help them prioritize the highest-value functions to deliver next.
Given this overview, here are a few, brief comments related to each of the
six processes.
Plan Scope Management
Because agile favors adaptability over following a plan, low emphasis is
placed on de�ning the scope management plan or the requirements
management plan. is is because any plans may change from one
iteration to the next. e overall process is to be �exible and changing
and not rigidly de�ned.
Collect Requirements
Collect Requirements is an ongoing process that takes place throughout
the project. Releases are delivered to the users, and new requirements are
elicited as a result. ese requirements may stay high-level until it is time
to plan a speci�c iteration.
Define Scope
Agile projects de�ne user stories, story maps, epics, and release plans.
ese give an overall picture as to which features may be developed and
released and a general timeframe associated with these releases.
Create WBS
is process corresponds relatively well to the agile practice of
disaggregation (similar to decomposition, but less formal and rigid). is
is where epics or large user stories are broken down into smaller,
component user stories.
Agile Story Map Traditional WBS
Broken down through disaggregation Broken down through decomposition
Component stories do not need to add up
to 100% of original story, nor do estimates
need to add up to original story
Work packages and estimates must add up
to 100% of total
Initial node is a large user story of an “epic” Top node is the high-level deliverable
Typically represented in two dimensions
with story cards breaking down the
component stories
Depicted in pyramid form
Validate Scope
Validate Scope is another process that takes place repeatedly throughout
the project. It manifests on agile projects through the team’s “de�nition of
done” and test-driven development practices. Validate scope activities
ensure what was developed was what was planned. is is performed by
the team during development, and then with the users during product
demonstration.
Control Scope
In practice, Control Scope looks very different on agile projects. On a
predictive project, receiving a large number of change requests would be
a cause for concern, but on an agile project, it could very well be a
positive sign of strong user engagement and opportunity to improve
value.
SCOPE MANAGEMENT
QUESTIONS
1. Your project team is executing the work packages of your project
when a significant disagreement regarding the interpretation of the
scope is brought to your attention by two of your most trusted team
members. How should this dispute be resolved?
A. e project team should decide on the resolution.
B. e dispute should be resolved in favor of the customer.
C. e dispute should be resolved in favor of senior management.
D. e project manager should consult the project charter for
guidance.
2. Which of the following statements is FALSE regarding a work
breakdown structure?
A. Activities should be arranged in the sequence they will be
performed.
B. Every item should have a unique identi�er.
C. e work breakdown structure represents 100% of the work that
will be done on the project.
D. Each level of a work breakdown structure provides progressively
smaller representations.
3. Mark has taken over a project that is beginning the construction
phase of the product; however, he discovers that no work
breakdown structure has been created. What choice represents the
BEST course of action?
A. He should not manage this project.
B. He should stop construction until the work breakdown structure
has been created.
C. He should consult the WBS dictionary to determine whether
sufficient detail exists to properly manage construction.
D. He should document this to senior management and provide
added oversight on the construction phase.
4. e project has completed execution, and now it is time for the
product of the project to be accepted. Who formally accepts the
product?
A. e project team and the customer.
B. e quality assurance team, senior management, and the project
manager.
C. e sponsor, key stakeholders, and the customer.
D. e project manager, senior management, and the change control
board.
5. As team facilitator, you are keeping an eye on your project’s product
backlog. e product owner seems to be adjusting the order of
features, with the next features to be addressed ordered by:
A. e sequence of dependencies of one feature on another.
B. e level of effort required by the team to bring the feature to
“Done.”
C. e highest value to the customer.
D. e features that can be performed in the upcoming iteration with
the team assets in place.
6. e main point of Create WBS is to:
A. Decompose the scope of the product.
B. Decompose the scope of the project.
C. Create a baseline of the entire scope.
D. De�ne all of the scope to be performed.
7. e project scope statement should contain:
A. e work packages for the project.
B. A high level description of the scope.
C. e level of effort associated with each scope element.
D. A detailed description of the scope.
8. e most important part of Validate Scope is:
A. Gaining formal acceptance of the project deliverables from the
customer.
B. Checking the scope of the project against stakeholder
expectations.
C. Verifying that the project came in on time and on budget.
D. Verifying that the product met the quality speci�cations.
9. e product owner, maintaining an awareness of the organization’s
market position and competitive strategy, notices a new feature
opportunity that plays to the existing strengths. Her first response
is:
A. Charter a new project to address the opportunity.
B. Gather the iteration team to assess the value of the new product
features.
C. Attend the next meeting of the project steering committee to
lobby for project funding.
D. Groom the product backlog in view of adjusted values and risks.
10. Which of the following is NOT part of the scope baseline?
A. e requirements documentation.
B. e project scope statement.
C. e work breakdown structure.
D. e WBS dictionary.
11. You have taken over as project manager for a data warehousing
project that is completing the design phase; however, change
requests that affect the requirements are still pouring in from many
sources, including your boss. Which of the following would have
been MOST helpful in this situation?
A. A project sponsor who is involved in the project.
B. A well-de�ned requirements management plan.
C. A change control board.
D. A change evaluation system.
12. What is the function of the project sponsor?
A. To help manage senior management expectations.
B. To be the primary interface with the customer.
C. To fund the project and formally accept the product.
D. To amplify in�uence with the functional managers.
13. e team begins its iteration with a quick planning session to
determine:
A. How much each user story will cost to complete during the
iteration.
B. What steps and tasks will be performed in the iteration to deliver
the committed story points.
C. e velocity that the team forecasts for the next iteration.
D. What level of disaggregation will be used to breakdown the
current epic.
14. A project team has a dedicated scoping phase for their project
where all subject matter experts are meeting together with a trained
facilitator. ey have interviewed each person in the room to gather
ideas for functionality and are now voting on them to put them in
order of priority. is list will be used to feed requirements to the
project team. e group’s activities are an example of:
A. e Nominal Group Technique.
B. Brainstorming.
C. e Borda Method.
D. Tuckman’s Model.
15. You have just assumed responsibility for a project that is in
progress. While researching the project archives, you discover that
the WBS dictionary was never created. Which of the following
problems would LEAST likely be attributable to this?
A. Confusion about the meaning of speci�c work packages.
B. Confusion about who is responsible for a speci�c work package.
C. Confusion about which account to bill against for a speci�c work
package.
D. Confusion about how to change a speci�c work package.
16. A team member makes a change to a soware project without
letting anyone else know. She assures you that it did not affect the
schedule, and it significantly enhances the product. What should
the project manager do FIRST?
A. Find out if the customer authorized this change.
B. Submit the change to the change control board.
C. Review the change to understand how it affects scope, cost, time,
quality, risk, and customer satisfaction.
D. Make sure the change is re�ected in the requirements
management plan.
17. e product you have delivered has been reviewed carefully against
the scope and is now being brought to the customer for formal
acceptance. Which process is the project in?
A. Validate Scope.
B. Audit Scope.
C. Close Scope.
D. Control Scope.
18. You are working with stakeholders, using the Nominal Group
Technique to help promote creativity. Which choice represents the
MOST likely results of your work?
A. e requirements documentation and the project scope statement.
B. e requirements documentation and the requirements
traceability matrix.
C. e work breakdown structure and the WBS dictionary.
D. Accepted deliverables and change requests.
19. Your agile team has defined what “Done” means on the project.
When is “Done” applied and by whom?
A. By the product owner when the feature hits the “Ready” queue on
the Kanban board.
B. By the team based on the organization’s culture of “de�nition of
done.”
C. By the team during test-driven development, and by the users
during product demonstration.
D. By the product owner once the acceptance criteria on the story
card is tested.
20. A large defense contractor to the government is facilitating an
inspection of their project’s product with their customer when the
customer notices a feature that was not requested or documented.
e project manager for the defense contractor points out that this
feature adds value, but the customer is concerned that it may also
introduce risk. Can the customer accept the product?
A. Only if the new feature passes inspection.
B. No. e new feature has to be evaluated for its impact on the
project.
C. No. e new feature is outside of the documented scope, and that
is unacceptable.
D. Yes, as long as the product scope has been ful�lled.
21. You are the project manager for a large construction project, and
you identify two key areas where changing the scope of the product
would deliver significantly higher value for the customer. Which of
the following options is MOST correct?
A. Make the changes if they do not extend the cost and time line.
B. Make the changes if they do not exceed the project charter.
C. Discuss the changes with the customer.
D. Complete the current project and create a new project for the
changes.
22. Which of the following activities is done FIRST?
A. Creation of the requirements documentation.
B. Creation of the work breakdown structure.
C. Creation of the activity list.
D. Creation of the scope baseline.
23. Which of the following statements is TRUE concerning
functionality that is over and above the documented scope?
A. It should be channeled back through the change control board to
ensure that it gets documented into the project scope.
B. Additional functionality should be leveraged to meet or exceed
customer expectations.
C. e �nal product should include all the functionality and only the
functionality documented in the scope baseline.
D. Additional functionality should be reviewed by the project
manager for conformity to the product description.
24. A project manager has been managing a project for six months and
is nearing completion of the project; however, change requests are
still pouring in. e project is ahead of schedule but over budget.
Which of the following statements is TRUE?
A. e project manager should in�uence the factors that cause
change.
B. Changes should only be evaluated aer the original scope baseline
has been delivered and accepted.
C. Changes introduced at this point in the project represent an
unacceptable level of risk.
D. Changes should be evaluated primarily on the basis of how much
value they deliver to the customer.
25. Your product owner has come to you as team facilitator requesting
assistance to handle an epic. What is she really asking for?
A. For your coaching abilities in explaining agile concepts to senior
management.
B. Team assistance in disaggregating the epic into smaller user stories
for the backlog.
C. For your coaching abilities in explaining the complexities of the
epic to the developers and how they should go about delivering it.
D. Team participation from those doing the work to agree on how to
decompose the work breakdown structure into schedule activities.
SCOPE MANAGEMENT
ANSWERS
1. B. In general, disagreements should be resolved in favor of the
customer. In this case, the customer is the best choice of the four
presented. ‘A’ is not a good choice because it is your job to keep the
team focused on doing the work and out of meetings where they are
arguing about the scope. Besides, the team brought you this problem,
so their ability to resolve it is already in question. ‘C’ is incorrect
because all things being equal, project disputes should be resolved in
favor of the customer and not in favor of senior management. Since
you don’t have enough information to steer you toward senior
management, resolving it in favor of the customer was the right choice
here. ‘D’ is incorrect because the project charter is a very general and
high-level document. As it is issued before either the scope statement
or the work breakdown structure is created, it would be of little use in
resolving an issue of scope dispute that occurred during execution.
2. A. You don’t tackle activity sequencing as part of the work breakdown
structure. at part comes later. e WBS has no particular sequence
to it, not to mention that it is not decomposed to activity level. ‘B’ is
incorrect since every WBS element does have a unique identi�er. ‘C’ is
incorrect since the WBS is the de�nitive source for all of the work to
be done. Remember – if it isn’t in the WBS, it isn’t part of the project.
Choice ‘D’ is incorrect because the WBS is arranged as a pyramid with
the top being the most general, and the bottom being the most
speci�c. e lowest level of the WBS would also be the smallest
representation of work.
3. B. In this situation, you cannot simply skip the WBS, as you may be
tempted to do. Mark should take time to create the WBS, which is
usually not a lengthy process. ‘A’ may sound good, but in reality a PMP
needs to be ready to work to solve most problems. You might refuse to
manage a project if there is an ethical dilemma or a con�ict of interest,
but not in other circumstances. ‘C’ is incorrect since the WBS
dictionary cannot be created properly unless the WBS was created
�rst. If there is a WBS dictionary and no WBS, that would be a big red
�ag. ‘D’ is incorrect since merely documenting that there is a serious
problem is not a solution. Additionally, providing more oversight
would not solve the problem here. e real problem is that the WBS
has not been created, and that will trickle down to more serious
problems in the future of the project.
4. C. e project manager veri�es the product with the key stakeholders,
the sponsor, and the customer.
5. C. Agile projects favor frequent, incremental functional releases that
place the value in the hands of the customer as fast as possible. e
product owners “grooms” the product backlog to prioritize highest
value features at the top.
6. C. e clue here is the words “main point” which would be found in
the main output. e scope baseline represents three documents: the
scope statement, the WBS, and the WBS dictionary, and this is the
point of the process Create WBS. ‘B’ would be a better choice than ‘A’,
but it is only a component of the scope baseline. ‘D’ would happen in
the process De�ne Scope and not in Create WBS.
7. D. e project scope statement needs to include a detailed description
of the scope of work to be performed. Choice ‘A’ is incorrect as the
WBS is created later as part of the Create WBS process. ‘B’ is tricky,
but it is incorrect. e project charter contains a very high level
description of the scope, but the project scope statement is detailed. ‘C’
is incorrect, because the level of effort is estimated aer the scope has
been de�ned.
8. A. It is important to understand the processes and their inputs and
outputs! Whereas all of these choices may be important, the only one
that is listed as a part of Validate Scope is to get customer acceptance
of the product. e other activities may be done during the project,
but they aren’t part of the Validate Scope process. ‘D’ is close, but that
is formally part of the Control Quality process.
9. D. Each answer choice may make sense except ‘B.’ e team does not
assess value to the customer; that is the role of the product owner and
the customers/stakeholders. ‘A’ and ‘C’ may seem worthy, but grasping
the value of the opportunity may come more quickly by observing the
current projects’ backlogs for applicability- grooming them in terms of
value and risk (opportunity) adjustments.
10. A. is is the only choice that is not part of the scope baseline. It is
used to help create the baseline, but it is not a part of it. ‘B’, ‘C’, and ‘D’
represent the three components of the scope baseline.
11. B. is one is tricky. If you missed it, don’t feel bad, but it is important
to know that questions like this are on the exam. e reason ‘B’ is
correct is that the requirements management plan contains a plan for
how changes will be handled. If too many changes are pouring in, it is
likely that the requirements management plan was not well de�ned. ‘A’
is incorrect because it is not the sponsor’s role to control change. He or
she is paying you to handle that. ‘C’ is incorrect because if the change
control board exists on your project, it only evaluates changes. e
board is almost always reactive, not proactive. ‘D’ is incorrect since the
change evaluation system is a made up term not found in PMI’s
processes.
12. C. It is the sponsor’s job to pay for the project and to accept the
product. Choice ‘A’ is really the project manager’s job. ‘B’ is the project
manager’s job as well. It is not a clearly de�ned job for the sponsor. ‘D’
is not a function of the sponsor. If more in�uence were needed with
the functional managers, that would be the role of senior management.
13. B. e team plans “How” to deliver the features - what steps, which
resources to assign, etc. ‘C’ is incorrect; the velocity is determined by
the team’s performance over time. ‘D’ is incorrect; the epics should be
broken down into stories while grooming the backlog with the
product owner. ‘A’ is incorrect; the cost per story is not a concern. Cost
vs. bene�t is a valuation determined by the product owner and the
customer/ stakeholders.
14. A. e Nominal Group Technique typically starts by gathering a large
�eld of candidate items (in this case they are scope items) and voting
on them to sort them from highest down to lowest in order of priority.
It is designed to rapidly identify the scope items that would provide
the highest value to the most people. ‘B’ is not a good choice since
brainstorming doesn’t involve interviews or voting. ‘C’ is a means of
voting, but it is not a good �t for the scenario here since this also
involved interviews. ‘D’ is a model of team building and performance
and does match the question being asked.
15. D. is is the best choice here. e WBS dictionary contains attributes
about each work package such as an explanation of the work package
(which invalidates choice ‘A’), who is assigned responsibility for the
work package (which invalidates choice ‘B’), and a cost account code
(which invalidates choice ‘C’). If a work package were changed, that
would most likely alter the scope baseline, and information on how to
go about this would be found in the scope management plan and not
the WBS dictionary.
16. C. Notice the use of the word ‘FIRST’. ‘A’ is wrong because the
customer should never bypass the project manager to authorize
changes directly. It is the project manager’s job to authorize changes on
the project. ‘B’ is incorrect since all changes might not go to the change
control board. Even if a change control board exists on the project, the
project manager doesn’t automatically just send everything their way.
e project manager should deal with it �rst. ‘D’ is incorrect because
the requirements management plan is not even the place this would be
re�ected. e scope baseline would need to be updated, but only aer
the change had been properly evaluated to see if it even belonged.
17. A. e customer accepts the scope of the product in Validate Scope.
18. B. e Nominal Group Technique is a method used to promote
creativity in the Collect Requirements process, and the two outputs
that match that process are the requirements documentation and the
requirements traceability matrix.
19. C. e validation of scope, or product acceptance, is determined by the
“de�nition of done” on an agile project. e team de�nes “Done,” and
the develops toward it, culminating in acceptance of “Done” by the
users in “showtime” or product demonstration.
20. B. is can be a tough scenario and a tough question. On the exam,
gravitate toward answers that have words like “understand” and
“evaluate” in them. e product cannot be formally accepted without
understanding its impact on the entire project. ere is a bias on the
exam against the practice of adding extra scope to the project, known
as gold plating. Wherever you see this, your �rst instinct should be
against doing it or accepting it.
21. C. Choices ‘A’ and ‘B’ are no-nos on the exam. You don’t just make
changes because they “add value.” Does the customer want the change?
Does the change increase the project risk or put the quality in
jeopardy? Between ‘C’ and ‘D’, the best answer is ‘C’. e reason is that
just because the project manager thinks this is a good piece of
functionality doesn’t mean that he should automatically add it. e
customer should have input into this decision as well. Choice ‘D’
might be correct in limited circumstances if you knew that you were at
or near the end of the project, but changes on a project rarely require
the automatic initiation of a new project.
22. A. e requirements documentation is typically created quite early on
the project. In this case, it would be created well before the work
breakdown structure and the scope baseline (which is made up of the
scope statement, the WBS, and the WBS dictionary). e activity list
would be created last in this list, so the order of creation of the
documents listed would be A, B, D, and C.
23. C. Answers ‘A’, ‘B’, and ‘D’ are all incorrect, since they encourage adding
or keeping the additional functionality. It is important not to add
extras to the project for many reasons. e �nal product should be
true to the scope. If you missed this, reread the section on scope
management and gold plating.
24. A. e project manager needs to be proactive and in�uence the root
causes of change. ‘B’ would be ridiculous in the real world. Imagine
getting a change request near the end of the project that is good for the
project and refusing to do it until you completed the original scope.
Some change is good! ‘C’ is incorrect because although some change
may introduce an unacceptable level of risk, all change certainly does
not. Some changes could dramatically reduce the project risk and help
the project. ‘D’ is incorrect, because value is not the primary criterion
for evaluating change. A change may deliver high value, but also
introduce too much risk or cost, or delay the project unacceptably.
25. B. An epic is a large product description that is too complex to be
handled as a user story in 1-2 iterations. Disaggregation is the tool
applied to create smaller user stories that somewhat add up to the full
epic.
From the indicators at the right of the page, you can tell that you may �nd
this chapter to be more difficult than the previous chapter on scope
management. In order to help you prepare for this topic, this book has
clearly broken down the practices and outlined the techniques and formulas
you will need to know in order to ace the questions on the exam. By the time
you have completed this chapter, you may well have a higher level of
con�dence here than on any other section of the test.
Spending extra time here will yield direct dividends on the exam! Make sure
that you learn both the processes and the techniques so that you can
approach these questions with con�dence.
PHILOSOPHY:
Project Schedule Management is concerned primarily with activities,
scheduling, and schedule management. e philosophy here, as elsewhere, is
that the project manager should be in control of the schedule, and not vice
versa. e schedule is built from the ground up, derived from the scope
baseline and other information, and rigorously managed throughout the life
of the project. At the same time, the schedule should be as �exible as
possible to accommodate the reality of planned and unplanned schedule
changes.
ere are six processes related to schedule management that you should
understand. ey are:
1. Plan Schedule Management (planning out the next �ve processes)
2. De�ne Activities (list the project activities)
3. Sequence Activities (order the activities and create the project network
diagram)
4. Estimate Activity Durations (determine time estimates for each
activity)
5. Develop Schedule (create the schedule)
6. Control Schedule (monitor and adjust schedule performance)
You will see from reading this chapter that the driving philosophy behind
schedule management is mathematical; it is primarily cold, hard analysis.
e project manager does not merely accept whatever schedule goals are
handed down or suggested. Instead, the schedule is based on the work to be
done and it needs to conform to other calendar requirements, constraints,
and strategic goals.
Additionally, while most of the topics within this book are integrated and
related, the topics of scope, schedule, and cost are particularly tightly linked.
Changes made to one area will almost certainly have direct impacts on the
other two.
As in other areas, it is best that project managers begin from the bottom up.
e WBS, which was covered in the previous chapter, is used heavily in
several of the schedule management processes. By starting with the WBS,
you can de�ne the work that must be carried out in order to produce these
deliverables. e individual schedule activities are then sequenced, and the
resource and duration estimates are applied to these activities.
is approach has many similarities to the practices in scope management.
Most similar is that your analysis and the resulting deliverables are
comprehensive and complete.
IMPORTANCE:
Schedule management has traditionally been a favorite area to exploit for
the exam.
PREPARATION:
Modern project managers typically rely on soware to perform complex
schedule and time calculations, but for the exam, you will need to
understand the theories and practices for schedule management that
underlie the soware.
Some people are intimidated by the mathematical and logical aspects of this
section because they do not understand the diagramming techniques and
processes. A reliance on intuition will not get you very far on these
questions. You either know how to calculate them or you do not. It is far
better to spend time learning the techniques than to try to fumble your way
through them on the exam. Most people who do not pass the exam fail by a
handful of questions, so this section is not optional. You will need to
memorize and understand the concepts presented in this chapter.
is book’s approach to these exam questions falls into two categories:
1. ere are several key terms that may be new to you, or they may have
slightly different meanings than you are used to. Many of the questions
on the exam will test your knowledge of speci�c terms and nuances, so
it is important to be able to recognize and clearly understand them
even if you do not memorize the de�nitions word for word.
2. ere are formulas and techniques for estimating and diagramming.
Memorization alone is not sufficient here. You must be able to calculate
estimates, �oat, and critical path, among others.
Although the logic and math portions can be daunting to some people as
they approach the exam, the right answer is oen much easier to determine
than with the situational questions. Once you master the techniques
presented in this chapter, you can work out the right answer on your own
and simply match it to the list of choices. For many, these questions become
favorites on the exam.
Schedule Management Processes
ere are six processes in the schedule management knowledge area.
Following are the break-outs that show to which process group each item
belongs:
Process Group Schedule Management Process
Initiating (none)
Planning Plan Schedule Management, De�ne Activities,
Sequence Activities, Estimate Activity Durations,
Develop Schedule
Executing (none)
Monitoring & Controlling Control Schedule
Closing (none)
In the knowledge area of schedule management, it is also essential that you
know the main outputs that are produced during each process. e different
key outputs that are created in each process are summarized in the following
chart.
Process Key Output(s)
Plan Schedule Management Schedule Management Plan
De�ne Activities Activity List, Activity Attributes
Sequence Activities Project Schedule Network Diagrams
Estimate Activity Durations Activity Duration Estimates
Develop Schedule Project Schedule, Schedule Baseline
Control Schedule Work Performance Information, Change Requests,
Schedule Forecasts
PLANNING
PLAN SCHEDULE MANAGEMENT
6th Edition PMBOK® Guide Cross Ref. pg 179
WHAT IT IS:
Schedule management has a total of six processes, and Plan Schedule
Management is the one that de�nes how the other �ve will be carried out.
WHY IT IS IMPORTANT:
Schedule management follows the same pattern you observed in scope
management, with a process at the beginning (Plan Schedule Management)
to de�ne how all of the related activities will be performed and one process
at the end (Control Schedule) to review how it all went and to make any
necessary adjustments. We will de�ne the plan and the work up front so that
we can have a way to measure performance and make any needed
adjustments.
WHEN IT IS PERFORMED:
e process of Plan Schedule Management may be performed early in the
project since the schedule is usually a key component of the project plan. At
a minimum, it should be performed before the other �ve schedule
management processes are carried out.
HOW IT WORKS:
Plan Schedule Management is a relatively streamlined process with a few
common inputs and tools and a single, important output.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs, Develop Project Charter
Project Management Plan — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Schedule Management Plan - As you can see, the inputs and tools are
predictable and provide unlikely exploits for the exam. e schedule
management plan is really the whole point of this process. e schedule
management plan will become part of the project plan, and it de�nes how
the schedule will be de�ned, how it will be measured, how and how oen
the team will track progress, and what will happen if the project veers away
from the plan. It also describes how progress will be reported and any other
relevant details on how the remaining �ve schedule management processes
will be carried out.
PLANNING
DEFINE ACTIVITIES
6th Edition PMBOK® Guide Cross Ref. pg 183
WHAT IT IS:
Once the scope baseline has been created, it can be used to break down
(decompose) the work into the activities it will take to turn it into a reality.
e main result of this planning process is the activity list. is list
represents all of the schedule activities that will need to take place for the
project to be completed. is is primarily accomplished by taking the WBS
and decomposing the work packages even further until they represent
schedule activities. e difference between work packages in a WBS and an
activity list is that the activity list is more granular and is decomposed into
individual schedule activities. Work packages will oen contain bundles of
related activities that may involve multiple groups of people. It is these
activities that comprise the activity list. e activity list is used as the basis
for the next four schedule management processes: Sequence Activities,
Estimate Activity Durations, Develop Schedule, and Control Schedule.
If the project is being performed under procurement, this planning process
will most likely be performed by the subcontracting organization, with the
results being provided to the organization that is responsible for the
management of the overall project.
WHY IT IS IMPORTANT:
In project scope management, we focused on the work that we needed to
perform on the project. Now, in this chapter we are looking at how and when
it will be accomplished. e activity list will be an essential input into
building the schedule, so it is important that it be both complete and correct.
WHEN IT IS PERFORMED:
e process of De�ne Activities is oen performed as soon as the scope has
been baselined. In other words, it is common to create the activity list aer
the requirements documentation, project scope statement, work breakdown
structure, and the WBS dictionary have been created and are in a stable
form (i.e., they are under control).
HOW IT WORKS / INPUTS:
Project Management Plan
e two key components here are the schedule management plan and the
scope baseline.
Schedule Management Plan - e schedule management plan speci�es
how De�ne Activities (and the other schedule management processes) will
be carried out. It may cover details like how granular you want your
schedule activities to be, what methods you will use to do this, and what
kinds of activity attributes you will record.
Scope Baseline -e scope baseline is made up of the approved project
scope statement, the WBS, and the WBS dictionary. e scope baseline
provides the primary input into this process. Each schedule activity that is
de�ned in this process should tie back to a speci�c deliverable in the scope
baseline.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment - Expert judgment in decomposing activities may come
from numerous sources, including team members, consultants, and
functional managers. One of the best sources for expertise in decomposing a
work package into an activity may be the person who will ultimately be
responsible for executing the work package or the schedule activity, or
someone who has performed something similar in the past.
Decomposition - If you understood decomposition as it was used in the
Create WBS process, you will have no trouble here. Each work package at
the bottom of the WBS is simply decomposed into smaller pieces, known as
schedule activities. e project manager should solicit heavy involvement
from the project team or the functional managers to leverage their expertise
when performing this process.
Rolling Wave Planning - e concept of rolling wave planning is a form
of progressive elaboration that models project planning the way we see
things in the real world.
Suppose, for example, that you are standing at the edge of a �eld. You may
be able to see some things in great detail, even counting individual blades of
grass at your feet. e further off you look, however, the less detail you will
be able to perceive. Distant objects, such as a mountain range several miles
away, would appear general and hazy.
Rolling wave planning mirrors this construct by assuming that things in the
near future should be relatively clear, while project activities in the distant
future may not be as detailed or as easily understood. Armed with that
perspective, a project manager may choose to carefully decompose certain
work packages, with anticipated execution in the near term, in great detail,
while delaying analysis on work packages that will not be accomplished until
later in the project.
is type of planning must be revisited throughout the project, much as
waves continually roll onto the shore.
Rolling wave planning is a popular concept with agile projects, and it is used
more frequently on projects like the creation of an information technology
system, and less oen on projects within the construction industry where
unknowns may cost millions of dollars.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Activity List - All of the schedule activities that need to be performed in
order to complete the project are compiled into the activity list. Each activity
in the list should map back to one and only one work package (a work
package, however, typically has more than one activity belonging to it). One
major difference between a work package and a schedule activity is that the
work packages are deliverables-based, focusing on the scope of the project,
while the activities are focused on the work that needs to be done in order to
execute the work packages. e activities should include enough
information to transition them to the project team so that the work may be
performed.
e activity list’s usefulness is tied to its completeness and accuracy. It is
important to identify and document each activity that must be performed in
order to complete the project.
It is important to note that a line exists between the work breakdown
structure and the activity list. Although the activity list is an extension of the
work breakdown structure, it is not a part of the work breakdown structure.
e WBS belongs to the scope baseline, while the activity list is more closely
related to the project’s schedule.
e activity list by itself is generally limited only to an identi�er, such as an
activity name or a unique numeric identi�er, and a description.
e following table will help you understand the difference between the two.
Work Breakdown Structure Activity List
Deliverable-based Effort based; focused on effort required to
complete work packages
Used as a central tool to manage the project Used to build the schedule
Contains information on deliverables,
resources, schedule, and cost
Contains activity name, description, and an
estimated duration
One work package maps to one or many
schedule activities
Each schedule activity maps back to a single
work package
Activity Attributes - As planning progresses, there will be a need to
store additional information about activities. For example, the person
responsible for this activity, the parts that need to be procured before this
activity may be started, and the location at which the work will be
performed could be highly important.
Activity attributes may be stored with the activity list or in a separate
document and are typically added aer the initial activity list has been
created.
Note that any time you see the activity list, you will also see the activity
attributes. e activity attributes may be thought of as an expansion of the
activity list.
Milestone List - e key project milestones are produced as a part of this
process. ese milestones may be related to imposed dates (such as a
contractual obligation), schedule constraints, or projected dates based on
historical information. Milestones are always signi�cant dates or events and
have zero duration.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
PLANNING
SEQUENCE ACTIVITIES
6th Edition PMBOK® Guide Cross Ref. pg 187
WHAT IT IS:
e Sequence Activities process is primarily concerned with taking the
activity list that we created in the previous process of De�ne Activities and
arranging those activities in the order they must be performed.
is process is all about understanding and diagramming the relationships
that schedule activities have with each other.
Schedule activities logically sequenced
WHY IT IS IMPORTANT:
A network logic diagram is a picture in which each activity is drawn and
placed in the order it must be performed, and the amount of time each
activity takes is represented with a number. Sequence Activities is the
planning process in which these network diagrams are produced.
Network diagramming is the preferred method for representing activities,
their dependencies, and sequences. e precedence diagramming method
(also known as an activity-on-node diagram) is discussed later in this
chapter.
WHEN IT IS PERFORMED:
Because of the �ow of inputs and outputs between other processes, the
process of Sequence Activities must be performed aer De�ne Activities and
before Develop Schedule.
De�ne Activities must be performed before Sequence Activities or Develop Schedule
HOW IT WORKS / INPUTS:
Project Management Plan
Schedule Management Plan - e schedule management plan will be
an important input here, because it de�nes how this process will be
carried out.
Scope Baseline - e scope baseline contains the WBS, constraints, and
assumptions among other things, which may be helpful in sequencing
activities.
Project Documents
Activity List - e activity list is the most important input into Sequence
Activities. It is in this process that the schedule activities from the activity
list will be arranged, or sequenced, into a diagram that represents the order
in which they must be performed.
Activity Attributes - e activity attributes, produced in De�ne Activities,
are brought into this process since they contain additional information
about each activity that may in�uence how it is sequenced.
Assumption Log - Assumptions are anything we treat as true for the
purposes of planning. For example, on a construction project, you might
assume you will have at least a certain number of days where the weather
permits outdoor work, or on an information technology project, you might
assume that you will be able to recruit a number of developers for a
particular computer language by a given date. ese assumptions should be
documented in the assumption log and brought into this process.
Milestone List - Milestones are events that must be considered in the life
of the project.
ere is an interesting relationship between milestones and the process of
Sequence Activities. Milestones are oen imposed from outside the project
(e.g., the project sponsor indicates an overall deliverable date), and activities
typically come from within the project (e.g., the decomposition of work
packages). Because of this, activities will oen need to be arranged in a
speci�c way in order to meet key milestones. For instance, if the customer
speci�ed a milestone of a pre-construction walkthrough at a certain point in
time, then the activity of cleaning up the work site may need to be
sequenced in earlier than would otherwise be necessary.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Precedence Diagramming Method (PDM) - e precedence
diagramming method creates a graphical representation of the schedule
activities in the order in which they must be performed on the project.
Activities are represented by the nodes (rectangles), with arrows
representing the dependencies that exist between the activities.
e project network diagram illustrated uses the activity on node
convention to represent the activities. In this case, the nodes are shown as
rectangles, and the activities are represented inside the node, usually by
letters of the alphabet. Units of duration are shown above the nodes.
e second half of this chapter has a special focus on project network
diagramming including the precedence diagramming method.
An example of an Activity on Node diagram created using PDM
Dependency Determination and Integration - Dependencies are those
things that in�uence which activities must be performed �rst. For example,
a road must be graded before it can be paved. If grading and paving the road
were two activities on the project, then we would say that the start of the
activity of paving the road is dependent upon the �nish of the activity of
grading the road, thus these two activities have a �nish-to-start relationship.
Two activities with a dependency, creating a �nish-to-start relationship
ere are four main kinds of dependencies that may exist among activities.
Mandatory Dependencies
A mandatory dependency is one that cannot be broken. Given the
example where paving the road is dependent upon grading it, the
dependency is unavoidable, or mandatory. Mandatory dependencies are
also known as hard logic, since a mandatory dependency is considered
unmovable and always true.
Discretionary Dependencies
Discretionary dependencies, unlike the preceding example, are not
always true. ese would oen be the result of best practices, and may
vary organization to organization and even project to project. For
instance, the project of managing the remodeling of a house may have a
discretionary dependency between painting the walls and carpeting the
�oors, where painting must be completed before carpeting could be
installed. ere is no absolute rule that says the carpet could not be
installed before the painting begins.
Discretionary dependencies are also known as so logic or preferred
logic and are typically based on historical information, expert judgment,
and best practices.
External Dependencies
External dependencies are those dependencies that must be considered
but are outside of the project’s control and scope. For instance, if an
automobile is being developed to use alternative technology, there may
be an external dependency on a supplier providing a battery that meets
certain speci�cations before the project can meet its schedule. Because
these are dependencies, they must be identi�ed and documented as part
of this process.
Internal Dependencies
Internal dependencies are those dependencies that the team can control.
For example, a dependency that shows that the marketing department
has to �nish creating logos and web pages before an application can be
released would probably be categorized as an internal dependency since
both of these are within the control of the project team.
Leads and Lags - A lead is simply one activity getting a jump-start on
another. Consider, for instance, a soware project that has a dependency
between �nishing the development of a section of code and beginning the
quality inspection. Since the development has to �nish before the testing
begins, we would say that a mandatory �nish-to-start dependency exists
between the two activities.
An example of a lead would be if the individual or group performing the
quality inspection gets an un�nished beta copy of the soware in order to
get a head start. Note that leads do not do away with the �nish-to-start
relationship that exists. Instead, it simply “cheats” that relationship.
Leads increase risk, and the rationale behind them should be clearly
explained and documented.
ink of a lag as a waiting period that exists between two activities. A lag is a
situation where a waiting period must occur between one activity and
another dependent activity. An example of a lag would be if one activity was
to order a computer server and another activity was to con�gure the server,
then a lag might exist between the time the server is ordered and the time it
arrives and can be con�gured. During a lag, there is no work being
performed by the organization against this activity; no resources are being
expended. ey are simply waiting.
Project Management Information System — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Schedule Network Diagrams - e project Schedule network
diagrams are covered in depth in the Critical Path Method section later in
this chapter. ese diagrams are a graphical way of depicting schedule
activities, their dependencies, and their sequence.
Project Documents Updates — See Ch. 2, Common Outputs
PLANNING
ESTIMATE ACTIVITY DURATIONS
6th Edition PMBOK® Guide Cross Ref. pg 195
WHAT IT IS:
is process is exactly what it sounds like. Each activity in the activity list is
analyzed to estimate how long it will take.
ere is an important difference between duration and level of effort, and
this process focuses on determining duration.
e duration of an activity is a function of many factors, including who will
be doing the work, when they are available, how many resources will be
assigned to this activity, and the amount of work contained in the activity.
WHY IS IT IMPORTANT:
ese activity duration estimates will become a primary input into creating
the schedule when the overall project time line has been created.
WHEN IT IS PERFORMED:
Estimate Activity Durations is performed aer the activity resource
requirements have been gathered and before the schedule is developed.
HOW IT WORKS / INPUTS:
Project Management Plan
Schedule Management Plan - e schedule management plan is one of
the key components of the project management plan used as an input
here, because it de�nes how this process will be carried out. For Estimate
Activity Durations, it would describe how the activity duration estimates
will be derived and how accurate and precise they will need to be.
Scope Baseline - e main part of the scope baseline we are concerned
with here is the WBS, since all activity estimates should eventually be
mapped back to the work packages.
Project Documents
ere is no need to memorize the full list of project documents used as
inputs. ey are activity attributes, activity list, assumption log, lessons
learned register, milestone list, project team assignments, resource
breakdown structure, resource calendars, resource requirements, and the
risk register. e most important ones are discussed here:
Activity List - e activity list is a primary input for this process.
Every activity in the list should be estimated to determine its duration.
Activity Attributes - e activity attributes always accompany the
activity list. ese attributes provide additional information about each
activity in the list.
Resource Requirements - Since the duration is a function of the
amount of work associated with an activity and the resources assigned to
perform that work, the activity resource requirements need to be
brought into this process.
Resource Calendars - ese resource calendars are updated in the
Estimate Activity Resources process (See Ch. 9). ese calendars show
physical and human resource usage across the entire project and
sometimes the entire enterprise.
Resource Breakdown Structure - e resource breakdown structure
provides an organized chart of resources by category or type.
Enterprise Environmental Factors - ings that in�uence your project
such as what records an organization requires, safety standards, and
regulations can all affect how long an activity takes. For instance, it may take
far longer to perform an activity in a nuclear power plant than it does in a
conventional power plant due to enterprise environmental factors, and these
must be considered in order to accurately estimate the duration of activities.
Organizational Process Assets - ese could take the form of a rich
database of historical information that shows the estimated and actual
durations for activities for a previous project, while another organization
may have speci�c calendar requirements when resources are available.
Anything that gives structure or guidance to your activity duration estimates
would be considered an organizational process asset.
HOW IT WORKS / TOOLS:
Expert Judgment - Anyone who has managed a project will attest that the
duration of an activity can be notoriously hard to estimate in advance. e
expert providing the judgment should follow some basis, such as analysis or
historical information, whether documented or experiential.
Analogous Estimating - Analogous estimating, also known as top-down
estimating, is where an activity from a project previously performed within
the organization is used to help estimate another activity’s duration.
Typically, the previous actual time spent on the similar activity is used as the
estimate for another similar activity. e technique is combined with expert
judgment to determine if the two activities are truly alike.
Parametric Estimating - If one team can install 100 feet of fence in one
day, then it would take 10 teams to install 1,000 feet of fence in one day. is
kind of linear extrapolation is an example of parametric estimating.
Parametric estimating can work well for activities that are either linear or
easily scaled. It is not as effective for activities that have not been performed
before or those for which little or no historical information has been
gathered.
ree-Point Estimating - ree-point estimating, also called PERT
estimates (for Program Evaluation and Review Technique), use three data
points for the duration instead of simply one. ese are pessimistic, most
likely (also known as realistic), and optimistic estimates.
ere are two primary ways of calculating a three-point estimate: beta
distribution and triangular distribution.
Beta Distribution
We will begin by looking at beta distribution. As an example of how this
is used, suppose a developer estimates that it will most likely take 9 days
to write a module of code; however, she also supplies an optimistic
estimate of 7 days and a pessimistic estimate of 17 days.
She then applies a formula, usually in the form of a weighted average, to
these estimates to distill them down to a single estimate. e traditional
formula is:
(Pessimistic + 4 × Realistic + Optimistic) ÷ 6
In the example above, the numbers would be substituted as (17 + 4 × 9 +
7) ÷ 6 = 10 days. is number is used as the activity duration estimate
for this schedule activity.
When considering beta distribution, another important formula to
memorize for the exam is one used to calculate the standard deviation
(expressed as σ) for an estimate.
(Pessimistic - Optimistic) ÷ 6
is formula is not the actual standard deviation, but a shortcut that
makes quite a few assumptions about the data. It’s a good idea to know
for the exam, but be careful before using this in actual practice.
Given these formulas, let us consider the following estimates for
activities A, B, and C.
Now, using the formulas above, we will calculate the three point estimate
for each of these activities.
Triangular Distribution
e technique of triangular distribution is very similar to beta
distribution; however, it is a bit easier. For our purposes in estimating,
triangular distribution is a simple average of the values of the
pessimistic, optimist, and most likely estimates.
(Pessimistic + Realistic + Optimistic) ÷ 3
You also need to be prepared to recognize beta and triangular
distribution graphs for the exam. Simply being able to identify which
one is beta and which one is triangular should be sufficient. e
triangular shape associated with triangular distribution makes that a
snap.
If you encounter three-point estimating on the exam, use the formula for
triangular distribution by default.
A graphical representation of beta and triangular distribution
Bottom-Up Estimating - Bottom-up estimating is essentially the
opposite of analogous estimating. Using this technique, each step needed to
complete an activity is estimated, and those estimates are added together to
get the activity’s duration estimate. is works well when the activity is
understood very well and the organization has experience with this type of
activity. Bottom-up estimating can be a very powerful and accurate
technique to use when there are few unknowns.
Data Analysis
Alternatives Analysis - e most common alternatives analysis
performed is “make or buy” analysis to determine whether to perform
an activity in house or to outsource it; however, there are other types
where you might look at whether to use one highly skilled individual or
two or more people with a lower skill level, whether to invest in
automation and at what level, etc. e point of this is to make optimal
decisions for the project and the organization.
Reserve Analysis - Reserve time, also called contingency, is extra time
added to an activity duration estimate.
Reserve time estimates are revisited throughout the life of the project,
being revised up or down as more information on schedule risk becomes
available.
Decision Making — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Duration Estimates - All of the preceding inputs and tools for this
process are used together to produce this key output: the duration estimates
for the activities.
e duration estimates contain an estimated amount of time for each
activity in the activity list. Ideally, these estimates represent a range such as
the optimistic-pessimistic-realistic ones covered in the three-point estimate
technique discussed earlier in this process.
Basis of Estimates - is is the supporting detail that shows how the activity
duration estimates were derived and what tradeoffs and alternatives were
considered.
Project Documents Updates - As each activity is being estimated at a low
level, updates to the activity attributes are a normal by-product of this
process. Additionally, any assumptions made as part of the estimates as well
as any lessons learned should be documented.
PLANNING
DEVELOP SCHEDULE
6th Edition PMBOK® Guide Cross Ref. pg 205
WHAT IT IS:
e process of Develop Schedule is one of the largest of the 49 processes,
containing 20 combined inputs, tools, and outputs.
As anyone who has managed a complex project will attest, developing the
schedule can be one of the most daunting parts of the project.
WHY IT IS IMPORTANT:
e schedule is usually one of the most visible and important parts of the
project plan. In fact, many inexperienced project managers oen mistakenly
refer to the depictions of the schedule as the project plan or use the two
terms interchangeably.
As you can tell by the name, this process is the one where the project’s
schedule is created.
WHEN IT IS PERFORMED:
e process of Develop Schedule is typically performed aer the processes
of Estimate Activity Resources (See Ch. 9), Estimate Activity Durations, and
Sequence Activities have been performed and before Determine Budget (See
Ch. 7) is performed.
A diagram showing the order of Schedule Management’s planning processes and the
integration with Cost Management
HOW IT WORKS / INPUTS:
Project Management Plan
Schedule Management Plan - e schedule management plan is the
part of the project plan that speci�es how the schedule will be calculated,
and developed, and what forms it will ultimately take.
Scope Baseline -e scope baseline is an input to most of the schedule
management processes. is is because the scope and the schedule are
closely intertwined. e deliverables described in the scope baseline will
drive much of the schedule development.
Project Documents
Activity Attributes - e activity attributes always accompany the
activity list. ey provide expanded information on each activity in the
list, and these details may be important when scheduling the activity.
Activity List - e activity list is the list of all activities that need to
be scheduled and performed on the project. It is a bit redundant here as
an input since the project schedule network diagrams (covered later in
the list of inputs to this process) implicitly contain the activity list.
Assumption Log - Any assumptions that relate to the schedule should
be brought into this process. ese are things that you will treat as true
while developing the schedule (e.g., weather or availability of resources).
Basis of Estimates — See Estimate Activity Durations, Outputs
Duration Estimates — See Estimate Activity Durations, Outputs
Lessons Learned - is refers to lessons learned in this project that
might help with schedule development. Considering that the Develop
Schedule process will oen be revisited multiple times throughout the
life of the project, lessons learned from previous activities or phases can
be very valuable.
Milestone List - Milestones are signi�cant events in the life of the
project, and they oen play a role in schedule development. Consider
that some milestones are imposed from the start of the project (e.g., the
new stadium has to be ready for opening day), so it is not unusual for
the schedule to have to be built around one or more milestones.
Project Schedule Network Diagrams - e project schedule network
diagrams were created earlier in Sequence Activities, and they now
become a primary input into Develop Schedule. e project schedule
network diagrams show the order in which activities must be completed,
while the schedule assigns dates to each of these activities.
Project Team Assignments - e schedule is ultimately a function of
how long activities will take to complete using the available resources,
and team assignments can have a major impact on the actual schedule.
Project team assignments are produced as an output of Acquire
Resources.
Resource Calendars - e resource calendars show availability of
resources, which can strongly in�uence scheduling.
Resource Requirements - is is used hand-in-hand with the previous
document of resource calendars to help create the schedule.
Risk Register - e risk register lists all identi�ed project risks, and
many of these risks may relate to the schedule.
Agreements — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Schedule Network Analysis - is technique actually refers to a group of
techniques used to create the schedule. Any of the other speci�c tools or
techniques that are part of the process of Develop Schedule may be used as
part of this general tool.
Critical Path Method (CPM) - Before trying to understand the critical
path method, it is important to understand what the critical path is. A
project’s critical path is the combination of activities that, if any are delayed,
will delay the project’s �nish.
e critical path method is an analysis technique with three main purposes:
1. To calculate the project’s �nish date.
2. To identify how much individual activities in the schedule can slip (or
“�oat”) without delaying the project.
3. To identify the activities with the highest risk that cannot slip without
changing the project �nish date.
A more detailed explanation of the critical path method appears later in this
chapter under the heading, “Special Focus: Critical Path Method.” e
section shows speci�c techniques and provides exercises that you will need
to be able to perform.
Critical Chain Method - Based on the theories of Eliyahu Goldratt, critical
chain provides a way to view and manage uncertainty when building the
project schedule.
e traditional way of building the schedule, using the critical path method,
gathers realistic activity duration estimates and assembles the schedule,
identifying the longest (critical) path through the network. Buffers may be
added to certain high-risk activities in order to ensure that their uncertainty
is managed.
e critical chain method modi�es this technique by estimating each
activity as aggressively as possible, building the schedule network, and then
adding one lump-sum buffer to the end of the network before the �nish
date. is lump-sum buffer is then used to manage any individual activity
that might be in danger of slipping, whether it is on the critical path or in
danger of affecting the critical path. One advantage of this approach is that
the team is not made aware of the buffers and therefore they are kept on an
aggressive schedule. A buffer, however, does exist, and it is under the control
of the project manager.
Resource Optimization - ese two techniques seek to use resources in
the most efficient ways, and they are important to know for the exam.
Resource Leveling
When many people think about the technique of resource leveling, they
may mistakenly consider only what their project management soware
does to level resources. Resource leveling is when your resource needs
meet up with the organization’s ability to supply resources.
In order to resource-level the project, you �rst use the critical path
method to calculate and analyze all of the network paths for the project.
en you apply resources to that analysis to see what effect it has on
schedule outcome. is technique oen results in a change to the critical
path and the project’s completion date.
Consider the following scenario. Aer performing the processes of
Estimate Activity Durations and Estimate Activity Resources (See Ch.
9), you end up with the following project schedule network diagram.
e project network diagram above was created from the preceding table
using the critical path method. Now, however, consider what would happen
if the organization could not provide eight programmer resources as
re�ected in this scenario. Instead, they can only supply two. e scenario
must be resource leveled, resulting in a longer overall network diagram as
follows:
Aer the resource calendar has been applied and the schedule has been
leveled, a schedule is created based on the resources applied, where each
activity is assigned a projected start and �nish date.
Resource Smoothing
Resource smoothing looks at the schedule in light of resource
constraints. When resource smoothing is used, the critical path and the
completion date do not change. e activities may change within their
�oat, but that is all. Resource smoothing is usually less disruptive to the
schedule than resource leveling.
Data Analysis
What-if scenario analysis
is is essentially a way of looking at risk to determine how certain
events or scenarios would impact the schedule. e goal is to determine
whether or not the schedule is practical and whether reserves and
buffers are appropriate.
Simulation
Simulation applies a number of scenarios against the project schedule to
determine the probabilities that it will �nish on time.
You should expect questions on the exam to refer to Monte Carlo
analysis for this. Monte Carlo analysis is performed by computer and
evaluates probabilities by considering a huge number of simulated
scheduling possibilities or a few selected likely scenarios. A computer
employing Monte Carlo analysis can perform this analysis and identify
the highest risk activities that may not otherwise be apparent, showing
the impact of these changes on the schedule.
Leads and Lags - is technique, mirroring the one in the Sequence
Activities process, ensures that the leads and lags are accurately applied to
the schedule and adjusted appropriately.
Schedule Compression - On many projects, there are ways to complete
the project schedule earlier without cutting the project’s scope. at is the
purpose of schedule compression.
Two types of questions that you will probably encounter on the exam
involving schedule compression are related to crashing and fast tracking.
Crashing involves adding resources to a project activity so that it will be
completed more quickly. Crashing almost always increases costs.
An example of crashing the schedule by adding more resources to an activity
Note that in the preceding example, increasing the number of resources does
decrease the time but not by a linear amount. is is because activities will
oen encounter the law of diminishing returns when adding resources to an
activity. e old saying “too many cooks spoil the broth” applies to projects
as well as cooking.
Fast tracking means that you re-order the sequence of activities so that some
of the activities are performed at the same time. Fast tracking does not
necessarily increase costs, but it almost always increases risk to the project
since discretionary dependencies are being ignored and additional activities
are happening simultaneously. (Discretionary dependencies were discussed
under the process of Sequence Activities.)
ORIGINAL ESTIMATE: 31 DAYS
FAST TRACKED DURATION: 25 DAYS
Note that fast tracking oen results in some individual activities taking
longer, and it increases the risk. In the example above, the workers may have
a harder time moving around each other, thus increasing the time to paint
and install carpet. Also, there is an increased risk associated with these
activities. For example, the painters could damage the carpet, or the carpet
installers could be hampered by the fresh paint.
Project Management Information System — See Ch. 2, Common Tools
Agile Release Planning - Adaptive projects use the product backlog to
create an overall release plan. e backlog contains the user stories that the
team has identi�ed. ese stories are prioritized by value to the customer
and are then estimated by the team as to difficulty. en the team selects
which features and user stories will be included in planned releases.
HOW IT WORKS / OUTPUTS:
Schedule Baseline - e schedule baseline is the approved schedule that
has been placed under control. Keep in mind that a baseline is the original
plan plus all approved changes, so it may be changed, but only through a
formal process. If the schedule slips, that delay would not become
incorporated into the baseline since it was not approved in advance.
Project Schedule - e project schedule shows when each activity is
scheduled to begin and end; it also shows a planned start and �nish date for
the overall project. e schedule is typically represented graphically, and
there are different forms it may take. e most common forms are covered
as follows:
Bar Charts (also called Gantt Charts) - Bar charts, or Gantt charts, show
activities represented as horizontal bars and typically have a calendar along
the horizontal axis. e length of the bar corresponds to the length of time
the activity should require.
A bar chart, or Gantt chart, can be easily modi�ed to show percentage
complete (usually by shading all or part of the horizontal bar). It is
considered to be a good tool to use to communicate with management,
because unlike the project network diagram, it is easy to understand at a
glance.
Milestone Charts - A milestone chart, as the name implies, only represents
key events (milestones) for the project. Milestones may be signi�cant events
or deliverables that are the responsibility of the project team or external
parties.
Milestone charts, because of the general level of information they provide,
should be reserved for brief, high-level project presentations where a lot of
schedule detail would be undesirable or even distracting.
Project Schedule Network Diagram - e project schedule network
diagram is a useful detail-driven tool that provides a powerful view of the
dependencies and sequences of each activity. It is the best representation for
calculating the critical path and showing dependencies on the project.
Schedule Data - Schedule data refers to the information the project team
used to model and create the project schedule. It would include schedule
templates that were used, the activities and their attributes, estimated
durations, and any constraints and assumptions. is output is simply the
data which supports how this schedule was developed.
Project Calendars - A project calendar shows the schedules, hours, and
shis for all of the activities.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - ese updates to the resource requirements
are a very common output in Develop Schedule, especially in the case of the
tool of resource leveling, which adjusts the resources that are required in
light of the organization’s ability to supply them. Updates to activity
attributes, assumption logs, risk registers, duration estimates, and calendars
are also common.
MONITORING & CONTROLLING
CONTROL SCHEDULE
6th Edition PMBOK® Guide Cross Ref. pg 222
WHAT IT IS:
As you can tell from its name, Control Schedule is a monitoring and
controlling process. e concept behind monitoring and controlling
processes in general is to compare the work results to the plan and ensure
that they line up. In this process, the schedule is controlled to make sure that
time-related performance on the project is in line with the plan.
One of the more important concepts to master with Control Schedule (and
most monitoring and controlling processes in general) is that schedule
changes are not only reacted to, but the schedule is reviewed and adjusted
proactively. at is, the project manager should be out in front of the
project, in�uencing changes before they affect the project. Of course, at
times, changes to the schedule may occur and the project manager will have
to react to them, but the project manager should be proactive whenever
possible.
WHY IT IS IMPORTANT:
Any time the schedule changes or a change request that affects the schedule
occurs, the change should be evaluated and planned. e schedule should be
monitored continuously against the actual work performed to ensure that
things stay on target.
WHEN IT IS PERFORMED:
e process of Control Schedule is performed throughout the life of the
project from the moment the schedule is developed until all scheduled
activities have been completed. is ensures that the schedule is always up to
date.
HOW IT WORKS / INPUTS:
Project Management Plan - e project management plan contains the
schedule management plan and the schedule baseline, both of which are
essential components for this process. e schedule management plan is
important since it de�nes how the schedule will be managed and changed,
and Control Schedule is the process that reviews and manages those
changes, while the schedule baseline provides the latest approved version of
the project schedule. As changes are made or change requests are approved,
the schedule baseline is updated to re�ect those changes. Both of these
components have been officially melded into the project management plan
by this time.
Project Documents — See Ch. 2, Common Inputs
Lessons Learned Register - Because many lessons learned relate to
schedule and cost, it is an input here, and the updated version will �ow
out of this process.
Project Calendars - Projects may have multiple calendars, possibly
spanning multiple organizations. For example, if components of a
project were being developed in both China and France, the holidays
and working periods would differ signi�cantly. ese calendars will be
necessary when controlling (and likely adjusting) the schedule.
Project Schedule - is is the documented version of what is being
controlled in this process.
Resource Calendars - As this process will likely make adjustments to
the schedule, the availability of resource, contained in the resource
calendars, is important.
Schedule Data - Supporting information is almost always a good thing
to have, and the schedule data is the supporting information that may
contain explanations of why certain scheduling decisions were made and
the factors that went into those decisions.
Work Performance Data - Work performance data gives information on
how the work is being performed. In this case, it will tell us how particular
schedule activities are being completed. is can help identify trends and
provide useful information to compare against the schedule.
Organizational Process Assets - Anything that the organization has that
can make this process run more smoothly could be considered an
organizational process asset. For example, a system for formally evaluating
schedule change or a soware system to help detect changes or measure
variances would be an organizational process asset.
HOW IT WORKS / TOOLS:
Data Analysis - Six forms of data analysis are used here:
Earned Value Analysis — (Discussed in Chapter 7)
Iteration Burndown Chart - An iteration burndown chart is an
agile tool used to display the team’s progress of completing the work in
the backlog. Agile teams generally post this in a very visible space so that
progress is transparent and easily viewed by stakeholders.
Performance Reviews - Team performance needs to be considered if the
schedule performance is deviating from the plan.
Trend Analysis - Trends can alert to positive or negative outcomes
before they happen. For example, if your schedule performance is
trending in a progressively worsening direction, it may require
corrective action before a date is actually missed.
Variance Analysis - is compares the schedule baseline with reality to
understand what variances are occurring.
What-if Scenario Analysis - is is a powerful tool that looks at
possible scenarios to get the project back on schedule.
Critical Path Method - e critical path method is covered in detail later in
this chapter. It is used to calculate the duration of the project and the
activities that represent the highest risk to on-time completion.
Project Management Information System — See Ch. 2, Common Tools
Resource Optimization - When the schedule changes, whether or not those
changes were anticipated, it can cause a ripple effect throughout the whole
project. In this case, the resources that had been carefully allocated across
the project may need to be leveled or smoothed again to ensure they match
the changed schedule. is technique was described in detail under the
Develop Schedule process.
Leads and Lags - Leads and lags will always have some effect on the
schedule, even if they do not affect the delivery date. As the project
management plan is executed, the leads and lags need to be adjusted to
re�ect reality so as to provide the most realistic view of the schedule
possible.
Schedule Compression - ese techniques, covered under Develop
Schedule, are used to search for ways to shorten the plan in order to make it
match reality or meet commitments.
HOW IT WORKS / OUTPUTS:
Work Performance Information - e updated schedule performance
index (SPI), schedule variance (SV) and other earned value measurements
relevant to the schedule need to be calculated and communicated out. ese
concepts are covered in the next chapter on Cost Management.
Schedule Forecasts - e schedule is only a plan, but when it is
compared against actual performance data, meaningful forecasts can be
made. e most common forecasts are the Estimate At Completion (EAC)
and Estimate To Completion (ETC), covered in the next chapter under the
topic of Earned Value Management.
Change Requests - Change requests are a normal byproduct of Control
Schedule. For instance, if actual performance is far ahead of schedule, a
change request may be introduced to consider a new piece of functionality
previously considered impossible to deliver on time. Conversely, if the
project is running behind schedule, a change request to outsource key
components may be introduced.
Project Management Plan Updates - As the schedule changes, impact to
the project’s scope and budget are to be expected. As components of the
project management plan change, they need to be captured as updates.
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON
SCHEDULE MANAGEMENT
Agile projects do not try to de�ne the entire scope up front, so it stands to
reason that it is impossible (and even undesirable) to plan the whole
project schedule for an agile initiative. e reason for this is that when the
team delivers some functionality to the customer, it is expected that the
scope will change. Rather than spending valuable time refactoring the
schedule every time change is introduced, the agile team focuses on the
changes themselves.
e agile approach is to plan in much smaller, more �exible increments,
prioritized by what is most valuable to the customer.
Rather than estimate the project schedule from start to �nish, an agile
team may focus on optimizing and improving their velocity. is is the
speed at which they are able to develop and deliver user stories.
Another agile approach is on-demand scheduling. In this approach, agile
teams use a Kanban board showing work in progress. Technically, work is
not scheduled in advance. Instead, work is “pulled” from the board when
resources become available. is approach works best when the backlog
of work to be performed is well groomed (i.e., it is up to date, the effort is
estimated, and each item is prioritized to accurately re�ect the value it
would deliver to the customer).
Plan Schedule Management
is process has low applicability to agile projects. e rhythm of an agile
project is in its iterations or sprints, and these are only planned in detail
for the upcoming one.
Define Activities
Agile does not plan to this detailed level. Agile teams will disaggregate to
some level, but it may or may not be as granular as a schedule activity.
Sequence Activities
is is used to understand schedule dependencies, and it does not have
strong applicability to agile projects.
Estimate Activity Durations
Agile projects do estimate, although the way they do it is different from
predictive projects (e.g., planning poker or relative sizing exercises).
Develop Schedule
Agile projects may develop release plans which show features and when
they are expected to be released.
Control Schedule
is is the process that monitors and adjusts schedule performance. Agile
teams do this in their iteration planning and in their retrospectives at the
end of an iteration. ey are constantly trying to perform more efficiently,
improve velocity, and deliver more value in less time.
SPECIAL FOCUS: CRITICAL PATH METHOD
e following section is of key importance
One very important tool used in Develop Schedule is a mathematical
analysis technique called critical path method. You should be very
comfortable with this technique, so a good portion of the rest of this chapter
is dedicated to the subject.
Network Paths
e term “network path” refers to a sequence of events that affect each other
on the project from start to �nish. ese activities form a path through the
project. Paths are important because they illustrate the different sets of
sequences in which activities must be performed, and they are used to
identify areas of high risk on the project. In a real project, there will usually
be numerous paths through the network diagram, and soware is typically
used to represent and calculate them.
To understand the paths, refer to the network diagram and corresponding
tables that follow.
Figure 6–1: Network Logic Diagram – Activity on Node Duration units shown in weeks
Activity Duration (weeks)
A 2
B 1
C 4
D 6
E 3
F 3
Table 6-2: Individual activities
In the preceding diagram and tables, each node has a corresponding
duration as listed in Table 6–2. Each possible path through the network is
determined by following the arrows in the diagram in Figure 6–1.
Critical Paths
Determining the critical path through the network is a tool used heavily in
creating the schedule. Critical path calculations show you where most of the
schedule risk exists.
e critical path is made up of activities that cannot be delayed without
delaying the �nish of the project. By following the steps taken in creating the
network diagram, the critical path is determined simply by identifying the
longest path through the system. In the previous example, it is Start-DE-F-
Finish, because activities D (6) + E (3) + F (3) will take 12 weeks, and this is
the longest path through the system.
Keep in mind that it is not unusual to have more than one critical path on a
project. is occurs when two or more paths tie for the longest path. In this
event, schedule risk is increased because there are an increased number of
ways the project could be delayed.
Float
Aer you have mastered the concepts for activity on node, calculating �oat
(sometimes referred to as “slack”) is also easy. Before attempting any
exercises, it is critical to understand the following:
1. Float is simply how much time an activity can slip before it changes the
critical path. Another way of thinking about �oat is that it is the
maximum amount of time an activity can slip without pushing out the
�nish date of the project.
2. If an item is on the critical path, it has zero �oat. Although there are
technical cases where this might not be true, you should not encounter
any such examples on the exam.
Keeping the preceding two items in mind, let us revisit the activity on node
network diagram in �gure 6–1 using this example:
Question: What is the float for Activity D?
Answer: 0 weeks. Activity D cannot slip without affecting the �nish date
because it is on the critical path.
Question: What is the slack for Activity C?
Answer: 2 weeks. If activity C slips by more than 2 weeks, then the path
Start-D-C-Finish would delay the �nish of the project.
ere is a simple way to do this that will allow you to breeze through the
questions on the exam. e method is a brute force approach. If the exam
asks you to calculate the slack for an activity, simply look at the project
network diagram and �nd the duration you can substitute for that activity
that will put it on the critical path. You should be able to zero in on the �oat
right away. If you have created a path chart, such as the one shown here, this
method is a snap.
PATH Activities Path Duration (weeks)
Start - A - B - C - Finish 2+1+4 7
Start - D - C - Finish 6+4 10
Start - D - E - F – Finish 6+3+3 12
In this example:
Activity A has �oat of 5 weeks, because this activity may be delayed up
to 5 weeks without delaying the �nish of the project
Activity B also has �oat of 5 weeks, because paths with Activity B could
slip up to 5 weeks without changing the project’s �nish date.
Activity C is slightly trickier. It has a �oat of only 2 weeks. Even though
it could slip 5 weeks in the �rst path listed in Table 6–3, if it slipped
from 4 weeks to 6 weeks, then path Start-D-C-Finish would be on the
critical path. erefore, we take the smallest slippage possible, and that
becomes the �oat for this activity.
Aer a little practice, this will become the easiest and quickest way to
calculate �oat. ere are detailed exercises at the end of this chapter to help
cement your understanding of this.
Note that on the exam you may see the terms forward pass or backward pass
related to the critical path. ese methods of determining early or late start
or early or late �nish are presented below.
Early Start
e early start date for an activity is simply the earliest date it can start when
you factor in the other dependencies. is is the date the activity will start if
everything takes as long as it was estimated. Consider the �gure that follows
(this diagram is the same as Figure 6–1, referenced earlier).
Question: Given the following diagram, what is the early start for Activity
B?
Units shown in weeks
e answer is week 3. e reason is that Activity A is scheduled to take 2
weeks. It begins on week 1, and �nishes on week 2. Activity B could then
begin on the �rst day of week 3.
is technique is called a “forward pass” because we have moved “forward”
through the diagram, starting from the start date to perform our
calculations.
Early Finish
e early �nish date is the early start date plus the duration estimate minus 1
unit. In the example above, the early �nish date for Activity ‘A’ would be 2
weeks aer the early start date. Since the early start date is week 1, the early
�nish would be week 2. is makes sense since the activity takes all of week
1 and all of week 2, �nishing at the end of week 2.
Here we also performed a “forward pass,” as again we based our calculations
on the start date and worked forward through the network.
Late Start
e late start date for an activity turns the problem around and looks at it
from the other end of the network diagram. It asks, “What is the latest this
activity could start and not delay the project’s �nish date?” Although there
are many methods that may be used to calculate late start, the easiest way is
to simply add the �oat to the early start. is will give us the absolute latest
date that the activity can start and not impact the �nish date, assuming that
the activity takes as long as was estimated.
Question: Given the example in the previous table, what is the late start for
Activity ‘B’?
Answer: Week 8. e reason is that this activity has 5 weeks of �oat, and
if the early start is week 3, the late start would be week 3 + 5 weeks of
�oat = week 8.
Remember that for activities with zero �oat or slack, the late start and the
early start will be the same.
is technique is called a “backward pass.” e reason is that you must begin
at the end of the network diagram and work your way backward, evaluating
how close activities may slide toward the �nish without moving the �nish.
Late Finish
An activity’s late �nish will be the late start plus the activity’s duration
estimate minus 1 unit.
In the example above, the late start for Activity B is week 8, and the duration
is 1 week, so the late �nish date would also be week 8. If the fact that both
the start and �nish are shown as week 8 confuses you, keep in mind that the
start represents the �rst day of week 8, and the �nish represents the last day
of week 8.
Remember that for activities with zero �oat or slack, the late �nish and the
early �nish will be the same.
Calculating the late �nish date by adding the activity’s duration to the late
start date is another example of a “backward pass.”
Project Network Node
ES, EF, LS, and LF
Oen a node on the project network diagram may be represented as in the
preceding diagram, with the early start in the upper le corner (represented
by ES), the early �nish in the upper right (EF), the late start in the bottom
le (LS) and the late �nish in the bottom right (LF). By dividing each node
on a project network diagram into quadrants, all four of these may be
represented for every node in the diagram.
Free Float
Also known as “free slack,” free �oat is the amount of time an activity can be
delayed without affecting the early start date of subsequent dependent
activities. If this leaves you scratching your head, consider the following
diagram:
e free �oat of activity E would be determined by calculating how long it
could slip before it impacted the early start of activity C. In this example,
activity E has 4 units of free �oat. Note that this is different from its �oat,
which is 19 units.
Negative Float
Negative �oat is a situation that occurs when an activity’s start date occurs
before a preceding activity’s �nish date. For instance, suppose that there is a
constraint for an activity (Activity D) that involves a 1 day �nal inspection of
a building that is to begin and be completed on July 15th; however, a
preceding activity (Activity C) that encompasses testing the electrical
components of the project does not �nish until July 25th. If work is
scheduled 7 days per week, then it could be stated that Activity D has a
negative �oat of 10 days.
Technically, negative �oat exists when an activity’s �nish date happens
before its scheduled start date. In the example above, Activity D is supposed
to �nish at the end of the 15th; however, it cannot even begin until 10 days
later. ere Activity D has 10 days of negative �oat.
Negative �oat for an activity tells you that your schedule has problems. It
most oen occurs when immovable constraints or milestones are imposed
by forces outside the project, causing an impossible situation. Negative �oat
may be resolved by several methods, such as reworking the logic of the
schedule, crashing, or fast-tracking.
SUMMARY OF KEY TERMS:
You need to understand each of the following key terms. You do not have to
memorize every term word for word, but you should be able to recall the
general de�nition and apply them on the exam.
Activity Decomposition – Similar to scope decomposition (remember the
asteroids metaphor), except that the �nal result here is an activity list instead
of the WBS.
Activity Duration Estimates – Probable number of periods (weeks, hours,
days, months, etc.) this activity should take with the probable range of
results. Example:
Activity Duration Estimate Explanation
1 Week +/- 3 days e activity should take between 2 and 8
days, assuming a 5 day work week.
1 Month + 20% probability it will be
accomplished later
ere is an 80% likelihood that the activity
will be completed within the month and a
20% chance that it will exceed a month.
Activity List – A list of every activity that will be performed on the project.
Activity on Arrow Diagram – A rarely used type of network diagram where
activities are represented by the arrows connecting the nodes. Nodes are
typically represented by circles in this type of project network diagram.
Activity on Node Diagram – A type of network diagram where activities
are represented on rectangular nodes with arrows representing the
dependencies.
Analogous Estimating – A form of expert judgment oen used early on
when there is little information available. Example: “is project is similar to
one we did last year, and that one took three months, so we will estimate
three months for this project.” It is performed from the top down, focusing
on the big picture.
Backward Pass – e method for calculating late start and late �nish dates
for an activity (see explanation of �oat, early and late starts and �nishes
earlier in this chapter for a detailed explanation).
Beta Distribution – a method of estimating activity duration using the
formula: (Pessimistic + 4 × Realistic + Optimistic) ÷ 6.
Critical Path – e paths through the network diagram that show which
activities, if delayed, will affect the project �nish date. For schedule, the
critical path represents the highest risk path in the project.
Dependencies – Activities that must be completed before other activities are
either started or completed.
Dependencies Description Example
Mandatory
Also called “hard logic,”
these activities must be
followed in sequence.
Clearing the lot on a
construction site before
pouring the foundation.
Discretionary Also called “so logic.”
Expert judgment and best
practices oen dictate that
particular activities are
performed in a particular
order. e dependencies are
discretionary because they
are based on expert opinion
Painting the interior before
putting down carpet.
rather than mandatory or
hard logic.
Internal
Dependencies relying on
factors within control of the
performing organization.
Availability of funding and
resources.
External Dependencies relying on
factors outside of the project
Zoning approval for a new
building. Weather for a
rocket launch.
Dummy Activity – An activity in a network diagram that does not have any
time associated with it. It is only included to show a relationship, and is
usually represented as a dotted or dashed line. Dummy activities only exist
in activity on arrow diagrams.
Duration Compression – A technique primarily made up of two means of
compressing the schedule: crashing and fast-tracking, described in the
following table:
Techniques Description Example
Crashing
Applying more resources to
reduce duration. Crashing
the schedule usually
increases cost.
If setting up a computer
network takes one person 6
weeks, three resources may
be able to do it in two weeks.
Note - Crashing usually does
not reduce the schedule by a
linear amount.
Fast Tracking
Performing activities in
parallel that would normally
be done in sequence.
Fast tracking activities
usually increases project
risk, and these activities
have a higher probability of
rework.
Example: In XYX Corp, no
coding on soware modules
is allowed until aer the
database design in complete,
but when fast tracking, the
activitites could be done in
parallel if it is not a
mandatory dependency.
Delphi Technique – A means of gathering expert judgment where the
participants do not know who the others are and therefore are not able to
in�uence each other’s opinion. e Delphi technique is designed to prevent
groupthink and to �nd out a participant’s real opinion.
Expert Judgment – A method of estimating in which experts are asked to
provide input into the schedule. Combining expert judgment with other
tools and methods can signi�cantly improve the accuracy of time estimates
and reduce risk.
Float – How much time an activity can be delayed without affecting the
project’s �nish date. Also known as “slack.”
Forward Pass – e method for calculating early start and early �nish dates
for an activity (see explanation of �oat and early and late starts and �nishes
earlier in this chapter).
Free float – Also known as “free slack.” How much time an activity can be
delayed without affecting the early start date of subsequent dependent
activities.
Heuristics – Rules for which no formula exists. Usually derived through
trial and error.
Lag – e delay between an activity and the subsequent one dependent
upon it. For example, if you are pouring concrete, you may have a 3 day lag
aer you have poured the concrete before your subsequent activities of
building upon it can begin. Since no work is taking place during that 3 day
period, it is considered to be a lag and not part of the actual activity.
Lead – Activities with �nish-to-start relationships cannot start until their
predecessors have been �nished; however, if you have 5 days of lead time on
an activity, it may begin 5 days before its predecessor activity has �nished.
ink of it as getting a head start, like runners in a relay race. Lead time lets
the subsequent task begin before its predecessor has �nished.
Mathematical Analysis – A technique to show scheduling possibilities
where early and late start and �nish dates are calculated for every activity
without looking at resource estimates.
Milestones – High level points in the schedule used to track and report
progress. Milestones usually have no time associated with them.
Monte Carlo Analysis – Computer simulation that throws a high number of
“what if ” scenarios at the project schedule to determine probable results.
Network Diagram – (Also called network logic diagram or project network
diagram.) A method of diagramming project activities to show sequence
and dependencies.
Negative Float – A situation that occurs when an activity’s start date comes
before a preceding activity’s �nish date. Technically, negative �oat exists
when an activity’s �nish date happens before its scheduled start date.
Negative �oat for an activity indicates a schedule with problems. Reworking
the logic of the schedule, crashing, or fast-tracking are potential solutions.
Precedence Diagramming Method – (Also called Activity on Node.) A
type of network diagram where the boxes are activities, and the arrows are
used to show dependencies between the activities.
Reserve Time (Contingency) – A schedule buffer used to reduce schedule
risk. e chart below represents the most common types of reserve for a
project.
Contingency Example
Project % Add 15% to the entire project schedule
Project lump sum Add 2 months calendar schedule to the
project
Activity % Add 10% to each activity (or to key, high-risk
activities)
Activity lump sum Add 1 week to each activity (or to key, high-
risk activities)
Schedule Baseline – e approved schedule that is used as a basis for
measuring and reporting. It includes the original project schedule plus all
approved updates.
Slack – See “Float.”
Triangular Distribution – a method of estimating activity duration using
the formula: (Pessimistic + Realistic + Optimistic) ÷ 3.
Variance Analysis – Comparing planned versus actual schedule dates.
EXERCISES
In order to test yourself on schedule management, complete the
following questions based on Figure 6–7 below.
Figure 6–7: Project Network Diagram.
Durations shown in days
1. List all the paths through the network logic diagram as illustrated in
Figure 6–7.
2. What is the critical path through the network diagram shown in Figure
6–7?
3. List the slack for each activity in the network diagram shown in Figure
6–7.
4. Provided the following table, how many weeks long is the critical path?
Activity Preceding Activity Duration (in weeks)
Start 0
A Start 6
B A, E 2
C B 2
D C 3
E Start 1
F A, E 1
G F, B 7
Finish D, G 0
5. Given the table in question 4 above, describe the effect of Activity D
taking twice as long as planned.
6. An activity has 3 estimates, provided below:
Optimistic = 10 days
Pessimistic = 25 days
Realistic = 15 days
What is the beta distribution estimate for this activity?
7. Given the project network node depicted below, �ll in the value in the
missing quadrant, and calculate the duration and the �oat for the
activity.
ANSWERS TO EXERCISES
1. ere are six possible paths through the system, listed in the table
below:
Path
Start-A-B-C-D-Finish
Start-E-F-G-D-Finish
Start-E-F-G-H-Finish
Start-I-J-G-D-Finish
Start-I-J-G-H-Finish
Start-I-J-K-Finish
2. Because two paths tie for the longest duration, there are two critical
paths:
Start-A-B-C-D-Finish – duration 29 days
Start-I-J-G-H-Finish – duration 29 days
Path Durations Total
Start-A-B-C-D-Finish 16+3+7+3 29 days
Start-E-F-G-D-Finish 2+5+9+3 19 days
Start-E-F-G-H-Finish 2+5+9+10 26 days
Start-I-J-G-D-Finish 6+4+9+3 22 days
Start-I-J-G-H-Finish 6+4+9+10 29 days
Start-I-J-K-Finish 6+4+1 11 days
3. is task is easier than it �rst appears since over 70% of the activities
were on the critical path. ose activities automatically have zero slack;
thus, no calculations are necessary for most of the activities.
e way to solve for these is to take each path listed above and go
through them one at a time. If the path is a critical path, or if the
activity is found on the critical path, simply skip it. If the path is not
the critical path, then take the sum of the items on that path and
subtract it from the total critical path. For activity E, it is found on 2
paths above. One of them totals 19, and the other 26. We always use
the larger one and subtract it from the critical path total of 29. at
leaves a slack of 29-26, or 3 for activity E.
Activity On Critical Path? Slack (Float) in days
A Y 0
B Y 0
C Y 0
D Y 0
E N 3
F N 3
G Y 0
H Y 0
I Y 0
J Y 0
K N 18
4. Your �rst step in solving this problem is to draw out a network logic
diagram. Your diagram should look similar to the one shown below:
e next step is to list out all paths through the network:
Path Durations Total
Start-A-B-C-D-Finish 6+2+2+3 13
Start-A-B-G-Finish 6+2+7 15
Start-A-F-G-Finish 6+1+7 14
Start-E-B-C-D-Finish 1+2+2+3 8
Start-E-B-G-Finish 1+2+7 10
Start-E-F-G-Finish 1+1+7 9
e answer is 15 weeks, based on the fact that Start-A-B-G-Finish has
a duration of 15 weeks, and that is the longest duration of any path.
5. If Activity D were to take twice as long as planned, that would change
its duration from 3 to 6 weeks. is would have two effects:
e critical path would change. e new critical path would be
Start-A-B-C-D-Finish.
e project �nish date would be extended by 1 additional week,
meaning the overall project would take 16 weeks.
To arrive at this solution, reconstruct the table as follows:
Path Durations Total
Start-A-B-C-D-Finish 6+2+2+6 16
Start-A-B-G-Finish 6+2+7 15
Start-A-F-G-Finish 6+1+7 14
Start-E-B-C-D-Finish 1+2+2+6 11
Start-E-B-G-Finish 1+2+7 10
Start-E-F-G-Finish 1+1+7 9
Note how the longest path has changed to the �rst one in the table
above.
6. e formula for beta distribution estimates is:
(Pessimistic + 4 × Realistic + Optimistic) ÷ 6
Which is equivalent to…
(25 + (4 × 15) +10) ÷ 6
is yields a duration estimate of 15.83.
7. For this exercise, the early �nish (top right quadrant), the duration, and
the �oat were in question.
Given the example, it is easiest to begin with the duration. is may be
calculated easily by subtracting the late start (bottom le) from the late
�nish (bottom right) and adding one. 39-37+1 yields an activity
duration of 3 (if this confuses you, consider that days 37, 38, and 39
are all working days). Now, simply count 3 days from the early start
(top le), using day 21 as a working day, and it gets you to an early
�nish of day 23 (day 21, 22, and 23). e �oat is the late start - the
early start, represented as 37 - 21 = 16. Even though this is the only
node we have, we could further deduce that the early start or early
�nish date could slip 16 days without affecting the critical path and
endangering the �nish date.
SCHEDULE MANAGEMENT
QUESTIONS
1. You are the project manager for the construction of a commercial
office building that has very similar characteristics to a
construction project performed by your company two years ago. As
you perform Define Activities, what is the BEST approach?
A. Use the activity list from the previous project as your activity list.
B. Generate your activity list without looking at the previous project’s
list and compare when your project’s list is complete.
C. Use the gap analysis technique to identify any differences between
your project and the previous project.
D. Use the previous activity list to help construct your list.
2. e customer has called a project team member to request a change
in the project’s schedule. e team member asks you what the
procedure is for handling schedule changes. Where should you
refer the team member to help him understand the procedure?
A. e project office.
B. e integration management plan.
C. e schedule management plan.
D. Inform the team member that the customer has the ultimate
decision.
3. If you were creating duration estimates for a schedule activity,
which of the following tools or techniques would NOT be
appropriate to use?
A. Expert judgment.
B. Data analysis.
C. ree-point estimating.
D. Least-squares estimating.
4. Senior management has called you in for a meeting to review the
progress of your project. You have been allocated 15 minutes to
report progress and discuss critical issues. Which of the following
would be BEST to carry with you in this case?
A. A milestone chart.
B. e project network diagram.
C. e project management plan.
D. e recent project status reports from your team members.
5. Which of the following is FALSE concerning an activity’s early
finish and/or late finish?
A. Early �nish represents the earliest possible date an activity could
�nish.
B. Late �nish represents the latest possible date an activity could
�nish without lengthening the critical path.
C. e difference between an activity’s early �nish and late �nish is
the same as the difference between the early start and late start.
D. Early �nish is typically depicted in the node’s lower le quadrant,
and late �nish is depicted in the lower right quadrant.
6. e amount of time that an activity may be delayed without
extending the critical path is:
A. Lag.
B. Grace period.
C. Free factor.
D. Slack.
7. Crashing differs from fast tracking because crashing:
A. Usually decreases value.
B. Usually increases the cost.
C. Usually takes more time.
D. Usually saves more money.
8. If senior management tells you “e last project we did like this
took us 15 months,” what estimating method is being used?
A. Delphi technique.
B. Principle of activity equivalency.
C. Analogous estimating.
D. Bottom-up estimating.
9. You are advising a project manager who is behind schedule on his
project. e sponsor on his project is very unhappy with the way
things have progressed and is threatening to cancel it. e sponsor
has accepted a revised due date from the project manager but did
not allow any increased spending. Which of the following would
represent the BEST advice for the project manager in this case?
A. Fast track the schedule.
B. Request a new sponsor from senior management.
C. Crash the schedule.
D. Talk with the customer to see if budget may be increased without
the sponsor’s involvement.
10. Based on the diagram, which is the correct match?
A. ES = 16, Float = 19.
B. EF = 40, LS = 21.
C. Float = 5, Duration = 19.
D. Float = 5, LF = 40.
11. Which scheduling approach inserts non-working buffer time to be
managed by the project manager?
A. Critical chain method.
B. Critical path method.
C. Resource leveling.
D. Schedule modeling.
12. What is the BEST tool to use to calculate the critical path on a
project?
A. Work breakdown structure.
B. GERT diagram.
C. Gantt chart.
D. Project network diagram.
13. Consider the table at right: What is the critical path?
A. Start-A-E-H-Finish.
B. Start-C-E-H-Finish.
C. Start-B-D-I-Finish.
D. Start-B-D-G-Finish.
Activity Duration Dependent on
Start 0
A 3 Start
B 4 Start
C 2 Start
D 2 B
E 5 A, C
F 1 B
G 6 D, F
H 11 E
I 8 D, F
Finish 0 G, H, I
14. e project sponsor is concerned with missing a window of
opportunity in delivering the agile project to the customer. What is
the highest concern to the team in compressing the schedule/release
plan/roadmap?
A. How to negotiate features out of the roadmap to make deadlines
more realistic.
B. How to deliver value faster by improving the team velocity.
C. How to rede�ne the effort associated with story points to
compress more points into an iteration.
D. How to work at a sustainable pace and avoid burnout from an
aggressive burnup chart.
15. e team facilitator is helping the team estimate the effort of each of
the stories being considered on the large product backlog. What
tactic and technique would serve the purpose best?
A. Colocate the team and discuss each story, how it would be
performed, and what resources would be needed. Assign a
Fibonacci value to each.
B. Use story cards to fully describe who would bene�t and how the
bene�t is realized from implementation of each feature.
C. Employ relative sizing using planning poker cards.
D. Use a triangulation technique to determine which story �ts
between other stories in ranking the required effort of each story.
16. An activity has a duration estimate that is best case = 30 days, most
likely = 44 days, and worst case = 62 days. What is the weighted
three-point estimate for this activity?
A. 44.67 days
B. 34.67 days
C. 45.33 days
D. 59.33 days
17. e project sponsor approaches you as the team facilitator to
understand when the project is expected to be complete. What is
the basis of your best response?
A. e release plan.
B. e project schedule.
C. e schedule baseline.
D. e team velocity.
18. Which of the following choices best fits the description of a project
manager applying the technique of what-if scenario analysis?
A. Using project management soware to build three versions of the
project schedule.
B. Using Monte Carlo analysis to identify what would happen if
schedule delays occurred.
C. Using critical path method to analyze what would happen if the
critical path actually occurred.
D. Discussing with the functional managers what they would do if
certain project team members quit the project early.
19. How do the activity list and activity attributes relate to each other?
A. e activity list focuses on schedule activities, while the activity
attributes apply to WBS activities.
B. e activity attributes are created prior to the activity list.
C. e activity list may be substituted for the activity attributes in
most processes.
D. Activity attributes provide additional information for each activity
on the activity list.
20. You are discussing the schedule with members of your team when
one of them describes a group of activities that can start at any time
but must finish in a specific order. You decide to investigate this
further. What would be the best way to recognize these activities?
A. Look for a Gantt chart with a group of activities that have
staggered or stair-stepped �nish dates.
B. Look for a group of activities with a start-to-�nish relationship.
C. Look for a group of activities with a �nish-to-�nish relationship.
D. Look for this information on the activity attributes.
21. Which of the following is the BEST description of the critical path?
A. e activities that represent critical functionality.
B. e activities that represent the largest portions of the work
packages.
C. e activities that represent the highest schedule risk on the
project.
D. e activities that represent the optimal path through the
network.
22. If an agile team underestimates the effort required by a story in the
backlog, the expected result is:
A. e team’s velocity will show an improvement during that story’s
iteration(s).
B. e release plan burnup chart will have a steeper climb due to that
story’s iteration(s).
C. e iteration(s) containing that story will not complete all points
within the burndown chart(s).
D. e actual progress plotted on the burndown chart will tend to
stay below the planned line.
23. If schedule activities are not properly decomposed, which of the
following would NOT be an expected outcome?
A. e team encounters difficulty estimating cost and time.
B. e team encounters difficulty in building the schedule.
C. e team encounters difficulty in calculating earned value.
D. e team encounters difficulty in creating the responsibility
assignment matrix.
24. Your project schedule has just been developed, approved, and
distributed to the stakeholders and presented to senior
management when one of the resources assigned to an activity
approaches you and tells you that her activity cannot be performed
within the allotted time due to several necessary pieces that were
overlooked during planning. Her revised estimate would change the
schedule but would not affect the critical path. What would be the
BEST way for the project manager to handle this situation?
A. Adhere to the published schedule and allow for any deviation by
using schedule reserve.
B. Go back to Estimate Activity Durations and update the schedule
and other plans to re�ect the new estimate.
C. Use an independent party to validate her claim.
D. Replace the resource with someone who says they can meet the
published schedule.
25. Jan is working with the project team to produce an estimate for a
particular activity. ey have gathered expert opinions and have
determined that the optimistic estimate is 4.5 days, and the
pessimistic estimate is 13 days. e most likely estimate is 7
working days. Given the team’s preference for triangular
distribution, what estimate should they use?
A. 7 days.
B. 7.6 days.
C. 8.2 days.
D. 11 days.
SCHEDULE MANAGEMENT
ANSWERS
1. D. e previous activity list would make an excellent tool to help you
ensure that you are considering all activities. Any historical
information such as this is thought of as an organizational process
asset. ‘A’ is incorrect because you cannot simply substitute something
as intricate as a complete activity list. ‘B’ is incorrect because the other
activity list would provide a good starting point and should be
considered before you create your activity list. ‘C’ (gap analysis) is a
tool that is used in the real world that is not de�ned by PMI, nor is it
used in activity list de�nition.
2. C. e schedule management plan, discussed in chapter 4, is part of
the project plan. is is the best source of information on how changes
to the schedule are to be handled. ‘A’ is incorrect because the project
office’s job is to de�ne standards – not to make decisions on tactical
items such as this. ‘B’ may sound like a real plan, but there is no such
thing. Answer ‘D’ would be the worst choice. e customer is not
always right when it comes to requesting changes. Procedures should
be de�ned and followed in order to improve the project’s chances of
success.
3. D. Since we are creating activity duration estimates, we are performing
the process of Estimate Activity Durations. Answers ‘A’, ‘B’, and ‘C’ are
all tools used in Estimate Activity Durations, but ‘D’ is a made up
term.
4. A. Milestone charts show the high level status, which would be
appropriate given the audience and time allocated for this update.
5. D. e early �nish is typically depicted in a node’s upper right
quadrant, while the late �nish is in the lower right. ‘A’ was not a good
choice because that accurately de�nes the early �nish, given the
activity’s estimated duration. ‘B’ is not correct because that is the
de�nition of the late �nish. ‘C’ is not a good choice, because the �oat
(or slack) determines the gap between early �nish and late �nish and
between the early start and late start. Since the �oat is the same, the
difference between those dates should also be the same.
6. D. e slack (or �oat) is the amount of time an activity may be delayed
without affecting the critical path.
7. B. Crashing adds more resources to an activity. is usually increases
the cost due to the law of diminishing returns which predicts that 10
people usually cannot complete an activity in half the time that 5
people can. e savings from crashing are rarely linear. ‘A’ is incorrect
because crashing does not directly affect the project’s value. ‘C’ is
incorrect because crashing may or may not require more time than
fast tracking – depending on the situation. ‘D’ is incorrect because
crashing usually costs more money than fast tracking.
8. C. In this example management is providing you with analogous
estimates. ese estimates use actual durations from previous projects
(historical information or organizational process assets) to produce
estimates for a similar project.
9. A. In this case, you must compress the schedule without increasing the
costs. Fast tracking does not directly add cost to the project and is the
best choice in this case. ‘B’ is incorrect. e sponsor is paying for the
project. Do this, and your sponsor will probably be asking for a new
project manager instead. ‘C’ is incorrect because crashing usually adds
cost to the project, and that is not allowed in this scenario. ‘D’ is
incorrect because the sponsor authorizes budget. Doing an end-run
around the sponsor and going to the customer would be very
inappropriate.
10. D. In order to answer this question, you’ll need to calculate the
duration, the �oat, and the late �nish. e early �nish is given to us as
35 (eliminating ‘B’ as a potential correct answer). To calculate the
duration, subtract the early start (top le) from the early �nish (top
right) and add one. is works out to 35 – 16 + 1 = 20, eliminating ‘C’
as a possible answer. To calculate the �oat, subtract the early start from
the late start. is is 21 – 16 = 5. Now we can also eliminate ‘A’ as a
possibility, so we actually have enough information to guess ‘D’ as the
correct answer. To con�rm it, we need to calculate the late �nish (LF).
Late Finish = Late Start + duration – 1, or LF = 21 + 20 - 1 = 40.
11. A. e critical chain method provides a buffer to be used by the project
manager to protect the critical path. Typically, the team is not aware of
this buffer.
12. D. e project network diagram shows duration and dependencies
which would help you calculate the critical path. ‘A’ is incorrect
because the WBS does not show durations or activity dependencies. ‘B’
is incorrect because GERT is most helpful for showing conditions and
branches. ‘C’ is incorrect because a Gantt chart is very useful for
showing percentage complete on activities but is not the best tool for
showing activity dependencies or calculating the critical path.
13. A. e critical path is determined in 3 steps. e �rst step is to draw
out the project network diagram. Yours should look similar to the one
depicted as follows (note that activities B and C were moved to make
the diagram neater – don’t worry if your diagram does not look this
neat):
e next step is to list out all of the paths through the network. e six
paths are:
Start-A-E-H-Finish
Start-C-E-H-Finish
Start-B-F-I-Finish
Start-B-F-G-Finish
Start-B-D-I-Finish
Start-B-D-G-Finish
e last step is to add up all of the values associated with each path as is
done below:
Start-A-E-H-Finish = 0+3+5+11+0 = 19
Start-C-E-H-Finish = 0+2+5+11+0 = 18
Start-B-F-I-Finish = 0+4+1+8+0 = 13
Start-B-F-G-Finish = 0+4+1+6+0 = 11
Start-B-D-I-Finish = 0+4+2+8+0 = 14
Start-B-D-G-Finish = 0+4+2+6+0 = 12
e critical path emerges as Start-A-E-H-Finish because the path adds
up to 19, which is longer than any of the other paths. If any of the
activities in this path are delayed, the �nish of the project will be
delayed.
14. B. ough agile teams strive for a sustainable pace, they also attempt to
increase how quickly they can deliver value to the customer. Iteration
retrospectives and adaptive processes allow the team to become more
efficient and effective, resulting in increased velocity - or delivery of
points within an iteration.
15. C. ‘B’ is incorrect; it describes how to de�ne a story. ‘D’ is a partial
technique, but not as complete or as fast an approach as Planning
Poker. ‘A’ would be labor-intensive and slow, and have no better result
that ‘C.’ Agile does not need extensive, detailed planning, but rather
estimating relative sizes of effort is sufficent.
16. A. e formula for a weighted three-point estimate is (Pessimistic + 4
× Realistic + Optimistic ) ÷ 6. In this example, the terms were
switched around slightly, but it equates to (62 + 4 × 44 + 30) ÷ 6 = 268
÷ 6 = 44.67.
17. A. ough ‘D’ comes into play, the bigger picture and application of
velocity involves the release plan, showing which iteration releases
which features. e release plan shows how many iterations are
expected to deliver the current backlog. An agile project has no
schedule baseline or project schedule per se.
18. B. What-if analysis can take on many forms, but the form you are most
likely to see on the exam is Monte Carlo analysis, which throws a large
number of scenarios at the schedule to see what would happen if one
or more scenarios occurred.
19. D. e activity attributes simply expand on the information for each
activity. ‘A’ is incorrect since the activity attributes tie back to the
activity list and not the WBS. ‘B’ is incorrect since the activity
attributes may be created at the same time or aer the activity list, but
not before. ‘C’ is incorrect since the activity attributes may never be
substituted for the activity list. Instead the activity attributes
accompany the activity list, providing additional information on each
activity.
20. C. is scenario describes tasks that have �nish dates linked in �nish-
to-�nish order.
21. C. is one may have been difficult for you, because it is a non-
traditional de�nition of the critical path. e critical path is the series
of activities, which if delayed, will delay the project. is makes these
activities the highest schedule risk on the project. ‘A’ is incorrect
because the critical path has no relationship with functionality. ‘B’ is
incorrect because the size of the work packages does not directly
correlate to the critical path. ‘D’ is incorrect because the critical path
does not represent the optimal path through the network.
22. C. ough the team might pull it off, most likely the burndown chart
will not reach zero for that story’s iteration(s). Eachof the other answer
choices are opposite to the expected effect of underestimating effort.
23. D. is is a problem many project managers have faced. As you answer
this question, keep in mind that WBS nodes are decomposed into
work packages �rst. en schedule activities are decomposed from the
work packages. ‘A’, ‘B’, and ‘C’ all relate to problems you would have if
the schedule activities are not properly decomposed, but ‘D’ is related
to the work packages, and you are not given anything in the question
that suggests there is a problem with the way they were decomposed.
24. B. Changes happen. Some of them are submitted as change requests,
and some of them come out of nowhere. In this case, you would want
to return to planning and update the plans. e project will not be
delayed, and the resource has given a good reason why the dates need
to be revisited (a common occurrence in the real world). ‘A’ is
incorrect, because the plan should re�ect reality – not an unrealistic
estimate. ‘C’ is incorrect, because you cannot possibly get an outside
opinion every time a resource needs to change a date. ‘D’ is incorrect,
because the resource gave a good reason for the adjustment. It was not
that she was lacking in training or ability, but that pieces were le out
of planning. erefore, ‘B’ represents the all-around best answer.
25. C. Triangular distribution for these purposes is really nothing more
than a simple average, which is (4.5 + 13 + 7) ÷ 3 = 8.16 (rounded to
8.2). ‘A’ was a trap for someone who simply saw the most likely
estimate of 7 days and wanted to avoid doing any math. ‘B’ worked out
for beta distribution (P + 4R + O) ÷ 6, but that was not what was asked
here. ‘D’ was a random number.
e topic of cost management, like schedule management, has formulas that
you will need to master. is chapter will explain these formulas clearly and
provide methods and exercises for quick retention. You will need to
memorize some of these formulas, but understanding them is just as
important.
e reality is, if you enjoy math, you will probably like this chapter. But if
math is not your strong suit, take the time to work through these problems
anyway. Do not give in to the temptation to skip the formulas. e majority
of people who do not pass the exam fall short by a small handful of
questions, so take the attitude that every single question counts.
Most of the principles and techniques explained here, such as earned value,
come from well-established practices in the �elds of cost accounting,
managerial accounting, and �nance.
From the indicators on this page, you can tell that most people �nd this
chapter to be one of the more difficult ones. In order to help you prepare for
this topic, this book has clearly broken down the practices and outlined the
techniques and formulas needed to ace the questions on the exam.
It is also essential that you know the main outputs that are produced during
each of the four processes. e different tasks that are performed in each
process are summarized in the following chart:
PHILOSOPHY:
is knowledge area looks at the costs of the human and physical resources
and when those costs will be incurred. While the actual tools and techniques
behind cost management may be different from schedule management, the
driving philosophy has many similarities. Favor a detail-oriented approach.
All costs should be planned and carefully tracked. e project manager
should tie costs to activities and resources and build the estimates from the
bottom up.
If you are trying to build a budget, it can seem a little counter intuitive that
the overall budget total is usually determined prior to knowing costs, but
this is reality. e reason is that many companies use �scal year planning
cycles that must be completed far in advance of their project planning. at
is why the budget total may be determined before the project is really
understood. Budgetary constraints are a fact of life, but instead of blindly
accepting whatever budget the organization comes up with, the project
manager should carefully review the scope of work and the duration
estimates and then reconcile them to the scope and projected costs.
Adjustments to the project scope, the budget, or the schedule are much
easier to justify by working up from a detailed level instead of from the top
down. Although summary budgets are oen the �rst thing created in the
real world, when it comes to detailed planning, the overall approach
advocated here is scope �rst, schedule second, and budget third.
roughout this book, you will see that estimates should be built from the
bottom up. At the point in the process where budgets are created, you
should have a well-de�ned work breakdown structure, an activity list with
resource and duration estimates for each activity, and a schedule.
e budget is then constructed by applying rates and dates against those
resources and activities to create activity cost estimates and a cost baseline,
as prescribed in the cost management plan.
It is the project manager’s job to constantly monitor and control costs
against schedule, scope, quality, and risk to ensure that all projections
remain realistic and clearly de�ned.
IMPORTANCE:
e topic of cost management is very important. You will want to have a
solid understanding of the four processes presented in this chapter and be
able to apply the key formulas as well.
PREPARATION:
Learning the key formulas for Cost Management is a must. Learning to
apply them is equally as important. e good news is that the formulas are
not overly difficult, and there are plenty of explanations and examples in this
book to help cement the concepts.
Memorization is important; however, understanding the formulas is more
important. Once you grasp the formulas and concepts, the memorization
will be a snap. In fact, some people studying for the exam only memorize the
concepts and reconstruct the formulas as needed. is is possible because
each formula has a purpose, so read and reread this chapter until it is clear
to you.
Process Group Cost Management Process
Initiating (none)
Planning Plan Cost Management, Estimate Costs, Determine
Budget
Executing (none)
Monitoring & controlling Control Costs
Closing (none)
Process Primary Outputs
Plan Cost Management Cost Management Plan
Estimate Costs Cost Estimates
Determine Budget Cost Baseline, Project Funding Requirements
Control Costs Work Performance Information, Cost Forecasts
IMPORTANT CONCEPTS
Before you begin to explore the four processes that make up this knowledge
area, take a moment to familiarize yourself with the following two important
terms. While these do not �t within any particular process, the concepts
underpin this chapter.
Life-Cycle Costing - Instead of simply asking “how much will this product
cost to develop?”, life-cycle costing looks at the total cost of ownership from
purchase or creation, through operations, and �nally to disposal. It is a
practice that encourages making decisions based on the bigger picture of
ownership costs.
For instance, it may be less expensive for the project to use generic computer
servers to develop a soware product; however, if the organization will have
to maintain those servers, and if that organization has expertise and existing
service contracts with IBM, then the project may be making a shortsighted
decision that will have adverse effects downstream.
Value Engineering - Value engineering is the practice of trying to get more
out of the project in every possible way. It is a way of working to increase the
bottom line, decrease costs, improve quality, shorten the schedule, and
generally squeeze more bene�t and value out of each aspect of the project.
e key to value engineering is that the scope of work is not reduced by
these other efforts.
PLANNING
PLAN COST MANAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 235
WHAT IT IS:
is process follows the same pattern as the Plan Scope Management and
Plan Schedule Management processes. It is the process that creates the plan
that will guide and direct the activities in the other three cost management
processes.
WHY IT IS IMPORTANT:
is process gives guidance to the other cost management processes, and
cost is an important area, both in actual projects and on the exam.
WHEN IT IS PERFORMED:
e general rule (and one that will help you on the exam) is that scope
activities are performed �rst, schedule activities second, and cost and budget
activities third, but as is true with most rules, there are exceptions to this
one. e exception is that overall budgets or budgetary constraints may be
determined before the project is initiated, so while the cost details will not
be understood until aer the scope has been planned and resources have
been assigned and activity durations have been determined, the high-level
constraints and perhaps even the funding schedules will oen be speci�ed in
the project charter.
HOW IT WORKS:
Plan Cost Management is a relatively streamlined process with a few
common inputs and tools and a single, important output.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 4, Develop Project Charter
Project Management Plan — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Cost Management Plan - e cost management plan is the only
signi�cant part of this process. It is the plan that describes how the processes
of Estimate Costs, Determine Budget, and Control Costs will be carried out.
e cost management plan will ultimately become an important component
of the project management plan.
e cost management plan also speci�es things like units of measure
(dollars, pesos, or yen), levels of precision (we are going to report costs to
the nearest thousand dollars), and levels of accuracy (we are targeting to
have estimates fall within +/- 8% of actual costs). It will specify approval
thresholds, how those approvals are carried out, and it will de�ne how cost
performance is to be measured.
PLANNING
ESTIMATE COSTS
6th Edition PMBOK ® Guide Cross Ref. pg 240
WHAT IT IS:
Most of the processes in this book are intuitively named, making it that
much easier to understand them. Estimate Costs is a good example of that.
Its name indicates exactly what it does.
In Estimate Costs, each schedule activity is analyzed to evaluate the activity
time estimates and the resource estimates associated with them, and a cost
estimate is produced.
WHY IT IS IMPORTANT:
If you’ve heard the old saying that “the devil is in the details,” then you know
why Estimate Costs is important. In this process, you gain a detailed
understanding of the costs involved in performing a project.
WHEN IT IS PERFORMED:
Estimate Costs, like many other processes, may be conducted over and again
throughout the project; however, there are a few essential predecessor
processes that must be completed before it can be performed adequately.
Costs are estimated against schedule activities, so the project’s schedule has
to be created �rst.
e order of certain processes from De�ne Scope to Estimate Costs
HOW IT WORKS:
Cost estimates, prepared for each activity, are categorized in terms of their
accuracy. In other words, how much leeway are you giving yourself with
your estimating?
When it comes to estimates that result from this process, there are many
options. Consider the table that follows:
Estimate Type Range
Rough Order of Magnitude Estimate -25% to +75%
Preliminary Estimate -20% to +30%
De�nitive Estimate -5% to +10%
Which of these different types of estimating approaches are used, depends
on how much of the project is understood at this point. For instance, during
the initiation of a project where very little has been de�ned, a rough order of
magnitude estimate may suffice, while later in the project, a de�nitive
estimate may be in order. Typically, the more you understand about an
activity and the closer in time you get to actually spending money for it, the
more precise you want that activity’s estimate to be.
HOW IT WORKS / INPUTS:
Project Management Plan - By this time, it should be a familiar pattern that
a management plan is created at the beginning of a knowledge area, and that
management plan guides the other processes in that knowledge area. In this
case, the cost management plan, the quality management plan, and the
scope baseline are the three important components that will guide the
process of Estimate Costs. e cost management plan speci�es how costs
estimates will be derived and how accurate and precise they are expected to
be.
e scope baseline, created earlier in Create WBS, ties each element of the
scope back to the underlying need it was designed to address. Also, the
project scope statement provides information on constraints and
assumptions related to the scope, and these can dramatically affect the cost
estimates.
Project Documents
ere are four key documents brought into this process.
Lessons Learned Register – is is a common sense input to an
estimating process.
Project Schedule – Cost estimates are largely a function of the activity’s
duration and the resources required. e schedule contains all of the
activities, and costs are estimated at a schedule activity level, but there
may be additional ways in which the schedule can affect the cost
estimates. For example, certain types of seasonal materials or labor may
be more expensive at some times than others, and the schedule can help
the project team anticipate that impact.
Resource Requirements – is document identi�es the types and
quantities of resources needed to get the work done.
Risk Register – e risk register may have speci�c information on
identi�ed risks related to costs. Any such information should be factored
in to this estimating process.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tool
Analogous Estimating - e tool of analogous estimating uses the
actual results of projects that have been performed by your organization as
the estimates for your activities. Analogous estimates are typically easier to
use, and their accuracy depends on how similar the two projects actually
are.
Parametric Estimating - Parametric estimating is a tool oen used on
projects that have access to good historical information, and it works best
for linear, scalable projects. For instance, if you knew that it cost $9,000,000
to build a mile of roadway, then you could estimate that it would cost
$72,000,000 to build 8 miles of road.
Bottom-Up Estimating - e technique of bottom-up estimating
produces a separate estimate for each schedule activity. ese individual
estimates are then aggregated up to summary nodes on the WBS.
Bottom-up estimating is considered to be highly accurate; however, it can
also be time-consuming and labor-intensive.
ree-Point Estimating — See Ch. 6, Estimate Activity Durations, Tools
page 234. e same math and principles apply here for beta and triangular
distributions.
Data Analysis
Alternatives Analysis - e reality of hard costs frequently motivates
teams to investigate other ways of accomplishing a goal or completing an
activity. is involves reviewing options for changing scope, schedule,
size, quantities, or other creative ways to bring costs in line with the
goals of the project.
Reserve Analysis - It is normal for the cost estimates to include reserve
amounts, also called contingencies. is is simply a buffer against
slippage on the project.
e reserve amounts should be analyzed as part of the Estimate Costs
process simply to ensure that the amount of reserve being planned
properly re�ects the risk associated with the project.
Cost of Quality - e technique of evaluating the cost of quality, oen
abbreviated as COQ, looks at all of the costs that will be realized in order
to achieve quality. is tool is also used in the Plan Quality Management
process. e costs of items that are not conformant to quality standards
are known as cost of poor quality, oen abbreviated as CoPQ.
Project Management Information System — See Ch. 2, Common Tools
Decision Making — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Cost Estimates - e cost estimates are the primary output of this
process. ese estimates address how much it would cost to complete each
schedule activity on the project along with a contingency or reserve amount.
Cost estimates might include things like labor, materials, taxes and fees,
direct, and indirect costs. Even things like currency exchange rates and
in�ation would be included here. e basic rule is if there is a cost
anticipated to complete something, it should be re�ected right here.
Basis of Estimates - Embrace the mind-set that you can never have too
much supporting detail. Here, especially, it is important to include enough
information on how you derived the activity cost estimates.
Project Documents Updates - As the activity cost estimates are created, it is
normal for the assumptions log, the lessons learned register, and the risk
register to be updated.
PLANNING
DETERMINE BUDGET
6th Edition PMBOK ® Guide Cross Ref. pg 248
WHAT IT IS:
In order to understand this process, you need to understand what a budget
is. A budget takes the estimated project expenditures and maps them back to
dates on the calendar. In other words, the Determine Budget process time-
phases the cost estimates so that the performing organization will know how
to plan for cash �ow and likely expenditures.
WHY IT IS IMPORTANT:
A good budget will help the organization plan its expenditures appropriately
and will prevent them from tying up too much money throughout the life of
the project. For example, a construction project may have relatively low
costs early on, but these costs usually rise dramatically in the construction
phase. e cost baseline will re�ect this, helping the organization to plan
accordingly.
Although a high-level budget, similar to a cost constraint, may be provided
by the organization when the project is created, a detailed budget shows
costs and timelines for each work package or schedule activity.
WHEN IT IS PERFORMED:
A lot has to take place before you can carry out this process. Because the
budget typically maps back to the schedule activities, it should be performed
aer De�ne Activities, Estimate Activity Durations, and Estimate Activity
Resources have been performed. Additionally, because the budget is time-
phased, it should be performed aer Develop Schedule since that is where
the project’s time line is determined, also since it is based on the activity cost
estimates, it should be performed aer the process of Estimate Costs.
A diagram showing the order of Cost Management’s planning processes and the integration
with Schedule Management
HOW IT WORKS / INPUTS:
Project Management Plan
Cost Management Plan - e cost management plan speci�es how the
budget will be created, as well as the role the budget will play in the
management of the project.
Resource Management Plan - e resource management plan will have
information about labor rates, material costs, and other information that
will be used to create the cost baseline.
Scope Baseline - e scope baseline contains the project scope
statement, the WBS, and the WBS dictionary. All of these will give us the
information on why the scope was set where it was, what its limits are,
and what other scope-related constraints exist. For instance, certain
elements of scope may be non-negotiable since they are required by
contract, while other requirements may be easily changed. As the
project’s budget is being created, the scope should be carefully
considered.
Also, the budget is not only mapped back to the schedule (that is, time-
phased), but costs are also tied back to nodes on the work breakdown
structure, and the WBS dictionary will provide expanded attributes,
information, and details on each of the work packages.
Project Documents
Basis of Estimates - e basis for estimates describes how you derived
the cost estimates you are using here.
Cost Estimates - e activity cost estimates are a primary input into
this process. ey provide details on what each schedule activity is
estimated to cost. Because every schedule activity maps back to a single
work package, these activity cost estimates are added together to get the
cost for their parent work package.
Project Schedule - e cost baseline is time-phased, meaning that it
shows what costs will be incurred and when they will be incurred. e
schedule helps tie these costs back to periods of time for planning
purposes.
Risk Register - e risk register contains all of the identi�ed risks on the
project. ese risks need to be carefully considered as the budget and
funding requirements are developed.
Business Documents
Business Case - How much you spend on an activity or a resource may
be in�uenced by how important it is. e business case gives you an idea
of why the project is being undertaken, which can give you an idea as to
whether this particular activity gets premium resources or may be
performed at a standard level.
Benefits Management Plan - is plan will indicate when, how, and the
expected size of bene�ts to be realized by the project, and this
information can in�uence when project expenditures are made.
Agreements - Agreements and contracts may provide information on
what costs the project is contractually obliged to incur as well as when. For
instance, the contract may specify that only one speci�c brand of computer
server may be used in a data center or that the project is obligated to use at
least �ve of these servers and that they must be procured in the current �scal
year. Any contractual information that affects the cost or expenditures
should be factored into the Determine Budget process.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment - is is, perhaps, the most important tool used in the
Determine Budget process. Good estimates (whether they are for cost, time,
or another resource) should almost always have some expert judgment
applied. In most scenarios, the person doing the work or responsible for the
activity should be consulted for input.
Cost Aggregation - Even though costs are estimated at an activity level,
these cost estimates should be rolled up to the work package level where
they will be measured, managed, and controlled during the project.
Some organizations aggregate costs higher up on the WBS. ese nodes,
above the work packages, are control accounts for tracking performance.
Data Analysis - Data analysis primarily looks at management reserve.
Almost all projects maintain some �nancial reserve to protect them against
cost overrun. How much they keep and how they track it will vary from
project to project. Contingency reserves are risk amounts for activity
overrun, while management reserve is an amount controlled by the project
manager for complete unknowns or similar risks. .
ere is no one prescribed way to perform this data analysis; however, the
contingency amount should be in keeping with the risk levels and tolerances
on the project.
Historical Information Review - Historical information review means
either an analogous or a parametric estimating model based on historical
data. An example of parametric estimating would be basing the cost of the
development of a soware application on the estimated number of lines of
code or screens involved, or basing the cost of an airport runway on its
planned length.
Parametric estimates work best when the project being undertaken is highly
similar to previous projects and there is signi�cant historical information
available within your organization or industry.
Funding Limit Reconciliation - Many companies are required to
budget for projects months or years before the actual scope is known, and a
single project may span several �scal years. Because of that, it is normal for a
project to receive a funding limit or constraint when the project is begun.
It is important for the project to reconcile planned spending with these
funding limits. For instance, the organization may specify that they will only
be able to provide $200,000 in the �rst month of a project, but $450,000 in
the second month. e project’s cost baseline ultimately needs to be
compatible with these limitations.
Financing - Acquiring capital from outside sources may be necessary in
order to meet the funding requirements.
HOW IT WORKS / OUTPUTS:
Cost Baseline - e cost baseline plus management reserve makes up
the project’s budget, and you should expect to see questions related to it on
the exam. is baseline includes cost estimates for all activities along with
contingency reserves. e cost baseline speci�es what costs will be incurred
and when they are anticipated. Larger projects may be divided into multiple
cost baselines. For instance, one cost baseline may track domestic labor
costs, while a second cost baseline is used to track international labor costs.
In traditional projects, the funding forms an S curve, meaning that the costs
start off slowly, accelerate throughout construction phase of the project, and
begin to slow down during testing and closure. When analyzed
cumulatively, these planned expenditures form a characteristic S pattern as
is shown in the following illustration.
S-Curve diagram showing the relationship of cost and time
Project Funding Requirements - e project funding requirements are
made of up the cost baseline plus management reserves. It would be
impractical for most projects to petition management for authorization on
each individual cost, so instead, the project determines funding
requirements using the cost baseline. e funding requirements are almost
always related to the planned expenditures, but they are not identical to
them. For instance, a project may request $20,000 per month throughout the
life of the project, or they may require a larger portion early on in order to
purchase equipment or incur other �xed costs.
Project Documents Updates - Oentimes performing the process of
Determine Budget results in changes to the project’s scope, schedule, risks,
or costs. If any of these changes affect the way in which costs are managed
(or the way change requests to the costs are managed), then the
corresponding plan or document should be updated to re�ect this.
MONITORING & CONTROLLING
CONTROL COSTS
6th Edition PMBOK ® Guide Cross Ref. pg 257
WHAT IT IS:
Control Costs, in many ways, is a classic monitoring and controlling
process. ere are two important things to keep in mind about controlling
processes:
1. ey are proactive. ey do not wait for changes to occur. Instead, they
try to in�uence the factors that lead to change.
2. Controlling processes measure what was executed against what was
planned. If the results of what was executed do not match the cost
baseline, then appropriate steps are taken to bring the two back in line.
is could either mean changing future plans or changing the way the
work is being executed.
Control Costs is concerned with cost variance. In project management, cost
variances are described as either being positive (good) or negative (bad), but
even positive cost variances need to be understood and the plan must be
adjusted. Accurate planning is the goal here.
WHY IS IT IMPORTANT:
Control Costs is an essential process for ensuring that costs are carefully
monitored and controlled. It ensures that the costs stay on track and that
change is detected whenever it occurs.
WHEN IT IS PERFORMED:
Control Costs is not a process that is performed only once. Instead, it is
performed regularly throughout the project, typically beginning as soon as
the project incurs costs. e activities associated with Control Costs are
usually performed with more frequency as project costs increase. For
example, many projects will perform Control Costs monthly during
planning phases and weekly (or even more frequently) during construction
phases, where costs would probably peak.
HOW IT WORKS / INPUTS:
Project Management Plan - e cost baseline is the most important
component of the project management plan used in Control Costs. A
baseline is the original plan plus all approved changes. e cost baseline
(also known as the budget) shows what costs are projected and when they
are projected to occur. e cost baseline is the plan against which the actual
costs are measured. Projects that use earned value refer to the cost baseline
as the performance measurement baseline.
Another important component of the project management plan for this
process is the cost management plan. is plan lays out how costs will be
managed throughout the life of the project.
Project Documents — See Ch. 2, Common Inputs
Project Funding Requirements - e project funding requirements, like
the cost baseline, are part of the plan against which the actual funding is
measured. In this case, positive or negative variances from the planned
funding requirements will be evaluated so that corrective action may be
taken if necessary.
Work Performance Data — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis
Earned Value Analysis - Earned Value, covered in the next section
of this chapter, is a method of measuring actual performance against the
original plan. Earned value measurement can help identify areas where
the project is performing differently than the plan. Earned value
measurement would identify variances (such as Cost Variance) as well as
trends (such as Cost Performance Index) that directly in�uence the
Control Costs process.
Variance Analysis - Project managers do not like variance from the
plan. Positive variance is better than negative variance, but it still re�ects
inaccurate planning. All variances should be analyzed and understood.
Trend Analysis - Trends can alert you to problems before they manifest.
For example, suppose your project is currently within budget but the
past three months have been trending in the wrong direction. It gives
you a way to proactively identify a developing situation.
Reserve Analysis - Reserves are pools of money set aside to keep the
project running smoothly in case a risk event occurs. Periodic analysis is
needed in order to ensure that the project still has the right amount set
aside. It does not serve the performing organization well if there is too
much reserve set aside, and it puts the project at risk if there is too little.
Reserve Analysis is the technique used to evaluate and adjust this as
needed.
TCPI - e concept of the To-Complete Performance Index is an earned
value technique that focuses on the performance needed in order to achieve
your earned value targets. TCPI is covered in more detail in the special focus
section on earned value later in this chapter.
Project Management Information System (PMIS) - Because the
calculations involved in Control Costs (especially the earned value
calculations) can be tedious and complex, project management soware is
typically used to calculate actual values and assist with what if analysis.
HOW IT WORKS / OUTPUTS:
Work Performance Information - Work performance information
shows how the project is performing against the plan. For the process of
Control Costs, the performance measurements of CV, SV, CPI, SPI, TCPI,
and VAC (all covered later in this chapter) are especially helpful, since they
help show variances and trends on how the project is performing.
Cost Forecasts - Budget forecasts are your projections for how much
funding will be needed and when it will be needed from this point forward.
e two values that relate most closely to completion are Estimate At
Completion (EAC) and Estimate To Complete (ETC). ese numbers are
used to help forecast a likely completion for the project. Both EAC and ETC
are covered in more detail later in this chapter.
Change Requests - As Control Costs is performed, requested changes are a
normal output. For instance, if the process of Control Costs showed that the
project was going to cost signi�cantly less or more than the cost baseline,
then certain changes would likely result to bring the project back in line.
ese changes could take the form of reducing the scope, increasing the
budget, or changing factors related to execution.
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON COST
MANAGEMENT
In order to create a detailed, time-phased budget, the scope and schedule
need to be known in detail. On projects that adopt an agile approach,
�exibility and adaptability are favored over long range detailed planning,
and that includes budgeting. is means that agile projects may estimate
costs for the next iteration in detail but would not try to create an
accurate, long-term plan. Some budget estimates could be extrapolated by
calculating the team “burn rate” (the cost of a team per period), but this
would not be detailed or highly precise.
On an agile project where the budget was not �exible, the scope and
schedule would need to be (the triple constraint is a reality on agile and
predictive projects). For example, if an organization was willing to fund
up to $68,000 per month for a project’s development but could not exceed
that amount, it would constrain the size of the team and possibly the
hours they could work. e project team would need to adapt the scope
and schedule to �t that funding constraint.
When performing a predictive project, earned value management (EVM)
is a powerful tool, but it is difficult to apply it to agile. EVM requires more
planning than most agile projects would organically do. In cases where an
organizational policy or a contract requires EVM, it would be necessary
to de�ne scope, schedule, and cost estimates to the point where EVM
analysis and reporting would be possible. In this case, the agile team
would adopt a “barely sufficient” approach to that planning.
Plan Cost Management
e concept of a cost management plan is more applicable than the scope
or schedule management plans are. at is because every project has to
manage costs. Still, most agile projects do not produce a formal cost
management plan. Instead, they manage to a run rate or a burn rate,
which speci�es the amount the team will cost each month, quarter, year,
or other period.
Estimate Costs
Predictive projects estimate costs at an activity level or sometimes at a
work package level. Agile projects generally manage costs at an iteration
level; however, costs could be extrapolated to story points once the team’s
velocity is known.
Determine Budget
is applies more to predictive projects than to agile projects. Agile teams
will be able to get a good idea of how much an iteration costs and roughly
how many iterations are planned for a release; however, the value of
responding to change makes an overall budget unrealistic.
Control Costs
e process of Control Costs uses earned value management (EVM) to
produce forecasts and to make changes where they are needed. As was
mentioned earlier in this section, agile and EVM do not naturally work
well together; however, agile does embrace forecasting and transparency.
All projects have to control costs, and agile projects are constantly
looking for ways to add more value to the project. at could mean
speeding up delivery and performance, or it could mean doing more with
less.
SPECIAL FOCUS: EARNED VALUE
e following section is of key importance
If you are wrestling with your understanding of earned value, think about
the concept of debits and credits. In a double entry accounting system, for
every debit to one account, there is a corresponding credit to another
account. Earned value is similar in that if you spend a dollar on labor for
your project, that dollar doesn’t just evaporate into thin air. You are
“earning” a dollar’s value back into your project. If you buy bricks or
computers, write code or documentation, or perform any work on the
project, those activities earn value for your project.
ere are several key formulas associated with earned value management
that oen appear on the test, and they require both memorization and
understanding. Following is a chart that presents a summary of the key
terms used in earned value calculations.
Note that for Planned Value, Earned Value, and Actual Cost, there are older,
equivalent terms that still show up on the exam. ese older terms and their
associated abbreviations are shown along with the current terms on the
chart on the following page, and you must be able to recognize and apply
either one on the exam.
EVM Example
Consider the following example:
You are the project manager for the construction of 20 miles of sidewalk.
According to your plan, the cost of construction will be $15,000 per mile
and will take 8 weeks to complete.
2 weeks into the project, you have spent $55,000 and completed 4 miles
of sidewalk, and you want to report performance and determine how
much time and cost remain.
Below, we will walk through each calculation to show how we arrive at
the correct answers.
Budget at Completion
In the approach outlined by this book, you always begin by calculating
BAC. Budget at completion simply means, “how much we originally
expected this project to cost.” It is typically very easy to calculate. In our
example, we take 20 miles of sidewalk X $15,000 per mile. at equates
to a BAC of $300,000.
BAC = $300,000
Planned Value
e planned value is how much work was planned for this point in time.
e value is expressed in dollars.
Planned Value = Planned % complete X BAC
We do this by taking the BAC ($300,000) and multiplying it by our %
complete. In this case, we are 2 weeks complete on an 8 week schedule,
which equates to 25%. $300,000 X .25 = $75,000. erefore, we had
planned to spend $75,000 aer two weeks.
PV = $75,000
Earned Value
If you have been intimidated by the concept of earned value, relax.
Earned value is based on the assumption that as you complete work on
the project, you are adding value to the project. erefore, it is simply a
matter of calculating how much value you have “earned” on the project.
Planned value is what was planned, but earned value is what actually
happened.
EV = Actual % Complete X BAC
In this case, we have completed 4 miles of the 20 mile project, which
equates to 20%. We multiply that percentage by the BAC to get EV.
It is $300,000 × 20% = $60,000. is tells us that we have completed
$60,000 worth of work, or more accurately, we have earned $60,000 of
value for the project.
EV = $60,000
Actual Cost
Building on the above illustration, we will calculate our actual costs.
Actual cost is the amount of cost you have incurred at this point, and we
are told in the example that we have spent $55,000 to date. In this
example, no calculation is needed.
AC = Actual Cost
AC = $55,000
Cost Variance
Cost variance (CV) is how much actual costs differ from planned costs.
We derive this by calculating the difference between EV and AC. In this
example, it is EV of $60,000 – AC of $55,000. A positive variance (as in
this case) re�ects that the project is doing better on cost than expected.
For those who are curious, the reason we use EV in this formula instead
of PV is that we are calculating how much the actual costs have varied. If
we used PV, it would give us the variance from our plan, but the cost
variance measures actual cost variance, EV is based on actual
performance, whereas PV is based on planned performance.
A positive CV is a good thing. It indicates that we are doing better on
costs than we had planned. Conversely, a negative CV indicates that
costs are running higher than planned.
CV = EV−AC
CV = $5,000
Schedule Variance
Schedule variance (SV) is how much our schedule differs from our plan.
Where people oen get confused here is that this concept is expressed in
dollars. SV is derived by calculating the difference between EV and PV.
In this example, the schedule variance is EV of $60,000 – PV of $75,000.
A negative variance (as in this case) re�ects that we are not performing
as well as we had hoped in terms of schedule. A positive SV would
indicate that the project is ahead of schedule.
SV = EV−PV
SV = −$15,000
Cost Performance Index
e cost performance index gives us an indicator as to how much we are
getting for every dollar we spend. It is derived by dividing Earned Value
by the Actual Cost. In this example, Earned Value = $60,000, and our
Actual Cost = $55,000. $60,000 ÷ $55,000 = 1.09.
is �gure tells us that we are getting $1.09 worth of performance for
every $1.00 we spent. A CPI of 1 indicates that the project is exactly on
track. A closer look at the formula reveals that values of 1 or greater are
good, and values less than 1 are undesirable.
CPI = EV ÷ AC
CPI = 1.09
Schedule Performance Index
A corollary to the cost performance index is the schedule performance
index, or SPI. e schedule performance index tells us how fast the
project is progressing compared to the project plan. It is calculated by
dividing earned value by the planned value. In this example, earned
value = $60,000, and our planned value = $75,000. $60,000 ÷ $75,000 =
0.8. is tells us that the project is progressing at 80% of the pace that we
expected it to, and when we look at the example, this conclusion makes
sense. We had expected to lay 20 miles of sidewalk in 8 weeks. At that
rate, aer 2 weeks, we should have constructed 5 miles, but instead the
example tells us that we had only constructed 4 miles. at equates to
4÷5 performance, which is 80%. Like the cost performance index, values
of 1 or greater are good, and values that are less than 1 are undesirable.
SPI = EV ÷ PV
SPI = 0.8
A common way for the cost performance and schedule performance
index to be used is to track them over time. is is oen displayed in the
form of a graph, as illustrated below. is graph may be easily
interpreted if you consider that a value of 1 indicates that the index is
exactly on plan.
Estimate At Completion
Estimate at completion is the amount we expect the project to cost when
it is �nished, based on where we are today. ink of it as if you know you
are half way through the project, and you are currently 20% over budget.
en the estimate at completion projects that variance out to the end of
the project. ere are many ways to calculate EAC, but for the exam, the
most straightforward way is to take the BAC and divide it by our CPI. In
this example, we expected to spend (BAC) $300,000 and our CPI is 1.09.
$300,000 ÷ 1.09 = $275,229.36. is should make sense. We are doing
better on costs than we had originally planned, and this value re�ects
that.
EAC = BAC ÷ CPIC
EAC = $275,229.36
Estimate To Complete
Estimate to completion is simply how much more we expect to spend
from this point forward based on what we’ve done so far. It can be easily
backed into by taking our estimate at complete (what we expect to
spend) and subtracting what we have spent so far (Actual Cost). Given
the numbers above, it would be EAC of $275,229.36 - AC of $55,000 =
$220,229.36. is tells us that we expect to spend $220,229.36 more,
given our performance thus far.
ETC = EAC − AC
ETC = $220,229.36
Variance at Completion
Variance at completion is the difference between what we originally
budgeted and what we expect to spend. A positive variance indicates
that we are doing better than projected, and a negative variance indicates
that we expect the project to run over on costs.
In this example, our BAC was $300,000; however, our EAC is now
$275,229.36. $300,000 − $275,229.36 = $24,770.64.
VAC = BAC - EAC
VAC = $24,770.64
Cumulative CPI (CPIC)
Once you understand the concept of earned value, the cumulative cost
performance index (expressed as CPIC) is not as intimidating as it may
�rst look. Recall that the regular CPI is simply EV÷AC, the efficiency
indicator of performance during a given period of time. e CPIC is
simply all of the periodic earned value calculations added together
(EVC) and divided by all of the periodic actual cost calculations added
together (ACC).
Consider a company that took earned value measurements at monthly
intervals for the past three months, as summarized in the table below.
EV AC
Month 1 $22,000 $13,700
Month 2 $151,000 $137,900
Month 3 $107,000 $98,400
e following table, using the same example, conveys the usefulness of
CPI and CPIc.
Given this information, the CPIC would be calculated by adding up all of
the earned value �gures ($280,000) and dividing by the sum of the actual
costs ($250,000). is yields a cumulative CPI of 1.12.
Cost Performance Index (CPI) was calculated by applying the formula
CPI = EV÷AC, which gave us a calculation of the monthly performance.
For the Cumulative Cost Performance Index (CPIC), we applied the
formula CPIC = EVC÷ ACC, which calculates the project’s performance
up to a point in time.
ese values are useful, because the monthly CPI only provided a
snapshot of your earned value performance during a certain period of
time, but the cumulative CPI can show a number that factors in
performance efficiency in all months up to a point in time. e
cumulative CPI has been shown to be a good predictor of performance
at completion, even when used very early in the project.
TCPI (also expressed as TCPIC)
e To-Complete Performance Index is the performance which must be
achieved on all remaining work in order to meet either �nancial or
schedule goals. TCPI can come in two varieties: TCPIC for cost, and
TCPIS for schedule. Since the PMBOK Guide only mentions the cost
version, this book will focus on that index. It is calculated as follows:
TCPIC = (BAC - EV) ÷ Remaining funds. Remaining funds = BAC -
AC if targeting original budget, or EAC - AC if targeting the current
forecast.
As an important note, this breaks the general rule that an index of 1 or
greater is good, and less than one is undesirable. Since this is looking at
the performance the project would need to achieve to end on target, a
lower index is good, since it means that you could underperform and
still meet your target, while an index of greater than one is bad since you
are essentially saying that you would need to overperform against the
plan in order to meet your estimates.
Types of Cost
Several types of questions regarding cost may appear on the exam. It is
important to understand the difference between the different types of
cost presented as follows:
COST TYPE EXPLANATION
Fixed
Costs that stay the same throughout the life of the project. An
example is a piece of heavy equipment, such as renting a
bulldozer.
Variable Costs that may vary on a project. Examples are hourly labor,
and fuel for the bulldozer.
Direct Expenses that are billed directly to the project. An example is
the materials used to construct a building.
Indirect
Costs that are shared and allocated among several or all
projects. An example could be a manager’s salary. e team
might be direct costs on a project, but the manager’s salary is
overhead and would be considered an indirect cost.
Sunk
Costs that have been invested into or expended upon the
project. Sunk costs are like spilt milk. If they are unrecoverable,
they are to be treated as if they are irrelevant! is is difficult
for many people to understand, but the statement “we’ve spent
over 10 million dollars on this project, and we’re not turning
back now” is not good decision-making if the costs are
unrecoverable, or “sunk.”
Opportunity
e cost of the loss of potential bene�t from the alternatives
when a choice is made that excludes those alternatives.
Opportunity cost most oen is associated with project
selection.
EXERCISES
Example 1
You are constructing 6 additional rooms on an office building. Each of the
six rooms is identical, the projected cost for the project is $100,000, and
construction is expected to take 5 weeks.
At the end of the 2nd week, you have spent $17,500 per room and have
�nished 2 rooms; you are ready to begin on the 3rd.
1. Based on the information provided in the example above, fill in the
values for the following table:
VALUE
Budget at Completion
Planned Value
Earned Value
Actual Cost
Cost Variance
Schedule Variance
Cost Performance Index
Schedule Performance Index
Estimate At Completion
Estimate To Complete
Variance At Completion
To-Complete Performance Index (cost)
2. Is the project ahead of or behind schedule?
3. Is the project going to be completed over or under budget?
Example 2
Here is another example to test your understanding of these concepts.
You have planned for a project to write a soware application to take 1 year.
e costs on this project are budgeted at $12,500 per month.
Six months into the project, you �nd that the soware application is 50%
completed, and you have spent $70,000.
4. Based on the information provided, fill in the values for the
following table:
VALUE
Budget at Completion
Planned Value
Earned Value
Actual Cost
Cost Variance
Schedule Variance
Cost Performance Index
Schedule Performance Index
Estimate At Completion
Estimate To Complete
Variance At Completion
To-Complete Performance Index (cost)
5. Is the project ahead of or behind schedule?
6. Is the project going to be completed over or under budget?
7. For each column, circle the one cell that shows the most desirable
value in that column. (Note that some of these attributes are covered
in Chapter 4 - Integration Management)
8. Project X was expected to take four months and cost $70,000 per
month. At the end of month one, the project was 20% complete, and
had spent $89,000. At the end of month two, it was 40% complete
and had spent $151,000. What is the cumulative CPI for Project X
at the end of month two?
ANSWERS TO EXERCISES
Your answers should look like these:
VALUE
Budget at Completion $ 100,000
Planned Value $ 40,000.00
Earned Value $ 33,333.33
Actual Cost $ 35,000.00
Cost Variance - $ 1,666.67
Schedule Variance - $ 6,666.67
Cost Performance Index 0.95
Schedule Performance Index 0.83
Estimate At Completion $ 70,263.15
Estimate To Complete $ 105,263.15
Variance At Completion - $5,263.15
To-Complete Performance Index (cost) 1.03
BAC = $100,000.00
PV = 2 weeks ÷ 5 weeks = 40% complete X 100,000 = $40,000
EV = 2 rooms ÷ 6 rooms = 33.3% complete X 100,000 = $33,333.33
AC = $17,500 per room X 2 rooms = $35,000
CV = (EV) $33,333.33 – (AC) $35,000.00 = -$1,666.67
SV = (EV) $33,333.33 – (PV) $40,000.00 = -$6,666.67
CPI = (EV) $33,333.33 ÷ (AC) $35,000.00 = 0.95
SPI = (EV) $33,333.33 ÷ (PV) $40,000.00 = 0.83
EAC = (BAC) $100,000.00 ÷ (CPI) 0.95 = $105,263.15
ETC = (EAC) $105,263.15 – (AC) $35,000.00 = $70,263.15
VAC = (BAC) $100,000.00 – (EAC) $105,263.15 = −$5,263.15
TCPIc = ( (BAC) $100,000.00 – (EV) $33,333.33 ) ÷ ((BAC)
$100,000.00 – (AC) $35,000) = 1.03
1. Is the project ahead of or behind schedule?
e project is behind schedule. e easiest way to determine this is by
looking at the SPI. Since it is less than 1, we can determine that the
project is not doing well in terms of the schedule.
2. Is the project going to be completed over or under budget?
ere are two ways to see that the project is going to run over budget.
First, the CPI is less than 1. Second, the VAC is negative.
3. Check your answers against the values in the following table:
VALUE
Budget at Completion $ 150,000
Planned Value $ 75,000.00
Earned Value $ 75,000.00
Actual Cost $ 70,000.00
Cost Variance $ 5,000.00
Schedule Variance $ 0
Cost Performance Index 1.07
Schedule Performance Index 1
Estimate At Completion $ 140,186.91
Estimate To Complete $ 70,186.91
Variance At Completion $ 9,813.09
To-Complete Performance Index (cost) 0.94
BAC = $150,000.00
PV = 6 months ÷ 12 months = 50% complete X 150,000 = $75,000
EV = Project is 50% complete X 150,000.00 = $75,000.00
AC = $70,000 .00
CV = (EV) $75,000.00 – (AC) $70,000.00 = $5,000.00
SV = (EV) $75,000.00 – (PV) $75,000.00 = $0
CPI = (EV) $75,000.00 ÷ (AC) $70,000.00 = 1.07
SPI = (EV) $75,000.00 ÷ (PV) $75,000.00 = 1
EAC = (BAC) $150,000.00 ÷ (CPI) 1.07 = $140,186.91
ETC = (EAC) $140,186.91 – (AC) $70,000.00 = $70,186.91
VAC = (BAC) $150,000.00 – (EAC) $140,186.91 = $9,813.09
TCPIc = ( (BAC) $150,000.00 – (EV) $75,000 ) ÷ (BAC) $150,000 –
(AC) $70,000) = 0.94
4. Is the project ahead of or behind schedule?
is would be classi�ed as a “trick” question, as neither answer is
correct. Since the SPI is 1, we can see that the project is exactly on
schedule.
5. Is the project going to be completed over or under budget?
e project is projected to �nish ahead of (under) budget, due to the
cost performance index being greater than 1.
6. e most desirable project attributes for each column are shaded in the
chart below. Note that some of these formulas came from Chapter 4,
Integration Management. If you found the TCPIc answer confusing,
remember that TCPI breaks the index rule where the larger number is
usually more desirable. TCPI looks forward, so with a TCPIc of .5, we
are saying that the project could spend at twice the projected rate from
this point until the end and still end on budget.
Did you notice that for most of these measurements, the bigger value is
the best one? at is true for all except for the payback period, where
you want the shortest time to recoup project costs, and for TCPIc
where smaller numbers are better.
7. If you got this one, give yourself a big pat on the back! In order to
answer it, you �rst had to calculate the earned value for months one
and two.
Month 1 EV = 0.2 × $280,000 = $56,000
Month 2 EV = 0.2 × $280,000 = $56,000
Month 2 AC = $151,000
Aer getting these values, the CPIC is a snap. It is simply the sum of
the earned value numbers divided by the sum of the actual costs. Since
you already know the sum of the actual costs is $151,000, all you have
to do is add the earned values together and divide. is yields $112,000
÷ $151,000 = a cumulative CPI (CPIc) of 0.74.
COST MANAGEMENT
QUESTIONS
Note: Some of these questions are based on material covered in previous
chapters as well as this chapter.
1. Your schedule projected that you would reach 50% completion
today on a road construction project that is paving 32 miles of new
highway. Every 4 miles is scheduled to cost $5,000,000. Today, in
your status meeting, you announced that you had completed 20
miles of the highway at a cost of $18,000,000. What is your Planned
Value?
A. $12,800,000.
B. $18,000,000.
C. $20,000,000.
D. $40,000,000.
2. If the CPI is 0.1, this indicates:
A. e project is performing extremely poorly on cost.
B. e project is costing 10% over what was expected.
C. e project is only costing 90% of what was expected.
D. e project is performing extremely well on cost.
3. Your agile project sponsor is checking in with the team facilitator
asking about the expected spend for the remainder of the project.
How would you best formulate your response?
A. Reply with, “is is an agile project! If you have to ask the cost,
you can’t afford it.”
B. Use the release plan to estimate the remaining iterations and apply
the burn rate to determine Estimate To Complete.
C. Make a top-down estimate based on a similar project that was
managed in the traditional predictive approach.
D. Use the burnup chart to determine how many points remain in
the backlog. Report the value of these points as the Estimate To
Complete.
4. Based on the following Benefit Cost Ratios, which project would be
the best one to select?
A. BCR = −1.
B. BCR = 0.
C. BCR = 1.
D. BCR = 2.
5. e difference between present value and net present value is:
A. Present value is expressed as an interest rate, while net present
value is expressed as a dollar �gure.
B. Present value is a measure of the actual present value, while net
present value measures expected present value.
C. Present value does not factor in costs.
D. Present value is more accurate.
6. Kayla is reviewing the budget and spending to ensure that she has
enough money to pay vendors for the next projected phase. e
CFO of the company has provided extra funds to allow for
contingencies, but Kayla is not yet confident that it is enough.
Which process is Kayla most likely performing?
A. Plan Cost Management.
B. Estimate Costs.
C. Analyze Budget.
D. Control Costs.
7. Your best cost estimate for an activity is $200,000, but the estimate
you document has a range of $150,000 to $350,000. is ranged
estimate represents a:
A. Cost estimate.
B. Budgeted estimate.
C. Rough order of magnitude estimate.
D. Variable estimate.
8. Which of the following process sequences is correct?
A. Create WBS, then Determine Budget, then Estimate Costs.
B. Create WBS, then Estimate Costs, then Determine Budget.
C. Determine Budget, then Estimate Costs, then Create WBS.
D. Estimate Costs, then Budget Costs, then Create WBS.
9. e experienced team reports to the product owner that the velocity
looks like 100 points at a burn rate of $50,000 per iteration. e
release plan suggests the 1000 point backlog can be delivered in 10
1-month iterations. e finance department has come back to the
product owner with a funding limit of $40,000 per month.
A. e product owner maintains that the 10-month project has a
hard deadline for completion. How is this conflict of
constraints reconciled?
B. Increase the team velocity to resolve the constraint.
C. Make trade-off decisions to �nd resources at a lower cost that can
still meet the team’s velocity expectations at the same level of
quality.
D. e team should meet to re-estimate the effort in points required
to complete the backlog and adjust the velocity accordingly.
E. Meet with the product owner to determine what low-value
features can be removed from the backlog to meet schedule and
cost constraints.
10. Aer measuring expected project benefits, management has four
projects from which to choose. Project 1 has a net present value of
$100,000 and will cost $50,000. Project 2 has a net present value of
$200,000 and will cost $75,000. Project 3 has a net present value of
$500,000 and will cost $400,000. Project 4 has a net present value of
$125,000 and will cost $25,000. Which project would be BEST?
A. Project 1.
B. Project 2.
C. Project 3.
D. Project 4.
11. e product owner has come to you as team facilitator to forward a
question from the Finance Department. What information will
alleviate the fears of Finance that your project team will violate the
allocated funding limit?
A. Cost performance index.
B. e burn rate.
C. Performance measurement baseline.
D. Schedule performance index.
12. If the Earned Value of a project on January 15 was $127,253, the
Budgeted at Completion was $275,000, and the Schedule
Performance Index was 0.77, how much work was expected to have
been completed at that point?
A. $97,985
B. $127,253
C. $165,264
D. $211,750
13. You are managing a project that is part of a large construction
program. During the execution of your project you are alerted that
the construction of a foundation is expected to experience a serious
cost overrun. What would be your FIRST course of action?
A. Evaluate the cause and size of the overrun.
B. Halt execution until the problem is solved.
C. Contact the program manager to see if additional funds may be
released.
D. Determine if you have sufficient budget reserves to cover the cost
overrun.
14. e team’s iteration burndown chart shows the actual progress
significantly below the planned progress line. In discussions about
this with the product owner, the team offers:
A. To work a bit more hours each day to move the actual line back up
to the planned line.
B. To allow the product owner to move more points into the iteration
from the product backlog.
C. To let some of the team members take a well-deserved break this
iteration.
D. To �nd the root-cause of the variance to target continuous
improvement of point delivery per iteration.
15. Estimate to complete indicates:
A. e total projected amount that will be spent, based on past
performance.
B. e projected remaining amount that will be spent, based on past
performance.
C. e difference between what was budgeted and what is expected
to be spent.
D. e original planned completion cost minus the costs incurred to
date.
16. e project team has been working significant overtime on a project
for the past three months. e sponsor wants to know what the CPI
will need to be from this point forward in order to meet original
cost expectations. You know that at this point the Earned Value is
$1,124,767, the total budget is $3,111,845, the Planned Value is
$950,000, and the project has spent $1,000,975. What should you
tell the sponsor?
A. 0.84
B. 0.94
C. 1.0
D. 1.21
17. If a project has a CPI of .95 and an SPI of 1.01, this indicates:
A. e project is progressing slower and costing more than planned.
B. e project is progressing slower and costing less than planned.
C. e project is progressing faster and costing more than planned.
D. e project is progressing faster and costing less than planned.
18. e best definition of Earned Value is:
A. e measure of work performed expressed in terms of the budget
authorized to perform that work.
B. Actual % Complete X the BAC.
C. e value of the project at a point in time expressed in terms of
the work performed.
D. Managing project performance in order to achieve expected
results.
19. Project A would yield $100,000 in benefit. Project B would yield
$250,000 in benefit. Because of limited resources, your company
can perform only one of these. ey elect to perform Project B
because of the higher benefit. What is the opportunity cost of
performing Project B?
A. −$150,000.
B. $150,000.
C. −$100,000.
D. $100,000.
20. As a project manager, your BEST use of the project cost baseline
would be to:
A. Measure and monitor cost performance on the project.
B. Track approved changes.
C. Calculate team performance bonuses.
D. Measure and report on variable project costs.
21. e value of all work that has been completed so far is:
A. Earned value.
B. Estimate at complete.
C. Actual cost.
D. Planned value.
22. Your product owner has stated that the development project will be
complete once the expected cost of the next iteration exceeds the
expected benefit. How will she determine the expected benefit?
A. She will look at the run rate of the cost per story point and
aggregate them up to the total number of points committed in the
iteration.
B. She will use the organization’s lookup table of point values.
C. She will meet with the entire team to validate the consensus of
value of the feature set to be delivered in the next iteration.
D. She will estimate the business value of the story points that would
be slated for the next iteration.
23. If you have a schedule variance of $500, this would indicate:
A. Planned value is less than earned value.
B. Earned value is less than the estimate at completion.
C. Actual cost is less than earned value.
D. e ratio of earned value to planned value is 5:1.
24. If budgeted at complete = $500, estimate to complete = $400, earned
value = $100, and actual cost = $100, what is the estimate at
complete?
A. $0.
B. $150.
C. $350.
D. $500.
25. You have spent $322,168 on your project to date. e program
manager wants to know why costs have been running so high. You
explain that the resource cost has been greater than expected and
should level out over the next six months. What does the $322,168
represent to the program manager?
A. Earned value.
B. Actual cost.
C. Planned value.
D. Cost performance index.
COST MANAGEMENT
ANSWERS
1. C. Planned Value is calculated by multiplying the Budgeted At
Completion by planned % complete. Our cost per mile is planned at
$1,250,000 ($5,000,000 ÷ 4 miles), and our Budgeted At Completion is
32 miles x 1,250,000/mile = $40,000,000. We planned to be 50%
complete. erefore, $40,000,000 x .50 = $20,000,000.
2. A. Understanding the concepts behind the earned value calculations is
important for the exam and will help you with questions like this one.
In this question, the terrible cost performance index indicates that we
are getting ten cents of value for every dollar we spent; thus the project
is doing very poorly on cost performance.
3. B. ough Earned Value techniques are not precise for an agile project
with no de�nitive plan, the release plan can be used to approximate
how many iterations remain in the project. e run rate, or burn rate,
is the cost of resources per iteration. Extrapolate the burn rate with the
remaining iterations to approach an estimate to complete. ‘D’ is
incorrect because points are estimated effort, not value or cost. e
burn rate would be needed to approximate any �nancial forecast.
4. D. With Bene�t Cost Ratios, the bigger the better! BCR is calculated as
bene�t ÷ cost, so the more bene�t, and the less cost, the higher the
number.
5. C. ere is a difference between present value and net present value.
Present value tells the expected value of the project in today’s dollars.
Net present value is the same thing, but it subtracts the costs aer
calculating the present value.
6. D. Kayla is performing reserve analysis, which is one of the forms of
data analysis. If you were trying to decide between choice ‘B’ and ‘D,
you would look at what she is doing and why she is doing it. She is
making sure that she has enough money, which is not an estimating
activity, and that eliminates ‘B’. It is a monitoring and controlling
activity. Choice ‘C’ is not a real process, and ‘A’ would have been
performed much earlier and is not descriptive of what Kayla is doing.
‘D’ emerges as the best choice since she is comparing the plan (budget)
with actual performance (spending). is is classic for a monitoring
and controlling process, and Control Costs is the only monitoring and
controlling process in the list of choices.
7. C. Rough order of magnitude estimates are −25% to +75%. In this
example, $150,000 and $350,000 are −25% to +75% of $200,000.
8. B. is question may not look like it is about inputs and outputs, but it
actually is. Create WBS is performed �rst out of the three processes,
and the output is the Work Breakdown Structure (WBS). e WBS is
used as an input for the next process of the three, Estimate Costs,
where the costs of the activities are estimated and aggregated back to
the WBS. Finally, the output of that process, the Cost Estimates, is
used as an input into Determine Budget, which occurs last out of the
three processes listed. By understanding how the outputs of one
process become the inputs into another, it becomes simpler to
understand the logical order of many of these processes.
9. D. e scope-schedule-cost triple constraint still holds true in an agile
project as in a predictive project. ‘A’ is incorrect; increasing velocity,
productivity, would raise the burn rate, further violating the funding
limit. ‘B’ is incorrect; the triple constraint also implies that lower cost
resources would affect schedule and scope—reducing productivity or
velocity and potentially the scope or quality of deliverables. Also, an
agile team would not realistically consider replacing itself with a lower
cost team. ‘C’ is incorrect; re-de�ning the effort of a point would also
change the cost per point as well as the velocity. e imposition of a
deadline as well as funding limit can only be reconciled with a
reduction in scope, or ‘D.’
10. C. is one was very tricky! Net present value already has costs
factored in, so they can be ignored here. e net present value is the
only value you need to consider, and bigger is better!
11. B. e burn rate is the estimated cost per iteration or per accounting
period that can be matched up to Finance’s funding limit (to protect
the organization’s cash �ow needs). e other answer choices allude to
Earned Value Management, which is not well-applied to an agile
project; the role names used in the question indicate an agile or hybrid
project.
12. C. e �rst step in answering any question is to determine what is
being asked. In this case, the question asked “how much work was
expected to have been completed” at a point in time. at is the
de�nition of Planned Value (PV). In most scenarios, PV is given to
you in order to calculate something else, but in this case you have to
calculate it.
One way to do this using the information we have is to use the formula
for SPI.
SPI = EV÷ PV. Using simple algebra, we can change it around to also
say that PV= EV ÷ SPI, or PV = $127,253 ÷ 0.77 = $165,264.
We can see that the project is behind schedule at this point and has not
earned as much value as was expected.
e Budgeted at Completion (BAC) is not of any use here since we
don’t know when the project was supposed to be completed or other
helpful variables.
13. A. is question illustrates one of the biggest exam biases. Your job as
a project manager is almost always to evaluate and understand �rst.
Know what you are dealing with before you take action, and don’t just
accept anyone’s word for it. Verify the information yourself!
14. B. With a burndown chart, the actual progress line being below the
planned progress line is working ahead of the plan. ‘A’ and ‘D’ would
apply if the performance was behind the plan. ‘C’ might be good in a
predictive project where some heroics may have already taken place
creating some slack, but in a sustained-pace agile project, ‘B’ is the best
answer to deliver value as fast as possible to the customer.
15. B. e Estimate To Complete is what we expect to spend from this
point forward, based on our performance thus far.
16. B. 0.94. e sponsor is asking for the To-Complete Performance Index
for cost (TCPIc). is scenario was a little bit tricky. Just because the
team has been working overtime does not necessarily mean that they
are behind schedule or over budget. In this situation they have recently
been working overtime and are still under budget.
To calculate the TCPIc, we’ll use the standard formula:
TCPIc = (BAC – EV) ÷ Remaining funds.
e BAC is given as the total budget in this question and is $3,111,845.
e EV is also given at $1,124,767. Now we have to calculate
remaining funds, which is the original budget minus actual costs. We
know that the original budget was $3,111,845 and the project has
incurred actual costs so far of $1,000,975, which leaves $2,110,870
remaining funds. Now it becomes a matter of plugging numbers into
the formula.
TCPIc = (BAC – EV) ÷ Remaining Funds
TCPIc = ($3,111,845 - $1,124,767) ÷ $2,110,870
TCPIc = $1,987,078 ÷ $2,110,870
TCPIc = 0.94
is value of 0.94 means that the project could run somewhat over
budget for the remainder of the time and still �nish on target.
17. C. Did the wording trip you up on this one? Make sure you read the
questions and answers carefully since things were switched around on
this one. A schedule performance index greater than 1 means that the
project is progressing faster than planned. A cost performance index
that is less than 1 means that the project is costing more than planned.
erefore choice ‘C’ is the only one that �ts.
18. A. is is the de�nition of Earned Value. ‘B’ is a formula for Earned
Value, but it is not the de�nition. ‘C’ does not work since Earned Value
is about the value earned and not just the costs expended. For
example, it is possible to expend a lot of cost, materials, and manpower
and earn very little value. ‘D’ is close to a de�nition of earned value
management (EVM), but it is too generic and does not match the
de�nition of Earned Value.
19. D. Opportunity cost is simply how much bene�t you are passing up. In
this case, by choosing project B. You are foregoing $100,000 in
expected bene�t from project A, and that $100,000 represents the
opportunity cost.
20. A. e cost baseline is used to track cost performance based on the
original plan plus approved changes.
21. A. Earned value is de�ned as the value of all work completed to this
point.
22. D. e product owner as the voice of the customer will speak for the
stakeholders in estimating the value of the features to be delivered
from an iteration. Points are assigned based on the team’s estimate of
effort, not value. e run rate mentioned in ‘A’ is based on cost, not
value.
23. A. is is another tricky question because of the way it is worded.
Schedule variance is calculated as earned value – planned value. In this
case, schedule variance could only be positive if earned value is greater
than planned value (or stated otherwise, if planned value is less than
earned value). ‘A’ is the only choice that has to be true.
24. D. e estimate at complete is what we expect to have spent at the end
of the project. It is calculated by taking our budgeted at complete and
dividing it by our cost performance index. Step 1 is to calculate our
cost performance index. It is earned value ÷ actual cost, and in this
case, it equals 1. Budgeted at complete is $500, and $500 ÷ 1 = $500.
erefore, ‘D’ is the correct answer, indicating that we are progressing
exactly as planned. Note that there are many ways to calculate the
EAC, and not all of them agree perfectly. One other common way is
EAC = AC + ETC, which yields the same answer of $500 for this
example.
25. B. Look at the �rst sentence “You have spent $322,168…” Actual Cost
is what you have spent to date on the project.
PHILOSOPHY:
Quality touches virtually every piece of the project, so it is very important. It
is easy to think about the quality of the product, but project managers also
care about the quality of the process. In fact, how something gets carried out
is as important as the end result. e philosophy of quality covered in this
chapter is derived from several leading theories, including TQM, ISO-9000,
Six Sigma, and others. We will look at each of these theories in terms of the
tools and techniques they provide.
e philosophy of quality is also a very proactive approach. Whereas early
approaches to quality relied heavily on inspection, current thinking is
focused on prevention since it costs more to �x an error than it does to
prevent one. Keep in mind that you can never inspect quality into a product,
but you can deliberately plan for it from the start.
e responsibility for quality rests heavily on the project manager. Everyone
on the team can contribute to project quality; however, it is management’s
responsibility to provide the resources to make quality happen, and the
project manager is ultimately responsible and accountable for the quality of
the project.
e processes of Quality Management with their primary outputs
When it comes to quality, the way in which things are done is perhaps more
important here than most other places. Plan Quality Management, Manage
Quality, and Control Quality map closely to the Plan-Do-Check-Act cycle as
described by Deming, and you should expect that several questions on the
exam will rely heavily on your understanding of how quality activities �ow
and connect.
It is also important to understand that some of the investment in quality is
usually borne by the organization since it would be far too expensive for
each project to have its own quality program. An example would be a
company investing in a site license for a soware testing product that can be
used across numerous projects.
IMPORTANCE:
Project quality management has fewer processes than many chapters, but it
is important on the exam, and you should expect to see several exam
questions that will relate directly to this chapter. It will be necessary to
become acquainted with the terms and theories as described below. en
reread this chapter to ensure that you have mastered the topic.
In real world practice, quality formulas abound; however, you do not need
to memorize or apply them here. is chapter focuses on the processes,
concepts and terms. Some parts of this topic will be revisited in later
chapters to show how quality �ts into the overall project management
context.
PREPARATION:
You will need to learn and understand the content in this chapter. Special
attention will be paid to the key quality theories that are exam favorites, as
well as terminology that you need to know.
Pay careful attention to the differences between Plan Quality Management,
Manage Quality, and Control Quality. ese distinctions can be trickier than
most planning, executing, monitoring and controlling combinations for
many people on the exam.
Definition of Quality
e de�nition of quality you should know for the exam is “the degree to
which a set of inherent characteristics ful�lls requirements.” It is also
important to know that the requirements or needs of the project may be
stated or merely implied. A product may be low-grade and high-quality at
the same time if the requirements call for a low-grade product. If you �nd
this concept confusing, this chapter should help clear things up and get you
ready for the exam.
Quality Management Processes
ere are only three processes within project quality management, as listed
in the table below. In the framework, these processes touch three process
groups: planning (Plan Quality Management), executing (Manage Quality),
and monitoring & controlling (Control Quality).
Process Group Quality Management Process
Initiating (none)
Planning Plan Quality Management
Executing Manage Quality
Monitoring & Controlling Control Quality
Closing (none)
e primary outputs associated with the three quality management
processes are shown in the table below.
Process Primary Outputs
Plan Quality Management Quality Management Plan
Quality Metrics
Manage Quality Quality Reports, Test and Evaluation Documents
Control Quality Quality Control Measurements
Veri�ed Deliverables
QUALITY TERMS AND PHILOSOPHIES:
Each of these quality management terms are important for the exam.
Total Quality Management (TQM) - A quality theory popularized aer
World War II that states that everyone in the company is responsible for
quality and is able to make a difference in the ultimate quality of the
product. TQM applies to improvements in processes and in results. TQM
also includes statistical process control.
TQM was invented by Walter Shewhart at Western Electric; however, it was
W. Edwards Deming who made it popular by implementing it successfully
in Japan aer World War II. Today, Japan gives the Deming Prize as their
national award for quality.
TQM shis the primary quality focus away from the product that is
produced and looks instead at the underlying process of how it was
produced. It involves all employees in the quality process.
In other words, how something is produced becomes more important than
what is actually produced, because a good process will ultimately yield good
results.
Continuous Improvement - Also known as “Kaizen,” from the Japanese
management term. A philosophy that stresses constant process
improvement, in the form of small changes in products or services. It comes
from the Plan-Do-Check-Act cycle described by Shewhart and Deming.
Continuous improvement seeks to make an ongoing series of small changes
to improve the product and the process.
Kaizen - (See Continuous Improvement)
Just-In-Time (JIT) - A manufacturing method that brings inventory down
to zero (or near zero) levels. It forces a focus on quality, since there is no
excess inventory on hand to waste.
ISO 9000 - Part of the International Organization for Standardization to
ensure that companies document what they do and do what they document.
ISO 9000 is not directly attributable to higher quality, but may be an
important component of Manage Quality, since it ensures that an
organization follows their processes.
Statistical Independence - When the outcomes of two processes are not
linked together or dependent upon each other, they are statistically
independent. Rolling a six on a die the �rst time neither increases nor
decreases the chance that you will roll a six the second time. erefore, the
two rolls would be statistically independent.
Mutually Exclusive - A statistical term that states that one choice excludes
the others. For example, painting a house yellow and painting it blue or
white are mutually exclusive events. Likewise, �ipping a coin results in an
outcome of heads or tails. One result excludes the other.
Standard Deviation - e concept of standard deviation is an important
one to understand for the exam. Standard deviation is a statistical
calculation used to measure and describe how a set of data is organized. e
following graphic of a standard bell curve illustrates standard deviation.
e standard deviation, represented by the Greek symbol σ (sigma), is
calculated �rst by averaging all data points to get the mean, then calculating
the difference between each data point and the mean, squaring each of the
differences, and dividing the sum of the squared differences by the number
of data points minus one. Finally, take the square root of that number, and
you have the standard deviation of the data set. If the data set is “normally
distributed,” as it is in the following chart, the following statistics will be
true:
68.25% of the data points (or values) will fall within 1 σ from the mean.
95.46% of the values will fall within 2 σ from the mean.
99.73% of the values will fall within 3 σ from the mean.
99.99966% of the values will fall within 6 σ from the mean.
e standard deviation may be used in a few different ways in quality. For
instance, the higher your standard deviation, the more diverse your data
points are. It is also used to set quality levels (see the Six Sigma topic later in
this chapter), and to set control limits to determine if a process is in control
(see the Control Charts topic later in this chapter).
Even though you should not expect to have to perform standard deviation
calculations for the exam, you will likely see questions related to the
application of the standard deviation. e more you understand about this
concept, the more prepared you will be for the exam.
Six Sigma - Six Sigma is a popular philosophy of quality management that
focuses on achieving very high levels of quality by controlling the process
and reducing defects (a defect is de�ned as anything that does not meet the
customer’s quality standards).
A σ (sigma) is de�ned as 1 standard deviation from the mean. At the level of
1 sigma quality, 68.25% of all outputs will meet quality standards.
At the 3 sigma quality level, that number jumps to 99.73% of all outputs that
meet quality standards. At the 6 sigma level, the number is 99.99966% of all
outputs that meet quality standards. is means that when quality reaches
six sigma standards, the results will be such that only 3.4 out of every
1,000,000 outputs do not meet quality standards.
Six sigma quality strives to make the overwhelming majority of the bell
curve fall consistently within customer quality limits.
Six sigma puts a primary focus on quantifying, measuring, and controlling
the quality of products, services, and results. It is based on the underlying
theory that anything will vary if measured to a �ne enough level. e goal is
to re�ne the process so that human error and outside in�uence no longer
in�uence results, and any remaining variations are completely random.
If done properly, the statistical outcome should follow the bell curve
illustrated previously under the topic of standard deviation. e goal is to
make six standard deviations (sigmas) of the outputs fall within the
customer’s quality limits.
If this seems like a lot of information, the most important things to know for
the exam are that six sigma is a quality management philosophy that sets
very high standards for quality, 1 sigma quality is the lowest quality level,
allowing 317,500 defects per 1,000,000 opportunities, 3 sigma quality is
higher, allowing 2,700 defects per 1,000,000 opportunities, and 6 sigma
quality is the highest of these, allowing only 3.4 defects per 1,000,000
opportunities.
Also know that six sigma quality levels may not be high enough for all
projects or all industries. For instance, the pharmaceutical industry, the
airline industry, and power utilities typically strive for higher levels of
quality than six sigma would specify in some areas of their production and
operations.
Prevention vs. Inspection - Prevention is simply keeping defects from
occurring, while inspection is about identifying and catching the errors that
have occurred before they impact others outside the project.
Project management strongly favors prevention over inspection.
Attribute Sampling vs. Variable Sampling - Attribute sampling is binary;
either a work result conforms to quality or it does not. Variable sampling, on
the other hand, measures how well something conforms to quality.
Consider, for example, a production facility making prescription drugs.
Using attribute sampling, they would de�ne tolerances, a batch of product
would be tested, and it would either pass or fail that inspection. Using
variable sampling, however, the batch of product would be rated on a
continuous scale (perhaps on parts per billion) that showed how well the
batch conformed to ideal quality.
Special Causes vs. Common Causes - Within the topic of statistical process
control (see Control Charts later in this chapter), there is a concept of
special causes and common causes.
Special causes are typically considered unusual and preventable, whereas
common causes are normal. For instance, if your manufacturing process
produced 250 defects per 1,000,000 due to assembly errors, that might be
considered a special cause, whereas if your manufacturing process produced
one defect in a million due to �uctuations in the quality of the raw materials,
that might be considered a common cause. Special causes are considered
preventable by process improvement, while common causes are generally
accepted.
Tolerances vs. Control Limits - Tolerances deal with the limits your project
has set for product acceptance. For instance, you may specify that any
product will be accepted if it weighs between 13.7 grams and 15 grams.
ose weights would represent your tolerances. Control limits, on the other
hand, are a more complex concept. Typically, control limits are set at three
standard deviations above and below the mean. As long as your results fall
within the control limits, your process is considered to be in control.
Control limits are explained further under the topic of Control Charts,
covered later in this chapter.
To sum up this topic, consider that tolerances focus on whether the product
is acceptable, while control limits focus on whether the process itself is
acceptable.
Customer Satisfaction - e concept of customer satisfaction runs
throughout quality management. ere are two main components to this:
�tness for use and conformance to requirements. e easiest way to think
about this is to look at whether the deliverable solves the underlying need
and whether it works properly. In other words, does it do the right thing,
and does it do the thing right.
Management Responsibility - Everyone from the top to the bottom is
responsible for quality, but it is management’s job to make sure that the
focus stays on quality management and that initiatives have adequate
resources and funding.
Mutually Beneficial Partnership with Suppliers - In a quality-driven
organization, relationships with vendors and the supply chain are
particularly critical. ese suppliers are an extended part of the
organization, and strong, positive relationships that bene�t both parties are
key. Because of this, decisions are made for the long term and not for a quick
advantage.
Agile Projects - Adaptive and agile methodologies’ approach to quality is to
get the product in the customer’s hands as quickly as possible and to
prioritize and adapt constantly. Quality is an integral part of the project
from the start and the focus continues throughout. To make this work, agile
takes on small tasks, gets feedback from users, and improves the product. If
a problem occurs, it should be detected early and thus cost less and require
fewer resources to �x than if it were detected later.
PLANNING
PLAN QUALITY MANAGEMENT
6th Edition PMBOK® Guide Cross Ref. pg 277
WHAT IT IS:
Plan Quality Management is named very appropriately. It is the process
where the project team identi�es what the quality speci�cations are for this
project and how these speci�cations will be met on the project.
WHY IT IS IMPORTANT:
A very important concept for the exam is that quality is “planned in” from
the start, and not “inspected in” aer the product has been designed and
constructed. Plan Quality Management is the process where this planning is
performed to make sure that the resulting product is of acceptable quality. It
also explains how quality will be de�ned and measured.
WHEN IT IS PERFORMED:
Plan Quality Management begins early in the project. In fact, it typically is
performed concurrently with other planning processes and the development
of the project management plan.
e reason Plan Quality Management is performed early in project planning
is that decisions made about quality can have a signi�cant impact on other
decisions such as scope, time, cost, and risk.
HOW IT WORKS / INPUTS:
Project Charter - e charter oen provides acceptance criteria that could
include quality standards for acceptance.
Project Management Plan - e project management plan is brought into
Plan Quality Management, with particular attention paid to the four
components covered here.
Requirements Management Plan - e level of quality and how it will
be measured is oen part of the requirements for the project. In this
case, it will be contained in the requirements management plan.
Risk Management Plan - Quality can be a signi�cant area of project
risk. For example, it may be identi�ed that there may be issues related to
customer acceptance or satisfaction if quality is not satis�ed. e risk
management plan will de�ne how these particular risks will be identi�ed
and managed.
Stakeholder Engagement Plan - ere may be stakeholders with
expertise in quality, or who work in a quality-related department, who
should be involved in the Plan Quality Management process, or who
have a particular interest in the outcome.
Scope Baseline - Most project management practitioners view scope
and quality as inseparable, which is why the scope baseline is so
important to Plan Quality Management. e scope baseline de�nes the
full project requirements, and it also speci�es the acceptance criteria for
these requirements.
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets - Assets such as quality management plans
from previous projects should be considered and used as part of your
project plan. Also, the performing organization’s quality policy should be
brought into this process. e quality policy is usually brief and de�nes the
performing organization’s attitudes and standards related to quality across
all projects. It must be considered if it exists. If it does not exist, the project
team should write one for this project.
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering - Looking at other projects (benchmarking) to
determine the right approach to quality, brainstorming, and interviews with
others are some ways to gather data for this process.
Data Analysis - Quality can be expensive to achieve; however, there is a
golden rule in quality that all bene�ts of quality activities must outweigh the
costs.
No activities should be performed that cost more (or even the same) as the
expected bene�ts. ese anticipated bene�ts potentially include acceptance,
less rework, and overall lower costs.
A technique of evaluating the cost of quality (oen abbreviated as COQ)
looks at all of the costs that will be realized in order to achieve quality. e
costs of items that do not conform to quality are known as “cost of poor
quality,” oen abbreviated as CoPQ.
Decision Making - is technique is a common one, but it is marked as
key here due to the importance of multicriteria decision analysis. is is a
matrix that allows several factors to be ranked and prioritized so that the
most important or critical ones become evident.
Data Representation - Process �ow diagrams, or �owcharts, are a way
to show all quality activities and decisions. Also logical data models, matrix
diagrams, and mind mapping are popular ways of visualizing data.
One �owcharting tool that is popular in quality management is the SIPOC
value chain. It helps visualize the �ow of (S)uppliers and (I)nputs through
the (P)rocess to create (O)utputs to the (C)ustomers.
Test and Inspection Planning - Inspection is still an important part of
quality even though it is true that quality cannot be inspected in. ese
inspections and tests should be scheduled and planned from the start.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Quality Management Plan - e quality management plan de�nes the
standards, tools, responsibilities, and activities needed to achieve the quality
goals. It also speci�es the quality activities and roles needed to carry them
out.
Eventually the quality management plan will become integrated into the
project plan.
Quality Metrics - By itself, “quality” can be a fuzzy concept, but it can
become very meaningful when metrics are applied. Quality metrics are
objective, and they allow quality to be measured, quanti�ed, and de�ned.
ey are an output here, but they will be an important input into the
Control Quality process.
Metrics such as the number of defects, weights and measures, amount of
overtime logged, the hours spend on rework, downtime, customer survey
results, or response time would all be bene�cial.
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
EXECUTING
MANAGE QUALITY
6th Edition PMBOK® Guide Cross Ref. pg 288
WHAT IT IS:
For many people, Manage Quality can be one of the trickiest of the 49
processes to understand. One of the most common mistakes exam takers
make is to confuse Manage Quality with Control Quality (covered next),
and the difference between the two can appear subtle at times since the two
processes go hand in hand.
Manage Quality is sometimes referred to as Quality Assurance, and it relates
to both product design and to process improvement.
Manage Quality is an executing process, and it has two primary purposes:
1. To put the quality management plan into practice and to see that the
product, service, or result achieves quality.
2. To improve and streamline the overall process of producing the
product, service, or result.
WHY IT IS IMPORTANT:
Manage Quality is important because if the quality of the process and
activities is improved, then quality of the product should also improve, and
an overall reduction of cost should follow.
On waterfall projects, the project manager is ultimately responsible for
quality, while on agile projects, the entire team is jointly responsible for
quality.
WHEN IT IS PERFORMED:
e process of Manage Quality is performed as an ongoing activity in the
project life cycle. It typically begins early and continues throughout the life
of the project. Because Manage Quality uses many of the outputs of Plan
Quality Management, it is not undertaken until aer Plan Quality
Management has been performed.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Data Gathering - One common data gathering technique is to use
checklists. ese are used to ensure that all steps were performed and were
carried out in the proper sequence and to make sure the needed
requirements were met. ese may be developed internally or standard ones
may be available for some tasks from outside sources.
Data Analysis - is tool is covered in Ch 2 but you should know that
the most important techniques it uses are alternatives analysis, process
analysis, and root cause analysis.
Decision Making — See Ch. 2, Common Tools
Data Representation - Visualizing data can be a tremendous help in
understanding problems and identifying trends.
Affinity Diagrams - Affinity diagrams help visually relate bits of
information to other bits of information. ey are used to help discover
or create meaningful systems of organization. Most mind mapping
techniques make use of affinity diagrams to help represent information
the way the human brain processes and stores information.
Another hypothetical use of an affinity diagram would be to initially
write production problems onto individual sticky note cards and place
them randomly on the wall, then use the affinity system to create four
categories and move each note card under one of the categories.
Cause-and-Effect Diagrams - Also called Ishikawa diagrams, �shbone
diagrams, and why-why diagrams, these charts are used to help identify
root causes. Quality problems are traced back to their root causes so that
prevention may be used instead of inspection.
Flowcharts - Flowcharts show how various components relate in a
system. Flowcharting can be used to predict where quality problems may
happen since quality issues are oen the result of a combination of risk
occurrences. In addition to traditional �ow charts, cause-and-effect
diagrams, described above, are a type of �owcharting.
Histograms - Histograms are primarily used in manage quality to show
the number of times an issue occurs. A Pareto chart is a histogram
where issues are ranked by frequency of occurrence from greatest to
least.
Example of a Pareto Chart, a type of histogram.
Matrix Diagrams - A matrix diagram shows the relationship between
the different elements by describing the type of relationship for each cell
where a row and column intersect. is description could be the
characteristic of the relationship or the quality or strength of it. Different
shapes and dimensions are useful, depending on how many items there
are to evaluate.
Scatter Diagrams - Scatter diagrams are a particularly powerful tool for
spotting trends in data. Consider the following three scatter diagrams:
ese diagrams show how data may be correlated along an X and Y axis.
For example if the Y (vertical) axis were your score on an exam, and the
X (horizontal) axis represented the number of hours you spent
preparing, you might expect a positive, linear correlation; however, if
you were using bad information to prepare, you might see no correlation
or even a negative linear correlation.
Scatter diagrams can help you identify a pattern from multiple data
points that may not be evident otherwise.
Audits - Quality audits are a key tool in Manage Quality. e reason for
this is that audits review the project to evaluate which activities taking place
on the project should be improved and which meet quality standards. e
goal of the audits is to improve both the acceptance of the product and the
overall cost of quality.
Keep in mind that you are auditing the quality of the process and the
activities.
Quality audits are usually carried out by an objective person or team, and it
is best if they are not part of the project team.
Design for X - One important consideration in quality management is
that everything cannot be the top priority. Organizations, engineers, and
project planners need to decide which things are the most important. at is
where Design for Excellence (DfX) comes in.
DfX is a methodology where design is applied to the top priorities. For
example, a popular smart phone had major issues with assembly of the
components where there simply was not enough space inside the case for
the technicians to put it together. A luxury car manufacturer had an issue
where the back seat had to be removed and the carpet in the �oor had to be
cut in order to access the car’s battery. ese are examples of design
decisions that had a signi�cant impact on the project.
ere are several notable prioritizations for DfX including:
DfC (Design for Cost). Designing with cost efficiency being the key
priority.
DfA (Design for Assembly). Designing to prioritize for ease, accuracy,
and efficiency of assembly of the components.
DfM (Design for Manufacturing). Designing to prioritize around the
best way to manufacture the product and its components.
DfL (Design for Logistics). Designing to prioritize sourcing
components from the most efficient locations.
DfS (Design for Serviceability). Designing to prioritize optimal ease of
repair and service.
Problem Solving - It is common for problems to be uncovered in this
process. Particularly in the world of quality management, problem solving
takes on a structured approach. e following diagram illustrates the overall
way that problems are approached in Manage Quality.
Quality Improvement Methods - As the previous tool of problem
solving is implemented, it is common to �nd opportunities for quality
improvement. e process of Plan-Do-Check-Act and Six Sigma are the two
that are most frequently used.
HOW IT WORKS / OUTPUTS:
Quality Reports - e important thing to keep in mind with quality
reports is that these reports can be quantitative (numerical) or qualitative
(based on the qualities of something rather than numerical measures).
Test and Evaluation Documents - When it comes to the process of
Manage Quality, more things are structured and measured than in most
other processes. Test and evaluation documents include things like quality
checklists and requirements traceability matrices.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Document Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
CONTROL QUALITY
6th Edition PMBOK® Guide Cross Ref. pg 298
WHAT IT IS:
If you are inspecting the product or looking at some kind of result, you are
probably performing the process of Control Quality. is process looks at
speci�c results to determine if they conform to the quality standards. It
involves both product and project deliverables, and it is done throughout the
project, not just at the end.
In many cases, Control Quality uses statistical sampling rather than looking
at each and every output. Many volumes have been written about sampling
techniques, and the practice is oen very complex and is highly tailored to
industry.
is process uses the tool of inspection to make sure the results of the work
are what they are supposed to be. Any time you �nd a part being inspected
for quality, you can be sure that you are in Control Quality.
WHY IT IS IMPORTANT:
Control Quality is the process where each deliverable is inspected,
measured, and tested. is process makes sure that everything produced
meets quality standards.
WHEN IT IS PERFORMED:
is process typically takes place throughout much of the project. It is
performed beginning with the production of the �rst product deliverable
and continues until all of the deliverables have been accepted.
HOW IT WORKS / INPUTS:
Project Management Plan - e quality management plan is the main
component of the project management plan that is of interest here. It
provides the plan for how Control Quality will be carried out.
Project Documents - Usually project documents are generic and are not
broken out as a key input; however, in this case they are. e documents
here include the lessons learned register, the quality metrics, and the test and
evaluation documents. ese provide the documentation to show how
effective the quality management activities are.
Approved Change Requests - ese �ow into this process from Perform
Integrated Change Control.
Deliverables - In controlling processes, you want the plan and the
results of executing that plan so that the two may be compared. In this case,
the deliverables represent the results of the execution, and they are
compared against the quality management plan to see how the two line up.
Work Performance Data - Keep in mind that how the work is being carried
out can be every bit as important as the deliverables themselves. Even if the
product is of acceptable quality, if it took signi�cant rework or overtime to
achieve, that would be an issue. e work performance data can shed light
on the current state of the how the deliverable is being provided.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Data Gathering - Checklists, check sheets, statistical sampling, and
questionnaires and surveys are the key methods of data gathering used here.
ey are used to gather information about how the quality management
plan is lining up with reality.
Data Analysis — See Ch. 2, Common Tools
Inspection - e tool of inspection is the most important tool in this
process. It looks at the product, service, or result to ensure that its quality is
within the speci�cation. As important as inspection is, you should
remember that quality cannot be inspected into the product; it has to be
planned in from the start.
Testing / Product Evaluations - is is similar to the previous tool,
inspection, although inspection typically deals with a physical product, and
testing may also include things like soware. Testing and product evaluation
may include things like:
Stress testing – applying unusual loads or circumstances
Unit testing – reviewing small components individually
Usability testing – monitoring how users will interact with the system
Regression testing – ensuring that the product being evaluated is
compatible with previous versions
Integration testing – making sure new components integrate with
existing components and that the system as a whole works
Burn-in testing – performing a long-term test to ensure overall stability
Data Representation - e goal of data representation is summed up in
the adage “a picture is worth a thousand words.” e goal is to show data in
order to make it more easily understood. Common data representation
techniques in quality management include cause-and-effect diagrams,
control charts, histograms, and scatter diagrams.
Control Charts - Control charts are part of a set of quality practices known
as Statistical Process Control. If a process is statistically “in control,” it does
not need to be corrected. If it is “out of control,” then there are sufficient
variations in results to the point where production is generally stopped until
it can be brought back statistically in line. A control chart is one way of
depicting variations and determining whether or not the process is in
control.
A sample control chart
Control charts graph the results of a process to show whether or not they are
in control. e mean of all of the data points is represented by a line drawn
through the average of all data points on the chart. e upper and lower
control limits are set at three standard deviations above and below mean.
If measurements fall outside of the control limits, then the process is said to
be out of control. e assignable cause should then be investigated and
determined.
An interesting rule that is used with control charts is known as the rule of
seven. It states that if seven or more consecutive data points fall on one side
of the mean, they should be investigated. is is true even if the seven data
points are within the control limits.
Some control charts, especially those used in a manufacturing environment,
represent the upper and lower limits of a customer’s speci�cation for quality
as lines on the control chart. Everything between those lines would be
considered within the customer’s quality speci�cation.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Quality Control Measurements - e results of control quality should
be documented and measured. e quality management plan speci�es how
this will take place.
Verified Deliverables - e project’s veri�ed deliverables are one of the
most important outputs in any project. e deliverables have been inspected
and measured to ensure that they conform to quality standards.
ese veri�ed deliverables become inputs to the Validate Scope process
where the team seeks �nal approval of the product, service, or result.
Work Performance Information — See Ch. 2, Common Outputs
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON
QUALITY MANAGEMENT
e Agile perspective on quality management is to place the product in
the hands of the customer very early to get a sense of its �tness for use.
Quality activities begin early on the project, as the team breaks work into
short iterations with small batches of features. e advantage is that
customer feedback may be gathered more quickly, and problems or issues
may be detected earlier, helping the project to stay on track.
Agile retrospective takes place at the end of each iteration, with small
adjustments being made to the process in order to improve quality.
Because agile projects do not seek to produce comprehensive
documentation or perform more planning than is minimally necessary,
the quality processes outlined in this chapter will likely manifest very
differently on an agile project than on a predictive one.
Most agile practitioners incorporate quality into the “de�nition of done.”
e user story or feature is not “done” until it has passed quality
checkpoints. Using techniques such as test-driven development, the
critical success factors and acceptance criteria are built into the testing
scenarios, which drive how the product will be developed.
Plan Quality Management
is process produces the quality management plan and quality metrics.
Both have applicability on agile projects, but the quality metrics are
particularly aligned. ey de�ne what quality is and how it may be
measured. e quality management plan will oen be high-level;
however, some organizations may have ISO standards, such as ISO-9000
and others, that may require more detailed planning and documentation.
Manage Quality
One of the important functions of the Manage Quality process is to
streamline the overall quality process. is is very compatible with agile,
which seeks to eliminate waste and do more with less.
Control Quality
is is an important process that would be performed on virtually any
project. In this, the product is inspected. On an agile initiative, this could
happen in several ways. One is the team’s own efforts to inspect the
product during their development or, perhaps, in a special “hardening”
iteration (oen referred to as Iteration H). Another way would be by
getting a product into the customer’s hands quickly and observing their
use and soliciting feedback. Customers and users should never be the
primary drivers of quality control activities, but on agile projects, they
certainly play a role in this process.
QUALITY MANAGEMENT
QUESTIONS
1. You are a project manager, and your manager wants to meet with
you to evaluate your project’s performance in order to see how it is
meeting the quality standards supplied by the company. In what
process is your boss engaged?
A. Total Quality Management.
B. Control Quality.
C. Plan Quality Management.
D. Manage Quality.
2. If you were using a fishbone diagram to determine root causes of
problems, you would be involved in:
A. Perform Quality Inspection.
B. Perform Quality Prevention.
C. Control Quality.
D. Perform Quality Audits.
3. As team facilitator of an agile component of a hybrid project, you
are approached by the project manager who is concerned that your
team may not be upholding the project’s quality policy. Your
calming response is:
A. Not to worry; we practice continuous improvement and have
iteration retrospectives to adapt to better approaches as we go.
B. e team’s de�nition of done includes satisfying the checkpoints
of the quality policy.
C. We inherit the stakeholders’ desires for quality if it is included
with the acceptance criteria on the back of each story card.
D. All of our team members have completed the organization’s
Quality First training as required by HR.
4. In a control chart, the mean is represented as a horizontal line. is
represents:
A. e average of the control limits.
B. e average of all data points.
C. e average of all data points that are within control limits.
D. A means of identifying assignable cause.
5. e quality team is meeting to discuss quality as it pertains to a new
building product. e group is having some difference of opinion as
to the Cost of Quality (COQ). Which of the four statements made
by the team is true regarding the cost of quality?
A. COQ does not include testing, destructive tests, and inspections in
the calculations.
B. COQ should categorize all product failures as preventable or non-
preventable.
C. COQ should include all costs to prevent nonconformance over the
life of the product.
D. All other things being equal, a lower overall COQ is indicative of a
higher-quality product.
6. Quality audits are an important part of quality management
because:
A. ey allow for quanti�cation of the risk.
B. ey randomly audit product results to see if they are meeting
quality standards.
C. ey check to see if the quality process is being followed.
D. ey are conducted without prior notice and do not allow team
members time to cover up defects.
7. If the results of Activity A have no bearing on the results of Activity
B, the two activities would be considered:
A. Statistically unique.
B. Statistically independent.
C. Correlated, but not causal.
D. Mutually exclusive.
8. e BEST tool to use to look for results that are out of control is:
A. Pareto chart.
B. Control chart.
C. Ishikawa diagram.
D. Statistical sampling.
9. You are a project manager with limited resources on the project.
Several quality defects have been discovered, causing the
stakeholders to be concerned. You wish to begin by attacking the
causes that have the highest number of defects associated with
them. Which tool shows defects by volume from greatest to least?
A. Pareto chart.
B. Control chart.
C. Ishikawa diagram.
D. Cause-and-effect diagram.
10. A SIPOC diagram is mostly closely associated with which quality
management tool/technique?
A. Cost of Quality.
B. Test and inspection planning.
C. Data representation.
D. Design for X.
11. In the process of managing a construction project, you discover a
very serious defect in the way one particular section has been built.
Your engineers analyze the section of the building and decide that
the problem is actually relatively minor. In which process are you
involved?
A. Plan Quality Management.
B. Manage Quality.
C. Control Quality.
D. Project Quality Management.
12. You are performing a project that has a lot in common with a
project completed by your company two years ago. You want to use
the previous project to help you determine quality standards for
your project. Which of the following tools would be the BEST one
to help you with this?
A. Benchmarking.
B. Control chart.
C. ISO 9000.
D. Total Quality Management.
13. Which of the following is most representative of the Total Quality
Management philosophy?
A. Decreasing inventory to zero or near zero levels.
B. Everyone can contribute to quality.
C. Zero defects.
D. Continuous improvement is preferred over disruptive change.
14. Which of these quality standards is the highest?
A. It is impossible to determine without further information.
B. 99% quality.
C. ree sigma quality.
D. Six sigma quality.
15. Quality management is manifested in an agile project primarily by:
A. Fast delivery to customers to leverage quick feedback.
B. Operating in a lean approach based on the principle of simplicity-
maximizing the amount of work not done.
C. e collective ownership of the team’s quality management plan.
D. e team’s consensus of the “de�nition of quality.”
16. If a project team is drawing a tree diagram on the board, which of
the following would mostly likely be used?
A. An organizational breakdown structure.
B. A cause-and-effect diagram.
C. A �nite branch diagram.
D. A network diagram.
17. A project team is having their first quality meeting and plans to
review the organization’s quality policy when it is discovered that
the company has never developed an organizational quality policy.
e project manager is very concerned about this discovery. What
would be the BEST course of action?
A. Document the absence of a quality policy in the quality
management plan and take corrective action.
B. Write a quality policy just for this project.
C. Substitute benchmark data for the quality policy.
D. Delay execution until the organization provides clarity.
18. On a control chart, the customer’s acceptable quality limits are
represented as:
A. Control limits.
B. Mean.
C. Speci�cation.
D. Normal distribution.
19. A customer is concerned that the quality process is not being
followed as laid out in the quality management plan. e best way
to see if this claim is accurate is:
A. Random sampling.
B. Kaizen.
C. Personally participate in the quality inspections.
D. Audits.
20. Which of the following would NOT be associated with data
representation techniques used in quality-related activities:
A. Affinity diagram.
B. Kanban board.
C. Histogram.
D. Scatter diagram.
21. Your organization practices just-in-time management. Which of the
following would be the highest concern for a project manager
operating in this company?
A. Absenteeism.
B. Lower quality of parts.
C. Con�icting quality processes.
D. Inventory arriving late.
22. Reduced quality on a project would MOST likely lead to which of
the following?
A. Rework and increased cost risk.
B. Absenteeism and decreased cost.
C. Increased inspections and decreased cost.
D. Reduced quality limits.
23. How would you explain to your project manager that your agile
team builds acceptance and quality testing into the development
approach?
A. e team is made up of only experienced, proven resources that
have a passion for quality.
B. e team observes the agile principle of regular retrospectives and
daily stand-ups to re�ect on effectiveness and how to tune its
behavior.
C. e team observes the agile principle of continuous attention to
technical excellence.
D. Test-driven development de�nes the acceptable results of testing
�rst, then builds the feature to pass each test case.
24. Your product owner has taken issue with the points estimates
projected by the development team. How can this same work be
achieved with less points eating up the team’s velocity?
A. Move all of the quality testing into a hardening Iteration-H to be
done later as technical debt.
B. Reduce the quality control efforts and accept lower quality of
deliverables in the de�nition of done.
C. Adjust the iteration from 3 weeks to 2 weeks to follow Parkinson’s
Law.
D. Add more resources to the development team to increase the
velocity.
25. A project manager wants to perform a code review, but over two
million lines of code have already been written for this project, and
more are being produced every day. Rather than reviewing each line
of code, the manager should consider:
A. Automated testing tools.
B. Trend analysis.
C. Statistical sampling.
D. Regression analysis.
QUALITY MANAGEMENT
ANSWERS
1. D. In this example your boss is auditing you to see if you are following
the process. Remember that audits are a tool of Manage Quality.
2. C. Control Quality is the correct answer here.
3. B. Typically agile development is test-�rst, or test-driven, which means
that the quality success factors and acceptance criteria are built into
the development as well as the de�nition of “Done.” Each of the
incorrect answers do not address the project’s quality policy.
4. B. e mean represents the average of all of the data points shown on
the chart, calculated simply by adding the values together and dividing
by the number of values. ‘C’ is not correct because the mean includes
everything. If only the values that were within the control limits were
used, it could make the mean look better than it should.
5. C. e Cost of Quality (COQ) looks at all costs incurred to prevent
nonconformance throughout the life of the product. ‘A’ is incorrect
because it includes all costs related to producing a product that
conforms to quality. e ones listed are prime examples of costs that
should be included. ‘B’ is incorrect because product failures are
categorized as “Internal” (found through inspection or testing, and
“External” (found by the customer) and not as preventable or non-
preventable. ‘D’ is incorrect because spending less overall on quality is
not indicative of a higher-quality product. If anything, the opposite
would likely be true.
6. C. Audits are a tool of Manage Quality that checks to see if the process
is being followed. Choices ‘A’ and ‘D’ are incorrect, and choice ‘B’ is
referring to inspection, which is a tool of Control Quality.
7. B. If two events have no bearing on each other, they are statistically
independent. Choice ‘D’ is when two events cannot both happen at the
same time.
8. B. at is how a control chart is used. It visually depicts whether a
process is in or out of control. Choice ‘A’ is used in Control Quality to
rank problems by frequency. ‘C’ is used in Control Quality to
anticipate problems in advance. Choice ‘D’ is used in Control Quality
to pick random samples to inspect.
9. A. Pareto charts rank defects from greatest to least, showing you what
should get the most attention.
10. C. A SIPOC diagram is a way of representing data on a high-level
process map that shows the �ow from suppliers, inputs, processes,
outputs, to customers.
11. C. Control Quality is the best choice here. Your clue here was the fact
that your engineers had inspected something speci�c. is wasn’t
related to planning or process – it was a physical inspection of a work
result, and that is what happens during the Control Quality process.
12. A. Benchmarking takes results from previous projects and uses them
to help measure quality on your project. Benchmarks give you
something against which you can measure.
13. B. Total Quality Management stresses, among other things, that
everyone contributes to the quality of the product and process.
14. D. Six sigma represents that 99.99966% of all work results will be of
acceptable quality in the manufacturing process. is is higher than
99% or 3 sigma, which represents a 99.73% quality rate.
15. A. Fine-scale feedback is provided by short iterations and small feature
sets being delivered into the customers’ hands for immediate detection
of any quality or other issues. ‘C’ is incorrect; barely sufficient
documentation does not include an agile quality management plan. ‘D’
confuses quality and the “de�nition of done” with this made-up term.
‘B’ is a valid principle, but is not focused as much on quality as with
productivity and elimination of wasted effort.
16. A. e WBS, RBS, and OBS are examples of tree diagrams. ‘B’ was a
close guess, but it is not a type of tree where one parent node may have
multiple child nodes. ‘C’ was a made up term. ‘D’ does not work well.
Network diagram is its own category and does not �t the concept of a
tree diagram.
17. B. If no organizational quality policy exists, you should develop one for
this project. ‘A’ and ‘C’ are incorrect since you should not proceed
without a quality policy. ‘D’ would be a good way to lose your job! You
should try to �x this problem yourself rather than force your
organization to write a quality policy.
18. C. e quality speci�cation is the customer’s quality requirements. ‘A’
represents the limits for what is in and out of statistical control,
typically set at three standard deviations from the mean. ‘B’ is the
average of all of the data points. ‘D’ is a statistical term relating to the
way the data points are scattered.
19. D. Audits, part of the Manage Quality process, review the process and
make sure that the process is being followed.
20. B. Kanban boards are used to represent items �owing through various
stages in the work�ow. ‘A’, ‘C’, and ‘D’ are data representation
techniques.
21. D. e PMP Exam has several questions structured like this one. You
could have any of the problems listed here, but the one you would be
most concerned with is parts arriving late. An organization that
practices just-in-time (JIT) does not keep spare inventory on hand.
Instead, the inventory is ordered so that the parts arrive only slightly
before they are needed.
22. A. Rework and increased cost and risk are likely outcomes of low
quality. ‘B’ and ‘C’ are incorrect since decreased cost is not related to
low quality. ‘D’ is incorrect, because you would not lower the quality
limits or speci�cations just because the quality is bad.
23. D. Each answer has value and truth, however, only ‘D’ directly
addresses the development approach, acceptance, and quality.
24. B. e effort (estimated points) can only be reduced by performing less
effort. e only answer re�ecting that is a reduction in quality testing.
‘A’ simply defers the effort to a later iteration, but increases the time of
the feedback loop unnecessarily. ‘C’ does not modify the effort, but
would reduce the velocity and add iterations for the same amount of
work. ‘D’ increases the velocity, adds cost, but does not reduce effort.
25. C. Statistical sampling (may appear as random sampling) is the best
choice. If the overall population is too large, accurate sampling can
give you the same statistical results as measuring the entire population.
‘A’ might be a good choice in the real world, but you should focus on
the inputs, tools, and outputs contained in the PMBOK® Guide for the
exam, and automated testing tools are not a part of quality
management.
Resource management has expanded and changed quite a lot with the sixth
edition of the PMBOK® Guide. Previously, it focused exclusively on human
resources, but now it also includes physical resources such as facilities and
equipment.
It includes six processes, which makes it one of the more content-rich
knowledge areas.
ere should be few surprises in this chapter. It follows the standard �ow of
plan, execute, and monitor and control. You should expect to see several
questions on the exam that cover a variety of theories, including leadership,
motivation, con�ict resolution, and roles within a project.
Much of the content in this section is drawn from basic management theory,
organizational behavior, psychology, and of course, the �eld of human
resource management. If you have ever studied these subjects, you have
probably seen many of the theories in this chapter.
Project managers must also lead people. Some project managers may excel
at organizing tasks and planning activities and be dismal at motivating other
people; however, in order to be successful, a manager should be able to do
both.
is chapter covers the six processes, along with the inputs, tools, and
outputs and management theories you will need to know in order to pass
the exam.
e approach to the area of resource management is twofold:
1. De�ne and carefully manage the physical resources on the project.
2. De�ne a role for everyone on the project and de�ne the responsibilities
for each of these roles. Many people make the mistake of only
understanding the role of the project manager and never
understanding the proper role of senior management, the sponsor, or
the team. Project managers must help de�ne roles and in�uence
everyone on the project.
e philosophies of leadership and power are based on the realization that
project managers are rarely given complete and unquestioned authority.
Instead, they must be able to motivate and persuade people to act in the best
interest of the project and must be able to build a team and lead members to
give their best efforts.
Also, it is important to understand that although project managers are
ultimately responsible for the project, they should delegate assignments to
the team. is delegation takes the form of responsibility and authority. e
project manager gives responsibility and authority to the team and expects
positive results and accountability in return.
An important theme that supports this chapter is that of emotional
intelligence (EI). Project managers should be able to identify, assess, and
manage their personal emotions as well as the emotions of a group of
stakeholders. Managing people requires a different skill set than managing
physical resources.
Virtual teams are another area where changes in process and technology
have impacted projects. A virtual team is one that works on the same project
but not in the same location. ere are advantages to the project for using a
virtual team. Resources may be available at a lower price or with higher
expertise than would otherwise be practical. Other cost savings such as
office space and travel may come into play. As good as this sounds, virtual
teams present particular challenges to projects and project managers.
Communication and collaboration can be more difficult, and team building
can be harder since people oen never meet or physically interact with their
team members.
IMPORTANCE:
Project resource management questions are considered by many people to
be among the easiest questions on the exam. is is because this is one of the
few sections where many of the questions can oen be answered by using
common sense. Unless you �nd these questions particularly difficult, it is a
good idea to get comfortable with the information in this chapter and focus
your attention on more challenging areas. A careful review of the theories
and content prior to taking the exam should be enough to help you through
this section.
PREPARATION:
e focus of this chapter will be on resource management along with roles
and responsibilities, motivational theories, forms of power, and leadership
styles. While this knowledge area is not the most difficult one on the exam,
take the time to learn it. Questions from this section will appear on the
exam.
You should expect to see questions relating to Tuckman’s Ladder, Maslow’s
Hierarchy, Herzberg’s Hygiene Factors, and other theories covered in this
chapter on your exam.
is chapter, in particular, contains a signi�cant amount of content that is
not found in the PMBOK® Guide.
Project Resource Management Processes
ere are six processes within project resource management. In the
framework, these processes touch three process groups: planning (Plan
Resource Management and Estimate Activity Resources), executing
(Acquire Resources, Develop Team, and Manage Team), and monitoring
and controlling (Control Resources).
e primary outputs associated with the six resource management processes
are shown in the table below.
Process Group Resource Management Process
Initiating (none)
Planning Plan Resource Management, Estimate Activity
Resources
Executing Acquire Resources, Develop Team, Manage Team
Monitoring & Controlling Control Resources
Closing (none)
Process Primary Outputs
Plan Resource Management Resource Management Plan, Team Charter
Estimate Activity Resources Resource Requirements
Resource Breakdown Structure
Acquire Resources Physical Resource Assignments
Project Team Assignments
Resource Calendars
Develop Team Team Performance Assessment
Manage Team Change Requests
Control Resources Work Performance Information
PLANNING
PLAN RESOURCE MANAGEMENT
6th Edition PMBOK® Guide Cross Ref. pg 312
WHAT IT IS:
It is a common pattern throughout this book to have a knowledge area that
starts off with a planning process to set the tone for the remaining processes
in that area. is is the case with resource management, which begins with
Plan Resource Management. is process gives guidance to the rest of the
resource management processes, de�ning the roles and responsibilities and
creating the resource management plan.
WHY IT IS IMPORTANT:
is process lays out how you will staff, manage, team-build, assess, and
improve the project team.
WHEN IT IS PERFORMED:
Plan Resource Management typically takes place very early on the project,
and it may be performed iteratively. In other words, you may do some work
on the scope, some work on the schedule, and then plan resources, and then
do more work on the scope, returning again to resources, and so on. It
should not be thought of as a process that is tackled only one time.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Representation - ere are many ways to represent who will be
working on the project and what they will be responsible for doing. You
need to know about three primary formats:
Hierarchical Charts - A hierarchical chart illustrates responsibilities
and relationships. is could be any kind of breakdown structure that
shows how responsibilities for deliverables, team members, or resources
are allocated and organized. ese charts may also be for physical
resources, organized logically by type.
A hierarchical organization chart with positions
Responsibility Assignment Matrix - Matrix charts are another way to
depict which roles on the project will be responsible for speci�c work
packages and what their responsibilities will be. One of the most popular
categories is the Responsibility Assignment Matrix (RAM), which
displays work packages in the rows and roles in the columns. Each cell
shows how a speci�c role will work on a particular work package.
One common type of the RAM is known as the RACI chart
(pronounced “ray-cee”). RACI charts, such as the one that follows, list
each work package in the rows and list the roles in the columns. RACI
charts derive their name from the way each cell is assigned either an ‘R’
for Responsible, ‘A’ for Accountable, ‘C’ for Consult, or ‘I’ for Inform.
Generally, only one person is assigned accountability for a work package,
but more than one person may be responsible for performing the work
on a work package.
An example of a RAM chart in RACI format
Text-Oriented Formats - Text formats basically follow the format of a
position description, detailing out what responsibilities each position on
the project will involve and what quali�cations will be needed to �ll
these positions. is tool can be particularly useful in recruiting.
Organizational eory - Groups behave differently than individuals,
and it is important to understand how organizations and teams behave.
Familiarizing yourself with the vast amount of work that has been done to
understand organizational theory can pay dividends throughout the project.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Resource Management Plan - As you might expect, the resource
management plan is the main output of the Plan Resource Management
process. It has three main components: identi�cation of resources, plan for
acquiring resources, and staffing roles and responsibilities.
e identi�cation of resources includes both people and physical resources
needed to complete the project. e plan for acquiring resources details how
and when the project will be staffed, how and when the staff will be released,
and other key human resources components such as how they will be
trained in addition to how and when physical resources will be procured.
One common component of the resource management plan is a resource
histogram. A resource histogram (see example following) simply shows the
resource usage for a given period of time. On most projects, resource usage
increases from the conceptual phase through planning, hits its peak in
construction and testing, and falls off through implementation and closure.
e timeline for the staffing needs is also a component of the resource
management plan. It helps the project and the organization anticipate and
plan for the staffing needs.
Another element of the resource management plan is a release plan. How
the project team will be released from the project is important: especially to
individual members and their functional managers.
An example of a resource histogram, showing usage by weeks
Other elements of this plan are the staff training needs, rewards systems,
safety procedures, compliance needs, and a plan for how the staff will be
released at the appropriate time. e resource management plan tells how
those speci�c needs will be addressed on the project.
Team Charter - e team charter communicates the ground rules. It
speci�es how the team will interact, communicate, reach decisions, hold
meetings, and any other elements that are important to this team.
Ground rules may vary project to project, but everyone on the team should
know what they are. ey de�ne team expectations, whether these are
written or implied.
Project Document Updates — See Ch. 2, Common Outputs
PLANNING
ESTIMATE ACTIVITY RESOURCES
6th Edition PMBOK® Guide Cross Ref. pg 320
WHAT IT IS:
How long an activity takes is usually a function of determining the effort
needed to perform the activity, the quantity of resources that will be applied
to it, and the resource availability. is process is all about analyzing the
project’s schedule activities to determine the resource requirements.
WHY IT IS IMPORTANT:
Understanding the number of resources required to complete an activity and
determining how long they will be used for that activity is an important step
in project planning and an essential ingredient to the schedule, which will
be developed later.
WHEN IT IS PERFORMED:
Because the process of Estimate Activity Resources uses the activity list and
activity attributes (brought in as part of the project documents), it must be
performed aer the De�ne Activities process since that is where these
documents are produced. Additionally, since the output of this process is
used to build the project schedule, this process must be performed before
Develop Schedule. is process oen goes hand in hand with Estimate
Costs, since cost and schedule are closely linked, so they may be performed
at the same time, or in an iterative cycle.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents - e key documents brought into this process are the
activity list, the activity attributes, and the resource calendars. ese provide
insight into what activities need to be accomplished and when resources are
available. e risk register may also provide information about which
activities have higher risks and may require more resources or attention.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Bottom-Up Estimating - is is essentially the same technique as the
one used in the Estimate Activity Durations process (covered in schedule
management), except that this time we are aggregating individual resource
estimates. ese estimates will be added up on parent nodes, with some of
these summary nodes, known as control accounts, being tracked more
carefully than others. Using this technique, the topmost node on the WBS
should contain all of the estimated resources for the project.
Bottom-up estimating is generally a favored technique on the exam.
Analogous Estimating - Like the previous tool, analogous estimating is
used the same way here was it was in Estimate Activity Durations.
Parametric Estimating - Parametric estimating in this process also
mirrors the way it was used in Estimate Activity Durations. It uses historical
performance to extrapolate and estimate future resource usage.
Data Analysis - e main kind of data analysis used here is alternatives
analysis. It is used to evaluate each activity to see if there are other ways of
completing it. is may include using different resources or different
quantities of resources.
Project Management Information System (PMIS) - e PMIS is a soware
system that helps the project manager with routine tasks or tedious
calculations. It can help the project manager store and organize information,
experiment with alternatives, and rapidly optimize resource usage, and
calculate schedules.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Resource Requirements - e resources required for each schedule
activity are the primary output of Estimate Activity Resources. ese
resources include the kind of resource and the number of these resources.
e activity resource requirements need to specify, for instance, if two senior
programmers are required for six months or if three junior programmers are
required for �ve months.
Each activity resource requirement should be documented with sufficient
detail to explain the decision-making process used to arrive at these
estimates.
Basis of Estimates - All three of the estimating processes that are tied to
activities (Estimate Activity Resources, Estimate Costs, and Estimate
Activity Durations) include the basis for estimates along with the estimates
themselves. Including this supporting detail is always a good idea.
Resource Breakdown Structure - e resource breakdown structure, or
RBS, is similar in many ways to the WBS. It is graphical and hierarchical,
logically arranged from top to bottom, and it organizes the resources by
category and type.
Project Document Updates — See Ch. 2, Common Outputs
EXECUTING
ACQUIRE RESOURCES
6th Edition PMBOK® Guide Cross Ref. pg 328
WHAT IT IS:
Acquire Resources is another process that sounds exactly like what it is. is
process focuses on staffing the project and procuring the materials and
facilities needed to perform the work. Because it is an executing process, you
can think of it as a key process that carries out the resource management
plan.
WHY IT IS IMPORTANT:
is process gets the right people working with the right materials on the
project. Careful attention to this process should pay off in the form of the
quality of staff and materials you bring on.
WHEN IT IS PERFORMED:
Make sure that you understand that the process of Acquire Resources is
typically performed throughout the project, as you may need different skill
sets and materials throughout the life of the project. For instance, you may
need business analysts early on in the life of the project, while you may need
more quality engineers later in the project. Acquire Resources would be
performed as long as the project was adding team members or replacing
existing staff. On a construction project, the raw material needs may be low
at the beginning but will likely ramp up quickly during construction.
Likewise, on an application development project, the need for servers and
bandwidth may increase as the product is prepared for public rollout.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Decision Making - Since there are oen many variables that in�uence
which resources to select, a multi-criteria decision analysis tool may be used.
is is a weighted matrix to objectively score potential candidates or
resources on the various factors that matter the most to the project. e
criteria and weightings are determined in advance, and candidates are
scored against them, with the highest-scoring candidate being selected for
the position.
Interpersonal and Team Skills — See Ch. 2, Common Tools
Pre-Assignment - It is normal for some roles to be de�ned �rst. Later,
resources are assigned to perform those roles and ful�ll the responsibilities;
however, occasionally speci�c resources will be pre-assigned to �ll a role.
is may occur before the resource management plan has been created and
even before the project formally begins.
Virtual Teams - As the internet has transformed the way many people
do their jobs, virtual teams have become much more popular. A virtual team
is a group of individuals who may or may not see each other in person.
Instead, they typically use electronic tools to communicate, meet online,
share information, collaborate on documents and deliverables, work
different shis, and reduce time and travel expense.
HOW IT WORKS / OUTPUTS:
Physical Resource Assignments - is output documents the
assignment of the non-human resources needed to complete the project.
Project Team Assignments - e assigned staff is the primary output of
this process. Each role that was de�ned should have a resource assigned to
it. Understand that these assignments may happen several times throughout
the process as resources are needed. For instance, it might be difficult to
assign a particular person to a role if that resource will not be needed for a
year.
Resource Calendars - e resource calendars �ow into this process
through the project documents, and the updated resource calendars,
re�ecting the resource utilization, dates, and durations, �ows out.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Enterprise Environmental Factors Updates - As you use or commit
physical resources or commit people to project roles, it needs to be
documented for the organization and for other project teams.
Organizational Process Assets Updates — See Ch. 2, Common Outputs
EXECUTING
DEVELOP TEAM
6th Edition PMBOK® Guide Cross Ref. pg 336
WHAT IT IS:
Where the exam is concerned, Develop Team is the most important process
in Resource Management. It is an executing process that focuses on building
a sense of team and improving its performance.
WHY IT IS IMPORTANT:
A good team performs better than a group of disconnected individuals, and
the performance difference can be dramatic.
WHEN IT IS PERFORMED:
e process of Develop Team is performed throughout the project. In other
words, as long as there is a team on the project, you should perform this
process. It is considered to be most effective when it is begun early in the
project’s life cycle, and it becomes even more important over time.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Colocation - Colocation is the act of physically locating team members
in the same general space. e most common example of this is to create a
war room where all the team members work or to colocate the project team
at the customer’s site. Team building and communication are also easier.
Virtual Teams - Virtual teams can present a challenge to developing a
team. ey may offer advantages for cost or having access to resources that
would not otherwise be practical, but it almost always presents difficulty for
creating a sense of team. Successful virtual teams typically use soware and
tools to improve communication and collaboration.
Communication Technology - Communication is very important
regardless of whether the team is collocated or virtual. is can include
portals such as SharePoint or cloud-based tools, sites for video and audio
conferencing, email and chat. Regardless of the technology used, the point is
to reduce barriers to communication.
Interpersonal and Team Skills - e tool of interpersonal skills is oen
called so skills. is represents the ability to get along with others, to
ensure their cooperation, and to motivate people to give extra effort and do
their best for the project.
e Alpha Study of project managers found that many of the project
managers who ranked themselves highly in the areas of so skills were oen
ranked among the lowest in so skill competency by their stakeholders.
Strong interpersonal skills are very important where the team is concerned.
So skills can be a thorny area for project managers. Many project managers
are not fully aware of how they are relating to their teams.
Recognition and Rewards - Recognition and reward systems are most
commonly associated with the resource management plan. In general,
desirable behaviors should be rewarded and recognized. For the exam, you
should focus on win-win rewards as the best choices for team building.
Win-lose rewards, such as a contest where one team member wins and the
others do not, can be detrimental to the sense of team.
ere is a substantial body of knowledge on recognition and reward
theories. ese theories, also known as eories of Motivation, are
traditional exam favorites. A thorough understanding of several theories is
needed to be fully prepared to pass the exam, including Tuckman’s Ladder,
Maslow’s Hierarchy of Needs, Expectancy eory, McGregor’s eory X and
Y, Contingency eory, Herzberg’s Motivation-Hygiene eory, and
McClelland’s eory of Needs.
Tuckman’s Ladder
An important theory that speaks to the development of the team is
Tuckman’s Ladder of Team Development. It de�nes �ve levels of
performance: Forming, Storming, Norming, Performing, and Adjourning.
1. Forming is the �rst stage where the team understands the project and
their roles.
2. Storming is the stage where the team begins to do the work, but there is
typically a good bit of con�ict and difficulty. is stage may be chaotic.
3. Norming is the stage where the behavior normalizes and members
begin to work as a team. In this stage, the project manager shares more
leadership with the team.
4. Performing is the stage where the team is working at an efficient level
that exceeds what individuals could accomplish alone. e project
manager’s role changes to be one of overseeing and delegating.
5. Adjourning is the stage where the project is closed and the team is
released. Since individuals tend to fear change, this stage can be
difficult on everyone.
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs is a basic theory of human motivation that
project managers should understand. Abraham Maslow grouped human
needs into �ve basic categories as illustrated in the following diagram.
Maslow’s theory states that these needs form a hierarchy since the needs at
the bottom must be satis�ed before the upper needs will surface. As an
example, people cannot reach their full potential if they do not have
sufficient food or safety.
Every project manager should understand the needs of the team members
and how they interrelate so that he can help them to perform at their full
potential.
Expectancy eory
Expectancy eory is a motivational theory developed by Victor Vroom. It
says that team members make choices based on the expected outcomes. For
project work, it most directly applies by saying that team members will only
work hard toward a goal if they believe that goal is achievable.
McGregor’s eory X and eory Y
McGregor’s organizational theory states that there are two ways to categorize
and understand people in the workplace.
Managers who ascribe to eory X presume that team members are only
interested in their own sel�sh goals. ey are unmotivated, they dislike
work, and they must be forced to do productive work. eory X managers
believe that constant supervision is necessary to achieve desired results on a
project.
ose who practice eory Y assume that people are naturally motivated to
do good work. “Y managers” believe that their team members need very
little external motivation and can be trusted to work toward the
organization’s or project’s goals.
An assembly-line organization may treat everyone as an “X Person,”
monitoring and measuring every move, whereas an organization that
encourages telecommuting might be more prone to treat employees as “Y
People.” However, it should be understood that it is the manager, not the
organization, that ascribes to eory X or eory Y, and the style of
management is not necessarily determined by the type of work being
performed.
Contingency eory
e Contingency eory, developed by Fred E. Fiedler in the 1960s and
1970s, states that a leader’s effectiveness is contingent upon two sets of
factors. e �rst set of factors measures whether the leader is task-oriented
or relationship-oriented. e second set evaluates situational factors in the
workplace, such as how stressful the environment is.
e practical application of this theory suggests that in stressful times, a
task-oriented leader will be more effective, while in relatively calm times, a
relationship-oriented leader will function more effectively. e inverse is
also true. What makes a leader effective in one setting may actually work
against them in another.
Herzberg’s Motivation-Hygiene eory
is theory has nothing to do with personal hygiene as the name might
incorrectly lead you to conclude. Instead, Herzberg conducted studies to
quantify what factors in�uence satisfaction at work.
Similar to Maslow’s theory, Herzberg’s Motivational-Hygiene theory states
that the presence of certain factors does not make someone satis�ed, but
their absence can make someone unsatis�ed. In this case, hygiene factors
must be present, but they do not motivate by themselves. Motivation factors
will motivate, but they will not work without the hygiene factors in place.
McClelland’s ree Need eory
Also called Achievement eory, or McClelland’s eory of Needs, this
states that employees are motivated out of three primary needs:
Achievement: Team members with a high need for achievement (nAch)
have a need to stand out. ey gravitate toward other team members
with a high nAch. ey may also prefer to work alone. High risk projects
are oen not appealing to nAch team members since their individual
effort may be thwarted by the risk of the project. Also, very low-risk
projects may not appeal since individual effort may not be recognized.
Power: Team members with the need for power (nPow) generally desire
either institutional (social) power or personal power. Individuals with a
desire for social power are usually more effective team members than
those with a desire for personal power.
Affiliation: Individuals with the need for affiliation (nAff) want to
belong to a team. ey seek to maintain good relationships and do well
in customer-facing team positions.
By understanding the needs of individual team members (nAch, nPow,
or nAff), the project manager can work to manage roles and motivate
the overall project team to reach peak performance.
Forms of Power
ere are various forms of power that a project manager may have.
Understanding the forms of power can help the project manager maximize
his or her ability to in�uence and manage the team.
Reward Power: Reward power is the ability to give rewards and
recognition. Examples include a pay raise, time off, or any other type of
reward that would motivate a team member.
Expert Power: Expert power exists when the manager is an expert on
the subject. For example, the person who architected a part of a soware
system would probably have signi�cant expert power on a project that
used that system. People would listen to the architect because they had
credibility. A subject matter expert usually has signi�cant power to
in�uence and control behavior.
Legitimate: Also known as formal power, legitimate power is the power
that the manager has because of their position. is type of power comes
from being formally in charge of the project and the people and has the
backing of the organization.
Strong, broad-based, formal authority for a project manager is unusual
and would typically indicate a projectized organizational structure.
Referent: Referent power is a form of power that is based on respect or
the charismatic personality of the manager. It is ultimately rooted in a
persuasive ability with people. Another usage of referent power is when
a less powerful person allies with a more powerful person and leverages
some of the superior’s power. For instance, if the project manager is very
close to the CEO of the company, their power will probably be higher
because of that alliance.
Punishment: Also known as coercive power, this type of in�uence is the
ability to punish an employee if a goal is not met. “If this module does
not pass quality control by the end of next week, you are all �red,” would
be an example of a manager using punishment power.
Best Forms of Power
In addition to being able to identify the different types of power a project
manager can use, you should also know that the exam favors reward and
expert as the most effective forms of power and punishment as the least
effective.
Training - Training can include a wide range of activities, but it may be
thought of as any instruction or acquisition of skills that increases the ability
of the team or individuals to perform their jobs.
If a team member does not have the skills needed to carry out his
responsibilities, then training may be a good option. In general, training is
highly favored for the exam. In most cases you encounter on the exam, it
should be paid for by the performing organization or the functional
manager and not by the customer or the project.
Individual and Team Assessments - Assessments are powerful ways for
team members and managers to gain insights into relational styles,
strengths, and weaknesses. In addition, 360-degree feedback assessments
can help individuals understand how they are perceived by others both
inside and outside of the organization. Assessments are not the end goal.
ey are a means to create awareness so that an improvement plan may be
undertaken.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Team Performance Assessments - Team evaluations are performed by
the project manager to focus on areas that should be improved. It is the
project manager’s job to increase team performance. It is also important for
the project manager to identify the right tools and resources needed to help
develop the team.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Enterprise Environmental Factors Updates - As employees develop new
skills, these need to be documented for the organization.
Organizational Process Assets Updates — See Ch. 2, Common Outputs
EXECUTING
MANAGE TEAM
6th Edition PMBOK® Guide Cross Ref. pg 345
WHAT IT IS:
is executing process has most of the attributes of a monitoring and
controlling process. In fact, it used to be a monitoring and controlling
process in an earlier edition of the PMBOK® Guide. is is important to
know. In this process, you are actively managing the project team to ensure
that they perform according to the plan.
WHY IT IS IMPORTANT:
Out of all the areas on a project, the human resource side oen has the most
trouble with execution. People can be unpredictable. Some leave the project,
teams experience unexpected con�ict, individuals suffer from low morale,
and all of these events directly affect objective measures such as the budget,
the schedule, and quality.
is uncertainty becomes even more challenging when you consider that
team members oen report to different functional managers and only have
“dotted line” responsibilities to the project manager.
In the Manage Team process, the project manager considers all of these
factors and works to keep the team at optimal performance.
WHEN IT IS PERFORMED:
Manage Team is performed as soon as and as long as there is a team on the
project. On larger projects, it is unusual for the entire team to stay exactly
the same throughout the project, since different skill sets will roll on and off
as needed. e goal is to create and maintain peak team performance, and
this lasts as long as there is a team.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Reports - e work performance reports come from
the process Monitor and Control Project Work. Keep in mind that reports
should be actionable, so this should provide a helpful picture as to how the
work is being carried out, and that will in�uence how the team is managed.
For example, if the team is producing an excellent product but is working
signi�cant overtime, that would show up in the work performance reports
and would be considered a problem.
Team Performance Assessments - is input, produced in the previous
process, Develop Team, is similar to the previous input of work performance
reports. e team performance assessments give insight into the overall
health of the team.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Interpersonal and Team Skills - Project managers and project coaches
oen need to help resolve team con�ict.
Consider the problem of a door that is stuck shut.
ere are several ways to approach this:
You may want to throw your weight against the door, pounding it with
your shoulder.
You might elect to try to go in the room from another point of entry.
You could try to take the hinges off the door to make it come apart.
You might choose to ignore the problem of the stuck door, avoiding it
altogether, or hope that someone else will take care of it.
You could attempt to �nd out why the door was stuck in the �rst place
and deal with that problem.
In the same way, there are several ways to approach con�ict resolution.
Because con�ict is inevitable with any team, you should be aware of the
common ways of handling it:
Problem-Solving - Problem-solving involves confrontation, but it is
confrontation of the problem and not the person. It means dealing with
the problem head on. Using this technique, the project manager gets to
the bottom of the problem and resolves the root causes of the con�ict.
One common term in problem-solving is “confrontation.” Although the
word confrontation may have negative connotations, this type of con�ict
resolution is highly favored as it is proactive, direct, and deals with the
root of the problem. Consequently, it is most oen the correct answer on
the exam when questions of con�ict resolution arise.
Collaboration - Collaboration is a favored technique for resolving
con�ict. When collaborating, individuals (or teams) work together with
other individuals (or teams) to come to a solution. is is a favored
technique for the exam, second only to problem-solving.
Compromise - Compromise, also referred to as “reconcile”, takes place
when both parties sacri�ce something for the sake of reaching an
agreement. On the test, compromise may be presented as “lose – lose”
since both parties give up something.
Forcing - Forcing is exactly what the name implies. It is bringing to bear
whatever force or power is necessary to get the door open. Although
forcing may work well in the case of a stuck door, this is considered to be
the worst way to resolve project con�ict. Forcing doesn’t help resolve the
underlying problems, it reduces team morale, and it is almost never a
good long-term solution.
Smoothing (also called “Accommodating”) - Using smoothing or
accommodating, the project manager plays down the problem and turns
attention to what is going well. e statement “We shouldn’t be arguing
with each other. Look at how well we’ve done so far, and we’re ahead of
schedule,” would be an example of smoothing.
Smoothing downplays con�ict instead of dealing with it head on and
does not produce a solution to the con�ict. Instead, smoothing merely
tries to diminish the problem.
Withdrawal - Withdrawal is technically not a con�ict resolution
technique but a means of avoidance. A project manager practicing
withdrawal is merely hoping the problem will go away by itself. Needless
to say, this is not a favored method of con�ict resolution because the
con�ict is never resolved. It will never be a correct answer on the exam
unless the question describes a bad behavior or asks you about
something not to do.
Constructive and Destructive Team Roles
Related to the area of con�ict management is the project manager’s ability to
recognize and deal with constructive and destructive roles on his or her
team.
Decision Making
Good decision making involves several components, including following a
process, keeping focused on the goals, soliciting input and listening to it,
and taking all information into consideration.
Emotional Intelligence
Awareness of the importance of emotional intelligence has been growing in
recent years. It is a concept that came out of research by John Mayer and
Peter Salovey and was brought into public awareness through Daniel
Goleman’s book Emotional Intelligence: Why It Can Matter More an IQ.
You may see Emotional Intelligence abbreviated as “EQ” or as “EI.”
e concept is that traditional IQ tests measure how good someone is at
solving problems and at relating, grouping, and associating information;
however, some of the world’s most successful leaders did not have
particularly high IQs. Instead, they leveraged a strong ability to read people,
to relate to them, to assess situations, or to work with a team. Conversely,
many people have experienced working for a highly intelligent person who
could not manage or relate to people effectively.
High emotional intelligence comes through a combination of elevated self-
awareness and social awareness and by being able to gauge the mood and
emotions of a group or team.
A high self-awareness means that the individual knows his or her personal
strengths and weaknesses. A high social awareness means that the individual
is very aware of how he or she is being perceived by others and has the
ability to tailor behavior as needed.
e bene�ts to a high EI are many. Because so much of a project is
accomplished through team effort and consensus, the project manager needs
to have a strong ability to relate and to negotiate. Abrasive and divisive
people, even when technically knowledgable and capable, usually do not
make good project managers.
Possessing and employing a high EI to deal with issues or problems should
be highly favored on the exam.
In�uencing
Most project managers have limited authority on a project, and this is
particularly true when it comes to the team. In this case, the skill of
in�uencing becomes more important. Project managers have to be able to
in�uence stakeholders through persuasion, listening, and building trusting
relationships.
Leadership
ere is a difference between leading and managing on a project. Managing
has been de�ned as producing key results, while leading involves
establishing direction, aligning people to that direction, and motivating and
inspiring.
ere are several different styles of leading that are recognized throughout
the �eld of project management. e following graphic may prove very
helpful for the exam. In the early phases of the project, the project manager
should take a very active role in the leadership of the project, usually
directing the activities and providing signi�cant leadership. As the project
progresses, however, other styles of leading may be more appropriate. ese
styles of leading are less heavy-handed. Of course, the particular style of
leading needed will vary from one project to the next.
Project Management Information System (PMIS) — See Ch. 2, Common
Tools
HOW IT WORKS / OUTPUTS:
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Enterprise Environmental Factors Updates - Some of the enterprise
environmental factors that may be updated are skill at managing resources
and the organizational performance appraisals.
MONITORING & CONTROLLING
CONTROL RESOURCES
6th Edition PMBOK® Guide Cross Ref. pg 352
WHAT IT IS:
is monitoring and controlling process has nothing to do with the human
resources. It is about the physical resources on the project and making sure
that their availability and uninterrupted �ow and usage line up with the
resource management plan.
WHY IT IS IMPORTANT:
is is an easy process. In fact, the inputs, tools, and outputs are all
commonly used ones, so nothing really stands out. But it is a new process
with this edition of the PMBOK® Guide, and is ripe for exploitation on the
exam.
What you need to know for the exam is that this process is the one that
monitors and makes adjustments to the physical resource usage or to the
resource management plan.
WHEN IT IS PERFORMED:
All monitoring and controlling processes are performed as needed. If you
are acquiring resources or using resources on the project, then you will need
to perform this process.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Data - is is key because it provides the raw data of
the quantity and types of resources used. ese will be analyzed, processed,
and transformed into the key output of work performance information.
Agreements — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Data Analysis - is tool is generic enough in many ways, but you
should recognize alternatives analysis, cost-bene�t analysis, performance
reviews, and trend analysis as ways in which it is carried out. Each of these
looks at hard data to see how effective resource management is.
Problem Solving - Problem solving is a favorite answer for the exam. In
fact, if you ever see it as a choice, you should give it very careful
consideration. e general approach for problem solving is shown here:
Interpersonal and Team Skills — See Ch. 2, Common Tools
Project Management Information System (PMIS) — See Ch. 2, Common
Tools
HOW IT WORKS / OUTPUTS:
Work Performance Information - the WPI differs from the input of the
work performance data because it is in a more re�ned form that can be
compared with the resource management plan.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON
RESOURCE MANAGEMENT
e more agile the project, the less you rely on a pre-set plan. You rely,
instead, on the team’s ability to adapt. Agile methodologies have changed
the way project teams form and operate. One prominent feature of self-
organizing teams is that they do not include the role of a traditional
project manager. On agile projects, the team is collectively responsible for
the quality and deliverables. e team is generally counseled by a coach
(sometimes referred to by other titles) rather than being directed by a
project manager; the coach works to remove obstacles and to facilitate
open communication on the project. Self-organizing teams are staffed
with interchangeable team members known as generalizing specialists
rather than individual experts.
Because the team is self-organizing, it seeks to be self-correcting. e
coach’s role is to be a servant leader, to help remove obstacles, and to
encourage the team to adhere to agile principles.
Physical resources on an agile project are oen procured in smaller
quantities in order to satisfy the needs of a single iteration. While this
approach has the potential to increase cost, it is a useful way to reduce
risk.
You will notice that most of the processes below, with the exception of
Develop Team, do not apply well to agile projects. Agile projects differ in
many ways from their predictive counterparts, but nowhere is that more
apparent than when it comes to teams.
Plan Resource Management
is process has fairly low applicability in the agile world. e resource
management plan would not be attempted or produced on a truly agile
project.
e other key output, the team charter, could be useful insomuch as it
communicates the ground rules and sets expectations for team behavior.
e team charter also lays out a structure for how decisions will be made
and how the team will interact and communicate. Keep in mind that
these team norms may be revisited as frequently as every iteration.
Estimate Activity Resources
is has limited applicability for agile projects. e team would estimate
the level of difficulty for user stories, and they may allocate user stories
among the team members for development, but this would only be
performed one iteration ahead.
Acquire Resources
is is the process of staffing the project, and it would be performed on
predictive or agile projects. Most agile teams seek to stay level and intact
throughout the project, although this may or may not be possible.
Ideally, an agile team is not made up of highly specialized people. is
would encourage a siloed approach. Instead, they seek to staff the team
with interchangeable, “generalizing specialists.”
is typically requires a team made up of more seasoned resources.
Develop Team
e process of Develop Team is highly applicable to agile. Agile teams
seek to improve performance throughout the life of the project, becoming
more efficient and more effective at delivering value.
Manage Team
As teams are self-organizing on agile projects, and therefore, self-
correcting, this process is difficult to apply. e role of the agile leader is
to mentor and coach fellow team members through con�ict and change.
It is more about in�uence and less about traditional management.
Control Resources
is process is about making sure that physical resource usage lines up
with the resource management plan. It is a challenge to apply this to agile
projects.
RESOURCE MANAGEMENT
QUESTIONS
1. If you hear a project manager saying to a customer “We all agree
that this project is important. Let’s not fight over a few thousand
dollars,” what conflict resolution technique is the project manager
trying to use?
A. Smoothing.
B. Problem Solving.
C. Forcing.
D. Compromising.
2. Who manages the resources in a matrix organization?
A. Senior management.
B. Functional managers.
C. Project manager.
D. Human resources.
3. Trey, a functional manager of his organization’s information
technology domain, has supplied a database developer to a project
managed by Vickie; however, it has become apparent that the
developer lacks the knowledge to work on the operating
environment the team is using. Trey and Vickie meet and
determine that the resource can attend a training class and close the
gap in skills, but there is a question as to who should pay for it. How
should they resolve this?
A. ey should escalate the con�ict to senior management.
B. Trey’s department should pay for the training.
C. Vickie’s project should pay for the training.
D. ey should seek a compromise.
4. What is considered the LEAST desirable form of power for a project
manager to exercise?
A. Formal.
B. Referent.
C. Punishment.
D. Forcing.
5. Which statement below BEST matches a eory X manager’s
beliefs?
A. People want to be rewarded for their work.
B. People have higher needs that will not emerge until the lower
needs have been satis�ed.
C. People will contribute to work if le alone.
D. People cannot be trusted.
6. e resource management plan:
A. Should be provided by the human resources department.
B. Is a part of the resource overview plan.
C. Is used as a tool in Develop Project Team.
D. Is an output of the Plan Resource Management process.
7. A project manager is tracking his team through a process of
development that includes Storming and Adjourning. Which expert
developed the theory this is based upon?
A. Maslow.
B. Herzberg.
C. McClelland.
D. Tuckman.
8. Which technique produces the most lasting results?
A. Problem-solving.
B. Smoothing.
C. Compromising.
D. Withdrawing.
9. For an agile project, the most important role of the project sponsor
is to:
A. Manage and resolve con�icts between the team and upper
management.
B. Provide and protect the project’s �nancial resources.
C. Provide and protect the project’s human resources.
D. Balance the project’s constraints regarding time, scope, and cost.
10. Resource management encompasses:
A. Organizational Planning, Acquire Project Team, Report
Performance, and Manage Project Team, Monitor and Control
Resources.
B. Plan Resource Management, Acquire Project Team, Report
Performance, and Develop Project Team, Monitor and Control
Resources.
C. Plan Resource Management, Estimate Activity Resources, Staff
Acquisition, Develop Project Team, and Monitor and Control
Resources, Release Project Team.
D. Plan Resource Management, Estimate Activity Resources, Acquire
Resources, Develop Team, Manage Team, Control Resources.
11. As you consider resources to staff your agile team with developers,
what would be an anchor characteristic to seek?
A. A developer with a reputation as an expert in their functional
department.
B. An experienced developer with a well-rounded resume and varied
skillset.
C. A new developer recently graduated from college with state-of-
theart coding skills.
D. A developer that has served with you before in a prior predictive
project.
12. Which of the following is a constructive team role?
A. Information seeker.
B. Recognition seeker.
C. Blocker.
D. Devil’s advocate.
13. A project manager is trying to rank and quantify three variables for
his team which he has labeled on a dry-erase board as follows:
nAch, nPow, and nAff. Which expert developed the theory this is
this based upon?
A. Maslow.
B. Herzberg.
C. McClelland.
D. Tuckman.
14. Maslow’s Hierarchy of Needs theory states that:
A. e strongest motivation for work is to provide for physiological
needs.
B. Hygiene factors are those that provide physical safety and
emotional security.
C. Psychological needs for growth and ful�llment can be met only
when lower-level physical or security needs have been ful�lled.
D. e greater the �nancial reward, the more motivated the workers
will be.
15. Which of the following is false regarding team building?
A. Team agreement should be obtained on all major actions.
B. Team building requires role modeling on the part of the project
manager.
C. Team building becomes less important as the project progresses.
D. Teamwork cannot be forced.
16. In a predictive project, team building is primarily the responsibility
of:
A. e project team.
B. e project manager.
C. Senior management.
D. e project sponsor.
17. A war room is an example of:
A. Contract negotiation tactics.
B. Resource planning tools.
C. A functional organization.
D. Colocation.
18. Which processes make use of the project manager’s interpersonal
skills?
A. Acquire Resources and Control Resources.
B. Develop Team and Manage Team.
C. Plan Resource Management and Develop Team.
D. Develop Team and Transition Team.
19. e ground rules reflected in an agile team charter contain what,
and are managed by whom?
A. e team facilitator establishes the ground rules for compliance
with the chosen agile/hybrid methodology.
B. e project manager sets the initial team charter and ground
rules, containing the compliant behavior guidelines for team
members.
C. e team manages the ground rules, which contain the
expectations for behavior within the team—adaptable during
iteration retrospectives.
D. e team charter contains the expectations that the organization
has for agile modeling and the team work space; it can be adapted
by the team with team facilitator consensus.
20. A project coordinator is distinguished from a project manager in
that:
A. A project coordinator has no decision-making power.
B. A project coordinator has less decision-making power.
C. A project coordinator has no authority to assign work.
D. A project coordinator has more decision-making power.
21. Which of the following is NOT a tool used in Develop Team?
A. Interpersonal skills.
B. Recognition and rewards.
C. Meetings.
D. Encouragement.
22. An organization is undertaking a strategic project to develop a new
technology that would provide them with a market advantage. e
project manager has been brought in early to help with pre-
planning, when a senior manager informs him that there is a
specific resource that he wants to be on the project as a quality
engineer. Is this situation acceptable?
A. No. e project manager is ultimately responsible for the project
and should have the opportunity to approve or reject the
acquisition of all resources.
B. No. If a resource is pre-assigned, the functional manager should
be the one to make that assignment to ensure that the individual
has the proper skills.
C. Yes. Pre-assignment may occur as a part of Acquire Resources.
D. Yes, as long as it does not adversely affect the project.
23. One potential disadvantage of a matrix organization is:
A. Highly visible project objectives.
B. Rapid responses to contingencies.
C. Team members must report to more than one boss.
D. e matrix organization creates morale problems.
24. A project manager in Detroit is having difficulty getting the
engineers in his company’s Cleveland office to complete design
documents for his project. He has sent numerous requests to the VP
of Engineering (also in Cleveland) for assistance in getting the
design documents, but so far his efforts have been unsuccessful.
What kind of organization does this project manager work in?
A. Functional.
B. Hierarchical.
C. Strong matrix.
D. Projectized.
25. As the team facilitator of the agile project team, how would you best
position yourself when asked to make a decision for the team?
A. Consider the alternatives, be direct and objective, and always
decide in favor of the customer’s best interests.
B. Bring the opportunity to make a decision to the entire team and
defer to the team’s consensus.
C. Discuss the decision individually with team members to help
prepare them to support your opinion of the best decision.
D. Try to meet face-to-face with the product owner and stakeholders
when you deliver your decision since it is the most effective form
of communications.
RESOURCE MANAGEMENT
ANSWERS
1. A. Smoothing occurs when the person trying to resolve the con�ict
asks everyone to focus on what they agree upon and diminishes the
items on which there is disagreement.
2. B. e functional manager has resource responsibilities in a matrix
organization. In this type of organizational structure, the project
manager must work with the functional managers to secure resources
for a project. If you were tempted to choose ‘C’, keep in mind that the
project manager primarily manages the project. e bene�t of a matrix
organization is that the project manager does not need to divert as
much attention to managing the resources as he or she would in a
projectized organization.
3. B. Remember this: unless it is a very unusual circumstance, the project
does not pay for training. Trey supplied the developer to work on the
project, and it is the functional organization’s responsibility to provide
competent and trained resources. If you were in a hurry, you might
have chosen ‘A’. Aer all, senior management does resolve con�ict
between project managers and functional managers; however, not
every disagreement or con�ict should be escalated in such a hair-
trigger manner. ‘D’ is incorrect since compromise is not overly favored
for the exam to begin with, and compromise would not be in the
project’s best interest here.
4. C. Punishment. ‘D’ is a problem solving technique – not a form of
power.
5. D. eory X managers believe that people cannot be trusted and must
be watched and managed constantly.
6. D. e resource management plan is created during the Plan Resource
Management process.
7. D. Tuckman’s theory of team development, also known as Tuckman’s
Ladder, includes the phases of Forming, Storming, Norming,
Performing, and Adjourning.
8. A. Problem-solving (sometimes referred to as confrontation) is getting
to the root of the problem and is the best way to produce a lasting
result and a real solution.
9. B. is question comes from Chapter 2 – Foundational Terms and
Concepts. e project sponsor provides the funds for the project—
whether predictive or agile! He or she may or may not take on other
roles, but this is their de�ning role on the project.
10. D. e six processes are: Plan Resource Management, Estimate Activity
Resources, Acquire Resources, Develop Team, Manage Team, Control
Resources, and yes, you do need to know all of them before taking the
exam.
11. B. An agile team seeks to staff itself with generalizing specialists rather
than focused specialists. e team’s collective ownership of the
deliverable may require all hands to pitch in—and a highly specialized,
siloed approach is a negative here. ‘C’ is incorrect; agile teams perform
better with experienced resources. ‘D’ is incorrect; experience on an
agile project would be preferred—familiarity with agile values and
methodologies.
12. A. Information seeker. Recognition seekers are more concerned with
getting in the spotlight than with facilitating communication. Blockers
reject others’ viewpoints and shut down discussion. Devil’s advocate –
bringing up alternative viewpoints - can be either positive or negative,
but it is listed in most project management literature as a destructive
team role because when it is negative it is very negative! Information
seekers are constructive because they ask questions to gain
information.
13. C. McClelland developed the ree Need eory that states that
people have the basic needs for Achievement (generally abbreviated as
nAch), Power (nPow), and Affiliation (nAff). is is what the project
manager is analyzing on the dry-erase board.
14. C. is question might have been difficult for you. ‘A’ is not necessarily
true, because Maslow stated that any level of his “pyramid” provides
the greatest level of motivation when the needs of the levels below
have already been met. us physiological needs such as food and
shelter will be the greatest motivator for workers to do a good job
when those needs are unmet. But once the lower level needs are met,
the needs of the next level become the greatest motivators.
15. C. Successful team building begins early in project development, but it
is a continuous process throughout the life of the project.
16. B. Team building must be carried out under the direction of a strong
leader. e project manager has the only project role that allows for
regular, direct interaction with the team.
17. D. Colocation is the practice of locating all team members in a central
location. Another variation of a war room is a conference room
devoted exclusively for a particular project team. It is a tool of Develop
Team used in resource management.
18. B. Develop Team and Manage Team both have interpersonal skills as a
tool. Even if you did not have that memorized, the answer might have
been intuitive since team development and management are enhanced
by strong interpersonal skills. ‘D’ had the name of a made-up process
in it and should have been eliminated immediately.
19. C. e agile team is self-managed, self-directed, and establishes its own
ground rules, which are as adpatable as any other aspect of the team’s
processes and approaches.
20. B. A project coordinator has some authority and some decision-
making power, but less than a project manager.
21. D. Encouragement may be a great idea, but it is not speci�ed as a tool
of Develop Team. ‘A’, ‘B’, and ‘C’ all are. If you missed this question
keep in mind that you should favor the terms, vocabulary, and phrases
you see here on the exam. Few people can commit all of the inputs,
tools and techniques, and outputs to memory, but you should learn to
recognize them and pick out the ones that do not belong.
22. C. Pre-assignment of individuals to a de�ned role is a tool of Acquire
Resources. ere are many reasons this might be necessary, including
contractual agreements. Many times the project manager is not the
�rst person recruited onto the project, making pre-assignment a
reality for many projects and project managers. ‘A’, ‘B’ and ‘D’ all have
some merit to them, but they are not the best answer in this case since
preassignment is a formally-de�ned tool.
23. C. In a matrix organization, team members report to both the project
manager and the functional manager. is can sometimes cause
confusion and can lead to con�ict on a project and within the
organization.
24. A. e clue in the question that indicates a functional organization is
the project manager’s low authority; he must appeal to the head of the
engineering department rather than making his request directly to the
team members.
25. B. e bottom line is that the team facilitator is not the decision-maker
—the team makes decisions!
Readers who study this chapter are sometimes surprised that it is not related
to the skill of communication through oral and written media in areas such
as project writing styles, persuasion, and presentation methods. Rather,
communications management covers all tasks related to producing,
compiling, sending, storing, distributing, and managing project records.
is knowledge area is now made up of only three processes to determine
what to communicate, to whom, how oen, and when to reevaluate the plan.
It involves understanding who your stakeholders are and what they need to
know.
Communications management also requires that you accurately report on
the project status, performance, change, and earned value, and that you pay
close attention to controlling the information to ensure that the
communication management plan is working as intended.
PHILOSOPHY:
ere is an old joke in project management circles about “mushroom project
management” in which you manage projects the same way you grow
mushrooms – by keeping everyone buried in manure, leaving them in the
dark, and checking back periodically to see what has popped up.
e philosophy presented here is quite different. It focuses on keeping the
stakeholders properly informed throughout the project. Communication
under this philosophy may be a mixture of formal and informal, written and
oral, but it is always proactive and thorough. It is essential that the project
manager distribute accurate project information in a timely manner and to
the right audience.
IMPORTANCE:
Communications management is of medium importance on the exam,
bordering on high. You may see several questions that relate directly to this
chapter, so it will be necessary to become acquainted with the processes,
terms, and theories presented here.
PREPARATION:
Although the volume of material in communications management is smaller
than most of the other areas, there are key concepts that must be learned. Be
prepared for several questions on the test speci�cally related to the inputs,
tools and techniques, and outputs for each process. e reason the focus is
on these areas is that they are critical to the smooth operation of the
processes, and most test-takers do not �nd them intuitive.
Two other areas of key importance are the communications model and
understanding channels of communication. You can expect to see questions
about these on the exam.
Communications Management Processes
ere are three processes within project communications management,
following the familiar pattern of plan, execute, and control. ese processes
touch three process groups: planning (Plan Communications Management),
executing (Manage Communications), and monitoring and controlling
(Monitor Communications).
Process Group Communications Management Process
Initiating (none)
Planning Plan Communications Management
Executing Manage Communications
Monitoring & Controlling Monitor Communications (none)
Closing (none)
e primary outputs associated with the three communications
management processes are shown in the table below.
Process Primary Outputs
Plan Communications Management Communications Management Plan
Manage Communications Project Communications
Monitor Communications (No Key Outputs)
Project Manager’s Role in Communications
e project manager’s most important skill set is the ability to communicate
effectively. It is integral to everything he or she does. You may see questions
on your exam asking you what the project manager’s most important job or
most important skills are, or how most of the project manager’s time is
spent. e answer is almost always related to communications. It is
estimated that an effective project manager spends about 90% of his time
communicating, and fully 50% of that time is spent communicating with the
project team.
Also note that while communications take up a majority of the project
manager’s working day, one individual cannot control everything that is
communicated on a project, nor should they try. Project managers who ask
that every single e-mail or conversation be �ltered through them �rst are
demonstrating that they are not in control on the project. Instead, the
project manager should be in control of the communications process. is is
done by creating a strong communications management plan, adhering to it,
and regularly monitoring and controlling the results.
PLANNING
PLAN COMMUNICATIONS MANAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 366
WHAT IT IS:
For the exam you should consider that Plan Communications Management
is all about the communications management plan, its only signi�cant
output. e communications management plan is, as you might guess, the
plan that drives communication on the project. It de�nes:
How oen communications will be distributed and updated
In what format the communications will be distributed (e.g., e-mail,
meetings, printed copy, web site, etc.)
What information will be included in the communications
Which project stakeholders will receive these communications
WHY IT IS IMPORTANT:
e communications management plan sets stakeholders’ expectations on
the project, letting them know what information they will receive and when
and how they will receive it. If the project manager invests time in de�ning
these lines of communication up front, con�ict should be less than if it were
unde�ned. Keep in mind that projects will vary greatly in how formally they
de�ne the communications management plan. On a small project, it may
not make sense for the project manager to go to great lengths to de�ne an
overly formal communications management plan.
WHEN IT IS PERFORMED:
Like many planning processes, Plan Communications Management is
typically performed early on the project, before regular project
communications commence; however, it may be revisited as oen as needed.
It does depend on the process of Identify Stakeholders, so it would be
performed aer that process has been completed.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs
Project Management Plan - e key component of the project management
plan here is the stakeholder engagement plan. Communications is almost
always the primary way in which stakeholders are kept engaged.
Project Documents - e most important document to bring into this
process is the stakeholder register which shows which stakeholders will
receive project communications.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Communication Requirements Analysis - is one can cover quite a
bit of ground. It is relatively simple to de�ne, but sometimes quite tricky to
perform on an actual project. e goal of this technique is to identify which
stakeholders should receive project communications, what communications
they should receive, how they should receive these communications, and
how oen they should receive them.
Communication Channels
A signi�cant part of analyzing the project’s communication requirements is
determining the communication channels, or paths of communication, that
exist within it. Expect at least a couple of questions on the exam to relate
directly to this topic. Because the project manager needs to manage and be
in control of project communications, it is important to understand that
adding a single person on a project can have a signi�cant impact on the
number of paths or channels of communication that exist between people.
e formula is: Channels = n × (n-1) ÷ 2
(Where n = the number of people on the project)
e formula above for calculating communication channels should not scare
you. It is a very simple geometric expansion. Before memorizing the
formula, refer to the two illustrations below. You can see from the drawing
that four people produce six communication channels, as is con�rmed by
the formula:
4 × (4-1) ÷ 2 = 6.
If there were �ve people, the formula would be applied as:
5 × (5-1) ÷ 2 = 10
By understanding the illustrations that follow and the way people interrelate
to form communication channels, the concept should be easy to
comprehend.
Four people create six communication channels, as illustrated above.
Five people create ten communication channels, or paths, as depicted in the
illustration above.
Official Channels of Communication
e number of communication channels is of speci�c concern when
analyzing the project’s communication requirements. If there are a large
number of channels of communication on the project, the project manager
should work to de�ne which communication channels are official. For
example, it may be necessary to determine who can officially communicate
with the customer or with key subcontractors.
Communication Technology - Technology is a tool, and the right tool
should be selected for a given communications need. Whereas face-to-face
meetings may be needed for some projects, a project web site, portal, or e-
mail may be more appropriate for others. e technology should be tailored
to the need. Sensitivity and security of information should also come into
consideration when choosing the right technology.
Communication Models - e communication model is a formal way
of understanding how messages are sent and received. is model de�nes
the responsibilities between the sender and the receiver.
e sender’s responsibilities are to:
Encode the message clearly
Select a communication method
Send the message
Con�rm that the message was received and understood by the receiver
e receiver’s responsibilities are to:
Decode the message
Acknowledge (Con�rm that the message was received)
Respond and give feedback
Oen, it is not so easy to simply transmit a message and assume it will be
received, decoded, and understood properly. “Noise” can interfere with a
message’s transmission. Noise can be anything that affects the receiver’s
ability to understand a message. For instance, language and cultural issues,
method of transmission, distance, and bias can all inject noise into the
message. Both the sender and receiver must be consciously aware of noise
and work to prevent it from compromising the message.
Messages can be conveyed in verbal and nonverbal ways. Below are some
terms related to different ways of communicating:
Active listening - Active listening requires the receiver to take steps to
ensure that the sender’s message was understood. It is similar to effective
listening (below).
Effective listening - Effective listening requires the listener’s full thought
and attention. To be effective as a listener means to monitor nonverbal
and physical communications and to provide feedback indicating
whether the message has been clearly understood.
Feedback - Feedback refers to the verbal and nonverbal cues a speaker
must monitor to see whether the listener fully comprehends the
message. Nodding and smiling might be considered positive feedback
and indicate that the message is understood and received, whereas
nodding and a blank stare might indicate that the message needs to be
re-coded for better communication. Asking questions or repeating the
speaker’s words are also ways to give feedback.
Nonverbal - Nonverbal communication takes place through body
language such as facial expressions, posture, hand motions, etc. In fact,
most communication between the sender and receiver is nonverbal.
erefore, in order to understand the message, a good listener must
carefully attend to nonverbal communication.
Paralingual - Paralingual communication is vocal but not verbal – for
example, tone of voice, volume, or pitch. A high-pitched squeal does not
employ words, but it certainly communicates.
Communication Blockers - A communication blocker is anything that
interferes with the sender encoding the message or with the receiver
decoding it. It can include anything that disrupts the communication
channels.
Communication Methods - ere are methods of communication you
will need to know, and it is very important to understand what they are and
how and when they are used. Many people �nd the difference between
formal and informal to be non-intuitive the �rst time they encounter it. e
methods of communication are covered in the following table.
Method Examples When used
Informal Written E-mail messages,
memorandum
Used frequently on the
project to convey
information and
communicate.
Formal Written
Contracts, legal notices,
project documents (e.g, the
Charter), important project
communications
Used infrequently, but
essential for prominent
documents that go into the
project record. e project
plan is a formal written
document.
Informal Oral Discussions, phone calls,
conversations
Used to communicate
information quickly and
efficiently.
Formal Oral
Meetings, speeches, mass
communications,
presentations
Used for public relations,
special events, company-
wide annoucements, sales.
Internal
Emails to the team, Memos
or presentations to senior
management
Used to communicate within
the performing organization.
External
Messages or presentations to
customers, regulators, the
public, or investors
Used to communicate with
stakeholders outside of the
performing organization.
Official
Communication to
government or regulatory
bodies.
Used to communicate with
any party that operates in an
oversight role for the project.
Unofficial Anything that is not official,
including the majority of
project communication to
internal or external
stakeholders.
Used for most project
commuications to ensure
successful delivery.
Be aware that not just the message but also the medium determines whether
a form of communication is formal or informal.
Another way of framing communications is to think of them in one of the
following three categories:
Category Examples
Interactive A meeting where people can ask questions
Pull A bulk e-mail blast
Push A website where a video presentation or
white paper can be downloaded
Interpersonal and Team Skills - is tool shows up frequently in this
book, but it is particularly important when it comes to communication.
Understanding your communication style, and being politically and
culturally aware are important aspects of interpersonal and team skills.
Data Representation - e stakeholder engagement assessment matrix
is a powerful tool to show how stakeholders relate to the project.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Communications Management Plan - e communications
management plan is part of the project management plan, and it de�nes the
following:
Who should receive project communications
What communications they require and what should be included
Who should send the communication
Who should approve sensitive communications
How the communication will be sent
How oen it will be updated
De�nitions so that everyone has a common understanding of terms
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
EXECUTING
MANAGE COMMUNICATIONS
6th Edition PMBOK ® Guide Cross Ref. pg 379
WHAT IT IS:
It is easiest to consider the process of Manage Communications as the
execution of the communications management plan. In other words, the
communications management plan lays out how communications will be
handled, and the process of Manage Communications carries that out.
Keep in mind that while Manage Communications is performed according
to the communications management plan, it must also be �exible so that
unplanned information requests may be handled.
WHY IT IS IMPORTANT:
Manage Communications is the process where the bulk of project
communications takes place.
e approach to this process may be summed up in the following four
statements:
1. Always deal with the problem
2. Always communicate directly
3. Always tell the truth
4. Always distribute accurate information
WHEN IT IS PERFORMED:
Manage Communications generally updates stakeholders on the progress of
the project according to the communications management plan. It may start
quite early on the project, but it typically elevates in importance and activity
during the construction phases of the project.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Reports - Much of project communication will be
related to the project’s performance, and the performance reports are the
source of that.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Communication Technology: See description under the tools of previous
process, Plan Communications Management.
Communication Methods: See description under the tools of previous
process, Plan Communications Management.
Communication Skills - is tool includes your ability to formulate a
message, your ability to stay on topic, and well as how well you receive
feedback. It also includes how you conduct presentations and how you set
and manage communications expectations with your stakeholders. For the
exam, the same things that apply for a high Emotional Intelligence will apply
here.
Project Management Information System — See Ch. 2, Common Tools
Project Reporting - is is very similar to the work performance reports.
Project Reporting includes any communications about the deliverables,
whereas the other work performance reports look more at how the work is
progressing.
Interpersonal and Team Skills - e skills of active listening, con�ict
management, effective meeting management, and political awareness are the
key skills to recognize here.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Communications - Any time information is being exchanged
with stakeholders, this output comes into play. Recall from earlier in this
chapter that communications may be formal or informal, oral or written.
ese communications will include information about how the project is
progressing, how the team is performing, and how the deliverables are
shaping up.
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
MONITOR COMMUNICATIONS
6th Edition PMBOK ® Guide Cross Ref. pg 388
WHAT IT IS:
Monitoring and controlling processes look at what was planned and
compare that with the work that was executed. Monitor Communications
does exactly that. It compares the results of the previous process (Manage
Communications) with the communications management plan. If there are
differences, adjustments are made to the plan or to the way the work is being
carried out.
WHY IT IS IMPORTANT:
Communication issues are responsible for more than their share of project
problems and failures. Getting the plan right and then executing it well is
extremely important.
e important things to know about this process are the nature of what it
does, how it is carried out, and how the tool of Data Representation is used.
WHEN IT IS PERFORMED:
Monitor Communications is started early in the project and is performed
periodically throughout. As long as there are project communications taking
place, it would be an appropriate time to perform this process.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Data — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Project Management Information System — See Ch. 2, Common Inputs
Data Representation - e idea here can be expressed in the axiom “a
picture is worth a thousand words.” Graphics, images, charts, and tables can
be used to help people visualize and understand data. One area that is used
in communications management is the stakeholder engagement assessment
matrix (covered in chapter 13 in the Plan Stakeholder Engagement process).
It provides a way to group and display how stakeholders are participating on
the project.
For the exam, think of this tool as showing data in a meaningful format.
Interpersonal and Team Skills - Once again, this tool appears as key.
Observation and conversation, sometimes referred to as MBWA (Manage By
Walking Around), is key here. In other words, stay engaged with your team.
Meetings - Meetings are an important part of communications, and they are
always classi�ed as formal communication even if the meeting is ad-hoc.
One type of meeting you should be aware of is a lessons learned meeting,
sometimes referred to as a post mortem meeting or an aer action review.
ese meetings ask one simple question: “if we had this activity to do over
again, what would we do differently knowing what we know now?” e
results of these become lessons learned, which may be useful for this project
and for future projects.
HOW IT WORKS / OUTPUTS:
Work Performance Information — See Ch. 2, Common Outputs
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON
COMMUNICATIONS MANAGEMENT
Communication stands out as being markedly more open and dynamic
on agile projects. Because the team is oen colocated, agile projects
leverage “osmotic communication” where the team bene�ts from and
absorbs information gleaned from other conversations. Also, the product
owner is embedded on the team, which allows effective and efficient
communication as well.
In this environment, communication should be rapid, and barriers to
direct, transparent communication should be actively removed. Agile
projects also employ stand-up meetings and frequent reviews which
facilitate communication. Conversation and engagement are highly
encouraged over adhering to a plan.
Information about performance, value delivery, and priorities is posted in
highly visible locations and is shared openly.
Healthy agile teams avoid communication silos and instead foster the
collective understanding of the team.
Plan Communications Management
e communications management plan, which is part of the project plan,
is not an important part of an agile project. e purpose of this plan is
viewed as valuable, but agile favors more informal and frequent updates
and a steady �ow of information.
Manage Communications
is is the process where information is communicated. e way this
occurs on an agile project would likely look different than a predictive
project. On agile initiatives, information would be distributed to the team
in the daily stand up meetings and through osmotic communication. It
might be distributed through the organization in the “scrum of scrums”
or through the more traditional channels of presentations, emails, and
meetings. Big, visible charts would be another way to communicate
information. Examples include burndown charts, burnup charts, Kanban
boards, and product backlogs.
Agile favors a transparent approach to keeping stakeholders updated, so
current information, both positive and negative, would be readily visible
and available.
Monitor Communications
On a predictive project, this process compares the plan to the executed
results and makes adjustments. On an agile project, there is not the same
strict adherence to following a plan, so this process becomes less
important.
Agile teams are making constant adjustments throughout the project, so
any changes to what information is being communicated and how it is
being presented and distributed would naturally fall into this process.
EXERCISES
1. Calculate the number of communication channels that would exist
between eight people.
2. Draw a line connecting the specific form of communication on the
le to the corresponding type of communication on the right.
Testimony before Congress Informal Written
Speech at a trade show Formal Written
Contracts addendum Informal Verbal
Hallway conversation with a coworker Formal Verbal
ANSWERS TO EXERCISES
1. Calculate the number of communication channels for 8 people.
With 8 individuals, there are 28 communication channels as proven by
the formula 8 × (8-1) ÷ 2 = 28
A graphical depiction of the 28 communication channels between the 8 people
2. e forms of communication are illustrated below
COMMUNICATIONS MANAGEMENT
QUESTIONS
1. If there were 4 people on the project team and 9 more are added,
how many additional channels of communication does this create?
A. 6.
B. 30.
C. 36.
D. 72.
2. Which Agile Manifesto value relates more to Project
Communications Management than the others?
A. We value customer collaboration over contract negotiation.
B. We value individuals and interactions over processes and tools.
C. We value working soware over comprehensive documentation.
D. We value responding to change over following a plan.
3. e responsibility of decoding the message rests with:
A. e sender.
B. e receiver.
C. e communications management plan.
D. e communications model.
4. Which of the following is FALSE regarding Manage
Communications?
A. Manage Communications is an executing process.
B. Manage Communications ends when the product has been
accepted.
C. Manage Communications may involve unexpected requests from
stakeholders.
D. Manage Communications carries out the communications
management plan.
5. Acknowledgement in the context of the communication model
indicates:
A. Con�rmation of receipt.
B. Comprehension of the sender’s message.
C. Agreement with the sender’s message.
D. Agreement upon the protocol and frequency of communication.
6. Your latest review of the project status shows it to be more than
three weeks behind schedule. You are required to communicate this
to the customer. is message should be:
A. Formal and written.
B. Informal and written.
C. Formal and oral.
D. Informal and oral.
7. Which of the following statements is TRUE regarding issues?
A. All issues must be resolved in order for the project to be closed.
B. e issue log is a tool for stakeholders to manage project issues.
C. Each issue should be assigned to a single owner.
D. Issue management may be treated as a sub-project on larger, more
complex projects.
8. What aspect of the majority of a person’s communication drives the
benefit of a colocated team work space?
A. It is mostly verbal.
B. It is mostly nonverbal.
C. It is documented.
D. It is mostly unnecessary.
9. Which of the following communication techniques is the most
effective for resolving conflict?
A. Instant messaging.
B. Conference calls.
C. Paralingual communication.
D. Face-to-face communication.
10. Communication skills would be used most during which of the
following processes?
A. Manage Communications.
B. Status Meetings.
C. Direct and Manage Project Work.
D. Communications Change Control.
11. As team facilitator, you coach your team that project information:
A. Should be posted in highly-visible locations and openly shared.
B. Should be shared only on a need-to-know basis.
C. Should be contained in “information refrigerators.”
D. Should be fully documented and �led where all stakeholders can
access reports and project status as needed.
12. You are about to attend a biweekly status meeting with your
program manager when she calls and asks you to be certain to
include earned value analysis in this and future meetings. Why is
earned value analysis important to the communications process?
A. It communicates the likelihood of the project’s success.
B. It communicates how the project is doing against the plan.
C. It communicates the date the project deviated from the plan.
D. It communicates the value-to-cost ratio.
13. You receive a last-minute status report from a senior member of the
project team that you believe is incorrect. It shows tasks as being
complete that you are almost certain are no more than 60%
complete, and it documents deliverables as having been turned over
to the customer that you do not believe are finished yet. You are
walking into a communication meeting with key stakeholders.
What is the BEST way to handle this problem?
A. Ask the team member who wrote the report to sign it.
B. Ask the stakeholders to wait a few minutes while you try to verify
the information.
C. Summon the project team to the meeting and get to the bottom of
the discrepancy.
D. Do nothing with this status and provide an amended report at the
next meeting with the stakeholders.
14. e MOST important skill for a project manager to have is:
A. Good administrative skills.
B. Good planning skills.
C. Good client-facing skills.
D. Good communication skills.
15. e term “osmotic communication” applies to which of the
following?
A. e natural transfer of data through a semi-porous membrane or
�lter.
B. Gleaning useful information from overhearing other
conversations within the work team.
C. Subconscious awareness of information that surfaces at the time it
is needed or important.
D. e agile tooling of a remote team member to enhance the
environment of colocation even though remote.
16. e best definition of noise is:
A. Any unsupportable information that �nds its way onto written or
oral project communications.
B. Anything that interferes with transmission and understanding of a
message.
C. Any communication that takes place through unofficial project
channels.
D. A communications acronym for Normal Operational Informing of
Select project Entities.
17. A project manager is holding a meeting with stakeholders related to
the status of a large project for constructing a new runway at a
major airport. e runway project has a CPI of 1.2 and an SPI of
A. 1.25, and the manager is going to have to deliver the message to
the stakeholders that a crucial quality test has failed. What kind
of communication does this meeting represent?
B. Informal oral.
C. Formal oral.
D. Paralingual.
E. Nonverbal.
18. You have just assumed the role of project manager for the
construction of a new runway for a major airport. e project is
already in progress, and there are over 200 identified stakeholders
on the project. You want to know how to communicate with these
stakeholders. Where should you be able to find this information?
A. It depends on the type of project.
B. e stakeholder register.
C. e communications management plan.
D. Communication requirements.
19. Mary is using forecasting to determine her project’s estimate at
complete. What would be the most likely place to include this
information?
A. e communications management plan.
B. e project activity report.
C. Project communications.
D. e stakeholder engagement report.
20. Marie is a project manager who is involved in a meeting with the
customer. Aer the customer makes a statement, Marie carefully
reformulates and restates the message back to them. What is Marie
practicing in this case?
A. Listening skills.
B. Project communications management.
C. Professional courtesy.
D. Passive listening.
21. Lessons learned should contain:
A. e collective wisdom of the team.
B. Feedback from the customer as to what you could have done
better.
C. Information to be used as an input into project closure.
D. Analysis of the variances that occurred from the project’s baseline.
22. In which process would work performance information be
produced?
A. Plan Communications Management.
B. Monitor Communications.
C. Report Performance.
D. Manage Communications.
23. Information sent to specific recipients who need to receive it but
that is not confirmed to be received or understood by the receiver is
known as:
A. e communication model.
B. Push communication.
C. Pull communication.
D. Noise.
24. Information sensitivity and security would be of greatest concern
when:
A. Working on government projects.
B. Evaluating the communications model.
C. Choosing the appropriate communications technology.
D. Rumors or inaccurate information are being circulated.
25. e issue log is used in which communications management
process?
A. Plan Communications Management.
B. Push Communication.
C. Distribute Communications.
D. Monitor Communications.
COMMUNICATIONS MANAGEMENT
ANSWERS
1. D. If you tried to take a shortcut here, chances are you missed this one
and guessed ‘C’. If there were 4 people, there would have been 6
communication channels. 9 more would create 13, which translates to
78 communications channels. e question is asking how many
additional channels were created, so the answer is 78 - 6 = 72.
2. B. is may have been a difficult choice between ‘A’ and ‘B.’ ‘B’ is a
better response because communications among the team is highly
important, and ‘A’ speci�cally addresses customer collaboration.
“Individuals and interactions” among the team, for example, “osmotic
communication,” emphasizes transparency and openness and provides
for collective understanding.
3. B. In the communication model, it is the sender that encodes, and the
receiver decodes the message.
4. B. Did you get tricked by this one? Manage Communications doesn’t
always end when acceptance has occurred, so this is the answer that
doesn’t �t. Some stakeholders will need information distributed on the
closure of the contracts and projects. ‘A’ is true, because Manage
Communications is an executing process. ‘C’ is true because Manage
Communications carries out predetermined communication, but also
will be used to respond to unplanned requests from stakeholders. ‘D’ is
true because Manage Communications is the process that executes the
communications management plan.
5. A. Within the communication model, acknowledgement only indicates
con�rmation of receipt. It does not mean that the receiver understood
the message or agreed with the message.
6. A. Communication on schedule slippage, cost overruns, and other
major project statuses should be formal and in writing. at doesn’t
mean you can’t pick up the phone to soen the blow, but the formal
and written aspects of the communication are what count here.
7. C. Each issue should be assigned to an owner and be assigned a target
completion date. ‘A’ is incorrect since a project could be closed
(successfully) and still have outstanding issues. Sometimes the issues
are out of the project manager’s control. ‘B’ is incorrect since the issue
log is not for the stakeholders – it is for the project manager to use to
manage issues. ‘D’ is incorrect because issues are managed within the
context of a project. If you were even considering creating a separate
project to manage issues, your project is probably beyond hope.
8. B. Most of a person’s communication takes place non verbally. It is
body language that carries much of the message. ‘A’ is the opposite of
the correct answer. ‘C’ is incorrect since most of the communication is
nonverbal, but not written (documented). ‘D’ may well be true for
some people, but it is not the correct answer here.
9. D. Face-to-face communication is the most effective means of
resolving con�ict. is �ts an overall theme that direct, clear, and
personal communication is favored for project managers. If you
guessed ‘A’, go �nd a place to hide in shame, or at least go sit in time
out for a few minutes. ‘B’ and ‘C’ might seem like appropriate choices
in some situations, but face-to-face is still more effective.
10. A. Your communications skills are used as a tool in Manage
Communications. ‘B’ and ‘D’ should have been easy to eliminate since
they are not real processes. ‘C’ is a real process but it is not the correct
answer.
11. A. “Information radiators” would be highly-visible, very open displays
of project information at a glance. Even though ‘D’ was open to
stakeholders, it is not as quickly available and understood as with ‘A.’
12. B. Earned value analysis is a communication tool, and it’s all about how
the project is doing against the plan. ‘A’ is incorrect, because “success”
involves more than good earned value.
13. B. is is a hard scenario, but be prepared for questions like this on the
exam. e reasoning behind answer ‘B’ is this: a project manager
should always communicate accurate information and should always
report the truth. ‘A’ is wrong because it isn’t about getting your team
member to sign off. Accurate information is more important than
accountability. ‘C’ is incorrect because it is not the team’s job to go to
these meetings. ey should be executing the work on the project. ‘D’
is incorrect because waiting only postpones the situation and delays
getting accurate information to the stakeholders. Choice ‘B’ is best in
this case because it is the only one that gets accurate information to
the stakeholders as quickly as possible.
14. D. Good communication skills are the most important skills a project
manager can have! Project managers spend more time communicating
than anything else.
15. B. Alistair Cockburn coined this term meaning that information �ows
into the background hearing of team members and they pick up
relevant information - a positive result of colocation.
16. B. Noise is anything that interferes with the transmission and
understanding of a message. If you guessed ‘D’, then you were, indeed,
guessing.
17. B. Meetings are classi�ed as formal, whether they are regular or ad-
hoc.
18. C. is information would be contained in the communications
management plan.
19. C. Project communications is the main output of the Manage
Communications process. is is the place for updated earned value
information such as the estimate at complete. ‘A’ was the only other
answer that contained a term that is used in this book, and it is not an
appropriate match for this question.
20. A. Marie is practicing good listening skills to make sure she
communicates well with her customer.
21. D. is is important. Lessons learned focus on variances from the plan
and what would be done differently in the future in order to avoid
those variances.
22. B. e WPI is the main output of Monitor Communications. It
provides information on how the communication is performing
compared to the plan.
23. B. Push communication is communication that is pushed out (think
bulk email), but the drawback is that there is no reliable con�rmation
by the receiver that it was received or understood.
24. C. One of the key, deciding factors when selecting the right
communication technology is how sensitive or con�dential the
information is. ‘A’ might look like a good answer at �rst, but not all
government projects are particularly con�dential or sensitive.
25. D. Even if you didn’t memorize all of the inputs, tools, and outputs, it
may have been intuitive to you that the issue log was tied to the
monitoring and controlling process here. It is one of the documents
used as an input into Monitor Communications.
11 Risk Management
If the previous chapter seemed light and easy, we are about to make up for
that. Risk management is a rich �eld, full of information and tools for
statistical analysis. In the real world, actuaries anticipate risk and calculate
the probability of risk events and their associated costs, and entire volumes
are written on risk analysis and mitigation. In this section, you do not need
to know every tool and technique associated with risk. Instead, focus your
study on the high-level interactions within the different risk processes.
PHILOSOPHY:
By this time, you should have picked up on the fact that very few of these
processes are reactive. e overriding philosophy is that the project manager
is in control and proactively managing events, avoiding as many problems as
possible. e project manager must understand how to anticipate and
identify areas of risk, how to quantify and qualify them, and how to plan for
them.
IMPORTANCE:
Risk is one of the areas some people �nd challenging on the exam. e
material may be new or unfamiliar, and the techniques may take some work
in order to master.
PREPARATION:
In order to pass this section of the exam, you need to understand the risk
management plan and the terms related to risk. e seven risk management
processes contain 82 inputs, tools, and outputs! All of these components to
the processes are important, but the secret is that most of them are either
common sense or they are not frequent exploits on the exam. is chapter
puts more emphasis on the essential elements that you need to know.
Material is organized around these seven processes, building upon the
different components that go with each one.
ere are seven processes within project risk management, and these
processes touch three process groups: planning (Plan Risk Management,
Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk
Analysis, Plan Risk Responses), executing (Implement Risk Responses), and
monitoring and controlling (Monitor Risks)
Process Group Risk Management Process
Initiating none
Planning Plan Risk Management, Indentify Risks, Perform
Qualitative Risk Analysis, Perform Quantitative Risk
Analysis, Plan Risk Responses
Executing Implement Risk Responses
Monitoring & Controlling Monitor Risks
Closing none
e primary outputs associated with the seven risk management processes
are shown in the table below.
Process Primary Outputs
Plan Risk Management Risk Management Plan
Identify Risks Risk Register, Risk Report
Perform Qualitative Risk Analysis (No Key Outputs)
Perform Quantitative Risk Analysis (No Key Outputs)
Plan Risk Responses (No Key Outputs)
Implement Risk Responses Change Requests
Monitor Risks (No Key Outputs)
Risk
e usage of the word “risk” here has a different meaning than many project
managers and organizations may have encountered before. Risk has three
characteristics that must be understood for the exam:
1. Risk is related to an uncertain event.
2. A risk may affect the project for good or for bad. Although risk usually
has negative connotations, it may well have an upside. is is a favorite
exploit on the exam.
3. ere is a difference between Individual Project Risk and Overall
Project Risk. An Individual Project Risk threatens an objective. For
example, if a decision is made to move something from a local server
into the cloud in order to save money and improve uptime, there might
be an individual risk associated with that. If the move could not be
carried out, it might threaten the objectives of saving money and
increasing uptime, but it could still be moved back to the local server
and continue the project. Overall Project Risks are things that threaten
the success of the project. Both of these examples were things that
threatened elements of the project, but in reality, these risks can be
positive or negative.
Risks may occur for different reasons. Some of those may be because the
situations are naturally variable such as the weather. Others may occur
because things are purely uncertain or ambiguous such as whether or not a
piece of technology will be readily available.
e risk approach you choose needs to be tailored to �t with the factors that
in�uence your project.
PLANNING
PLAN RISK MANAGEMENT
6th Edition PMBOK® Guide Cross Ref. pg 401
WHAT IT IS:
Plan Risk Management is the process that is concerned with one thing:
creating the risk management plan. Your understanding of that plan is the
key to unlocking this process and will form the foundation for the other risk
management processes.
In Plan Risk Management, the remaining six risk management processes are
planned. How they will be conducted is documented in the risk
management plan, which is typically general and high-level in nature. is
means that when performing Plan Risk Management, you usually are not
concerned with speci�c project risks. Instead, you will focus on how risk will
be approached on the project.
WHY IT IS IMPORTANT:
ink of this process as creating your roadmap for the six processes of
Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk
Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor
Risks. By creating a plan (the risk management plan) for these �ve processes,
you are being deliberate and proactive with risk on the project.
e more risk that is inherent on the project, and the more important the
project is to the organization, the more resources you would typically apply
to performing this process.
By far the most important component of this process is the sole output, the
Risk Management Plan. e rest of it is predictable and unlikely to be
exploited on the exam.
WHEN IT IS PERFORMED:
is process is general and high-level in nature and therefore takes place
early on the project, usually before many of the other planning processes are
performed. e reason it usually takes place very early is that the results of
this (and other risk processes) can signi�cantly in�uence decisions made
about scope, time, cost, quality, and procurement.
HOW IT WORKS / INPUTS:
Project Charter - e charter may contain information about risk tolerance
or constraints and assumptions that need to be factored into the risk
management plan.
Project Management Plan - is process brings in as much information as
is known about the project in order to create a risk management plan with
compatible approach.
Project Documents - e stakeholder register is the important document in
this process because it lists stakeholders who may be able to give input about
risk approaches and who may be affected by risk management decisions.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Risk Management Plan - As stated in the introduction to Plan Risk
Management, creating the risk management plan is the real purpose of this
process. In fact, it is the process’s sole output.
e risk management plan is a road map to the other six risk management
processes. It de�nes what level of risk will be considered tolerable for the
project, how risk will be managed, who will be responsible for risk activities,
the amounts of time and resource that will be allotted to risk activities, and
how risk �ndings will be communicated.
Another important part of the risk management plan is a description of how
risks will be categorized. is will be a signi�cant help in the subsequent risk
processes. One tool for creating consistent risk categories is the risk
breakdown structure (RBS).
An example RBS showing risk categories
e RBS, like its cousin the WBS, is a graphical, hierarchical decomposition
used to facilitate understanding and organization.
In this case, however, we are breaking down the categories of risks and not
the work. One important thing to note with the RBS is that we are not
breaking down the actual risks (they won’t all be known until we perform
the Identify Risks process). Instead, we are breaking down the categories of
risks that we will evaluate.
e risk management plan may contain more information such as standard
vocabulary about probability and impact that apply to the project.
PLANNING
IDENTIFY RISKS
6th Edition PMBOK® Guide Cross Ref. pg 409
WHAT IT IS:
Identify Risks is a planning process that evaluates the project to create a list
of the risks that could potentially impact the project and to understand the
nature of those risks.
e output of the risk register will help you understand this process. It is a
list of all risks, their causes, and any possible responses to those risks that
can be identi�ed at this point in the project.
Be aware that Identify Risks, like many processes discussed in this book, is
oen performed multiple times on the project. is may be especially true
in this case since your understanding of risk, and the nature of the risks
themselves, will change and evolve as the project progresses.
WHY IT IS IMPORTANT:
Identify Risks builds the risk register, which is needed before the remaining
�ve risk processes (Perform Qualitative Risk Analysis, Perform Quantitative
Risk Analysis, Plan Risk Responses, Implement Risk Responses, and
Monitor Risks) may be performed. is list of risks will drive the other risk
processes.
WHEN IT IS PERFORMED:
Although Identify Risks is typically performed early on in the project, risks
change over time, and new risks arise. It may be necessary to perform this
process multiple times throughout the project.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Agreements – You should treat the word “agreement” as if it were a
contract when you are preparing for the exam. Contracts almost always have
enforcements and penalties if the terms are not met, and oentimes they
have rewards if the terms are met or exceeded. ese potential penalties and
rewards represent a type of risk.
Procurement Documentation – Portions of the project that are procured
from outside organizations (covered in the next chapter) carry their own
inherent risks. e procurement documentation brought into this process
will help the team spot (identify) these risks.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering – Brainstorming and checklists are the two techniques
to remember here for the exam. ey are important to help make sure the
right risks are identi�ed.
Data Analysis - e primary tools used to analyze data in this process
are:
Root Cause Analysis - is is using Ishikawa (�shbone) diagrams, or
the 5 why technique to trace risk events back to identify the underlying
factors that led to them. For example, if many of the risks are traced back
to a root cause of outdated or poorly maintained equipment, then this
might lead to a decision to update that equipment or it might lead to the
identi�cation of more risks.
In addition to Ishikawa diagrams, there is the practice of asking why �ve
times to uncover root causes. is technique, pioneered at Toyota, looks
at a problem and asks “why?”, then takes that response and asks “why?”
again, �ve times in all. Generally, by the �h iteration of this technique
you will have reached the root cause.
Consider the following example of the �ve whys technique:
Effect: e vehicle failed its annual emissions test.
Why? e check engine light was on.
Why? e oxygen sensor had failed.
Why? e fuel injectors had not been properly cleaned, resulting in
an improper burn.
Why? e mechanic did not follow manufacturer’s guidelines.
Why? e staff was not factory trained for maintenance.
Asking the �ve whys can help the team get below the surface and
understand the real underlying issues at work. In the preceding example,
the root cause that was uncovered may well lead to other maintenance
problems.
Assumptions and Constraint Analysis - e project management plan
is largely built around assumptions and constraints, and these need to be
analyzed and challenged from time to time. If the project �nds that they
can relax a constraint (e.g., this project needs to use all open source
soware), this may open the door for more options in planning and
execution. Likewise, if an assumption (positive or negative) is found to
be incorrect (e.g., the external soware APIs the project needs will be
available before development begins), it can greatly impact the project.
SWOT Analysis - SWOT analysis is particularly useful since it is a tool
used to measure the project’s strengths (S), weaknesses (W),
opportunities (O), and threats (T). Each one of these is plotted, and the
quadrant where the weaknesses (usually internal) and threats (usually
external) represent the highest negative risks, and the quadrant where
strengths (again, usually internal), and opportunities (usually external)
are highest will represent the highest positive risks on the project.
SWOT analysis can give you another perspective on risk that will oen
help you identify your most signi�cant project risk factors.
Illustration of one type of SWOT analysis where each letter corresponds to a speci�ed risk
from the risk register
Document Analysis - Reading the project documentation may not be
the most entertaining activity described in this book, but it can be a very
good way to identify the risks. Remember that risk is de�ned as
uncertainty, and areas where project documentation is not clear might
be an indicator of underlying risks.
Interpersonal and Team Skills — See Ch. 2, Common Tools
Prompt Lists - A prompt list is used by the project team to help facilitate
a risk review. ey are oen used periodically or between each phase to
serve as a kind of framework for identifying new risks that might have
arisen. e PMBOK® Guide lists three different frameworks PESTLE
(political, economic, social, technological, legal, environmental), TECOP
(technical, environmental, commercial, operational, political), and VUCA
(volatility, uncertainty, complexity, ambiguity).
An example of how this might be used is at the end of a phase, a project
team might ask the questions “since our last review, what political,
economic, social, technological, legal, environmental changes or
developments have there been that could impact our project?”
is underscores the fact that risk management is not something a project
team does once and then forgets. It is an ongoing set of processes, and
prompt lists give you a framework to make this easier.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Risk Register - e risk register provides a list of all identi�ed risks on
the project, what the possible reactions to this risk are, what the root causes
are, and what categories the risks fall into. It is also common to update the
RBS with the more speci�c information as the following example illustrates.
e risk register contains the identi�ed risks, the potential risk owners, and
a list of potential responses to those risks. e potential risk owners will be
validated in Perform Qualitative Risk Analysis, and the potential responses
will be validated in Plan Risk Responses, both covered later in this chapter.
e risk register is an essential input into the remaining risk management
processes and may be updated throughout the life of the project.
A more complete RBS, including identi�ed risks
Fragment of Risk Register
Risk Report - e risk report looks at the factors contributing to risk
and high-level information on the identi�ed risks. It has some similarities to
the risk register; however, the risk report is more of a summary document
and will likely be more verbose about what things are contributing to project
risk.
Project Documents Updates — See Ch. 2, Common Outputs
PLANNING
PERFORM QUALITATIVE RISK ANALYSIS
6th Edition PMBOK® Guide Cross Ref. pg 419
WHAT IT IS:
e process of Perform Qualitative Risk Analysis is usually done rapidly in
order to determine which risks are the highest priority on the project.
is process takes each risk from the risk register and works to analyze the
probability it will occur and its impact if it does. By using the probability
and impact matrix (PIM), a prioritization and ranking can be created, which
is updated on the risk register.
WHY IT IS IMPORTANT:
is process helps you rank and prioritize the risks so that you can put the
right emphasis on the right risks. It helps to ensure that time and resources
are spent in the right risk areas.
WHEN IT IS PERFORMED:
Perform Qualitative Risk Analysis, like many other risk processes, is usually
performed more than once on a project. e reason for this is twofold:
1. Perform Qualitative Risk Analysis can usually be performed fairly
quickly relative to other planning processes.
2. It is normal for risks and their underlying characteristics to change
over the life of the project, making this process important to revisit
oen.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Data Analysis - Data Analysis is a signi�cant part of this process.
Risk Data Quality Assessment - ere is a saying “garbage in equals
garbage out.” If the data about risks is not high quality, then the
decisions you make will naturally have more uncertainty. e data
should be objectively evaluated to determine whether or not it is
accurate and of acceptable quality. For instance, if you were evaluating
weather risk for a construction project, you would need to evaluate the
quality of the weather data you were using.
Risk Probability and Impact Assessment / Probability and Impact
Matrix
When evaluating risks to determine what the highest priorities should be,
the probability impact matrix (PIM) can assist you. e way it is used is that
each risk in the risk register is evaluated for its likelihood of occurring and
its potential impact on the project. Each of these two values is given a
ranking (such as low, medium, high, or 1 through 10) and are multiplied
together to get a risk score. is resulting score is used to set the priorities.
Assessment of Other Risk Parameters - Take time to familiarize yourself
with the following terms before taking the exam. Not all of them may be
intuitive.
Urgency - How much time you have to respond to a risk event. A short
amount of time does not necessarily make the risk important, but it does
make it urgent. Lower urgency is more desirable.
Proximity - How much time you have before the risk impacts project
goals. Lower proximity is more desirable.
Dormancy - How much time will likely pass aer the risk has occurred
but before it is detected. A home water leak in a rarely-used room might
have more dormancy than a water leak in the kitchen. Likewise,
computer malware can sometimes go undetected for long periods of
time before the results are detected. Lower dormancy (that is, a shorter
period of time before it is detected) is more desirable.
Manageability - How easily a risk’s impact can be managed. Higher
manageability is more desirable.
Controllability - How easily a risk event can be changed. Soware
backups might be a way to help control the outcome of the earlier
example of malware. Higher controllability is more desirable.
Detectability - How easily a risk event can be noticed or recognized.
Higher detectability is more desirable.
Connectivity - Many negative project events that occur are actually a
combination of numerous risk events. Oen the way that risks occur is
similar to the way dominoes fall, with one impacting the next and
setting off a chain reaction. Understanding how risks are connected is
important, and lower risk connectivity is more desirable.
Strategic Impact - How likely the risk event is to impact the
organization’s strategic goals. Lower strategic impact is more desirable.
Propinquity - Propinquity is the measure of how important the project’s
stakeholders perceive this risk to be. Lower propinquity is more
desirable.
Interpersonal and Team Skills — See Ch. 2, Common Tools
Risk Categorization - Categorizing the detailed risks can help you build a
better big-picture of the risks. is may help you understand which parts of
the project have the highest degree of uncertainty. e RBS is a common
way to help organize the identi�ed risks into categories.
Data Representation
Hierarchical Charts - One example of a hierarchical chart is a bubble chart,
which shows rankings plotted on a X and Y axis and a third dimension of
data is shown by the size of the data point.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Project Documents Updates — See Ch. 2, Common Outputs
PLANNING
PERFORM QUANTITATIVE RISK ANALYSIS
6th Edition PMBOK® Guide Cross Ref. pg 428
WHAT IT IS:
is process is very easy to confuse with the previously covered Perform
Qualitative Risk Analysis, and in reality the processes have quite a lot in
common; however, Perform Quantitative Risk Analysis seeks to assign a
projected value to quantify the risks that have been ranked by Perform
Qualitative Risk Analysis. is likely value is most oen speci�ed in terms of
cost or time. Make sure to be able to differentiate between this process and
the previous one before taking the exam.
WHY IT IS IMPORTANT:
One important point to note is that not all projects need to perform this
process. For many projects, the previous process of Perform Qualitative Risk
Analysis will be sufficient; however, if your project is large, complex,
strategic, required by contract, or required by a key stakeholder, you may
decide to carry it out.
Perform Quantitative Risk Analysis updates the risk register, and this
information will be used by the next three processes (Plan Risk Responses,
Implement Risk Responses, and Monitor Risks). Without performing this
process, the information about the identi�ed risk may be less complete and
less useful.
WHEN IT IS PERFORMED:
Perform Quantitative Risk Analysis is usually performed right aer Perform
Qualitative Risk Analysis; however, in some cases they may be performed at
the same time.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Representations of Uncertainty - e project team needs to have some
way of showing the likelihood of a risk occurrence. For the exam, you
should be prepared to recognize the common types of probability
distributions, Triangular and Beta. ere are other ways to represent
probability, but these are the ones most commonly used.
Data Analysis
Simulation - e most common type of risk simulation is Monte Carlo
Analysis, and it is a perennial favorite topic for the exam. Monte Carlo
analysis, also discussed in Chapter 6 – Schedule Management, is a tool
that takes details and assembles a big picture. Performed by computer,
Monte Carlo analysis throws large numbers of “what if ” scenarios at the
schedule activities or at individual costs to see the impact of certain risk
events. is technique will show you what is not always evident by
simply looking at the schedule or the budget. It will oen identify tasks
that may not appear inherently high risk, but in the event they are
delayed or that they exceed budget, the whole project may be adversely
affected.
Sensitivity Analysis - A commonly used data analysis tool to depict
sensitivity to risk is a tornado diagram, named for the funnel shape of its
bars. A tornado diagram provides a way to depict the project’s sensitivity
to cost or other risk factors. is is a type of sensitivity analysis which
shows the impact of one change while holding other factors constant.
Change in Project Costs: A tornado diagram, used to depict risks
e tornado diagram above depicts the effects of a 10% change in labor
costs on the project. If labor costs increase by 10% and all other costs
hold steady, development would be affected the most.
Speci�cally, if the costs rise by 10%, then the development costs will rise
by approximately $13,000. If the labor costs fall by 10%, development
costs will fall by approximately $7,000. is shows how sensitive each
analyzed area of the project is to risk (in this case, the risk of a cost
increase).
By running this analysis against various risks, it will help the team
understand which risks pose the greatest threats (or potential rewards –
remember that risks may be positive or negative) to the project.
A tornado diagram ranks the bars from greatest to least on the project so
that the chart takes on a funnel or tornado-like shape.
Decision Tree Analysis - Decision trees are used to show probability
and arrive at a dollar amount associated with each risk.
For each branch of the decision tree, compute the expected monetary
value (EMV) for the event. e EMV should take into consideration
each probability included in the branch. e numbers for this decision
tree work out as follows:
e totals above were calculated by multiplying the risk cost by the probability and adding that
value to the initial cost.
Influence Diagrams - An in�uence diagram is another useful data
analysis tool. It depicts the actors (or entities), in�uences, and possible
outcomes.
HOW IT WORKS / OUTPUTS:
Project Documents Updates
Risk Report - e risk report, created earlier in the Identify Risks
process, is updated here to include the results of your quantitative
analysis. is can include anything from a ranking of the risks to the
diagrams used in the data analysis section.
e main point of this is to update recommended risk responses which
will feed the next process.
PLANNING
PLAN RISK RESPONSES
6th Edition PMBOK® Guide Cross Ref. pg 437
WHAT IT IS:
Earlier, in the process of Plan Risk Management, we created a general
approach to risk (the risk management plan). en, in Identify Risks, we
created a list of risks and started our risk register. Next we qualitatively and
quantitatively analyzed the risks, and now we are ready to create a detailed
plan for managing them. at is precisely what Plan Risk Responses does; it
creates a plan for how each risk will be handled.
Remember that risk can be a positive or negative event (e.g., there is a risk
that the project will �nish late, but there is also a risk that it will �nish early).
erefore, careful consideration must be given to each risk, whether the
impact of that risk is positive or negative.
is is the last planning process within risk (there are �ve in all, which gives
you an idea of the importance of this topic), and this is the one that is most
oriented toward taking action.
WHY IT IS IMPORTANT:
Up to this point, all we have done is identify and analyze the risks, but now
that the analysis is complete, we need to create a speci�c plan. e resulting
plan is actionable, meaning that it assigns speci�c tasks and responsibilities
to speci�c team members.
WHEN IT IS PERFORMED:
Plan Risk Responses is performed aer all of the other risk planning
processes have been completed. e risk register �ows in as an input, and
the updated risk register emerges as its primary output.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Risk Register - e risk register, created earlier in Identify Risks, contains a
list of risks, positive and negative, on the project. e main purpose of this
process is to update that register.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Strategies for reats - reats are anything that could potentially
jeopardize the goals of the project. Five key ways of dealing with threats are
presented here:
Escalate - In general, escalation is not a favored choice when dealing
with risk. It should only be used when a risk response is outside of the
project manager’s authority (and remember, the project manager is large
and in charge). If a threat is escalated, there needs to be a very clear
handoff of responsibility. Aer a threat has been escalated, it becomes
someone else’s responsibility.
Avoid - Avoidance is a very appropriate tool for working with
undesirable risk in some circumstances. For instance, a soware project
may choose to avoid the risk associated with using a particular piece of
cutting-edge technology in favor of using a slower but more reliable
technology.
Transfer - To transfer a risk to another party outside of the project is to
make it their responsibility. Contractual agreements and insurance are
common ways to transfer risks. e key here is that the risk is moved
outside of the performing organization.
Mitigate - To mitigate a risk simply means to make it less. For instance,
if you were concerned about the risk of weather damage to a
construction project, you might choose to construct the building outside
of the rainy season. It does not eliminate the risk, but mitigating should
diminish it.
Accept - Acceptance is oen a perfectly reasonable strategy for dealing
with risk, whether positive or negative. When accepting a risk, you are
simply acknowledging that the best strategy may not be to escalate,
avoid, transfer, or mitigate it. Instead, the best strategy may be simply to
accept it and continue with the project. Many people miss questions on
the exam related to this because they don’t have the mindset that
acceptance may be the best strategy if the cost or impact of the other
strategies is too great or the likelihood is low. If you are struggling with
this concept, consider that even the act of getting out of bed each day
carries risks, but these are risks that most people readily accept.
Acceptance may be active or passive. Passive acceptance requires no
proactive steps. Active acceptance may involve setting aside a
contingency reserve in case the risk event occurs.
Strategies for Opportunities - As is stressed throughout this chapter,
risks can be positive or negative, and where positive risks are concerned, the
project manager wants to take steps to make them more likely. e following
are speci�c strategies taken to capitalize on the positive risks.
Escalate - Escalated opportunities are managed at a level above the
project manager. For example, if the risk of a technological breakthrough
on the project is much bigger than the project, it may be appropriate to
escalate this higher within the organization.
Exploit - e de�nition for risk is uncertainty. Where the strategy of
exploitation is concerned, you are trying to remove any uncertainty. For
instance, if a positive risk of �nishing the project early is identi�ed, then
adding additional people to increase the possibility that the project is
completed early would be an example of exploiting the risk.
Share - In order to share a positive risk, the project seeks to improve the
chances of the risk occurring by working with another party. For
example, if a defense contractor identi�es a positive risk of getting a
large order, they may determine that sharing that risk by partnering with
another defense �rm, or even a competitor, would be an acceptable
strategy.
Enhance - Enhancing a positive risk �rst requires that you understand
the underlying causes of the risk. By working to in�uence the underlying
risk triggers, you can increase the likelihood of the risk occurring. For
example, an airline might add �ights to a popular route during holidays
in order to enhance traffic and pro�tability during heavy travel times.
Accept - See explanation under Strategies for reats.
Contingent Response Strategies - A contingent response strategy, also
known as a contingency plan or a fallback plan, is one where the project
team may make one decision related to risk, but make that decision
contingent upon certain conditions. For example, a project team may decide
to mitigate a technology risk by hiring an outside �rm with expertise in that
technology, but that decision might be contingent upon the outside �rm
meeting intermediate milestones related to that risk.
Strategies for Overall Project Risk - e same strategies listed earlier in
this section for dealing with individual project risk may be used for dealing
with overall project risk. e point is to establish your project’s overall
posture toward risk, to understand and analyze the risks, and to plan
appropriate action.
Data Analysis - Two analytical techniques are frequently used here.
e �rst is alternatives analysis, used to look at alternative ways to deal
with risk events in general. For example, if there are too many unknowns
related to a particular building material, an alternative material may be
the rational choice.
e second analytical technique is cost-bene�t analysis. Many risks
come down to an impact in terms of money. Using this technique, you
would make sure that the response does not cost more than the risk.
Decision Making — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - e updated risk register is the primary
output of this process. It now contains the planned responses for each risk.
EXECUTING
IMPLEMENT RISK RESPONSES
6th Edition PMBOK® Guide Cross Ref. pg 449
WHAT IT IS:
is process is new with the sixth edition PMBOK® Guide. It is an executing
process that puts the risk response plan into action.
WHY IT IS IMPORTANT:
Plans are written to be implemented, and when it comes to risk, you have
done a lot of planning in the previous �ve processes. Most processes, when
they make their debut in the PMBOK® Guide, start off a bit light and then
grow denser over time. New processes are ripe for exploitation on the exam,
so even though there is nothing special about this process, you should still
become familiar with what it is, when it is performed, and the fact that it
belongs to the executing process group.
WHEN IT IS PERFORMED:
When Implement Risk Responses is performed depends upon the risks you
have identi�ed. It may be begun as soon as you have completed the
preceding process of Plan Risk Responses.
HOW IT WORKS / INPUTS:
ere is nothing special about the way this process works. In fact, it should
be fairly intuitive for you at this point. Instead, focus your study primarily
on the preceding paragraphs that describe the process.
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Interpersonal and Team Skills — See Ch. 2, Common Tools
Project Management Information System — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Change Requests - It is a bit unusual to have change requests as a key
output since they are so common; however, it is the main point of this
process. Aer risks have been identi�ed, analyzed, and the responses
planned, the change requests are the primary way those responses are
implemented.
Project Documents Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
MONITOR RISKS
6th Edition PMBOK® Guide Cross Ref. pg 453
WHAT IT IS:
At this point, you have seen a pattern with the knowledge areas repeated
many times. ey have a monitoring and controlling process toward the end
that looks back over the plans and any execution that has taken place and
compares them with each other. In these monitoring and controlling
processes, you are asking questions such as: “Did we plan properly?” “Did
the results come out the way we anticipated?” “If the results did not match
the plan, should we take corrective action by modifying the plan or by
changing the way we are executing?” “Are there lessons learned that we need
to feed into future activities or projects?”
WHY IT IS IMPORTANT:
Plans have to be reassessed and reevaluated. Where risk is concerned, we’ve
done quite a bit of planning, identifying, analyzing, and predicting, but the
process of Monitor Risks takes a look back to evaluate how all of that
planning is lining up with reality.
WHEN IT IS PERFORMED:
Monitor Risks is a process that is performed almost continually throughout
the project. at is not to say that you do these activities without stopping or
that someone is necessarily assigned full time to carry them out, but rather
that monitoring and controlling the risk is an ongoing concern.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Data - Work performance data is used as an input here
since monitoring and controlling processes compare the plan to the results.
e plan is brought in as an input above, and the work performance data
provides information on the results. For instance, the status of a deliverable
provides helpful information related to schedule risk, cost risk, or other
areas of concern.
Work Performance Reports - e work performance reports do not focus
so much on what has been done as they do on how it was done. For instance,
whereas the work performance information provides information on the
status of deliverables, the work performance reports focus on cost, time, and
quality performance. Where the performance reports are concerned, the
actual results are compared against the baselines to show how the project is
performing against the plan.
HOW IT WORKS / TOOLS:
Data Analysis - ere are two important ways of analyzing data that are
associated with Monitor Risks.
Technical Performance Analysis
e �rst is to analyze the technical performance of the project. is
compares the results with the plan. For example, a project to construct a
roadway might measure speci�c lengths of road with what they had
planned to have completed at a point in time.
Reserve Analysis
e second way is through reserve analysis for cost and schedule. is
review would alert the project manager if reserves fall below a threshold.
Audits - e important thing to know about risk audits is that they are
focused on overall risk management. In other words, they are more about
the top-down process than they are about individual risks. Periodic risk
audits evaluate how the risk management plan and the risk response plan
are working as the project progresses and also whether or not the risks that
were identi�ed and prioritized are actually occurring.
Meetings - is particular technique is not necessarily suggesting that you
have specially-called status meetings related to risk. Instead, it is suggesting
that you create a project culture where bringing up items related to risk is
always acceptable and risk is discussed regularly.
HOW IT WORKS / OUTPUTS:
Work Performance Information — See Ch. 2, Common Outputs
Change Requests - When risk events occur, change requests to the project
are a normal outcome. In addition, even when the events do not occur, the
project may be changed as a result of new risk-related information gathered
during this process.
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - New risk information, whether it is changes
to your risk estimates or actual numbers (such as costs related to weather
damage), should be regularly updated in the risk register.
Org. Process Assets Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON RISK
MANAGEMENT
Because agile projects typically perform less planning on the front end of
a project, there is oen less risk planning. Agile projects seek to identify
risks early and to respond to them rapidly. Agile teams take smaller steps
to minimize risk. As uncertainty on a project evolves and changes, it may
change the prioritization of backlogged work.
is approach of incremental delivery manages risks entirely differently
from the way predictive projects do. By taking small, incremental steps,
actual risk occurrences should be detected relatively quickly, usually
without signi�cant backtracking or loss.
Plan Risk Management
is process is an example of one that was designed for a predictive
approach. Agile has a sort of built-in risk management plan, which is to
manage risk through small, incremental development and delivery. An
agile project would not produce a large risk management plan, detailing
the approach to the other processes.
Identify Risks
is process is difficult to translate to agile; however, it may be performed
when planning for an iteration. If there were risks that the agile team was
concerned about, creating a list of those would be appropriate.
Perform Qualitative Risk Analysis
is process requires a thorough risk register, so it is unlikely to be
performed on an agile project to the degree that it is performed on
predictive projects. Still, the same tools and techniques could be applied
here.
Perform Quantitative Risk Analysis
Like the previous process, this one requires a thorough risk register, so it
is unlikely to be performed on an agile project to the degree that it is
performed on predictive projects. Still, the same tools and techniques
could be applied here.
Plan Risk Responses
Plan Risk Responses continues the predictive, planning-centric approach.
It does not translate well to agile, although it could be performed on a
smaller scale for an upcoming iteration.
Implement Risk Responses
Agile projects oen implement “spike solutions” which help evaluate a
risk and determine which course to take.
Monitor Risks
is process evaluates how the plan lines up with reality. It is difficult to
apply to an agile project the way it is implemented on a predictive one.
RISK MANAGEMENT
QUESTIONS
1. You are managing the construction of a data center, but the location
is in an area highly prone to earthquakes. In order to deal with this
risk, you have chosen a type of building and foundation that is
particularly earthquake-resistant. is is an example of:
A. Risk transfer.
B. Risk avoidance.
C. Risk mitigation.
D. Risk acceptance.
2. You are evaluating the risk by trying to produce a risk score for each
risk. is is an example of which tool?
A. Monte Carlo analysis.
B. Probability impact matrix.
C. RACI Chart.
D. Cause-and-effect diagrams.
3. As part of your project, you have identified a significant risk of cost
overrun on a soware component that is integral to the product.
Which represents the BEST strategy in dealing with this risk?
A. Outsource the soware development.
B. Insure the cost.
C. Double the estimate.
D. Eliminate the need for this component.
4. How would the product owner and the team incorporate the
identified threats and opportunities into the project scope?
A. Risk Identi�cation is not a process performed on agile projects.
B. Risk events would be detected earlier due to the small,
incremental steps used. Handling risk requires much less planning
this way.
C. ey would use a Risk Planning Game, like Monte Carlo Casino,
to estimate EMV (expected monetary value) of each event and
create reserve points to respond to the risks.
D. D. Adjust the expected value of each story in the backlog based on
risk assessment, then re-prioritize the backlog based on risk-
adjusted value.
5. Refer to the diagram below. What is the expected value of Result A?
A. $200,000.
B. $100,000.
C. $50,000.
D. $25,000.
6. Compared to a predictive project, agile risk planning:
A. Is an equal amount of planning effort.
B. Is actually greater effort with all considerations.
C. Is much less front-end planning.
D. Is performed with little effort at the project start, and then is not
revisited.
7. Marie is meeting with her project team to evaluate each identified
risk and try to assign an estimated dollar amount or time impact
estimate to it. Which process is her team performing?
A. Perform Quantitative Risk Analysis.
B. Perform Qualitative Risk Analysis.
C. Plan Risk Responses.
D. Control Risks.
8. e project team has missed an important milestone, and their SPI
is 0.77. e sponsor has notified the project manager that she
intends on getting more involved in project decisions until they are
back on track. She has asked the team to activate their contingency
response strategy for this scenario. Which choice below best
describes what the team would likely do?
A. Implement a contingent response to deal with the missed
milestone and poor performance.
B. Spend reserve money to get the SPI back to 1.0 or greater.
C. Perform a root cause analysis on the late milestone and
performance.
D. Identify the risks associated with the missed milestone.
9. If a project manager is recommending that immediate corrective
action be taken, which process is she performing?
A. Perform Qualitative Risk Analysis.
B. Plan Risk Management.
C. Identify Risks.
D. Implement Risk Responses.
10. What is the BEST source of information about potential risk on
your project?
A. Computer risk analysis.
B. Interviews with team members from other projects.
C. Historical records from similar projects.
D. Your own experience in this industry.
11. During the daily stand-up meeting, a team member shared a
seeming obstacle to progress. What would be the best next step?
A. Have an immediate, impromptu team meeting to solve the issue.
B. Take the issue into a team huddle aer completing the daily stand-
up.
C. Add the issue to the risk register and analyze, then plan a response
to, the identi�ed issue.
D. Add the obstacle to the information radiator to be transparent to
the stakeholders while it is being resolved.
12. Senior management in an organization is concerned about risk on a
project. e concern has escalated to the sponsor who has asked the
project manager to evaluate a particular risk. e project manager
responded by saying this risk had numerous interdependencies and
was related to many other potential risks, but the sponsor asked
that its potential impact be evaluated while holding all of the other
risks at their current state. What would be the best tool for the
project manager to use in this case?
A. Root cause analysis.
B. Tornado diagram.
C. Decision tree analysis.
D. Risk categorization.
13. Your company is beginning a new building project and has assigned
you the role of project manager. During the first few meetings with
stakeholders you become aware of several risks that are of concern
to the project sponsor. e topic of risk management, however, has
yet to be addressed. What is the first thing you should do to address
the project risks?
A. Develop a risk management plan.
B. Identify project risks.
C. Plan responses to project risks.
D. Determine how risks will be controlled.
14. Plan Risk Management is:
A. A process of identifying potential risks for a project.
B. Deciding how risk management activities will be structured and
performed.
C. Assessing the impact and likelihood of project risks.
D. Numerical analysis of the probability of project risks.
15. Which of the following is an output of Identify Risks?
A. Risk register.
B. Probabilistic analysis.
C. Risk-related contractual agreements.
D. Recommended cash reserves.
16. Which of the following would NOT be a strategy for dealing with
negative risk?
A. Avoid.
B. Transfer.
C. Share.
D. Mitigate.
17. A risk probability and impact assessment is used in:
A. Identify Risks.
B. Perform Qualitative Risk Analysis.
C. Perform Quantitative Risk Analysis.
D. Plan Risk Responses.
18. A project team is meeting to review a document provided to them
by the project management office. e document contains
categories of risks to periodically review. What is the team using in
this scenario?
A. An enterprise environmental factor.
B. A risk register.
C. Risk categorization.
D. A prompt list.
19. e BEST definition of risk management is:
A. e process of identifying, analyzing, and responding to risk.
B. e process of reducing risk to the minimum level possible for the
project.
C. e process of proactively ensuring that all project risk is
documented and controlled.
D. Creation of the risk response plan.
20. A tool that depicts a set of entities with directional arrows showing
how they relate to the project would best describe which of the
following?
A. Sensitivity analysis.
B. SWOT analysis.
C. In�uence diagram.
D. Tornado diagram.
21. Which of the following is NOT a tool or technique for gaining
expert opinion as it relates to risk?
A. Brainstorming.
B. Delphi technique.
C. Monte Carlo analysis.
D. Expert interviews.
22. Which of the following would NOT be contained in the risk
management plan?
A. A risk breakdown structure.
B. A description of the overall approach to risk on the project.
C. Risk roles and responsibilities.
D. A list of identi�ed risks.
23. Which of the following statements is TRUE regarding risk?
A. All risk events must have a planned workaround.
B. All risk events are uncertain.
C. All risk events are negative.
D. All risk events should be covered by a contingency budget or
schedule amount.
24. Which of the following is NOT a valid way to reduce risk?
A. Select a contract type that reduces risk.
B. Insure against the risk.
C. Create a workaround for the risk.
D. Plan to mitigate the risk.
25. You are the project manager for a global change management
project. e Vice President of Operations is a key project
stakeholder, and she has expressed concern about the way risk is
being managed on the project. She is particularly concerned that
the project may fail if even one of several risk events occur. She has
called a meeting to discuss this with you. What would be the best
document to bring to this meeting.
A. e results of your project’s sensitivity analysis.
B. e results of your project’s risk modeling.
C. e results of your project’s EMV analysis.
D. e results of your probability distributions.
RISK MANAGEMENT
ANSWERS
1. C. e best answer here is risk mitigation since you are taking steps to
lessen the risk. ‘A’ is incorrect because you are not transferring the risk
to anyone else. ‘B’ is incorrect because you would need to relocate in
order to completely avoid the risk of earthquake. ‘D’ is incorrect
because you are not merely accepting the risk – you are taking steps to
make it less severe.
2. B. e probability impact matrix (PIM) derives a risk score by
multiplying the probability of the risk by its impact (both of these
numbers are estimated). is resulting risk score may be used to help
prioritize the risk register.
3. A. Outsourcing the soware development could allow you to cap the
cost. ‘B’ is not a good choice because costs for development such as
this cannot be insured in a cost-effective manner. ‘C’ is not correct
because doubling the estimate does not deal with the root of the
problem. It only arbitrarily changes the estimate. ‘D’ is incorrect
because you cannot simply eliminate every high risk component in the
real world.
4. D. Risk identi�cation IS performed in agile projects, and used to create
a risk-adjusted backlog through grooming with threat and opportunity
values used to adjust the probable value of each story card. ‘C’ is purely
made-up. ‘B’ is true, but ‘D’ more directly answers the question.
5. D. e way this problem is solved is by multiplying out the
probabilities times the value. In this case, it is the 50% probability of
Risk 1 × the 25% probability of Risk 2 × the $200,000 value of Result
A. .5 × .25 × 200,000 = $25,000.
6. C. Agile identi�es risks early due to its small steps—and then can
quickly address events as they occur. No large risk management plan
would be produced, hence much less overall effort and complexity.
7. A. You should have seen the fact that Marie’s team was quantifying the
risks by seeking to assign a dollar or time estimate to them, and
Perform Quantitative Risk Analysis is the process that does this.
8. A. Contingent response strategies are generally only activated once a
milestone is missed or some key measurement is triggered. At that
point a contingency plan kicks in. ‘B’ is not a bad answer, but it
assumes too much. For instance, we don’t even know if there are
reserve monies. ‘C’ and ‘D’ might be very reasonable steps, but it
wasn’t what the sponsor speci�cally requested.
9. D. Corrective action is de�ned as anything done to bring future results
in line with the plan. is would be accomplished through change
requests in the Implement Risk Responses process.
10. C. Historical records from similar projects would provide you with the
best source of information on potential risks. ‘A’, ‘B’, and ‘D’ are all
good sources, but they would not be as pertinent or helpful as the
records from other similar projects. Historical information gets
brought into your planning processes as an organizational process
asset.
11. B. Don’t disrupt the daily stand-up meeting, but jump on the obstacle
as soon as possible to remove the delay in delivering value. ‘C’ is
incorrect, even if a risk register is being kept, which is doubtful on an
agile project. An issue is not a risk—it is a problem that has already
occurred - no uncertainty about it. ‘D’ may not be productive yet,
delaying resolution of the immediate issue. A lingering issue would
need to be highlighted, however.
12. B. e sponsor is asking to evaluate the impact of one risk while
holding the others at a baseline, and a tornado diagram is the tool to
accomplish that. ‘A’, ‘C’, and ‘D’ are all tools used in risk assessment, but
the tornado diagramming technique is custom-made for this
assignment.
13. A. You should develop the risk management plan. A risk management
plan will outline how all risk planning activities and decisions will be
approached. Methods of identi�cation, quali�cation, quanti�cation,
response planning, and control will all follow the development of the
risk management plan.
14. B. Plan Risk Management is not planning for actual risks (which
include choices ‘A’, ‘C’, and ‘D’); it is the PROCESS of deciding how all
risk planning activities and decisions will be approached. It is the plan
for how to plan.
15. A. e risk register is the only output of Identify Risks, and it is
updated in Perform Qualitative Risk Analysis, Perform Quantitative
Risk Analysis, Plan Risk Responses, and Control Risks.
16. C. ere are �ve identi�ed strategies for dealing with negative risks.
ey are: mitigate, transfer, avoid, escalate and accept. e reason that
‘C’ was incorrect is that share is a strategy for managing a positive risk
or opportunity.
17. B. e hardest part about risk is keeping the various processes straight.
Since the outputs are similar (for the most part), focus more of your
study on the processes themselves and their tools. In this question, the
Data Analysis tool of risk probability and impact assessment is a tool
of Perform Qualitative Risk Analysis.
18. D. Prompt lists are used to help guide the team in reviewing risk
categories. For example, one category may be “political” to prompt the
team to review whether any new political risks have been introduced
since the last risk identi�cation. ‘A’ is incorrect because this might be
an organizational process asset, but it is not a good example of an
enterprise environmental factor. ‘B’ is incorrect because a risk register
is a list of actual risks that have been identi�ed. ‘C’ is incorrect because
risk categorization is the practice of organizing risks into categories.
at is not what is described here.
19. A. e process of identifying, analyzing, and responding to risk is the
de�nition of risk management. It would be a better de�nition if it also
mentioned monitoring risks, but out of the four choices, ‘A’ is the best.
20. C. An in�uence diagram, used in Perform Quantitative Risk Analysis,
shows entities and their direction of in�uence. e description in the
question was not complete, but it only �t this choice.
21. C. Monte Carlo analysis, which is a computer-based analysis, might be
useful for revealing schedule risk, but it would not be useful for
gaining expert opinion. Choices ‘A’, ‘B’, and ‘D’ are all tools used as part
of project risk management.
22. D. e risk management plan does not contain the identi�ed risks. It is
more general and high-level than that. e identi�ed risks will be
listed in the risk register, produced aer the risk management plan.
23. B. Risk events are, by de�nition, uncertainties. ese could either be
positive or negative. ‘A’ is incorrect because some risks are simply
accepted and have no workaround. ‘C’ is incorrect because a risk may
be positive or negative. ‘D’ is incorrect because not all risks are
budgeted. Some are transferred to other parties or are too small or
unlikely to consider.
24. C. Read these questions carefully! e workaround is what you do if
the risk occurs, but it does not reduce the risk as the question
speci�ed. ‘A’, ‘B’, and ‘D’ all focus on reducing risk by transferring or
mitigating it.
25. A. Your VP of Operations is concerned about your project’s sensitivity
to risk. Other answers might be applicable to one degree or another,
but ‘A’ stands out as the best match to the problem you are trying to
address. e results of sensitivity analysis directly addresses your
stakeholder’s concern.
12 Procurement Management
Procurement management is the set of processes that are used to obtain
goods, services, or scope from outside the organization.
Even though it is relatively small, procurement management can be a
challenging knowledge area on the exam. One reason it can be so difficult is
that few project managers have formal procurement training in their
backgrounds, and even if they do, it may differ in key ways from what is
presented here.
PHILOSOPHY:
is procurement management approach is steeped in formal government
procurement practices.
e over arching philosophy of procurement management is that it should
be formal. Many people’s practical experience may differ from this rigid
approach, but it is necessary to understand it and to be able to apply this
philosophy on the exam.
IMPORTANCE:
Several questions on the exam will be drawn from the material in this
chapter. If formal procurement is new to you, this will be especially
important. You will also need to master the concept and formula for Point of
Total Assumption (PTA).
PREPARATION:
As mentioned earlier, it would be wise to take special care in this section if
you do not have a background in formal procurement activities.
Keep in mind as you approach this material that it was not written to be
memorized. It was written to be practiced and applied. For this chapter in
particular, understanding is more important than memorizing.
is also applies to key terms, concepts, the processes, and their
components.
If formal procurement is a new concept, you would do well to read this
chapter carefully and then skim Chapter 12, Project Procurement
Management, in the 6th Edition PMBOK® Guide.
Procurement Management Processes
ere are three processes in procurement management. ese processes are
displayed in the �gure at the beginning of the chapter and summarized in
the following tables.
Process Group Plan Procurement Management
Initiating (none)
Planning Plan Procurements Management
Executing Conduct Procurements
Monitoring & Controlling Control Procurements
Closing (none)
Process Primary Outputs
Plan Procurements Management Procure. Mgt. Plan, Independent Cost Estimates,
Make or Buy Decisions, Procure. Strateg, Bid
Documents, Procure. S.O.W., Source Selection
Criteria
Conduct Procurements Selected Sellers, Agreements
Control Procurements Closed Procurements, Work Performance Info
Procurement Roles
In procurement management, there are two primary roles de�ned, and the
project manager could play either of these roles. In fact, it is not uncommon
for project managers to play both roles on the same project. e roles are:
Buyer - e organization or party purchasing (procuring) the goods or
services from the seller.
Seller - e organization or party providing or delivering the goods or
services to the buyer.
Contract Types
When procuring goods or services, the type of contract that governs the deal
can make a signi�cant difference in who bears the risk. ere are four
categories of contracts you must know for the exam. ey are listed below
with information on each one:
Type of Contract Who Bears the Risk Explanation
Fixed Price Seller Since the price is �xed, cost
overruns may not be passed
on to the buyer and must be
borne by the seller.
Cost Plus Fixed Fee Buyer
Since all costs must be
reimbursed to the seller, the
buyer bears the risk of cost
overruns.
Cost Plus Incentive Fee Buyer and Seller
e buyer bears most of the
risk here, but the incentive
fee for the seller motivates
that seller to keep costs
down.
Time and Materials Buyer
e buyer pays the seller for
all time and materials the
seller applies to the project.
e buyer bears the most
risk of cost overruns.
Fixed Price Contracts (AKA Lump Sum Contracts) - Fixed price
contracts are the easiest ones to understand. ere is generally a single
fee, although payment terms may be speci�ed so that the cost is not
necessarily a lump sum, payable at the end.
is type of contract is very popular when the scope of work is
thoroughly de�ned and completely known. ree types of �xed price
contracts are:
Firm Fixed Price (FFP) - e price is �xed, with no provision for cost or
performance overruns. e risk is entirely shied to the seller.
Fixed Price Incentive Fee (FPIF) - e price is �xed, with an incentive
fee for meeting a target speci�ed in the contract (such as �nishing the
work ahead of schedule). With FPIF contracts, both parties agree to a
price ceiling, and all costs above the price ceiling must be covered by the
seller.
Fixed Price Economic Price Adjustment (FP-EPA) - is type of
contract is popular in cases where �uctuations in the exchange rate or
interest rate may impact the project. In this case, an economic
stipulation may be included to protect the seller or the buyer. e
economic stipulation may be based on the interest rate, the consumer
price index, cost of living adjustments, currency exchange rates, or other
indices.
Cost Reimbursable Contracts
Another type of contract is cost reimbursable where the buyer agrees to pay
the seller for actual costs plus a fee that is actually the seller’s pro�t. ere
are three common varieties of this type of agreement:
Cost Plus Fixed Fee (CPFF) - e seller passes the cost back to the
buyer and receives an additional �xed fee upon completion of the
project. e fee is calculated as a percentage of the planned costs.
Cost Plus Incentive Fee (CPIF) - e seller passes the cost back to the
buyer and gets an incentive fee for meeting a target (usually tied back to
keeping costs low) speci�ed in the contract.
Cost Plus Award Fee (CPAF) - e seller passes the costs back to the
buyer, but the seller’s pro�t (award fee) comes from a decision on
whether or not to grant it, made subjectively by the buyer based on the
seller’s performance. e decision may not be appealed by the seller.
Time and Materials Contracts
In a time and materials contract, the seller charges for time plus the cost of
any materials needed to complete the work.
Point of Total Assumption
Because there are numerous types of contracts where the risk is shared to
one degree or another, it is important to be able to calculate how risk is
allocated between the buyer and seller. One consideration, particularly when
using Fixed Price Incentive Fee contracts, is the Point of Total Assumption.
e Point of Total Assumption (PTA) is the cost point in the contract where
a subcontractor assumes responsibility for all additional costs. is concept
can be challenging to understand at �rst, so to help with this, consider the
following situation. Company ABC is subcontracting out the installation of
industrial shelving to company XYZ for an estimated $75,000. e selected
contract is Fixed Price Incentive Fee, so ABC pushes for a cap (called a price
ceiling) to protect them from serious cost overruns. e terms of the
contract are that XYZ’s target cost is $71,000, the target price to ABC is
$75,000 and XYZ’s ceiling price to ABC is $84,000; however, for every dollar
over the target cost, the share ratio is 3:1. is means that ABC (the buyer)
will pay $0.75, while XYZ (the seller) will have to pay $0.25 of every dollar
overrun. Knowing this information, it is fairly simple to calculate the PTA.
e formula is: Target cost + (ceiling price – target price) ÷ ABC’s % share of
cost overrun.
In this case, it would be $71,000 + ($84,000 - $75,000) ÷ .75, which
simpli�es to $71,000 + $12,000 = $83,000.
In other words, at the point the cost reaches $83,000, the subcontractor
(XYZ) would assume the total burden of cost overrun. e ceiling price is
still $84,000, but XYZ is bearing 100% of the cost overrun burden above
$83,000 in cost (the PTA). e PTA is important, because it helps identify
the cost point in the contract where the seller has the most motivation to
bring things to completion.
PLANNING
PLAN PROCUREMENT MANAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 466
WHAT IT IS:
is process involves looking at the project and determining which
components or services of the project will be made or performed internally
and which will be “procured” from an external source. Aer that decision is
made, the project manager must determine a strategy for conducting
procurements and the appropriate type of contracts to be used on the
project.
WHY IT IS IMPORTANT:
is process has a lot of important outputs, and your understanding of them
will help you on the exam. Currently, best practices in the �eld of project
management favor buying externally vs. building internally, all other things
being equal; however, there are numerous factors that should go into your
decision on whether to “make or buy.”
Carefully planning what to procure and how to go about the processes of
procurement will ensure that the right things are procured in the right way.
WHEN IT IS PERFORMED:
Because a project may have multiple subcontractors, potentially in every
phase of the project, any of the procurement processes could be performed
repeatedly and at any time throughout the project.
A diagram showing the order of the three Procurement Management processes
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs
Business Documents - e business case and the bene�ts management plan
are key documents that will help the project team plan procurements. Each
may in�uence why project components are being created and how and when
the project expects to deliver bene�ts.
Project Management Plan - e project management plan describes what
will be done and how it will be accomplished. is information will be
useful to review when considering what components of the scope should be
procured (i.e., performed by groups outside of the organization).
Project Documents
Requirements Documentation - Requirements are a key part of the
project plan and may carry legal or contractual obligations that need to
be considered in procurement.
Enterprise Environmental Factors - ere may be factors at work in an
organization that have a strong in�uence on procurement. For instance, an
organization may have a strong culture of building internally rather than
buying, or they could have a strong culture of buying from a few trusted
sellers. All of this should be factored in when making procurement
decisions.
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Data Analysis - e tool of data analysis used here is make-or-buy
analysis, and it is difficult to sum up succinctly. e analysis looks at all of
the factors that could sway the decision toward making internally or buying
externally, including risk factors, cost, releasing proprietary information,
and a host of other decision points.
When using this tool, the decision-makers must oen look outside of the
project itself. For instance, writing a soware component may not make as
much sense as procuring it externally where only the project is concerned;
however, if the performing organization has an interest in developing the
capability to build that kind of soware, it may make sense for the project to
make vs. buy.
Source Selection Analysis - is tool is essentially deciding how you are
going to select a seller. Consider the following possible ways:
Least Cost - is may work well when the quality is not in question. For
example, if your project is purchasing a component that complies with
an ISO standard, then you can probably assume that anything that
complies with this standard would suffice for your project.
Qualifications Only - When a product or service is small enough that it
does not warrant an elaborate procurement process, the buyer may use
“quali�cations only” as the sole criterion. In this case, the buyer makes a
short list of sellers and makes a selection based on quali�cations such as
experience, references, etc.
Quality-Based (technical score) - Most procurements come down to
value (quality and cost). e seller with the highest quality ranking is
selected if a suitable �nancial arrangement can be negotiated.
Quality and Cost-Based - is is very similar to the previous one except
that quality and cost are both ranked and are both considered in the
decision.
Sole Source - is is an unusual type of proposal that is requested from
only one vendor. In that case, the buyer negotiates with that one seller.
ere is no competition in this scenario, which can eliminate much of
the bene�t of conducting a procurement.
Fixed Budget - In this procurement scenario, the buyer discloses the
budget to the seller, and the two parties negotiate on scope, quality, and
schedule. is type of procurement would not work well when scope
changes are anticipated.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Procurement Management Plan - e procurement management plan
is an important output of the Plan Procurement Management process. It
de�nes how all of the other procurement management processes will be
carried out. is includes de�ning what will be procured on the project, how
a seller will be selected, what types of contracts will be used, how risk will be
managed, and how sellers will be managed, including how their
performance will be measured.
Procurement Strategy - e procurement strategy de�nes how the
procurements will be organized, how the contracts will be structured, and
which procurement phases will be carried out.
Bid Documents - ere are quite a few types of procurement documents
that vary from organization to organization. Don’t worry about the
differences between an Invitation For Bid (IFB) and a Request For Proposal
(RFP). For the exam, know that the bid documents of work are written by
the buyer and provided to the prospective seller(s). ey provide a narrative
description of the work to be performed.
Procurement Statement of Work - Many people �nd this document
confusing at �rst, but it is important for the exam. If you recall the project
scope statement, produced as part of the De�ne Scope process, then you will
know that the project’s scope has been de�ned at this point. A procurement
statement of work is not merely a replication of what was done in De�ne
Scope. Instead, a procurement statement of work helps explain a section of
the scope to potential sellers in enough detail so that they can decide
whether or not they want to (or are quali�ed to) pursue the work in
question. Expect statements pertaining to the previous sentence to be on the
exam. One other point about the procurement statement of work is that it
should usually focus on the outcome more than the steps to get there to
allow sellers to be creative in their approach.
Source Selection Criteria - e key to remember for this output is that
the source selection criteria are determined before the seller is selected. is
helps keep the procurement process objective and unbiased. For instance, it
may be that you will choose the lowest-priced quali�ed bidder (in which
case the quali�cations need to be spelled out), or you may want the bidder
that represents the highest technical competency or the lowest risk.
Whatever the criteria, ensure that they are speci�ed before the other
procurement activities are conducted. Also keep in mind that these source
selection criteria may or may not be shared with the prospective sellers.
Make-or-Buy Decisions - During this process, the project team
performed make-or-buy analysis as part of data analysis, and now it is time
to act upon the data gathered. e decisions should be made and
documented, and enough information to justify these decisions should be
included.
Independent Cost Estimates - ink of this as a procurement sanity
check to ensure that costs are in line with what they should be. ese cost
estimates may be created by outside companies or internally.
Change Requests — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
EXECUTING
CONDUCT PROCUREMENTS
6th Edition PMBOK ® Guide Cross Ref. pg 482
WHAT IT IS:
Most of the processes in this book do exactly what they sound like. In this
case, Conduct Procurements does just that. It carries out the procurement
management plan, selects one or more sellers, and awards the procurement,
usually in the form of a contract.
WHY IT IS IMPORTANT:
is executing process gets the ball rolling with procurement. So far you
have decided what you want to procure and written the procurement
management plan. Now it’s time to issue the bid package to potential sellers,
hold bidder conferences, evaluate proposals you receive from potential
sellers, and select one of them. You know, however, that real life isn’t that
simple, and this can be a very tricky area on the exam as well.
WHEN IT IS PERFORMED:
To state the obvious, this process is performed when you are ready to
conduct your procurement activities. is means that it will occur aer Plan
Procurement Management.
Like the other procurement processes, Conduct Procurements is performed
as needed. It may be performed multiple times if there are multiple
contracts, or it is not performed at all if the project is not procuring
anything.
e fact that so many of the inputs, tools, and outputs are ones that are
frequently used tells you that this is a very straightforward process, and
that is good news for anyone trying to learn the material.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Procurement Documentation — See Ch. 2, Common Inputs
Seller Proposals - Prospective sellers provide proposals for doing the work,
and these should include how they intend to satisfy the bid request, the
technical aspects of their proposal, the price, and the terms. Ideally, the price
should be separated from the other components so the proposals can be
evaluated on their technical merit and then on price.
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Advertising - If you need to expand the seller responses you are getting,
advertising the bid may be the best way. Trade publications, online sources,
and even newspapers can help get your bid request in front of a large and
more carefully targeted audience to improve the volume and quality of
responses. Sometimes advertising is required for compliance with law or
regulations.
Bidder Conferences - Bidder conferences are conducted to provide
information to potential sellers, while keeping all of them on a level playing
�eld. It is important that the project manager conduct everything out in the
open, with no secret meetings or communications with some vendors or
excluding others.
Data Analysis - Seller proposal evaluations are a common way of
analyzing data here. It is helpful to imagine them being compared against
the seller evaluation matrix and the proposal statement of work.
Interpersonal and Team Skills - e main focus of interpersonal and
team skills in this process is negotiation. is is where the project manager
works with all parties (buyers, sellers, teams, organizations) to reach a
mutual agreement. Negotiations may happen with groups or individuals
inside and outside the organization. e goal of negotiating is to create a
win-win outcome that is sustainable for all parties.
HOW IT WORKS / OUTPUTS:
Selected Sellers - e RFP has been generated, the sellers have
submitted their proposals in response, the negotiations have taken place,
and now a seller is selected to provide goods or services on the project.
Agreements - e agreements that come out of this process, oen in the
form of a contract, are formal documents governing the relationship
between the buyer and seller. In general, when you see the word “agreement”
on the exam, you should think “contract.”
Contracts are legal documents with highly specialized and technical
language and should be written and changed only by people specializing in
that �eld (e.g., the contracting officer, procurement office, legal counsel).
e project manager should not attempt to write, negotiate, or change the
contract on his own.
e contract describes the work to be performed and perhaps the way in
which that work will be performed (e.g., location, work conditions). It may
specify who will do the work, when and how the seller will be paid, and
delivery terms.
In reality, there is very little that the contract cannot specify in one way or
another, so long as the terms and conditions are legal and they are mutually
agreed upon by buyer and seller. Several other legal factors may come into
play, depending on the country that governs the contract, legal
consideration, and other technical legal matters that are outside the scope of
this discussion.
An important component to include with the contract is how disputes (also
called claims) will be resolved. is includes the process of dispute
resolution, the parties who will be involved, and where the dispute
resolution will take place.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
MONITORING & CONTROLLING
CONTROL PROCUREMENTS
6th Edition PMBOK ® Guide Cross Ref. pg 492
WHAT IT IS:
In a nutshell, Control Procurements is the monitoring and controlling
process where the buyer and seller review the contract and the work results
to ensure that the results match the contract. is typically includes a review
of:
Are the goods or services being delivered?
Are the goods or services being delivered on time?
Are the right amounts being invoiced or paid?
Are additional conditions of the contract being met?
Is the buyer/seller relationship being properly managed and
maintained?
e process of Control Procurements is a process performed by both the
buyer and the seller, and because of the rami�cations of any issues here, the
project managers from both the buyer and seller should use whatever
resources are necessary to explore the potential effects of any decisions.
WHY IT IS IMPORTANT:
When looking at this from a project management perspective, the contract
may be viewed as a plan (albeit a very specialized and binding type of plan).
e process of Control Procurements ensures that the results of the project
match this plan and that all conditions of the contract are met.
WHEN IT IS PERFORMED:
Control Procurements, like the other procurement management processes,
may be performed throughout the project whenever goods or services are
being procured. It typically occurs for a given contract at prede�ned
intervals, but may also be performed as requested or needed.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Agreements - e agreements (remember to think “contracts” when you see
this word) that were produced in the previous process are brought in here.
e agreements are the intent and will be compared with the results.
Procurement Documentation - is input includes everything you will
need related to procurements. It is not important to memorize the list, but
anything that could be useful here would be included.
Approved Change Requests - Approved change requests �ow out of the
Perform Integrated Change Control process. ey need to be brought into
this process since a change to scope, price, schedule or other aspects of the
project may well impact procurements.
Work Performance Data — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Claims Administration - Claims are basically disagreements. ey may
be about scope, the impact of a change, or the interpretation of some piece
of the contract. e essential (legally binding) elements of the process for
claims administration are de�ned in the contract itself, but there may be
additional components in the procurement management plan.
e most important thing about claims administration is to understand that
disputes must be managed and ultimately resolved and that the process for
doing so should be de�ned in advance of the claim.
Contracts are completed when all terms, conditions, and claims against the
contract are satis�ed. Ideally, this is objective, and everyone agrees; however,
that is not always the case. Sometimes mediation or arbitration may be
necessary. Both of these are forms of Alternative Dispute Resolution (ADR).
Litigation is another option, but it is the least desirable course of action to
achieve closure and should only be used as a last resort when all forms of
ADR have been exhausted.
Data Analysis - is is used by the buyer to make sure the seller is
performing according to the agreement. Use the tools of performance
reviews, earned value analysis (EVA), and trend analysis to review how
things are progressing.
Inspection - is tool focuses on the product itself and its conformance
to speci�cations. Inspections do not seek to measure the seller’s
performance (i.e., how quickly or cost-effectively they are delivering the
results). Instead, the buyer may use them to help the seller �nd problems in
the way they are delivering the work results.
Audits - Whereas the previous tool of inspection focuses on the product,
audits focus on the procurement process.
HOW IT WORKS / OUTPUTS:
Closed Procurements - e closed contracts are the essential outputs
from Control Procurements. e buyer’s contract administrator sends
formal, written notice to the seller that the contract is complete.
Work Performance Information - WPI is the actionable information
about the seller’s performance �owing out of this process.
Procurement Documentation Updates - As change requests are reviewed,
data is analyzed, inspections are carried out, and audits are conducted,
procurement documentation will likely be updated.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
Organizational Process Assets Updates — See Ch. 2, Common Outputs
THE AGILE PERSPECTIVE ON
PROCUREMENT MANAGEMENT
Agile projects approach vendor relationships as opportunities for
collaboration. In fact, some sellers may actually become part of the team.
In general, agile values collaboration over negotiations.
Because procurement may be very formal in some organizations, agile or
adaptive methodologies may perform the procurement activities in a
highly adaptive way without changing the procurement process.
Plan Procurement Management
On an agile project, this process would involve understanding the
framework of procurement policies in the organization and mapping out
how they would be implemented. ere is no set way, since agile favors
creative, adaptive solutions.
Conduct Procurements
On a predictive project, this executing process would seek to evaluate
bids, select a seller, and award a contract. On an agile project, it may
involve the team selecting a seller and, where advantageous and possible,
adding them to the team.
Control Procurements
Agile projects performed under contract, whether that contract is with a
customer or with a seller (vendor), will periodically review performance
to ensure both parties are meeting their obligations under the contract
and taking corrective action where needed. is process does come into
play on agile projects from time to time, because contracts are oen
required by organizations and buyers.
PROCUREMENT MANAGEMENT
QUESTIONS
1. e contract type that represents the highest risk to the seller is:
A. Fixed price plus incentive.
B. Cost reimbursable.
C. Fixed price.
D. Cost reimbursable plus incentive.
2. In an upcoming iteration, the team needs delivery and vendor
support of a new automated testing system for a time-critical
component of the project. What is the best approach to ensure
effective communications with the vendor during this critical
iteration?
A. Bring in the vendor’s support representative to work in the
colocated team space during the iteration.
B. Schedule a daily phone touchpoint with the vendor similar to the
team’s daily stand-up meeting.
C. Use agile tooling techniques with the vendor’s support team to
effectively make them virtual team members, e.g., web cams and
instant messengers.
D. Contract with the vendor’s sales representative for expedited
response to any support issues during the iteration.
3. Make-or-buy analysis is a tool used in which process?
A. Plan Procurement Management.
B. Conduct Procurements.
C. Control Procurements.
D. Analyze Procurements.
4. Which of the following represents the right sequence of processes?
A. Analyze Procurements, Plan Procurement Management, Conduct
Procurements, Close Procurements.
B. Determine Make or Buy, Control Procurements, Conduct
Procurements, Close Procurements.
C. Plan Purchases and Acquisitions, Conduct Procurements, Control
Procurements, Close Procurements.
D. Plan Procurement Management, Conduct Procurements, Control
Procurements, Close Project or Phase.
5. An organization is trying to close out a procurement sub-project,
but the vendor has not delivered on a key piece of contracted
technology. e project manager has been negotiating with the
vendor for several weeks to no avail. Recently the vendor
representative stated that he believed the performing organization
had no real legal recourse; however, the project manager disagrees.
How should the project manager approach the next steps?
A. With the attitude that litigation is a perfectly acceptable option if
negotiations fail.
B. With the attitude that alternative dispute resolution would be
preferable to litigation.
C. With the attitude that a �nal, equitable settlement is to be
prioritized below stakeholder satisfaction.
D. With the attitude that alternative dispute resolution is binding,
while mediation is not.
6. You are managing a large soware project when the need for a new
series of database tables is discovered. e need was previously
unplanned, and your organization’s staff is 100% utilized, so you
decide to procure this piece of work from outside the company.
When you meet with prospective sellers, you realize that the scope
of work is not completely defined, but everyone agrees that the
project is relatively small, and your need is urgent. Which type of
contract makes the MOST sense?
A. Fixed price.
B. Time and materials.
C. Open ended.
D. Cost plus incentive fee.
7. Your project plan calls for you to go through procurement in order
to buy a specialty motor for an industrial robot. Because of patent
issues, this motor is only available from one supplier that is across
the country. Aer investigation, you believe that you could procure
the motor from this company for a price that is within your budget.
What is your BEST course of action?
A. Revisit the design and alter the speci�cation to allow for a
comparable motor.
B. Procure the motor from this source even though they are the sole
source.
C. See if the component may be produced in another country,
avoiding your country’s patent issues.
D. Take the product out of the procurement management process.
8. You have a supplier that is supplying parts to you under contract.
e terms and conditions give you the right to change some aspects
of the contract at any time, and you need to significantly lower the
quantities due to a change in project scope. How should you notify
the supplier?
A. Take them to lunch and explain the situation gently to preserve
the relationship.
B. Have your attorney call the supplier’s attorney.
C. Communicate with the supplier via e-mail.
D. Send them a formal, written notice that the contract has been
changed.
9. Source selection analysis is used in which procurement process?
A. Plan Procurement Management.
B. Select Sellers.
C. Conduct Procurements.
D. Evaluate Proposals.
10. A team has adopted an agile approach to their soware
development project. ey have elected to procure one section from
an outside seller. Which of the following would be true?
A. e selected seller would also need to adopt an agile approach as
part of development.
B. ey may extend the team by adding the selected seller.
C. Control procurements will take on more importance within this
agile project.
D. Agile projects oen perform procurement management iteratively,
which may change the �ow of the procurement management
processes.
11. You are evaluating proposals from prospective sellers. What process
are you involved in?
A. Analyze Procurements.
B. Plan Procurement Management.
C. Conduct Procurements.
D. Control Procurements.
12. Your project scope calls for a piece of soware that will control a
valve in a pressurized pipeline. Your company has some experience
with this type of soware, but resources are tight, and it is not part
of your company’s core competency. You are considering involving
other sellers but want to decide whether it is a better decision to
produce this within your company or source it externally. What
activity are you performing?
A. Source selection.
B. Make-or-buy analysis.
C. Rational project procurement.
D. Source evaluation.
13. Martina is managing a global project that will attempt to get
significant portions through sourcing. When the first bids are
received, they seem surprisingly high and there is very little
variance among them. Which of the following would prove most
useful in this case?
A. Negotiation.
B. Proposal Evaluation Techniques.
C. Bidder Conferences.
D. Independent Cost Estimates.
14. Your organization is holding a bidder conference to discuss the
project with prospective sellers, and a trusted seller you have
worked with many times in the past has asked if they can meet with
the project manager the day before the conference to cover some
sensitive questions they do not wish to ask in front of other sellers.
Should your organization meet with the seller?
A. Yes, the more that prospective sellers know about the project, the
better.
B. Yes, they are your primary seller, and past history should be
factored in.
C. No, prospective suppliers should be kept on equal footing.
D. No, that would represent an illegal activity.
15. e most important thing to focus on in contract negotiations is:
A. To negotiate the best price possible for your project.
B. To maintain the integrity of the scope.
C. To negotiate a deal that both parties are comfortable with.
D. To make sure legal counsel or the contract administrator has
approved your negotiating points.
16. If a project manager was performing Control Procurements, which
of the following duties might he or she be performing?
A. Evaluating proposals.
B. Negotiating the contract.
C. Closing out the procurement.
D. Weighing seller responses.
17. e product owner has created a story which specifies an
application programming interface (API) with a legacy system still
being operated in the company. e support of the legacy system
was outsourced to a service provider, whose applicable personnel
were granted security rights by the company as part of the
agreement. e team needs API expertise with this legacy system
for the next two iterations, but the contracting officer claims the
service is not included in the agreement with the provider. What is
the team’s next step?
A. Bring the service provider representative into the team
B. Revisit the value of the story and have the product owner groom
the backlog
C. Write a statement of work to accompany an RFP
D. Submit a contract change request to the legal department
18. Who generally bears the risk in a time and materials contract?
A. e buyer.
B. e seller.
C. e buyer early in the project and the seller later on.
D. It depends on the materials used.
19. Your company is outsourcing a project in an area where it has little
experience. e procurement documents should be:
A. Completely rigid to ensure no deviation from sellers.
B. Flexible enough to encourage creativity in seller responses.
C. Informal.
D. Reviewed by senior management.
20. e procurement statement of work should provide:
A. Enough detail for the prospective seller to complete the project.
B. Enough detail to describe the product, but not so much as to
divulge trade secrets or sensitive information.
C. Enough detail to perform make-or-buy analysis.
D. Enough detail for the prospective seller to know if they are
quali�ed to perform the work.
21. You are ready to close out a procurement. Where is the best place to
look for guidance in how to perform this activity?
A. Contract.
B. Correspondence.
C. Records management system.
D. Seller performance evaluations.
22. You are the project manager for a seller who has been selected to
construct an industrial kitchen for a large food services company.
Before the contract negotiations, the buyer confides in you that
design is not finalized, and they want you to begin work with
incomplete specifications. What type of contract should you ask for
in negotiations?
A. Fixed price.
B. Cost plus incentive fee.
C. Time and materials.
D. Cost plus �xed fee.
23. As team facilitator, you have been tasked by the team to interface
with organization’s purchasing and legal departments to contract
for a soware subscription to a necessary tool for project
development. Being an agile coach, what challenges should you
expect from these organizational departments?
A. e department representatives may balk at the idea of colocating
with the team just to perform a procurement cycle.
B. Your insight about how to improve or adapt the procurement
activities may clash with the legal department’s standard
contracting procedures.
C. Your affinity to collaborate with the vendor may con�ict with the
organization’s posture for winning at negotiation.
D. e timeboxing approach to closing the deal may place the
organization in a poor negotiating position when “waiting out”
the other party to concede to business objections.
24. Your customer has asked to meet with you and inspect the work you
have completed to date on the project to ensure that it meets the
contractual agreements. What is your customer manager engaged
in?
A. Close Procurements.
B. Seller Efficiency Audit.
C. Seller Administration.
D. Control Procurements.
25. You have completed a project and delivered the full scope of the
contract. e buyer agrees that you have technically satisfied the
terms of the contract but is not completely satisfied with the end
results. In this case, the contract is:
A. Contested.
B. Complete.
C. Poorly written.
D. Lacking terms and conditions.
PROCUREMENT MANAGEMENT
ANSWERS
1. C. is question was easier than it may have �rst appeared to be. Fixed
price is the highest risk to the seller since the seller must bear the risk
of any cost overruns. Choice ‘B’ would provide the highest risk to the
buyer.
2. A. e most effective communciations are face-to-face, and
embedding the support team with the agile project team is an excellent
method, following the values of individuals and interactions as well as
customer (or vendor) collaboration.
3. A. Make-or-buy analysis is a tool used during the Plan Procurement
Management process where you are deciding which deliverables
should be procured and which should be created internally. ‘D’ is not a
real process, and ‘B’ and ‘C’ are incorrect because by the time you
conduct or Control Procurements, you need to already know what you
are going to make and what you are going to buy.
4. D. Plan Procurement Management, Conduct Procurements, Control
Procurements, Close Project or Phase. e easiest explanation for this
one is that ‘A’, ‘B’, and ‘C’ all contain at least one made-up process.
5. B. Alternative dispute resolution (ADR), which includes mediation
and arbitration, is preferable to litigation. ‘A’ is not a good choice
because litigation should only be entered into as a last resort. ‘C’ is
incorrect because a �nal, equitable resolution is very important and
would not be prioritized below satisfaction. ‘D’ is not correct. ADR
includes mediation, so the statement does not even make sense. It may
be binding or non-binding.
6. B. Time and Materials. Choice ‘A’ is incorrect because the scope is not
de�ned enough to establish a fair �xed price. Choice ‘C’ is a made-up
type of contract. Choice ‘D’ would not make sense in this case since
the seller’s costs are not abundantly clear, and this type of contract
would create too much risk.
7. B. is one may trick some who think that it is wrong to use a sole
source. In many cases it is the only choice. ‘A’ would not be good since
the design has nothing to do with this. ‘C’ is not necessary in this case,
since the issue is not a legal issue. Choice ‘D’ would be completely
invalid since the item is still being procured outside of your
organization.
8. D. Choices ‘A’ and ‘B’ are verbal. Contract changes should always be
made in writing! ‘C’ is written, but e-mail is not the proper forum for
making important contractual changes.
9. A. Plan Procurement Management. is is the tool where you plan
how you are going to select a seller. For example, you choose how
important competing factors such as cost, quality, seller quali�cations,
and others are, and you do this before you conduct procurements.
10. B. Agile projects may extend their team to incorporate selected sellers.
is makes sense if you understand the way agile projects work. ‘A’ is
not necessarily true. ey may be purchasing something that has
already been developed, so the seller would not necessarily need to
adopt agile. ‘C’ is not a good choice since that process is no more or
less important just because it is agile. ‘D’ is not a good choice because
procurement is not a particularly iterative activity. Put another way,
how would you purchase something iteratively? You will �nd that
procurement management changes less between waterfall and agile
than other knowledge areas.
11. C. If you are evaluating seller responses, you are performing the
process of Conduct Procurements. e seller proposals are brought
into this process, and they are screened, weighted, rated, and evaluated
against the criteria.
12. B. Make-or-buy analysis is the process where an organization decides
whether it should produce the product internally or outsource it. is
is one of the data analysis techniques performed as part of the Plan
Procurement Management process.
13. D. Independent cost estimates would be most appropriate. Martina
needs to check and see if the bids are valid or if there may be some sort
of collusion going on. ‘A’ might be a good step aer getting some
independent estimates. ‘B’ is a way of scoring and ranking vendors, but
that might be premature at this point. ‘C’ is a way to inform bidders,
but that should have taken place before the bids were received and
would not be the best choice at this point.
14. C. If you are involved in formal procurement, you should make every
effort to keep sellers on equal footing. If one seller is provided with an
advantage, it negates much of the value of the procurement process.
15. C. e most important point is to create a deal that everyone feels
good about. ‘A’ sounds like a good choice, but it is incorrect; the best
possible price might not be fair to your seller, and that could create a
bad scenario for the project in the future. ‘B’ is important, but that is
not the primary focus of negotiations. ‘D’ may or may not be
necessary, depending on the situation.
16. C. One of the outputs of Control Procurements is closed
procurements. Make sure to learn the primary inputs, tools,
techniques, and outputs for the processes.
17. C. e team obviously needs to buy the API service since the legacy
system expertise is no longer inside the company. e API is speci�ed,
and it is not up to the team to assess the story’s value, but to deliver the
feature. e make-or-buy decision is “buy,” and the next step is to
create the procurement SOW for use in contracting the right supplier.
18. A. In a time and materials contract, the buyer has to pay the seller for
all time and materials, and oen it involves an incomplete scope
de�nition. erefore, the buyer is the one most at risk.
19. B. In this scenario, you want sellers to respond with their own ideas.
Procurement documents should be rigid enough to get responses to
the same scope of work, and �exible enough to allow sellers to
interject their own good ideas and creativity. Many people incorrectly
choose ‘A’ because they assume that a rigid approach is almost always
correct, but in this example, you do not have sufficient experience to
rigidly manage the process, and you want your sellers to give you some
guidance in their proposals. ‘C’ was clearly incorrect as procurement is
something that should be done formally. ‘D’ is incorrect because
senior management has many functions in an organization, but they
would not be expected to review procurement documents.
20. D. Procurement statements of work should be as complete and concise
as possible. At a minimum, they should contain enough information
for the seller to determine if they are quali�ed to do the work.
21. A. e contract, oen referred to as an agreement, speci�es how the
procurement will be closed. Any of the other choices might provide
supporting information, but the best place to look for guidance would
be the contract.
22. C. e major clue here is that the scope of work is not completely
de�ned and they want you to begin work anyway. In that case, the
project is at a higher risk, and a time and materials contract shis
much of that risk back to the buyer.
23. C. Viewing this question with the agile values in mind highlights ‘C’ as
the best choice for any con�ict in values between an adaptive agile
approach and a conventional business approach from the legal or
procurement departments. For the exam, keep the values put forth in
the Agile Manifesto in the forefront when having to make difficult
exam choices. e other choices may be characteristic tactics from
agile experience, but are not the values upon which the principles are
based.
24. D. Procurement performance reviews are a tool of Control
Procurements, where the buyer arranges a meeting with the seller to
review the seller’s performance against the plan. is question presents
a near-textbook case of this.
25. B. If the scope of the contract is complete, no other terms were
breached, and no claims against the contract have been �led, then the
contract is complete. ‘A’ is not a good choice since no claim was �led.
‘C’ is not a good guess here since you don’t have enough information
to state that the problem was that the contract was poorly written.
13 Stakeholder Management
is knowledge area is still relatively young, but meaningful content has
been added over the last few years. On a project, stakeholder management
can have a powerful impact on its success or failure.
PHILOSOPHY:
Stakeholder management focuses on identifying the relevant stakeholders,
creating a plan, executing that plan, and monitoring and controlling. e
idea that drives this is to work to manage the expectations that drive
stakeholder satisfaction.
Stakeholder management is de�ned as “the creation and maintenance of
relationships with the aim to satisfy needs.” is is an expansive de�nition
that covers activities throughout the project life cycle.
e approach is driven by the fact that stakeholders need to be identi�ed
and have their needs understood before they are managed. ey should be
communicated with and involved at the proper level through the life of the
project.
IMPORTANCE:
Stakeholder management has a few key tools and outputs that are important
for the exam. It is far more important on an actual project than it is on the
exam.
PREPARATION:
is knowledge area presents no real surprises other than the fact that there
is an initiating process. Since a signi�cant number of questions come from
the initiating process group, and there are only two initiating processes, it is
a safe assumption that this particular process is important.
Stakeholder Management Processes
ere are four processes in stakeholder management. ese processes are
displayed in the �gure at the beginning of the chapter and summarized in
the tables below.
Process Group Stakeholder Management Process
Initiating Identify Stakeholders
Planning Plan Stakeholder Engagement
Executing Manage Stakeholder Engagement
Monitoring & Controlling Monitor Stakeholder Engagement
Closing (none)
Process Primary Outputs
Identify Stakeholders Stakeholder Register
Plan Stakeholder Engagement Stakeholder Engagement Plan
Manage Stakeholder Engagement Issue Log
Monitor Stakeholder Engagement (No Primary Outputs)
INITIATING
IDENTIFY STAKEHOLDERS
6th Edition PMBOK ® Guide Cross Ref. pg 507
WHAT IT IS:
Identify Stakeholders is the process that focuses on creating the stakeholder
register to list all of the stakeholders and describe their involvement on the
project.
Identify Stakeholders is one of only two initiating processes.
Keep in mind that a stakeholder may be anyone with an interest in the
project, and that interest may be positive or negative.
WHY IT IS IMPORTANT:
If the stakeholders are not properly identi�ed on the project and their needs
are not understood, then there is little chance of meeting expectations. Many
projects are derailed because they did not understand the needs of the
stakeholders and address them on the project.
On the exam, quite a few questions will come from the initiating process
group, so you should expect several questions to be directly related to this
process.
WHEN IT IS PERFORMED:
Identify Stakeholders will typically be one of the �rst processes you perform
on a project or project phase; however, it may be performed multiple times
throughout the project’s life cycle. If your project had six phases, you may
well perform it six times (or even more). You will need to perform it aer
the process of Develop Project Charter has been completed.
HOW IT WORKS / INPUTS:
Project Charter - e charter describes the project in broad brush
strokes, and it may also describe some of the stakeholders and their interests
in the project or its product.
Business Documents - e business case and bene�ts management plan
outline who is expected to bene�t from the project’s product, service, or
result. ese groups, in particular, are considered key stakeholders.
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Agreements — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering - e primary tools used here are questionnaires and
surveys and brainstorming. e point of these is to cast a wide net for
identifying potential stakeholders.
Data Analysis - is one tool can cover quite a bit of ground. In this
case, the data you are analyzing is data about stakeholders. It is relatively
simple to de�ne, but it is oen quite tricky to perform on an actual project.
e goal of this is to identify which stakeholders should receive project
communications, what communications they should receive, how they
should receive these communications, and how oen they should receive
them.
Not all stakeholders should be treated equally on the project. Some are more
important than others, and it is the job of the project manager (with help
from the sponsor) to understand stakeholders and their abilities to in�uence
the organization and their interests in the project.
ere are many ways to accomplish this, but one technique is to plot
stakeholders on a grid to visualize their impact and in�uence.
For the purposes of stakeholder analysis, a stakeholder would be anyone
who creates or causes a need, is affected by the need, or would be affected by
the solution.
When performing stakeholder analysis, the underlying needs that the
stakeholders have related to this project should be ranked from greatest to
least. ere are a number of ways to rank them, including interest, in�uence
rights, ownership, knowledge, and contribution.
Data Representation - is tool is essentially a graphical way of
representing the information in the previous tool. Some possible ways are:
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Stakeholder Register - e stakeholder register is a document that lists
all of the project stakeholders, describes them, and classi�es them. e
classi�cation will become particularly important when you are planning the
communication and want to group stakeholders together.
e stakeholder register contains three main sections:
1. Stakeholder identi�cation – the names, titles, and project roles of the
people involved with the project.
2. Stakeholder assessment – what their needs are and when those needs
are expected to arise in the life of the project.
3. Stakeholder classi�cation – a logical grouping of stakeholders in any
way that makes communication easier
is document may be published with other project documentation or kept
in reserve for the project manager’s use only.
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates — See Ch. 2, Common Outputs
PLANNING
PLAN STAKEHOLDER ENGAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 516
WHAT IT IS:
e process of Plan Stakeholder Engagement looks at how the team will
relate to the stakeholders and what stakeholder involvement will be in all
aspects of the project.
WHY IT IS IMPORTANT:
For the exam, the sole output of this process is all that matters. On a real
project it is important because it is necessary to be proactive and deliberate
when considering how to involve stakeholders on the project.
WHEN IT IS PERFORMED:
is process would generally be performed very early on the project and
may be revisited oen as project work progresses. If it is not performed early
in the project’s life cycle, the project runs the risk of marginalizing and
alienating stakeholders.
HOW IT WORKS / INPUTS:
Project Charter — See Ch. 2, Common Inputs
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Agreements — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Data Gathering — See Ch. 2, Common Tools
Data Analysis — See Ch. 2, Common Tools
Decision Making — See Ch. 2, Common Tools
Data Representation - Stakeholders, and particularly their level of
engagement, must be understood and analyzed, with particular attention
paid to the current and desired levels of engagement.
Stakeholder engagement is oen plotted on a Stakeholder Engagement
Assessment Matrix such as the one that follows.
e purpose of this is to chart the current and desired states of project
stakeholders, which will inform the stakeholder engagement plan.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Stakeholder Engagement Plan - e stakeholder engagement plan will
become a component of the project management plan. It describes how the
team will engage the stakeholders and how it will manage expectations and
deal with issues. It also describes how communication will be conducted.
e stakeholder engagement plan may or may not be shared with most
stakeholders.
EXECUTING
MANAGE STAKEHOLDER ENGAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 523
WHAT IT IS:
Manage Stakeholder Engagement was �rst introduced in the previous
edition PMBOK® Guide. It is an executing process that revolves around using
change and the issue logs to help ensure that the right stakeholders are
involved at the right level and in the right way.
For this executing process, know that stakeholders should be managed
according to their needs and how the project scope addresses those needs.
ink of your stakeholders as strategic partners working with you toward
the success of the project. You should go into the exam with an attitude of
strong stakeholder cooperation. If you and your stakeholders are not aligned
toward a mutually successful solution, that should serve as a red �ag.
WHY IT IS IMPORTANT:
Stakeholder satisfaction may be the single most signi�cant ingredient in
project success. While much of that may have to do with bene�ts realization
and product quality, quite a bit of it has to do with whether or not the
stakeholders were happy with the way the project was conducted, whether
or not they were properly involved, and whether or not they had a voice on
the project. is process helps to ensure that they are properly engaged
throughout the life of the project.
It is vital that the project manager keep the stakeholders engaged at the
appropriate level throughout the project. e concept is straightforward, but
the execution can be very tricky. e project manager should constantly be
thinking about how the stakeholders wish to be engaged and to participate
in the project, what their goals and concerns are, what information they
need and how they want to receive that information.
WHEN IT IS PERFORMED:
Stakeholders typically in�uence the project from very early (oen before it is
even a project) until it is closed. is process happens as long as there are
stakeholders with whom you need to work.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Expert Judgment — See Ch. 2, Common Tools
Communication Skills - Feedback is the important communication
skill here. It is used to make sure that communications are being received in
the intended way by the stakeholders.
Interpersonal and Team Skills - is tool is frequently used in this
book, but it is particularly important here. Con�ict management, cultural
awareness, negotiation, observation and conversation, and political
awareness all play a part. Good project managers use so skills to help
manage stakeholder expectations and engagement.
Ground Rules - e ground rules are oen de�ned in the charter but
they may also be unwritten. ese are the rules to which everyone is
expected to adhere. e ground rules can apply to stakeholders and to the
project team.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - e issue log is the key document you
should focus on as being updated for this process. It is an important item for
managing stakeholder expectations and engagement.
MONITORING & CONTROLLING
MONITOR STAKEHOLDER ENGAGEMENT
6th Edition PMBOK ® Guide Cross Ref. pg 530
WHAT IT IS:
is process evaluates how the plan of engaging and involving stakeholders
lines up with the results. While there are no surprises with this process with
the inputs, tools, and outputs, you should understand what the process is
and when and why it is conducted.
WHY IT IS IMPORTANT:
As any professional project manager can attest, stakeholder engagement and
management does not always go according to plan, and when things go awry
with stakeholder engagement, the entire project can quickly become
derailed.
is process does the important work of monitoring and controlling the
overall activities related to engaging the stakeholders and makes sure they
stay on track or that the plan is updated if necessary.
WHEN IT IS PERFORMED:
Like all monitoring and controlling processes, Monitor Stakeholder
Engagement will be performed aer there is a plan in place (the stakeholder
engagement plan created in Plan Stakeholder Engagement) and as execution
of that plan begins (Manage Stakeholder Engagement).
is process will typically be performed from time to time throughout the
project’s life cycle, but it may take on heightened importance on sensitive
projects.
HOW IT WORKS / INPUTS:
Project Management Plan — See Ch. 2, Common Inputs
Project Documents — See Ch. 2, Common Inputs
Work Performance Data — See Ch. 2, Common Inputs
Enterprise Environmental Factors — See Ch. 2, Common Inputs
Organizational Process Assets — See Ch. 2, Common Inputs
HOW IT WORKS / TOOLS:
Data Analysis — See Ch. 2, Common Tools
Decision Making — See Ch. 2, Common Tools
Data Representation - e stakeholder engagement assessment matrix
is the key tool to help depict how stakeholder are relating to the project.
Communication Skills - Feedback and presentations are the two key
communications skills used to monitor stakeholder engagement.
Interpersonal and Team Skills - e skills of active listening, cultural
awareness, leadership, networking, and political awareness come into play as
you monitor stakeholder engagement. Interpersonal and team skills are
important in many parts of the project, but they are particularly important
in stakeholder management.
Meetings — See Ch. 2, Common Tools
HOW IT WORKS / OUTPUTS:
Work Performance Information — See Ch. 2, Common Outputs
Change Requests — See Ch. 2, Common Outputs
Project Management Plan Updates — See Ch. 2, Common Outputs
Project Documents Updates - e key document that would be updated
here is the issue log. is is particularly important for stakeholders to see
that their issues are being acknowledged and recorded.
THE AGILE PERSPECTIVE ON
STAKEHOLDER MANAGEMENT
Agile projects are arguably much less formal than more traditional,
predictive projects.
e agile approach to stakeholder management is markedly different than
the waterfall approach. Stakeholders are actively engaged and may even
become part of the team. Information about progress and team
performance is posted in public places in what is oen referred to as “big,
visible charts” with the goal of keeping stakeholders up to date and well
informed.
With agile, stakeholders are not viewed as people who must be kept
informed. Instead, they are engaged and treated as integral parts of the
overall solution.
Identify Stakeholders
is process would be a good idea to conduct, regardless of whether the
project is predictive or agile. Understanding the key stakeholders, their
needs, and their requirements is key to making projects successful. e
key output here is the stakeholder register. On an agile project, this
process may be driven by the product owner, the coach, or the entire
team.
Plan Stakeholder Engagement
On an agile project, stakeholder engagement is generally higher than it is
on a predictive project. is occurs through embedding the appropriate
stakeholders on the team, getting the product into their hands quickly
with frequent updates, encouraging feedback, and embracing change.
Stakeholders receive transparent communication about how the team is
performing and the value that is being produced.
All of this will probably look different on different projects as the agile
team adapts to the project’s needs.
Manage Stakeholder Engagement
e issue log is an important document on any project. Issues are
unresolved threats or problems, and they are captured here, along with
who raised the issue so that the stakeholder (or team member) knows
that it is documented and that the team is aware of it. On an agile project,
the issue log may be posted in the team’s work space to maintain high
visibility and appropriate priority.
Monitor Stakeholder Engagement
is is a straightforward process that reviews how the plan lines up with
the results and takes corrective action as needed. Agile projects may do
this in an iteration’s retrospective.
STAKEHOLDER MANAGEMENT
QUESTIONS
1. What are the dimensions measured on a stakeholder grid?
A. Access and Availability.
B. Expertise and In�uence.
C. Interest and In�uence.
D. Motive and Opportunity.
2. Which of the following is not a tool used to manage the stakeholder
engagement?
A. Communication methods.
B. Interpersonal Skills.
C. Management Skills.
D. Issue Log.
3. e primary purpose of the stakeholder register is:
A. To keep a list of all project stakeholders.
B. To record stakeholder issues on the project.
C. To map functional requirements back to the originating
stakeholder.
D. To serve as a project directory.
4. e most important element in project success is:
A. Stakeholder satisfaction.
B. How the product meets the requirements.
C. Overall product quality.
D. Overall project quality.
5. Which of the following does not identify someone as a stakeholder
during stakeholder analysis?
A. Someone who proposes a solution.
B. Someone who is aware of a need.
C. Someone who is affected by the need.
D. Someone who would be affected by the solution.
6. Stakeholders should be:
A. Communicated with frequently.
B. Quali�ed.
C. Analyzed.
D. Documented before the project begins.
7. Which of the following is not a classification of stakeholder
engagement?
A. Unaware.
B. Resistant.
C. Leading.
D. Participating.
8. Ana is working on a matrix where she is measuring the stakeholder
engagement on the project. What dimension would she likely be
assessing and plotting?
A. Power and interest to in�uence the project.
B. Ability and urgency to in�uence the project.
C. Current and desired levels of interest.
D. Expertise and availability to engage with the project.
9. Which of the following statements is false regarding stakeholders?
A. Stakeholders may have a positive or negative interest in the
success of the project.
B. All stakeholders should be identi�ed before the project execution
begins.
C. Stakeholders may not be affected by the outcome but may perceive
that they could be affected by the outcome.
D. Stakeholders may be people, or organizations.
10. Which of the following is true concerning work performance data
and work performance information with regard to monitoring the
engagement of the stakeholder?
A. Work performance data is used at the organizational level, while
work performance information is used at the project level.
B. Work performance information is more useful than work
performance data.
C. Work performance data is collected from monitoring and
controlling processes.
D. Work performance information represents raw observations and
measurements.
11. On an agile project, stakeholders are viewed as:
A. Agents of change that need to be controlled and have limited
access to project information.
B. Customers that must be satis�ed with frequent deliveries of
working features and monthly project updates.
C. Integral parts of the overall solution and heavily engaged with the
team.
D. Highly important to the team; without customers and
stakeholders, there would be no project.
12. Information about the agile project is made available to
stakeholders:
A. Via regularly updated reports distributed per the communications
mamagement plan.
B. Via designated and authenticated website access,
compartmentalized based on a need-to-know basis as de�ned by
the team.
C. Via requests to the team’s communications officer.
D. In an open, transparent approach using highly-visible information
radiators near the team work space.
13. Comparing the engagement level of stakeholders on agile projects
and predictive projects, it can be appropriately said that:
A. Agile stakeholders are generally engaged at a higher level than
predictive stakeholders.
B. Agile stakeholders are generally engaged at a lower level than
predictive stakeholders.
C. Agile stakeholders are generally engaged at the same level as
predictive stakeholders.
D. Agile stakeholders’ engagement levels are not classi�ed in the
same way as predictive stakeholders.
14. e issue log of an agile project:
A. Would be posted in the team space for visibility and high priority.
B. Does not exist as it does in a predictive project.
C. Is generally word-of-mouth among the team to minimize
documentation.
D. Is reviewed each day in the stand-up meeting.
15. A new agile team member has joined from a traditional project
background. She is coached by you as the team facilitator about her
use of the term “stakeholder.” What is your counsel?
A. In agile project-ease, we use the term “customer” rather than
“stakeholder.”
B. Stakeholders in the agile sense are more associated with the
customers and users rather than all interested individuals or
groups.
C. It is simpler to just refer to the product owner or PO when
discussing stakeholders, since the PO is the voice of the
stakeholder.
D. Agile teams prefer to provide a name for each persona, so rather
than “stakeholder” use a name like “Charlie.”
16. Stakeholder management is all about _________________.
A. Customer satisfaction.
B. Adversarial posturing.
C. Relationships.
D. Minimizing communciation channels.
17. One technique in identifying and categorizing stakeholders is to
understand:
A. What powerful social media links the stakeholder has.
B. How long the stakeholder has been a member of the organization.
C. If the stakeholder has referred power; is it inherited from someone
else or is it personal charisma.
D. What direction of organizational in�uence is exhibited by the
stakeholder.
18. How is the stakeholder engagement assessment matrix handled
differently in agile vs. predicitive projects?
A. e predictive matrix would be verbal only if disclosure or
“Sunshine” laws are applicable.
B. In agile, the matrix would be used more for grooming a risk-
adjusted backlog.
C. Where no difference exists is that the matrix can be viewed as
sensitive information in both project types and would typically
not be shared with all stakeholders.
D. e matrix of an agile project would typically be openly displayed
like all other project information.
19. Which Agile Manifesto value relates more to Project Stakeholder
Management than the others?
A. We value customer collaboration over contract negotiation.
B. We value individuals and interactions over processes and tools.
C. We value working soware over comprehensive documentation.
D. We value responding to change over following a plan.
20. What skillset is probably used more oen in either predictive or
agile projects than any other skill?
A. Emotional intelligence.
B. Communications skills.
C. Servant-leadership skills.
D. Negotiating skills.
21. Ground rules apply to:
A. e project team.
B. e team members that agreed to comply with them.
C. Stakeholders and the project team.
D. Agile stakeholders.
22. A key stakeholder on your construction project is officed in another
city. How can you maintain or improve the engagement level of this
stakeholder?
A. Offer to have the project budget cover transporation expenses for
regular visits by the stakeholder to the construction site.
B. Assign a construction crew member to have daily updates emailed
to the stakeholder.
C. Verify with the stakeholder that current informational reports are
sufficient.
D. Use technology tools such as instant messenging, webcams, or
video conferencing to enhance communications.
23. During today’s stand-up meeting, a passing-by stakeholder joined
in and actually interjected a comment and a question about a
feature status. As team facilitator, you made a mental note to:
A. ank her for her comments and to ask how else the team can add
value for her.
B. Discuss the unwelcome interruption with the product owner and
have him correct the stakeholder to prevent future interuptions.
C. Follow-up with the team about that feature status to ensure that it
is delivered as stated during the stand-up meeting.
D. Have a brief one-on-one meeting with that stakeholder to educate
her on the purpose and intended participation of a daily stand-up
meeting.
24. As project manager, you have placed Charles in the Resistant
category of the stakeholders engagement assessment matrix. To
move Charles to neutral or supportive, what is the first, best
approach?
A. Meet with Charles to discuss the bene�ts of the project and to
probe to understand what aspects give Charles any hesitation in
supporting the project’s success.
B. Meet with Charles’s manager to explain how Charles’s negativity
about the project places the project at some political risk; ask for
support in neutralizing Charles’s negative in�uence.
C. Discuss Charles’s positioning with the team; have them try to
befriend him at work as well as socially to bring his perspective of
the project and the team into a good light.
D. Meet with Charles to describe the high-level executive
sponsorship of the project and how Charles should get on board
to be politically astute and not hurt his career.
25. e project sponsor alerts you as a new project manager in the
company that traditionally projects were successful when they had
the support of one of the founding engineers of the company. What
is the first step that should be taken?
A. Ask the sponsor to schedule a 3-person meeting with the
in�uencer, the sponsor, and yourself to understand what possible
basis could he have for non-support.
B. Add the uncertainty of the in�uencer’s support to the risk register.
C. Add the in�uencer as Resistant on the Stakeholders Engagement
Assessment Matrix.
D. At the next team meeting, discuss who knows this in�uencer and
how to best win him over about project support.
STAKEHOLDER MANAGEMENT
ANSWERS
1. C. When plotting stakeholder interest on a matrix, interest and
in�uence (and sometimes involvement) are measured.
2. D. is may have looked hard, but it was not so difficult to reason out.
e issue log is the primary output of Manage Stakeholder
Engagement, so it could not also be a tool. ‘A’, ‘B’, and ‘C’ are all tools
used in that process.
3. A. e stakeholder register is a list of the stakeholders with their
assessment and classi�cation as it relates to the project.
4. A. is one should have been easy given the topic of the quiz, but you
may well see questions like this on the PMP Exam. While all of the
elements are important, stakeholder satisfaction is the most important.
5. B. e term “Stakeholder” is very broad and generally includes quite a
few groups; however, someone who is aware of a need is ambiguous
enough to not �t well within this list.
6. C. e process of Identify Stakeholders has a prominent tool of
Stakeholder Analysis. ‘A’ may sound good, but not all stakeholders may
need or desire frequent communication. ‘B’ is close, but it is not the
best answer since there is no process or tool to see if someone quali�es
as a stakeholder. ‘D’ is not a good choice since stakeholders may enter
the project at any point.
7. D. e �ve states of stakeholder engagement are Unaware, Resistant,
Neutral, Supportive, and Leading. “Participating” might seem to make
sense, but it is not a classi�cation since the project manager does not
typically need to measure the engagement of team members
participating on the project.
8. C. e stakeholder engagement matrix plots the current and desired
levels of engagement by stakeholders.
9. B. If you missed this one, don’t feel bad. It is best to identify
stakeholders early, but the key to getting it right is the word “all.” Many
of them may not emerge until late in the project.
10. B. WPI and WPD show up in Control Stakeholder Engagement.
Remember that work performance data is raw, while work
performance information has been analyzed and made more useful. ‘A’
has no grounding in reality at all, and ‘C’ and ‘D’ are opposite of the
truth.
11. C. On a predictive project, stakeholders are viewed as those to keep
informed, but to not provoke change if it can be avoided. In an agile
project, stakeholders are oen embedded with the team and
changes/updates are embraced by the team to enable more value to be
delivered more quickly to the customer.
12. D. Agile projects exhibit very transparent and open Communications
promoting the agile values of interaction, collaboration, and response
to change.
13. A. Agile values drive much higher levels of stakeholder engagement
than those of typical predictive project stakeholders. Embedding with
the team, quick delivery of features to their hands, encouraging
feedback, and embracing their change requests are evidence of the
desired higher levels of agile stakeholder engagement.
14. A. e issue log is important and should be highly-visible. It would not
be reviewed in the daily standup because it is already viewable by the
team and the stakeholders.
15. B. One area of difference in the way agile projects and predictive
projects differ is with the concept of a stakeholder. In predictive, a
stakeholder is any person or group that has an interest in or an impact
from the project, even including the project team. In an agile project,
the term stakeholder refers to a customer or end-user, with the
product owner representing the stakeholders.
16. C. Not all stakeholders are customers, but the project DOES need to
observe the engagement level and relationship of each identi�ed
stakeholder to enable project success.
17. D. ‘D’ is the most well-rounded response to this question.
Understanding upward, sideward, downward, and/or outward
in�uence helps categorize this stakeholder on the in�uence axis of a
grid analysis.
18. C. e engagement assessment matrix may be viewed as manipulative
or posturing, and therefore may not be advisable to share openly. Due
to its possible political or personal sensitivity, you may not choose to
share it with all stakeholders.
19. A. is may have been a difficult choice between ‘A’ and ‘B.’ ‘A’ is a
better response because of the agile association of stakeholders closer
to customers than the predictive greater view of the stakeholder
de�nition.
20. B. Effective project managers, and most likely team facilitators, too,
spend 90% of their time communicating!
21. C. Ground rules, written or unwritten, apply to all stakeholders and
the project team members. ey should be communicated, upheld and
reinforced by all, and set valid expectations for behavior.
22. D. A project manager or team facilitator is proactive and does not wait
for the key stakeholder to have a poor communications experience
before taking action. Technology tools are an efficient method by
which to increase the “face-to-face” similarities of communications.
Travel may be timewasting and inefficient. When the �rst important
issue arises, it may be too late to implement the technology to help
resolve the stakeholder’s issue.
23. D. As team facilitator, it is your role to educate the organization about
the agile approach and values. e stand-up meeting is not a
stakeholder review, but rather a communication tool for the team to
stay up-to-date. Answer-B is not as good a choice as Answer-D
because being direct with communications is still open and
transparent; issue management is best handled with less defensiveness
or hurt feelings if corrections to process are performed one-on-one.
e EQ of the team facilitator comes into play here.
24. A. Oentimes, the best, �rst approach is simply education to increase a
stakeholder’s awareness of the bene�ts and value of a project to gain
support and counter any objections to the project. If there are valid
concerns to explain the resistance, the conversation is a good, open,
direct method to surface the issues for understanding and
consideration. e project manager’s emotional intelligence,
communication skills, and political and cultural awareness would all
play well together in making this meeting a positive experience.
25. B. Answers-A and -C are jumping to conclusions of non-support.
Answer-B is the best, �rst step since the support or opinion of the
in�uencer is an unknown.
14 How To Pass e PMP Exam
Passing the PMP on your �rst try has almost nothing to do with good luck.
It is all about preparation and strategy. While the other chapters in this book
are all about the preparation, this chapter focuses on test strategy. It includes
techniques on how you can be sure to avoid careless mistakes during your
exam.
THE PMP EXAM:
is chapter covers strategies and material related to standardized tests in
general and to the PMP exam speci�cally.
Before we get into the speci�cs of the PMP exam, it would be a good idea to
cover standardized exams. Even if you have taken quite a few standardized
exams before, now would be a good time to review some important points.
A standardized exam is a test designed to achieve some statistical
consistency. Since the PMP exam is a standardized exam, this essentially
means two things:
1. An individual test-taker should perform at approximately the same
level on two different versions of the PMP exam.
2. e results of all people taking the exam should be normally
distributed. at means they should form a bell curve.
It is important to know that the PMP exam does not cover material only
from the PMBOK® Guide. People who use the PMBOK® Guide as a sole study
reference are oen surprised to �nd this out. is is because the PMBOK®
Guide is not meant to be a sole reference for practitioners or test-takers. It
neither instructs you how to manage a project, nor how to study for an
exam. It is, as its name suggests, a guide to the greater body of knowledge.
As we begin to talk about strategies, it would be helpful to look at how the
PMP exam is actually created. e exam is made up of 180-200 questions,
but as was pointed out in Chapter 1, only 175 of those questions count
toward your pass/fail score on the exam. e trouble is that you will not be
aware of which questions count and which do not. Volunteers are recruited
to write questions, and these questions are then vetted, re�ned, and tested
out before they are added to the exam.
If a question is selected, it may be introduced as one of the experimental
questions on the exam. Experimental questions should look like every other
question on the exam. e key is that when the results for these
experimental questions are evaluated, they should perform like every other
question on the exam. Questions that are too difficult or too easy may be
discarded.
e topic for each question may cover anything as long as it can be cited in a
“contemporary project management resource.” e problem for the test-
taker is that PMI no longer publicly discloses what those contemporary
project management resources are (although the author speculates that they
are likely books currently for sale in PMI’s bookstore).
ere is a common way in which standardized exams are created. Questions
will generally fall into three categories:
Easier questions
Medium questions
Harder questions
It is important to note, however, that these questions will be scattered
randomly throughout the exam.
EASIER QUESTIONS:
Easier questions should be answerable by most test-takers. ey generally
focus on topics such as ethical questions, questions that require you to
support PMI, questions where you are encouraged to follow the process, and
questions about obvious inputs, tools, or outputs. Most people �nd these to
be among the easiest questions on the exam. Expect to see as many as 60 of
the easier questions on the exam, although they may not seem easy at �rst
glance.
e best way to recognize one of these questions is that aer reading it
through carefully a couple of times, you should �nd that one answer clearly
stands out as the most likely candidate.
MEDIUM QUESTIONS:
Medium questions are the most common questions on the exam. You should
expect to see approximately 80 questions that will fall into this category.
ese questions will cover topics such as the order in which processes must
be performed, earned value calculations, and the application of speci�c risk
and quality tools. ey will also delve into more detail to test your
understanding of the processes. In order to answer these questions, you will
need to fall back to your study. If you are well prepared, you will �nd that
you can generally trust your instincts.
Medium questions may be recognized by the fact that they should generally
be more fact-based. You should be able to narrow these questions down to
one or two candidate answers with a bit of careful reading.
HARDER QUESTIONS:
e harder questions will generally make the difference between those who
pass and those who do not. One of the telltale signs of these questions is that
you may be le scratching your head as to what is even being asked. is is
an important clue! When you reach a question where you are not sure what
is being asked, and remember that there may be as many as 60 of them,
pause for a moment and shi mental gears. e harder questions on the
exam are designed so that only the most prepared exam-takers will get them
right.
When dealing with the harder questions, it is important to note that most
test-takers will not naturally gravitate toward the right answer.
Consider the following example:
Q: Mike is midway through execution and has a CPI of .98 and an SPI of
.96 on his project. His project sponsor has requested a meeting with him
to discuss the project’s CPI and SPI as well as certain decisions he has
made and how they might have led to recent issues that have arisen. Mike
does not agree with the sponsor. What is the best way for Mike to handle
this?
A. Generate current performance reports before the meeting.
B. Meet with the sponsor to show how the project is within tolerance.
C. Explain to the sponsor why he made the decisions he did.
D. Evaluate why the sponsor wants to meet.
ere are many confusing things about this question. First of all, the
question is asking “what is the best way to handle this,” but the reader is no
more certain what ‘this’ even is. Beyond that, none of the answers really
seems to �t.
‘A’ is a �ne thing to do, but it doesn’t really address any of the issues in the
question. ‘B’ seems problematic since even though the project is very close
to being on track, we do not know what tolerances are. ‘C’ sounds like a
defensive response, and while ‘D’ looks great at �rst glance (trigger word:
“evaluate”), it doesn’t really seem to solve anything.
Now, let’s look more closely. What is the question actually asking? While we
cannot be certain from the way it is worded, the question basically states
that the sponsor has asked for a meeting about a couple of points and that
there is a disagreement on those points. Reformulating the question now
adds a bit of clarity. Whenever you have to restate the question in order to
understand it, you can feel con�dent that it is one of the harder questions on
the exam.
Next, look for the trap. Remember that most exam-takers will initially pick
the wrong answer on the harder questions. In this case, the most likely
answer would be ‘D’. It is comfortable, it does no harm, and it uses one of the
trigger words we like to see. Remember, however, that a trigger word does
not guarantee that it is the right answer. Instead, it should be given extra
consideration. Looking at it this way, ‘D’ now looks like a trap. It is the
answer that most test-takers would pick, and it is incorrect.
is brings us to an important strategy for strong test-takers. When you
recognize a harder question, you should look for the trap and eliminate it
�rst; however, be sure that you are, indeed, on one of the harder questions.
Also keep in mind that this strategy may back�re on the easy and medium
questions.
In this case, we are reasonably con�dent that this is one of the harder
questions, so we will eliminate ‘D’. Reviewing the remaining answers, ‘A’
does not appear to be very helpful either. Updated performance reports do
not really pertain to the question in any way. at leaves answers ‘B’ and ‘C’.
Take a closer look at choice ‘C’. Although the wording is such that it sounds
defensive, project managers have an aspirational goal of transparency in the
decision-making process. Transparency is a good thing, and ‘C’ �ts that
model.
is strategy works best with a lot of practice, so be sure to use the key in
the inside back cover of your book and practice using InSite before you try it
on the PMP Exam!
READING THE QUESTIONS:
A critical step to passing the PMP is to read and understand each question.
Questions on the exam may be long and have many twists and turns. ey
are oen full of irrelevant information thrown in intentionally to distract
you from the relevant facts. ose who pass the PMP know to read the
questions carefully. Many times the only relevant information is contained at
the very the end. Consider the following example:
Q: Mark has a project where task A is dependent on the start and has a
duration of 3. Task B is dependent on start and has a duration of 5. Task C
is dependent on A and has a duration of 4. Task D is dependent on B and
has a duration of 6, and the �nish is dependent on tasks C and D. Mark is
using his project network diagram to help create a schedule. e schedule
for the project is usually created during which process?
A. Estimate Costs.
B. Determine Budget.
C. Control Schedule.
D. Develop Schedule.
Questions like the one above are not uncommon on the PMP Exam. If you
take the time to draw out a complex project network diagram, you will have
wasted valuable time, when the question was only asking you to pick the
process (the answer is ‘D’).
On lengthy questions, the best practice is to quickly skip down to the last
sentence for a clue as to what the question is asking. en read the entire
question thoroughly. Most of them have a very short �nal sentence that will
summarize the actual question. Make sure, however, to read the entire
question at least once! Don’t simply rely on the last sentence.
Aer you understand what the question is asking by reading the last
sentence �rst (always the �rst step), the next step is to determine whether
the question is asking about agile (23%), predictive (50%) or hybrid (27%).
e reason this is crucial is that the correct answer can vary greatly,
depending on the project approach.
With most questions, the project approach should be obvious, and you will
sometimes be told outright, but on some, you will need to use a bit of
deductive reasoning. Look for words that tie back to either agile or
predictive practices. For example, if someone is creating a WBS, that is going
to tie back to predictive (or possibly hybrid), whereas if the team is
disaggregating the scope, that would likely be an agile (or, again, possibly
hybrid) question.
Just as important as carefully reading the questions is reading each of the
four answers. You should never stop reading the answers as soon as you �nd
one you like. Instead, always read all four answers before making your
selection.
A GUESSING STRATEGY:
By simply reading the material in this book, you will immediately know how
to answer many of the questions on the exam. For many others, you will
have an instinctive guess. If you have studied the other chapters, you should
trust your instinct. It is not there by chance. Your instinct was created by
exposing yourself to this material in different ways. Your mind should begin
to gravitate toward the right answer even if you are not explicitly aware of it.
Guessing on the PMP does not have to be le purely to chance. If you do not
know the answer immediately, begin by eliminating wrong answers, or ones
you suspect are wrong. Let’s take a fairly difficult question as an example:
Q: Organizational Process Assets are used as an input to all of the
following processes EXCEPT:
A. De�ne Activities.
B. Develop Project Charter.
C. Validate Scope.
D. Perform Quantitative Risk Analysis.
Unless you have memorized all of the inputs to all of the processes (the
PMBOK® Guide lists 1444 inputs, tools, and outputs including their sub-
points), you are going to have to guess at this one. However, if you throw up
your hands and pick one, you only have a 25% chance of getting it right.
Instead, you should think about what is being asked. Organizational process
assets are used as an input to processes all over the PMBOK® Guide, so that
doesn’t offer help, but when you stop to consider that it is used primarily in
initiating and planning processes, suddenly the picture becomes a little
clearer. Now you can see that ‘A’, ‘B’, and ‘D’ are probably not the right
answer. Any of these would be a good �t for historical information, which is
an organizational process asset. Even if you could only narrow the choices
down to ‘C’ and ‘D’, you would have a 50% chance. Look at them more
carefully and ask yourself where would historical information most likely be
used an input? Perform Quantitative Risk Analysis is a good guess, since you
might use past results (an organizational process asset) to help you analyze
and quantify risk. So now, you are le with choice ‘C’, Validate Scope, as the
one that looks least likely to have an organizational process asset as an input.
It is also the one process that takes place aer execution, when historical
information might not be as valuable. It may be a guess, but it is a very
educated one.
e method here is simply to think about each answer and eliminate ones
that are obviously wrong. Even if you only knock off one wrong answer, you
have signi�cantly increased your odds of choosing the right one. You will
�nd that most times you can knock off at least two, evening your chances of
answering the question correctly.
SPOTTING TRICKS AND TRAPS:
e exam does have trick questions. ey are designed speci�cally to catch
people who are coming in with little formal process experience, those who
have thumbed through the PMBOK® Guide a few times and are now going to
take the exam. ese people try to rely on their work experience, which
oen does not line up with PMI’s prescribed method for doing things. As a
result, they typically don’t even come close to passing the exam.
At times, however, these trick questions can also fool a seasoned pro! Listed
below are some techniques you can use so that you will not fall into these
traps.
FOLLOW THE PROCESS:
is is always the right answer. ere will be questions on your exam that
give you “common sense” scenarios that will give you a seemingly innocent
way to skip the formal process and save time, or perhaps avoid some con�ict
by not following procedure. is is almost certainly a trap. e right answer
is to follow PMI’s process! Do not give in to pressure from irate customers,
stakeholders, or even your boss to do otherwise.
FOLLOW THE AGILE MANIFESTO AND
PRINCIPLES
For all agile questions, stick closely to the Agile Manifesto and the principles
behind the manifesto. is is important, because agile practitioners,
regardless of how their agile project evolves, should not violate these
principles if they are still to be considered “agile.” For example:
Q: Juaquin is a coach who is experiencing increasing con�ict within the
project team. In order to help resolve this con�ict, he is considering moving
the team out of their shared collaboration space and into individual offices
until he can help identify the root problem. What is Juaquin’s best course of
action in this situation?
A. Move the team for no more than one iteration and measure any change
in velocity.
B. Halt work until all con�ict has been resolved.
C. Encourage the team to embrace the con�ict and work through it.
D. Bring this issue to the scrum of scrums.
is question should be relatively easy for you. To answer it, refer back to
the Agile Manifesto and the Principles behind the manifesto. e fourth
agile principle states “business people and developers must work together
daily throughout the project.” And principle six states “the most efficient and
effective method of conveying information to and within a development
team is face-to-face conversation.” is should give you some idea that
moving people to separate working spaces would not be very agile. Choice
‘B’ is not a good idea, since stopping the work doesn’t accomplish anything
by itself other than kill productivity, and ‘D’ is not really a solution either.
e best answer to this question is ‘C’, which has the team face the con�ict
head on.
DON’T TAKE THE EASY WAY OUT:
ere will oen be choices that allow you to postpone a difficult decision,
dodge a thorny issue, or ignore a problem. is is almost never the right
thing to do for questions on the exam.
ACT DIRECTLY AND SAY WHAT YOU MEAN:
In PMI’s world, project managers communicate directly. ey do not dance
around the issue, gossip, or imply things, and they do not communicate
through a third party. If they have bad news to tell the customer, they go to
the customer and tell them the facts – and the sooner, the better. If they have
a problem with a team member, they confront the person, usually directly,
although at times it may be appropriate to get the team member’s functional
manager involved.
STUDY THE ROLES:
By the time you take the exam, you should be con�dent about the roles of
stakeholders, sponsors, customers, team members, functional managers, the
project office, and most importantly, the project manager (plus the other
roles that are discussed in Chapter 2 – Foundational Terms and Concepts).
Expect several “who should perform this activity” type questions. If you
have absolutely no clue, guessing the “project manager” is a good idea.
Additionally, understand the difference between the different types of
organizations (projectized, matrix, and functional). Most of your questions
will pertain to matrix organizations, so focus your study on that one.
PROJECT MANAGER’S ROLE:
Expanding on the previous point, project managers are the ones who make
decisions and carry them out. ey have the �nal decision on most points,
can spend budget, can change schedules, and can approve or refuse scope.
For the test, assume that the project manager is “large and in charge!”
Another attribute of project managers is that they are proactive in their
approach to managing tasks and information. ey do not wait for changes
to occur. Instead, they are actively in�uencing the factors that contribute to
change. Instead of waiting for information to come to them, they are actively
communicating and making certain they have accurate and up-to-date
information.
QUESTION CONTEXT:
e �rst, and most critical thing to determine when reading a question is
whether it relates to an agile, predictive, or hybrid approach. is will
determine how you should think about the question and possible answers.
What would be considered a “right” answer would vary depending on the
context. For example, if you were asked who is ultimately accountable for
the success of the project, if you knew the project was predictive, the correct
answer would probably be the project manager, but if it were an agile
project, the answer would clearly be the team.
Look for clues in the test question such as terms that belong to one approach
and not another. For example, terms like coach, product backlog, stand-up,
disaggregation, and iteration would clue you in that this was an agile
question; whereas, terms like decomposition, WBS, network diagram, and
even project plan would be strong indicators that this was a predictive,
waterfall project. If the clues are not in the question, they will likely be
embedded in the answers. If all possible answers were agile-themed, you
could deduce that the question was agile in nature even if it was not
explicitly stated.
Hybrid questions are usually easy to spot. ese oen present scenarios
where the organization will be trying to blend practices from agile and
predictive. ese might depict senior management requiring more
predictive deliverables while the team is working in an agile context. For
example, you may see a question where the organization may require a
project manager to submit some plans and budgets or measures of earned
value that do not necessarily lend themselves to an agile approach. When
you encounter questions like this, work to accommodate both the predictive
and agile interests and to blend them as skillfully and productively as
possible.
DON’T GET STUCK:
You should expect to �nd a few questions on the exam that you do not know
how to answer. You will look at these and see 4 correct answers, making it
impossible to pick just 1. In such cases, do not agonize. Even using every
good technique, you will still have to make an educated guess at some
questions. Some test-takers can get quite upset at this, and it can undermine
their con�dence. If a question stumps you, simply mark it for review and
move on. Never spend 15 minutes staring at a single question unless you
have already answered all the others. One question is only worth a fraction
of a percent on the exam, so if you do not know the answer, do not obsess
over it.
You may even discover that a block of questions seems especially difficult to
you. is experience can be discouraging and may cause your con�dence to
waver. Don’t be alarmed if you happen upon several difficult questions in a
row. Keep marking them for review and keep moving until you come to
more familiar ground. You may �nd that questions later in the test will offer
you hints or jog your memory, helping you with those you initially found
difficult.
EXAM TIME MANAGEMENT:
You will have a few minutes at the beginning to go through a tutorial. You
may not �nd much value in the actual tutorial; however, you absolutely
should take it. Aer going through it, you will be given a chance to wait
before taking the test. Use that time to write down essential formulas and
processes on your scratch paper.
SCRATCH PAPER:
Traditionally, test-takers have been given 5-6 sheets of scratch paper for use
in the exam. You may not carry your own paper into the test. Some testing
centers provide an erasable tablet for scratch work; the online exam allows a
whiteboard for this purpose. When you sit down to begin the exam, you
should write down a few key things. Regardless of how well you know this
material, at a minimum, write the following on your scratch medium:
1. Earned Value formulas (EV, PV, AC, CPI, CPIc, SPI, CV, SV, BAC,
EAC, ETC, TCPIc ) from Chapter 7. You will probably need to refer to
these several times during the exam, and it will save time and improve
your accuracy if you have written them out.
2. e schedule management formulas for the three-point estimates and
standard deviation.
3. e communication channels formula described in Chapter 10.
Even if you are tempted to skip this step, don’t! When you come to a lengthy
and confusing question that requires you to calculate several different
values, you will be glad that you already have your formulas written down
for review. is will free your mind to concentrate on the speci�c question
rather than on recalling a formula.
BUDGETING YOUR TIME:
Going into the exam, you may be fast or you may be a slower test-taker.
Everyone should walk into the exam with a strategy for managing their time,
based on their own pace. Do not underestimate how hard it is to sit for
about 200 questions in approximately 4 hours. e test-taking process is
strenuous and mentally and physically taxing.
If you have a test time management strategy that has served you well in the
past, you should use that. If not, here is a generic strategy that many people
have used “as is” to take and pass the PMP.
1. Sit for the tutorial to gain familiarity with the testing soware.
2. When the exam begins, quickly download your memorized
information to your scratch paper.
3. Take the �rst 75 questions, pacing yourself to take approximately 45
minutes.
4. Take your �rst break. Spend 5 minutes stretching and get a bite of food
from your locker.
5. Take the next 75 questions, again pacing yourself to take 45 to 50
minutes.
6. Take your 2nd break. Spend approximately 10 minutes, go to the
bathroom, and get a snack.
7. Answer the �nal 50 questions and then return to answer any ones you
did not answer the �rst time. Budget approximately 45 minutes for this
as well. You may not take that long, but it is normal for your pace to
slow down as the test wears on.
8. Take a bigger 15 minute break (relishing the fact that you have now
answered all the questions on the PMP).
9. At this point, you should have used approximately three hours of your
allotted time.
10. Perform a review of the �rst 100 questions. Pace yourself to �nish this
in about 25 minutes.
11. Take a short 5 minute stretch break if needed.
12. Review last 100 questions and any other ones in your remaining time.
MANAGING YOUR REVIEW:
When you make a review pass through the exam, you will come across
questions that you missed the �rst time but that are apparent when you look
at them again. is is normal, and you should not hesitate to change any
answers that you can see you missed. Many people change as many as 10%
of the answers on their review. If you catch yourself changing more than
that, be careful! You may be second guessing yourself and actually do more
harm than good.
When you go through your review pass on the exam, do not take the whole
test over again. Instead, employ three rapid �re steps:
1. Did you read the question correctly the �rst time?
2. Did your selected answer match what was being asked?
3. Perform a complete check of your math where applicable.
GENERAL ADVICE:
Professional Responsibility is no longer a category on the exam, but there
are questions that will be related to the “right thing to do,” and some of these
may surprise the test-taker who has not thoroughly prepared. Many of the
questions may create very difficult situations that would be easier to ignore
or dodge in real life; however, PMI requires that the project manager deal
with these situations in a direct and open manner.
If there were one simple phrase that sums up this category of questions
section of the test, it would be “Do the right thing,” even (especially) if it is
painful or would be tempting to avoid. If a test question offers you an easy
way out, beware! You have likely spotted a trap. If the exam presents you
with an option that represents a shortcut, do not take it.
ere are a number of speci�c points you should understand in this area.
International law can be a fairly tricky and sometimes ambiguous area, but
you should expect questions on the exam to be generally straightforward in
this regard. e rule for the exam is this: if you are asked to do something in
another country that is not customarily done in your culture, you should
�rst evaluate and investigate it, determine if it is unethical or illegal, and
then act accordingly. is may be difficult for those who are not accustomed
to international dealings. For instance, if you are asked to make a payment
to a city council in another country in order to get a work permit, evaluate
whether or not the payment is a bribe. If it is a bribe, do not make the
payment. If it is not a bribe and it is customary, or even the law, then make
the payment.
A short way of looking at it is that if it is illegal or unethical in any way then
it is wrong. Otherwise, the custom in the country where the work is being
performed should prevail.
ere are in�nite possibilities as to what may be asked here. Questions of
bribery, discrimination, and illegal activity are among the favorites, but by
following the thought process previously described, these questions should
present no problem. Only make sure that you are not thinking so concretely
that you think anything is wrong if it is different from the customary
practices in your home country.
A rule to keep in mind is that your organization’s policies must be followed
at all times. If you have an interest that con�icts with a policy, the policy is
to be considered �rst. If your organization has a policy that all travel must be
booked through the company’s travel agency but you �nd that you can get a
cheaper rate through your mother’s travel agency, you should adhere to the
company policy and use the corporate travel agency.
Integrity may be de�ned as sticking to high moral principles. For the test,
the important concept is that you should do what you said you would do,
deal with problems openly and honestly, and do not put personal gain ahead
of the project.
Company and professional politics may play a prominent role in your life or
company, and many project managers learn to be quite adept at managing
them, but they are relegated to a low position on the exam.
Keep in mind that carrying out the right choice may involve standing up to
the company’s president, refusing an order from your boss, telling the
customer the whole truth, and many other things that might have
unpleasant consequences.
If a choice appears sneaky, underhanded, or dishonest in any way, it is
probably not the correct answer. If the behavior is not direct, open, and
straightforward, it is probably not the right behavior – even if it would
ultimately appear to help the project! is will help you eliminate wrong
choices on many questions.
Questions about professionalism on the exam are testing your knowledge of
how a project manager acts as a professional in the workplace. According to
the code of professional conduct, a project manager is to follow the process
and act with respect toward others.
One key to these questions is to take the 49 processes outlined in this book
seriously. e process framework is not just a formality or a theoretical best-
case scenario. It is a serious set of processes, inputs, tools and techniques,
and outputs that will reduce risk and improve time, cost, and quality. at
said, the process is not painless. For the exam, however, the process must be
followed. If your customer asks you to cut corners on the process in order to
save money, you should not agree.
PMI expects Project Management Professionals to stay engaged and further
the profession. e PMP certi�cation was not designed for people to earn
and never use. is is re�ected on the exam with questions about activities
that don’t necessarily relate directly to a project.
Any time a project manager has an opportunity to further the project
management training or learning of someone else, such as sharing lessons
learned, mentoring, teaching, or leading in best practices, there is a very
good chance that is the correct choice.
PMPs are encouraged to publish, teach, write, and disseminate the
methodology and process as much as they can. Answers that offer a variant
of these activities as the choice are oen correct.
Project management certi�cation is quite a milestone in one’s career, but it is
by no means the end. Project managers are expected to continue to study,
learn, and grow professionally. As you have no doubt seen, any one of the
knowledge areas could consume an entire career, so do not assume that you
have learned all there is to know. Even one topic, such as quality, or risk,
could provide more than a lifetime’s worth of material to study and master.
Another favorite key here is that you know your own areas of weakness and
continue to develop them. Do you know what your professional weaknesses
are? Are you strong at planning but weak in communication? Are you good
at planning tasks but poor at leading people? Everyone has strong suits as
well as areas that need to be developed. It is important that the project
manager knows what his or her professional growth needs are and pays
attention to them.
Additionally, project managers can contribute more to the body of
knowledge if they are familiar with their industries. ey should study their
industries, learn them well, and thus enhance their ability to apply the
project management processes to their work.
You should also expect to see questions that put you in a situation of taking
a hard look at your abilities, or learning where it is that you are weak. In
these scenarios, the project manager should strive for continued
improvement, growth, and increased pro�ciency.
e project manager must accurately identify the stakeholders, then
understand them, and then seek to balance their interests. is can be nearly
impossible at times! For the exam, keep these principles in mind:
Be fair to everyone and respect the differences of the group.
Resolve stakeholder con�ict in favor of the customer.
Be open and honest about the resolution. Don’t hide things from one
stakeholder in order to please another.
Do the ethical thing in all decisions.
It is tempting for some people to approach questions with a sense of
“fairness” about how hard someone should work, but work ethics vary from
country to country, and project managers should take that into account.
at does not mean that laziness or negligence should be tolerated, but it
does mean that different cultures place different values upon work, and it is
not the project manager’s job to force them to the level of his or her home
country.
As stated previously, cultural differences on the team should be respected
(notice how many times the concept of “respect” is mentioned in this
chapter), and multiculturalism is something PMI promotes heavily. Your
dealings with your team and the many stakeholders on a project should be
professional and mindful of their customs.
As in other areas, communication should be open and regular so that people
are aware of what is going on with the project.
Organizations are accountable for social, environmental, and economic
impacts to their projects. Project managers should factor in the interests of
the community, the environment, and society when making decisions.
On the exam, you may encounter a question that poses a situation where the
project would bene�t but society would suffer. e project manager should
avoid all such situations and scenarios. If the situation becomes untenable or
unresolvable, the project manager should disclose the situation and, as a last
resort, resign the project.
Sustainability is another favored answer on the exam. Answers that
encourage sustainable usage of resources and sustainable team work
practices are good candidates for the right answer.
MANAGING ANXIETY:
Finally, if test-taking has always been a fear-inducing activity for you, there
is one simple strategy that may help you manage the physical symptoms of
anxiety so that your thinking and memory are not impaired: Take a deep
breath. is may sound like obvious advice, but it is based on sound
research. Studies in the �eld of stress management have shown that feelings
of anxiety (the “�ght or �ight” response) are linked with elevated levels of
adrenaline and certain brain chemicals. One way to bring your brain
chemistry back into balance is to draw a deep breath, hold it for about six
seconds, and slowly release it. Repeat this breathing pattern whenever you
begin to feel panicky over particular questions. It will help to slow your
heart rate and clear your mind for greater concentration on the task at hand.
Another thing to remember is that many people who take the exam do not
pass – especially on their �rst attempts. While no one wants to fail the test,
you can turn around immediately and apply to take it again (at a reduced
rate). You can take the exam up to three times in a year starting with the
time you receive your letter of eligibility from PMI.
If you do have to take the exam again, use it as a learning experience. You
will have a much higher chance for success on your next attempt, and you
will have your post-exam evaluation sheet that gives you a breakdown of
where you need to study. As the inspired Jerome Kern once penned to
music, “Take a deep breath; pick yourself up; dust yourself off; start all over
again.”
PROJECT MANAGEMENT INSTITUTE
PROFESSIONAL CONDUCT
PMI CODE OF CONDUCT:
Carefully review the code of conduct printed on the following pages.
Applicants sign this statement when applying to take the exam. While there
is no longer a formal “professional responsibility” section on the PMP exam,
there are still questions that relate directly back to this material.
Understanding the code of conduct will give you excellent guidance in
answering questions on the exam, especially when you have narrowed the
correct answer down to two choices.
CODE OF ETHICS AND PROFESSIONAL
CONDUCT:
CHAPTER 1. VISION AND APPLICABILITY
1.1 Vision and Purpose
As practitioners of project management, we are committed to doing what is
right and honorable. We set high standards for ourselves and we aspire to
meet these standards in all aspects of our lives—at work, at home, and in
service to our profession.
is Code of Ethics and Professional Conduct describes the expectations
that we have of ourselves and our fellow practitioners in the global project
management community. It articulates the ideals to which we aspire as well
as the behaviors that are mandatory in our professional and volunteer roles.
e purpose of this Code is to instill con�dence in the project management
profession and to help an individual become a better practitioner. We do this
by establishing a profession-wide understanding of appropriate behavior. We
believe that the credibility and reputation of the project management
profession is shaped by the collective conduct of individual practitioners.
We believe that we can advance our profession, both individually and
collectively, by embracing this Code of Ethics and Professional Conduct. We
also believe that this Code will assist us in making wise decisions,
particularly when faced with difficult situations where we may be asked to
compromise our integrity or our values.
Our hope is that this Code of Ethics and Professional Conduct will serve as
a catalyst for others to study, deliberate, and write about ethics and values.
Further, we hope that this Code will ultimately be used to build upon and
evolve our profession.
1.2 Persons to Whom the Code Applies
e Code of Ethics and Professional Conduct applies to:
1.2.1 All PMI members
1.2.2 Individuals who are not members of PMI but meet one or more of the
following criteria:
1. Non-members who hold a PMI certi�cation
2. Non-members who apply to commence a PMI certi�cation process
3. Non-members who serve PMI in a volunteer capacity.
Comment: ose holding a Project Management Institute (PMI®) credential
(whether members or not) were previously held accountable to the Project
Management Professional (PMP®) or Certi�ed Associate in Project
Management (CAPM®) Code of Professional Conduct and continue to be
held accountable to the PMI Code of Ethics and Professional Conduct. In
the past, PMI also had separate ethics standards for members and for
credentialed individuals. Stakeholders who contributed input to develop this
Code concluded that having multiple codes was undesirable and that
everyone should be held to one high standard. erefore, this Code is
applicable to both PMI members and individuals who have applied for or
received a credential from PMI, regardless of their membership in PMI.
1.3 Structure of the Code
e Code of Ethics and Professional Conduct is divided into sections that
contain standards of conduct which are aligned with the four values that
were identi�ed as most important to the project management community.
Some sections of this Code include comments. Comments are not
mandatory parts of the Code, but provide examples and other clari�cation.
1.4 Values that Support this Code
Practitioners from the global project management community were asked to
identify the values that formed the basis of their decision-making and
guided their actions. e values that the global project management
community de�ned as most important were: responsibility, respect, fairness,
and honesty. is Code affirms these four values as its foundation.
1.5 Aspirational and Mandatory Conduct
Each section of the Code of Ethics and Professional Conduct includes both
aspirational standards and mandatory standards. e aspirational standards
describe the conduct that we strive to uphold as practitioners. Although
adherence to the aspirational standards is not easily measured, conducting
ourselves in accordance with these is an expectation that we have of
ourselves as professionals—it is not optional.
e mandatory standards establish �rm requirements, and in some cases,
limit or prohibit practitioner behavior. Practitioners who do not conduct
themselves in accordance with these standards will be subject to disciplinary
procedures before PMI’s Ethics Review Committee.
Comment: e conduct covered under the aspirational standards and
conduct covered under the mandatory standards are not mutually exclusive;
that is, one speci�c act or omission could violate both aspirational and
mandatory standards.
ere are a few important points to note in this section. e �rst is that the
code of conduct does not apply to everyone in the world. Instead, it applies
to project managers who are affiliated with PMI. While there are many
nuances to this, for the exam, use the simple rule that if someone has any
real contact with PMI, even if they are not a member, then they should
follow the code of conduct. You will always be safer on the exam adhering to
the rule that any person in question should follow the code of conduct.
e second thing you should know about the code of conduct is that it is
divided into four sub-chapters, each based on a value. e four values are:
Responsibility, Respect, Fairness, and Honesty. Each of these are expanded
in the following sections.
Finally, there are two more divisions for each of the four sub-chapters. ey
are mandatory and aspirational standards. As you might guess, mandatory
conduct must be followed, while aspirational conduct is a goal.
CHAPTER 2. RESPONSIBILITY
2.1 Description of Responsibility
Responsibility is our duty to take ownership for the decisions we make or
fail to make, the actions we take or fail to take, and the consequences that
result.
2.2 Responsibility: Aspirational Standards
As practitioners in the global project management community:
2.2.1 We make decisions and take actions based on the best interests of
society, public safety, and the environment.
2.2.2 We accept only those assignments that are consistent with our
background, experience, skills, and quali�cations.
Comment: Where developmental or stretch assignments are being
considered, we ensure that key stakeholders receive timely and complete
information regarding the gaps in our quali�cations so that they may make
informed decisions regarding our suitability for a particular assignment.
In the case of a contracting arrangement, we only bid on work that our
organization is quali�ed to perform and we assign only quali�ed individuals
to perform the work.
2.2.3 We ful�ll the commitments that we undertake – we do what we say we
will do.
2.2.4 When we make errors or omissions, we take ownership and make
corrections promptly. When we discover errors or omissions caused by
others, we communicate them to the appropriate body as soon they are
discovered. We accept accountability for any issues resulting from our errors
or omissions and any resulting consequences.
2.2.5 We protect proprietary or con�dential information that has been
entrusted to us.
2.2.6 We uphold this Code and hold each other accountable to it.
2.3 Responsibility: Mandatory Standards
As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
Regulations and Legal Requirements
2.3.1 We inform ourselves and uphold the policies, rules, regulations and
laws that govern our work, professional, and volunteer activities.
2.3.2 We report unethical or illegal conduct to appropriate management and,
if necessary, to those affected by the conduct.
Comment: ese provisions have several implications. Speci�cally, we do
not engage in any illegal behavior, including but not limited to: the, fraud,
corruption, embezzlement, or bribery. Further, we do not take or abuse the
property of others, including intellectual property, nor do we engage in
slander or libel. In focus groups conducted with practitioners around the
globe, these types of illegal behaviors were mentioned as being problematic.
As practitioners and representatives of our profession, we do not condone or
assist others in engaging in illegal behavior. We report any illegal or
unethical conduct. Reporting is not easy and we recognize that it may have
negative consequences. Since recent corporate scandals, many organizations
have adopted policies to protect employees who reveal the truth about illegal
or unethical activities. Some governments have also adopted legislation to
protect employees who come forward with the truth.
Ethics Complaints
2.3.3 We bring violations of this Code to the attention of the appropriate
body for resolution.
2.3.4 We only �le ethics complaints when they are substantiated by facts.
Comment: ese provisions have several implications. We cooperate with
PMI concerning ethics violations and the collection of related information
whether we are a complainant or a respondent. We also abstain from
accusing others of ethical misconduct when we do not have all the facts.
Further, we pursue disciplinary action against individuals who knowingly
make false allegations against others.
2.3.5 We pursue disciplinary action against an individual who retaliates
against a person raising ethics concerns.
e value of Responsibility is an important one for the exam. In fact, most
professional responsibility questions will likely touch on this value in some
way.
Each of the four values is divided into mandatory and aspirational conduct,
and it is important that you know the difference between them.
In this case, mandatory conduct focuses primarily on laws, regulations,
policies, and ethics. e easiest way to interpret these questions is to always
take the high road. For instance, if a question gives you a scenario where it
appears that the right thing to do is to follow the law or a corporate policy,
but it would be very difficult to you professionally, you can be con�dent that
the right answer is to follow the law or policy.
Aspirational values generally take the mandatory ones a good step further.
In the value of Responsibility, project managers aspire to not getting in over
their heads, taking ownership of their actions (including mistakes), and
most importantly, doing what they say they will do.
CHAPTER 3. RESPECT
3.1 Description of Respect
Respect is our duty to show a high regard for ourselves, others, and the
resources entrusted to us. Resources entrusted to us may include people,
money, reputation, the safety of others, and natural or environmental
resources.
An environment of respect engenders trust, con�dence, and performance
excellence by fostering mutual cooperation—an environment where diverse
perspectives and views are encouraged and valued.
3.2 Respect: Aspirational Standards
As practitioners in the global project management community:
3.2.1 We inform ourselves about the norms and customs of others and avoid
engaging in behaviors they might consider disrespectful.
3.2.2 We listen to others’ points of view, seeking to understand them.
3.2.3 We approach directly those persons with whom we have a con�ict or
disagreement.
3.2.4 We conduct ourselves in a professional manner, even when it is not
reciprocated.
Comment: An implication of these provisions is that we avoid engaging in
gossip and avoid making negative remarks to undermine another person’s
reputation. We also have a duty under this Code to confront others who
engage in these types of behaviors.
3.3 Respect: Mandatory Standards
As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
3.3.1 We negotiate in good faith.
3.3.2 We do not exercise the power of our expertise or position to in�uence
the decisions or actions of others in order to bene�t personally at their
expense.
3.3.3 We do not act in an abusive manner toward others.
3.3.4 We respect the property rights of others.
is value may be challenging to implement in real life, but it should be a bit
easier to navigate on the exam.
e project manager shows respect to others. is extends not only to
individuals, but to cultures. PMI is a strong advocate of multiculturalism,
and questions on the test will oen re�ect this bias. Just as PMI does not
advocate forcing in other areas, the project manager is not to force or
impose his culture or personal beliefs upon others. Multicultural and
“politically correct” answers are usually good choices for questions related to
professionalism.
Another area of respect that oen appears on the test is the respect for
con�dentiality. is covers con�dentiality of client information, trade
secrets, project information, and any personal information that may be
disclosed during the course of the project.
e mandatory standard is that we negotiate in good faith and do not abuse
others. e respect we extend to others includes interpersonal respect and
the respect of others’ property, including intellectual property.
e aspirational standard here takes the mandatory standard further by
valuing other people, cultures, and opinions. Keep in mind that answers that
sound “politically correct” are generally considered favorable for the exam.
CHAPTER 4. FAIRNESS
4.1 Description of Fairness
Fairness is our duty to make decisions and act impartially and objectively.
Our conduct must be free from competing self interest, prejudice, and
favoritism.
4.2 Fairness: Aspirational Standards
As practitioners in the global project management community:
4.2.1 We demonstrate transparency in our decision-making process.
4.2.2 We constantly reexamine our impartiality and objectivity, taking
corrective action as appropriate.
Comment: Research with practitioners indicated that the subject of con�icts
of interest is one of the most challenging faced by our profession. One of the
biggest problems practitioners report is not recognizing when we have
con�icted loyalties and recognizing when we are inadvertently placing
ourselves or others in a con�ict-of-interest situation. We as practitioners
must proactively search for potential con�icts and help each other by
highlighting each other’s potential con�icts of interest and insisting that they
be resolved.
4.2.3 We provide equal access to information to those who are authorized to
have that information.
4.2.4 We make opportunities equally available to quali�ed candidates.
Comment: An implication of these provisions is, in the case of a contracting
arrangement, we provide equal access to information during the bidding
process.
4.3 Fairness: Mandatory Standards
As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
Con�ict of Interest Situations
4.3.1 We proactively and fully disclose any real or potential con�icts of
interest to the appropriate stakeholders.
4.3.2 When we realize that we have a real or potential con�ict of interest, we
refrain from engaging in the decision-making process or otherwise
attempting to in�uence outcomes, unless or until: we have made full
disclosure to the affected stakeholders; we have an approved mitigation plan;
and we have obtained the consent of the stakeholders to proceed.
Comment: A con�ict of interest occurs when we are in a position to
in�uence decisions or other outcomes on behalf of one party when such
decisions or outcomes could affect one or more other parties with which we
have competing loyalties. For example, when we are acting as an employee,
we have a duty of loyalty to our employer. When we are acting as a PMI
volunteer, we have a duty of loyalty to the Project Management Institute. We
must recognize these divergent interests and refrain from in�uencing
decisions when we have a con�ict of interest.
Further, even if we believe that we can set aside our divided loyalties and
make decisions impartially, we treat the appearance of a con�ict of interest
as a con�ict of interest and follow the provisions described in the Code.
Favoritism and Discrimination
4.3.3 We do not hire or �re, reward or punish, or award or deny contracts
based on personal considerations, including but not limited to, favoritism,
nepotism, or bribery.
4.3.4 We do not discriminate against others based on, but not limited to,
gender, race, age, religion, disability, nationality, or sexual orientation.
4.3.5 We apply the rules of the organization (employer, Project Management
Institute, or other group) without favoritism or prejudice.
e mandatory standard here is pretty clear. We must be especially careful to
avoid con�icts of interest, and we never discriminate against others. e
con�ict of interest point is an important one. For the exam, you should
choose answers that go out of their way to avoid a con�ict of interest, even if
it seems silly. As for discrimination, be especially attuned to situations where
you might be passing over one candidate in favor of another due to age,
gender, disability, etc.
e aspirational conduct for fairness can generally be summed up in e
Golden Rule: “Do unto others as you would have them do unto you.” Treat
everyone equally, with no discrimination, nepotism, or favoritism. Further,
you should make your decisions in a transparent and open way, and treat
everyone equally. Finally, it is an aspirational standard for fairness that we
regularly examine our own impartiality.
CHAPTER 5. HONESTY
5.1 Description of Honesty
Honesty is our duty to understand the truth and act in a truthful manner
both in our communications and in our conduct.
5.2 Honesty: Aspirational Standards
As practitioners in the global project management community:
5.2.1 We earnestly seek to understand the truth.
5.2.2 We are truthful in our communications and in our conduct.
5.2.3 We provide accurate information in a timely manner.
Comment: An implication of these provisions is that we take appropriate
steps to ensure that the information we are basing our decisions upon or
providing to others is accurate, reliable, and timely.
is includes having the courage to share bad news even when it may be
poorly received. Also, when outcomes are negative, we avoid burying
information or shiing blame to others. When outcomes are positive, we
avoid taking credit for the achievements of others. ese provisions
reinforce our commitment to be both honest and responsible.
5.2.4 We make commitments and promises, implied or explicit, in good
faith.
5.2.5 We strive to create an environment in which others feel safe to tell the
truth.
5.3 Honesty: Mandatory Standards
As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
5.3.1 We do not engage in or condone behavior that is designed to deceive
others, including but not limited to, making misleading or false statements,
stating half-truths, providing information out of context or withholding
information that, if known, would render our statements as misleading or
incomplete.
5.3.2 We do not engage in dishonest behavior with the intention of personal
gain or at the expense of another.
Comment: e aspirational standards exhort us to be truthful. Half-truths
and non-disclosures intended to mislead stakeholders are as unprofessional
as affirmatively making misrepresentations. We develop credibility by
providing complete and accurate information
Honesty is the fourth and �nal value in the code of conduct. e mandatory
standard is short and to the point: we never deceive others. For the exam,
think of the court oath to tell the truth, the whole truth, and nothing but the
truth. is will serve you well on the exam.
e aspirational standard carries this further by saying that we not only try
to be truthful, but we try to create an environment where it is encouraged
that people tell the truth and are safe in doing so. Also, it is important that
the project manager always seeks the truth in all dealings.
15 Final Exam
IMPORTANT
In addition to this quiz, use your Key to InSite, found on the inside back
cover of this book, to access additional content, including new exam
questions, expanded content, and simulated PMP exams. If your book did
not come with a Key to InSite on the inside back cover, it may not be
authentic. If you do not have a Key to InSite, you may purchase one at
insite.velociteach.com.
INSTRUCTIONS:
is simulated PMP Exam may be used in several ways. If you take it as a
�nal, you will get a very good idea how you would do if you walked right in
to take the PMP Exam. In that way, it can be a very good readiness indicator.
Perhaps the best way to use this exam is to take it again and again, reviewing
the answers that go with each question. e answers and explanations will
give you insight into the formation of each question and the thought process
you should follow to answer it.
Prior to taking the PMP, the best strategy is to take this exam repeatedly,
reviewing the answers, until you can make a score of 90% or better.
If you are taking this as a �nal exam, you have 4 hours (240 minutes) to
complete the following 200 questions, including any breaks you may take.
Each question has only one best answer. Mark the one best answer on your
answer sheet by �lling in the circle next to A, B, C, or D.
On the actual PMP Exam, only 175 questions will be graded, but you do not
know which questions count and which do not. A passing score on the PMP
Exam is 106 out of 175, which is 61%. For this practice �nal, you should
correctly answer at least 180 out of the 200 possible questions in order to
consider yourself ready for the real exam.
FINAL EXAM:
1. ere are two processes that are closely related to product or result
acceptance from the Customer. Review these four statements and
select the one that is the least accurate regarding these two
processes.
A. Validate Scope is generally performed before Control Quality.
B. Control Quality and Validate Scope can be performed in parallel
in some cases.
C. Control Quality and Validate Scope both use inspection as a key
tool.
D. Validate Scope and Control Quality both make use of deliverables.
2. During the last iteration of the project, the team has no features to
increment; instead the focus is to solidify the reliability of the final
system to be transferred to the new owner. How would this iteration
typically be referred to?
A. e closing iteration.
B. Iteration-Z.
C. e Transfer Iteration.
D. Iteration-H.
3. Plan Communications Management is a process designed to
produce the obvious - a communications management plan.
Consider the following four statements about communication
planning on your project. Select the one false statement.
A. Project communication should be both effective and efficient so
that only the necessary information is provided at the right time
and in the right format.
B. Communication planning is performed very early in the project
life cycle in most cases.
C. Planning communications is linked closely to enterprise
environmental factors because the structure of the organization
will have an impact on the communication requirements for the
project.
D. Because communication planning results in a component of the
overall project plan and establishes expectations with key
stakeholders, this communication plan should not be changed or
revised once published.
4. ough the team facilitator is well-versed in eory X/Y
management, she realizes that the agile team is:
A. Self-managed and self-correcting, which is a stimulus to motivate
performance.
B. More responsive to Expectation eory.
C. Dependent on servant-leadership for inspiration and motivation.
D. Not effected by individual motivation, but rather team motivation
collectively.
5. Which of the following is NOT a primary goal of Perform
Integrated Change Control?
A. In�uencing factors that cause change.
B. Determining that a change has occurred.
C. Managing change as it occurs.
D. Denying change whenever possible.
6. e issue log for the agile project is kept:
A. In the project management information system.
B. In a highly-visible location.
C. By the team facilitator for easy access by all stakeholders.
D. By the product owner for easy access by all stakeholders.
7. Cleve is taping the latest version of the risk breakdown structure on
the wall for the team to view. During which process would Cleve
and the project team make use of the tool called Risk
Categorization?
A. Risk Identi�cation.
B. Perform Quantitative Risk Analysis.
C. Perform Qualitative Risk Analysis.
D. Identify Risks.
8. While selecting a vendor to supply the agile project with desired
services, to facilitate the decision, the proposals and evaluation
criteria should be available to:
A. e product owner.
B. e project team.
C. e project sponsor.
D. e team facilitator.
9. e schedule activity list:
A. Serves as an extension of the work breakdown structure.
B. Is synonymous with the work breakdown structure.
C. Is used to create the project scope statement.
D. Is included in the project charter.
10. e agile team has just learned that one of the members is leaving
to work at another company in 2 weeks. To maintain the same
velocity going forward, what should occur?
A. e team facilitator and project sponsor should begin a talent
search for a new team member to hire.
B. e project sponsor should meet with the human resources
department to request assistance in a talent search.
C. e functional managers should meet to select a team member
that has available time in the organization.
D. e team should �nd a replacement member with agile experience
and general skills.
11. As soon as Sandy discovered that she would be leading the newly
launched GreenLamb project, she immediately scheduled an
appointment to meet with the program manager. In that meeting,
Sandy presented a strong case for recruiting Harold and Jocelyn
onto her team based on her prior experience working with both.
Sandy le the meeting feeling confident that her wishes would be
honored. Which tool most closely fits the description of the actions
Sandy took?
A. Negotiation.
B. Pre-assignment.
C. Acquisition.
D. Collaboration.
12. e development team is writing an RFP for services needed in an
upcoming iteration. Organizational policy dictates that a bidder
conference must be held. Who should host the conference?
A. e project team.
B. A purchasing agent and a team member.
C. e product owner.
D. An independent third party.
13. Which of the following best fits “corrective action”?
A. Anything done to bring future results in line with the plan.
B. Actions taken to �x mistakes.
C. Typically a required speci�cation or deliverable from the project
sponsor.
D. An output of project planning.
14. During a bidder conference, a potential vendor questions what
location will be required for the performance of the soware
development services. e host, one of the agile team members,
responds:
A. It is highly preferred that the provider work within our project
team to facilitate camaraderie.
B. It is preferable that the developer work within our team space to
have collective ownership of the entire project.
C. It is highly desired that the provider be embedded within our
work team to enhance productivity and acceptance.
D. It is best if the developer work within our team space to use our
same tools, jargon, and deliver value to us quickly.
15. e Kaylehmda Project has recently migrated to the
Implementation Phase. e development team cleared the final
quality gates, documentation was completed, and all results and
responsibilities have been passed on to the implementation team.
Most of these team members are new to the project. Kiki, the new
project manager, is getting up to speed in meetings with Vinit, the
PM of the prior phase. Vinit and Kiki are reviewing aspects of the
charter in order to validate that the known constraints are still
applicable. According to the PMBOK® Guide, what process is being
carried out?
A. Project justi�cation and funding.
B. Develop Project Charter.
C. Validate Scope.
D. Close Project or Phase.
16. As team facilitator, Tim has recognized that a difference of opinion
has arisen between Lucy and Juan about the design of a subroutine
to be used heavily in the system. As he considers this situation, he
tries to remain aware that:
A. Some con�ict fosters creativity, and this situation could be a good
thing for the project.
B. He could always resort to forcing as a con�ict resolution technique
if the schedule gets critical.
C. Everything else on the project is going very well, and that this little
wrinkle isn’t such a bad situation.
D. His role as servant-leader on the team puts a burden on him to
solve this problem for the team.
17. Which of the following is the best explanation of the process called
Create WBS?
A. Decomposing product requirements into smaller features that are
easier to manage.
B. Decomposing project activities into smaller tasks that are easier to
manage.
C. Subdividing project deliverables into smaller components that are
easier to manage.
D. Subdividing project work packages into smaller components that
are easier to manage.
18. e agile team is looking for an additional developer from outside
of the company, and they have acquired an industry salary survey
from HR to assist in the process. e survey represents:
A. An organizational process asset.
B. An enterprise environmental factor.
C. An open, transparent report indicative of an agile approach.
D. Work performance information.
19. Cam walks by the conference room where the new project team is
meeting. He overhears a spirited debate between two of the
members. ey have very different opinions about the level of
influence that Bob has within the customer organization. e team
will be working with Bob throughout the project, and they are
trying to understand where Bob fits. Given this type of team
activity and your understanding of the project management
framework, what Process Group is being described here?
A. Initiating.
B. Integration management.
C. Stakeholder analysis.
D. Planning.
20. Mike is facilitating a session with the team to groom the backlog by
assessing the points associated with the top several stories. For
relative sizing of the effort, Mike is leading with:
A. A burnup chart to help place stories in anticipated iterations and
releases.
B. Cards that allow estimators to choose numbers in a modi�ed
Fibonacci sequence.
C. A set of red polo cups labeled with: I, N, V, E, S, and T.
D. A Delphi technique to eliminate bias and groupthink.
21. Tia and Anton are busy gathering data and running reports to
determine how much money and how many days of schedule have
been consumed by risks that have occurred to date on the project.
Next, they will compare those totals with the amount of money and
amount of time set aside to deal with risks. What tool is being used
by Tia and Anton, and what process are they conducting?
A. Contingency Reserve Analysis and Perform Quantitative Risk
Analysis.
B. Risk Audits and Monitor Risks.
C. Expert Judgment and Perform Quantitative Risk Analysis.
D. Reserve Analysis and Monitor Risks.
22. e development team and product owner are addressing a legal
situation with nonperformance of a subcontractor. e company
attorney is talking about an ADR. What topic is relevant to ADR?
A. ADR is a contract type.
B. ADR is an accounting method.
C. ADR is a method for handling disputes.
D. ADR is an estimating technique.
23. You are assigned to replace a project manager on a large soware
project for a telecommunications company in the middle of
executing the work. Portions of the soware are being supplied by
subcontractors working at your company’s offices. You would like
to know what performance metrics are going to be tracked for these
contract workers. Where could you find such information?
A. e project charter.
B. e procurement management plan.
C. e WBS.
D. e organizational process assets.
24. e agile team has been dealing with a recurring test failure for
days. An idea surfaced to change to how the team handles the test in
the future in order to prevent the issue from occurring. Who must
approve this change before implementation?
A. e product owner.
B. e team facilitator.
C. e team.
D. e tester.
25. One of the Enterprise Environmental Factors that will influence the
role of the project manager is the type of organization the PM
belongs to. Which of the following statements about a functional
organization is most accurate?
A. Power primarily lies with the project manager.
B. e project manager is more likely to run into issues obtaining
sufficient resources.
C. Power is shared between the functional manager and project
manager.
D. Staffing issues are rare because the functional manager supplies
them from his or her department.
26. What officially authorizes an agile project?
A. e assignment of a team facilitator to the project in the project
charter document.
B. e kickoff meeting is held and the project charter is handed out
to team members.
C. e project initiator signs the project charter.
D. e PMO or a steering committee �nalize the selection of the
project and document that choice in a project charter.
27. Members of the project team are scheduling meetings with selected
representatives from the Customer. e goal is to further
understand the roles of the staff that the team will be working with
over the life of the project. Clark gave team members a great
template developed from prior Customer engagements. e
interview questions ask some basic items, such as job titles, length
of service, responsibilities, and some more sensitive questions, such
as what do you hope to gain from this project, and what do you fear
from this project. Based on this description of activities, determine
what process is being conducted. Now, pick the process group
associated with that process:
A. Collect Requirements.
B. Planning.
C. Identify Stakeholders.
D. Initiating.
28. Which of the following statements best describes the definition of
project scope for an agile project?
A. Creating the user stories, maps, epics, and release plans.
B. Creating the engineering tasks associated with each story.
C. Creating the iteration burndown chart.
D. Creating the product backlog.
29. e sponsor, Samantha, is still concerned aer her meeting with the
project manager, Sherry, that the quality process is not being
followed as originally planned. What is the best means for Sherry to
illustrate to Samantha that the team is carrying out the quality
plan? Choose the best answer from these four:
A. Present the sponsor with a whitepaper discussing the effectiveness
of statistical sampling.
B. Show the sponsor the various costs of nonconformance identi�ed
by the team.
C. Hand a quality control chart to the sponsor that compares results
from this project with results from the prior project.
D. Provide a quality checklist that indicates when items were carried
out.
30. If your agile team is considered the Buyer and you are currently
reviewing proposals from potential Sellers, which of the following
would be valid results from this effort?
A. Procurement Statement of Work and Resource Calendars.
B. Source Selection Criteria and a Contract Award.
C. An Agreement and a Selected Seller.
D. A Make or Buy Decision and a Quali�ed Seller List.
31. Kirk has carried out the planning necessary to develop a human
resource plan for his project. Kirk is not sure what comes next. How
many executing processes are in the knowledge area of Resource
Management, and which executing process should be carried out
first?
A. Two and Develop Team should occur �rst in the executing
processes of resource management.
B. One executing process and Acquire Resources is the process that
should be carried out �rst.
C. Two and Acquire Resources should occur �rst in the executing
processes of resource management.
D. ree and Acquire Resources should occur �rst in the executing
processes of resource management.
32. e project manager has asked you as team facilitator of an agile
sub-project to report earned value metrics to her. What metrics
could you explain to her to suffice for this agile component?
A. Explain the release burnup chart, the team velocity, and the team
burn rate.
B. Describe how agile projects do not have as much up front
planning, such as a Planned Value component, and that you
cannot comply.
C. Relay information about your agile approach and how the metrics
like burndown charting would change for each iteration, but that
you can provide a cost variance at a minimum.
D. Tell her about the story points being based on effort and not value,
but that the backlog is a good representation of the value that is
planned to be earned. Deliver updates on the increments and the
backlog status.
33. e project management plan is a logical input to the process of
Manage Quality. What component of this PM plan is most relevant
to this process?
A. Quality Management Plan.
B. Cost Baseline.
C. Quality Reports.
D. Cost Management Plan.
34. As a team facilitator, which of the following statements reflects a
misunderstanding regarding the conflict resolution technique of
confronting or problem-solving?
A. It examines many alternatives and treats con�ict as a problem to
solve.
B. It requires open dialogue.
C. It emphasizes areas of agreement rather than differences.
D. It requires a give-and-take attitude.
35. You are the PM for a project that was requested and sponsored by
three Vice Presidents in your organization. e key objective is to
select and implement a customer management system with
enhanced capabilities; the old system is a mess and must be
replaced. Initial planning is done. e team you are managing is
deep into the execution of the work packages. Today, all three VPs
have emailed you with separate change requests. To make matters
worse, each VP argues that his or her change request is of utmost
priority. In this situation, what would be your best course of action?
A. Request a meeting of the change control board and turn the three
requests over to the board.
B. Look at the three change requests, do the necessary research, and
prioritize them.
C. Request a meeting with each VP and explain that the initial
planning is done, the team is fully engaged in execution, and the
change request will have to wait.
D. Look at the three change requests, meet with your manager, and
seek advice on how to prioritize them.
36. What would be the most appropriate sequence of the following
activities?
A. Create and populate the product backlog, Estimate the value of
each story, Estimate the effort of each story, Estimate the tasks,
Commit stories to an iteration
B. Solicit requirements from stakeholders, Prepare story cards,
Estimate value, Groom backlog, Estimate effort
C. Create story cards, Estimate the value and effort of each story,
Groom the backlog, Perform the stories in iterations
D. Create a vision, then a roadmap, then a release plan, groom the
backlog, then create features and stories, then estimate tasks, then
perform iterations
37. What is the name of the tool or technique used to sum up the cost
elements in the process that derives the project budget? And, what
is the proper sequence of summation, from the lowest level of detail
to the highest?
A. Cost Aggregation and the order is activity to work package to
control accounts to total project.
B. Funding Limit Reconciliation and the order is activity to task to
control account to work package to summary WBS node to total
project.
C. Cost Aggravation and the order is task to control account to work
package to total project.
D. Cost Aggregation and the order is total project to WBS summary
node to work package to control accounts.
38. e agile team appears to have a conflict that has divided the team
into two distinct camps. You are the team facilitator and have been
observing the dynamics. Which of the following types of conflict
resolution is not valid when looking for a solution?
A. Punishment.
B. Compromising.
C. Forcing.
D. Collaboration.
39. Trish and Sal were discussing project management. Sal asked Trish
to describe the goal of a certain project management process and to
state the purpose in her own words. Trish came up with the
following description: “is process is all about making sure the
right message is being delivered to the right audience at the right
time.” What is the name of the process being described, and what is
the associated process group?
A. Manage Communications, Executing.
B. Monitor Communications, Monitoring and Controlling.
C. Communications Management Plan, Planning.
D. Control Stakeholder Engagement, Monitoring and Controlling.
40. In regards to agile and performance measurement, what single
metric reflects schedule performance the best—and would be
reported up to the parent waterfall project?
A. Lead time.
B. Velocity.
C. Burn rate.
D. e slope of the burndown chart.
41. Fran and Mark were supposed to be working together to develop
the schedule and assign team resources to the various tasks on the
schedule. ey are feeling a lot of pressure because another PM
within their organization just came in and took 4 of their team
members to work on her project. e program manager authorized
the move and doesn’t have replacement resources for Fran and
Mark. So, they are stressed by too much work, and too few
resources. e two agree that they need to use a combination of
critical path and critical chain methods. e point of confusion is
over their disparate definitions of critical chain. Which of these
definitions do you think is best?
A. Critical chain is the resource-constrained critical path.
B. Critical chain is the same as critical path, it was just developed
aer CPM.
C. Critical chain is the critical path plus �oat buffers for risk reserve.
D. Critical chain is the critical path plus a project buffer placed just
aer project kickoff.
42. Hirdesh is the product owner for the Robotics Soware agile
project. In judging whether or not the project is complete, he is
evaluating:
A. e product backlog to see if any stories remain to be committed
to the next iteration.
B. e team’s burn rate compared to the customer value of the next
backlog features to be developed in the upcoming iteration.
C. e team’s velocity compared to previous iterations. A high
reduction may signal team burn-out and time to close the project.
D. e uncertainty of each story to allow for a risk-adjusted backlog.
43. Roger is confused. is is the first time he has been asked to
perform variance analysis as a means of reporting the performance
of the project back to the Sponsor. Roger is not sure what is
expected of him. His project manager tells Roger to look for
variance analysis as a Tool in the PMBOK® Guide and use the tool
just as it is described there. Given this instruction to Roger, what
statement is the best advice for Roger?
A. Data Analysis is listed as a Tool in 10 of the 12 Monitoring and
Controlling processes, so Roger should compare the overall
project performance measurements with the project plan and
baselines, identify and quantify differences and their causes, and
report back to the Sponsor.
B. Variance Analysis is a tool listed for Control Quality, so Roger
should pinpoint differences in the quality metrics and the work
performance data, determine the cause and degree of these
differences, and report to the Sponsor.
C. In Cost Management, the tool of Variance Analysis is listed for
Control Costs, so Roger should determine differences in the
approved budget and the actual expenditures, determine the
degree and cause of the differences, and report to the Sponsor.
D. e tool of Variance Analysis is listed for Control Scope, so Roger
should determine differences in the work performance data and
the requirements documentation, determine the severity and
cause of the differences, and report to the Sponsor.
44. e project team is meeting to consider how much effort should be
invested in each of the stories detailed in the product backlog. In
determining the appropriate attention for completing each story or
feature, they are seeking:
A. Stakeholder acceptance for project closure.
B. A test-driven basis for design and development.
C. e �rst principle of delivering working soware as the highest
priority.
D. e de�nition of done.
45. Approved budget increases should be:
A. Added to the schedule management plan.
B. Added to the project’s cost baseline.
C. Added to the project’s reserve fund and used only if needed.
D. Added to the lessons learned.
46. 1. Refer to the table at the right. If task H were increased from 3 to
7, what impact would this have on the project?
A. e project would �nish later.
B. e project would �nish earlier.
C. e schedule risk would decrease.
D. e critical path would change, but the �nish date would not
change.
Task Dependency Duration
Start None 0
A Start 3
B A 2
C B 2
D Start 4
E D 1
F Start 5
G F 7
H B, E 3
I C, G, H 4
Finish I 0
47. e team is staffed with a product owner at $6000 per month, a
team facilitator at $7000 per month, and five (5) developers at an
average of $6500 each per month. e iterations are timeboxed at 2
weeks. e velocity is 100 points. What would be the iteration burn
rate assuming 2 iterations per month?
A. $455 per point.
B. $22,750.
C. $22,750.
D. $45,500.
48. According to agile principles, teams should be built:
A. With business people and developers.
B. With individuals that can sustain the high pace.
C. With agile-experienced developers.
D. Around motivated individuals.
49. In six separate instances, the Customer has formally requested a
change to the scope of the project. Each time, the project manager
set up a meeting and invited the Customer, a member of the PMO,
and his mentor from within the organization. e project team is
small, so the PM thought it would be wise to include all team
members in these meetings, as well. What does this action tell you
about the project manager? Which statement seems most accurate?
A. is PM should be replaced.
B. is PM believes in collaboration and values the judgment of
others.
C. is PM is using change control meetings to drive decisions
regarding important change requests.
D. is PM is demonstrating the need for a well-de�ned integrated
change control system.
50. Fred is the team facilitator of an agile team that is a sub-component
of a predictive project, led by Anita. Leo is the product owner, and
is also a member of Anita’s project team as a contributor in a
different work stream. Considering Anita’s project organization
chart, which statement is most valid?
A. Anita and Fred share the top position in the chart.
B. Leo represents the project sponsor and Anita and Fred are
accountable to him.
C. Leo is in a matrix structure and reports to both Anita and Fred.
D. Anita is CEO of the project.
51. Which of the following is not produced as a result of initiating a
project?
A. Project charter.
B. Summary milestone schedule.
C. Assignment of the project manager.
D. Stakeholder engagement plan.
52. An agile developer approaches you as the team facilitator with a
question about a term he heard called “fine-scale feedback.” How
would you explain this concept to him?
A. Fine-scale refers to the very detailed responses from customers
about every aspect of the tested feature from the team.
B. Fine-scale is about how small increments and short iterations
allow the customer to provide quick feedback on the delivered
features to allow fast, small changes if needed.
C. Fine-scale refers to the high degree of quality in the deliverables
that results from using agile approaches, having the customer
embedded with the development team.
D. Fine-scale refers to the high value that is achieved from delivery of
features to the users’ hands for immediate use.
53. Your team has begun to develop the project schedule. Important
information about the tasks is delaying the team from completing
the development. What planning should occur prior to or
simultaneously with the creation of the schedule to enable
completion of the Gantt Chart that has been requested by the
functional management team?
A. Determining the budget to obtain the funding limits of the
schedule activities.
B. Diagramming the �ow from one task to the next based on logical
relationships.
C. Team meetings to understand the task uncertainties and
associated contingency plans.
D. Stakeholder meetings to assess the project scope relative to the
organization’s quality policy.
54. During an iteration retrospective, the team is discussing a large
story that did not meet the acceptance criteria without swarming
and a delay in productivity. What technique probably needs to
adapt for improvement?
A. Test-driven development.
B. Declaring obstacles in the daily stand-up.
C. Pair programming.
D. WIP limits on the Kanban board.
55. What other quality management tool is related to the tool of a
Histogram, and how is it related?
A. Histograms and Control Charts both use statistical analysis of
project results to determine how the project is performing from a
quality standpoint.
B. Histograms are very similar to Run Charts as Run Charts are a
presentation of the “history” of a quality metric on the project.
C. Histograms and Run Charts both track and report the historical
performance of the project in such a way that quality analysis can
be performed easily.
D. Histograms and Pareto Charts are similar because the Pareto
Chart is a type of histogram that is ordered by frequency of
occurrence.
56. You are managing a team developing a soware product. You have
contracted out a portion of the development. Midway through the
project you learn that the contracting company is entering Chapter
11 bankruptcy. A manager from the subcontracting company
assures you that the state of the company will not affect your
project. What would be a good technique in this situation?
A. Embed the contracted developers within your team space.
B. Stop all pending and future payments to the subcontractor until
the threat is fully assessed.
C. Contact your legal department to research your options.
D. Meet with senior management to apprise them of the situation.
57. What component of the project management plan is most useful to
a project manager while working to manage the expectations of
project stakeholders?
A. Change management plan.
B. Con�guration management plan.
C. Communications management plan
D. Stakeholder engagement plan.
58. e product owner (PO) has determined that the current iteration
is the last development cycle in the project life and seeks closure. As
team facilitator, you recommend to the PO that another iteration
should occur for the benefit of the new owners of the product. What
is the value of this last iteration?
A. It allows more time for the development team to secure
employment in their next projects.
B. It allows for the hardening of the product and validates that it
meets all of the product testing requirements and is truly “Done.”
C. It allows the team to be involved with the �nal acceptance and
transition of ownership to the intended users and to address any
outstanding critical issues.
D. e �nal iteration allows the team to complete the documentation
of the project archives, lessons learned, and other organizational
process assets.
59. Alexia and the team are meeting with key stakeholders to begin
identifying and gathering project requirements. Which two
processes should have already taken place?
A. Collect Requirements and Identify Stakeholders.
B. Collect Requirements and Develop Project Charter.
C. Develop Project Management Plan and De�ne Schedule.
D. Identify Stakeholders and Develop Project Charter.
60. Your agile development organization is submitting a proposal for a
contract that is well aligned with its expertise. However, the
contract that is out for bid is from a government entity that your
organization has not worked with in the past. e government
entity places a favorable weighting on those companies
headquartered in the capitol. So, your team has partnered with a
small company there to offer a joint proposal. In terms of risk
strategies, this scenario describes the use of which one?
A. Transfer.
B. Exploit.
C. Share.
D. Mitigate.
61. Barbara is the new project manager for an 8-month project that has
been going on for 5 months now. e team has had poor quality
performance to date. Barbara is considering the best tool to use to
solve the quality issues. Four departments are providing resources
and expertise in completing project tasks and hitting acceptable
quality metrics. What tool will be most beneficial to Barbara to
determine where the problems are hiding?
A. Run Charts.
B. Flowcharting.
C. Inspection.
D. Control Charts.
62. e agile team that you coach is a part of the Above-and-Beyond
program focusing on the company’s continuous improvement
initiatives. Whose responsibility is it to coordinate your team’s
efforts with other Above-and-Beyond projects or operations?
A. Product owner.
B. e agile team.
C. Team coach.
D. Program manager.
63. GlobalCorp is carrying out a consulting engagement for a firm
based in Canada. Vijay is the PM for GlobalCorp on the project,
and he is looking at an invoice for training that he authorized for a
team member. Vijay and his team realized they needed more
training with this particular system in order to carry out the
engagement. Now Vijay is pondering which control account and
organization to charge for this system training. How would you
advise Vijay?
A. Charge it to the client unless the contract speci�es otherwise - the
client should pay because the client bene�ts.
B. Charge it to the PMO of GlobalCorp - GlobalCorp should pay.
C. Charge it to the project budget - GlobalCorp should pay.
D. Charge it to GlobalCorp regardless of what the contract states -
GlobalCorp should pay.
64. PQR Company has become more accepting of agile approaches in
recent years. e proposed Network-Secure product development
project is being approved and funded, and the charter has been
written in agile terms. Iterations, release plans, and project
authority are appropriately declared. What detail is most likely
included in the charter?
A. e release plan details which features will be released on what
calendar schedule.
B. e Finance department’s declaration of a cash �ow limit.
C. e agile team is named and authorized to spend resources and
deliver the product.
D. e agile team space location and available equipment are
designated.
65. When communication links are undefined or broken:
A. e communications management plan should be rewritten.
B. Con�ict will increase.
C. e project manager’s power will decrease.
D. Project work will stop.
66. Senior Management is reviewing project options for the next
funding cycle. e CFO has tasked them to use BCR to determine
how the various projects stack up. e first agile project named
Looper has an estimated BCR of 2.3 - which of the following
statements is correct about Project Looper?
A. With a BCR of 2.3, Project Looper should clearly be authorized.
B. Project Looper will be considered a better choice than other
projects, �rst because it is agile, and then because proposals with a
Bene�t Contingency Risk score of greater than 2.3 are considered
more risky.
C. With a BCR of 2.3, Senior Management should recommend that
the organization not fund Project Looper.
D. Senior Management should recommend funding Project Looper if
no other projects being considered have a BCR greater than 2.3.
67. Henry is in charge of distributing project information to the
various stakeholder groups. Which of the following methods does
not represent a valid means for Henry to push data to these
stakeholders?
A. Knowledge repository.
B. Emails.
C. Press release.
D. Letters.
68. During today’s stand-up meeting, Sriva has noted an obstacle about
difficulty finding a plug-in for a feature—which may cause a re-
design this week. How should the team respond to this bad news?
A. Continue the meeting, and have an impromptu follow-up meeting
to immediately assess the situation for a solution.
B. Add the threat to the risk register.
C. Create a new story that delivers the same functionality as the plug-
in.
D. Place the meeting on hold while the team brainstorms and creates
steps to address the threat.
69. e process of managing stakeholder engagement includes 1 input
and 1 output that are related to issues and changes. From the list of
4 answers, select the answer that is the most accurate concerning
this input and output.
A. e change log and issue log are both inputs and outputs of this
process.
B. Change Requests are an output of Perform Integrated Change
Control and an input to this process, and Issue Requests are an
output of this process.
C. Change Requests are an output of Monitor and Control Project
Work and an input to this process, and Issue Lists are an output of
this process.
D. e Issue Log is an output of this process, while the Change Log is
an input to this process and an output of Monitor and Control
Project Work.
70. e team just marked Feature-G “Done,” and during the
retrospective noted a productivity boost learned while developing
that feature. Both Features -H and -J will benefit from this
discovery. How should the team handle this new information?
A. Post it on the information radiator as a “Win” for the stakeholders
to also celebrate.
B. Modify the team’s velocity based on the new productivity.
C. Use the slack now found on Features -H and -J to offset other
story challenges that would cause the team to fall behind the
burndown target.
D. Update the points estimate with the product owner to groom the
backlog for increasing the value delivered from future iterations.
71. e sponsor and Ankit, the project manager, walk out of the
meeting with several follow-up action items. Ankit needs to alert
the team to this significant change the sponsor and he have agreed
to take. For this project, several objectives will drop from the scope.
Hopefully, a follow-up project will pick up these scope items and
receive the proper funding and schedule. However, the Sponsor and
Ankit agreed that this scope-cutting measure was essential to save
the project from a looming large risk. What strategy have the
sponsor and project manager agreed to use?
A. Avoid.
B. Transfer.
C. Share.
D. Accept.
72. As team coach, you have observed that Roger is an amiable team
member and goes along with most team ideas. He is also a genius in
simplifying soware code for performance and reliability. How can
you help foster an environment where the team will seek Roger’s
inputs rather than have him quietly acquiesce to their opinions?
A. When facilitating a meeting, use a round-robin technique to allow
everyone to contribute.
B. In meetings, engage Roger with questions like, “What do you
think, Roger?”
C. Counsel team members behind Roger’s back that they should
probe for his inputs and include him.
D. Employ your emotional intelligence to empathize with how Roger
feels; you may discover his need for affiliation.
73. If you had to pick from the following 4 choices, during which group
of processes is it best to assign someone as the project manager?
A. Initiating.
B. Planning.
C. Executing.
D. Monitoring and Controlling.
74. During assistance developing a project charter, you recognize that
this proposed effort will be complex and has a fuzzy view of the
deliverable. How should you contribute to the project direction?
A. Create a Stacey diagram.
B. Probe the stakeholders to understand what problem they are
trying to solve.
C. Recommend an agile approach to allow the iterative and
incremental natures to evolve the targeted deliverables.
D. Recommend a predictive approach to allow a strong project
manager’s command-and control to handle the chaos.
75. If you are the team facilitator leading a newly-formed agile team,
which of the stages introduced by Tuckman would you want the
team to move out of the most quickly and why?
A. Norming because this stage is particularly taxing on the project
manager as she or he work with team members to coalesce as a
team and give up individual pursuits.
B. Performing because this stage can bring out the insecurities of
team members as they act out their false expectations for the
project and their role in it.
C. Forming because this stage is not as productive as others and can
put �nancial and schedule pressure on the team if they remain in
this stage too long.
D. Storming because this can be a destructive stage if the team
cannot move past the normal disagreements or differences of
opinion that may arise during this stage.
76. e agile team has a customer constraint that coding must interface
with an existing SQL database, though not the team’s forte. With
regard to the team’s need for SQL knowledge, the team should
decide to:
A. Bring in an SQL-trainer to work with the entire team on speci�c
needs.
B. Add an experienced SQL expert to the team.
C. Outsource the SQL component of the product development.
D. Colocate the customer with the team to help with the SQL
integration.
77. Schedule constraints would likely include all of the following
EXCEPT:
A. Imposed dates.
B. Key events.
C. Major milestones.
D. Leads and lags.
78. As the new project team facilitator at QRS Company, you have valid
influence to guide the company’s new agile project approach. Your
opinion to have team members be 100% dedicated to the team is
met with resistance by functional managers. What would be a good
strategy to pursue?
A. Campaign to educate and in�uence key high-level supporters—
executives and managers.
B. Use a grass-roots approach to have developers unite and insist on
being 100% dedicated to their agile teams.
C. Use con�ict resolution techniques to counter the objections of the
functional managers, eventually gaining their support through
understanding the bene�ts of the agile approach.
D. Begin a newsletter to the enterprise to distribute articles and
descriptions of the bene�ts of an agile approach. Invite functional
managers to contribute articles.
79. From the choices provided, identify the exact output of the closing
process from the Integration Management area.
A. Final Product, Service, or Result.
B. Closed Procurements.
C. Closed Contract Awards.
D. Final Product, Service, or Result Transition.
80. e team tracker is plotting the burndown chart daily based on
actual progress. When viewed in the information radiator,
stakeholders are:
A. Concerned to see the point variation between planned and actual.
B. Pleased to see the actual progress line below the planned progress
line.
C. Eager to add points to the iteration when observing the actual
progress line above the planned progress line.
D. A bit miffed when their pet stories are not showing up as done yet.
81. Creating the work breakdown structure is a vital step for the project
team for a number of reasons. 3 of the following statements describe a
purpose or result of creating the WBS. Find the statement that does
not.
A. To make the work more manageable.
B. To create a task-oriented decomposition of the work.
C. To create a more re�ned description of the deliverables at a lower
level than the scope statement.
D. To de�ne work packages that can be assigned, monitored, and
controlled.
82. A potential project sponsor has enlisted your project management
assistance in preparing a proposed project charter. e pathway to
the deliverable is not clear—potentially complex, and the
completion criteria are not well-focused. One of your contributions
from the effort would be:
A. e completion of the high-level milestone schedule and the ROM
budget for the proposed effort.
B. e pre-assignment of the key core team members to staff the
project.
C. e recommendation of an adaptive, iterative approach in
delivering the project.
D. e use of the Project Management Office’s templates for
developing the project charter within the compliance of the
organization.
83. If a project team is experiencing conflict over a technical decision
that is negatively affecting project performance, the BEST source of
power the project manager could exert to bring about cooperation
would be:
A. Legitimate.
B. Penalty.
C. Referent.
D. Expert.
84. Brandon is a new team member on the development team, and has
joined aer the first several iterations. A stakeholder has
approached him with an idea of a feature that is cutting-edge and
novel—actually a great idea! Brandon’s first step regarding this new
feature would best be:
A. To work with the team to create a corresponding story card and
then estimate the number of points in effort required.
B. To place the request on the information radiator in the �rst
kanban queue for transparency to all of the other stakeholders.
C. To gather the team to self-direct the research and evaluation of the
feature since it is a new technology.
D. To bring the suggestion to the attention of the team so that the
product owner can consider its appropriate positioning on the
backlog.
85. Consider the second process of Project Procurement Management.
To which process group does it belong?
A. Executing.
B. Planning.
C. Closing.
D. Monitoring and controlling.
86. You are serving as the team facilitator of an agile workstream
within a larger program to support a strategic initiative within the
organization. A specific feature set is needed as a dependency for
kicking off another project within the program, and the program
schedule is under pressure. What is your best approach in
managing this situation?
A. Encourage the product owner to elevate the value of the feature set
to allow it to be developed sooner than the current backlog
priorities.
B. Use the daily stand-up meeting to keep the urgency of the feature
set in the forefront of the team’s perception and understanding.
C. Coach individual team members that are best positioned to
deliver that feature set about its overall importance in the strategic
program and the key contribution that they can make.
D. Frequently report the agile team’s status to the program manager
for coordination of other projects and operations.
87. Consider the following phases of a project and select the phase
where you are most likely to be asked for a ROM estimate of costs:
A. Controlling phase.
B. Initiating phase.
C. Executing phase.
D. Planning phase.
88. e development team has been asked to deliver an initial website
as a minimum viable product (MVP) to deliver services to a
customer base. Upon asking the team coach how an MVP is
defined, she replied with all of the following choices except which?
A. It delivers enough value that it is usable or sellable.
B. Its cost is less than the perceived bene�t and is pro�table early in
its product life.
C. It provides enough functionality that feedback is valid for on-
going development.
D. It is bene�cial enough that early adopters will continue its use
awaiting improvements.
89. You have reviewed the historical records from the two projects
performed last year that align well with your current project. You
are excited to discover a Pareto chart that is formatted in a manner
that will help your team identify quality control issues throughout
the project. e Pareto chart is a specific type of what tool?
A. Ishikawa diagram.
B. Vilfredo Pareto Diagram.
C. Scatter Diagram.
D. Histogram.
90. You are replacing a project team facilitator that has become ill in
the middle of an iteration of an agile subcomponent of a larger
waterfall project. Aer the iteration review, the team is ready for
planning the next iteration. As coach, you interrupt the team to:
A. Remind the team of the opportunity to have a retrospective view
of the previous iteration and lessons learned to possibly adapt the
approach of the next iteration.
B. Coach the team that the de�nition of done is too vague and for the
next iteration it should be better focused.
C. Remind the development team to invite the product owner to the
planning meeting and to timebox the meeting.
D. Allow the waterfall project manager to groom the product backlog
one more time and for the team to determine its velocity before
starting the planning meeting.
91. e term “slack” is also known as:
A. Lag.
B. Lead.
C. Float.
D. Free �oat.
92. e team’s definition of done includes satisfying all of the
customer’s specifications for the features being delivered. e WIP
limits of the task board are showing a bottleneck in the testing
queue. All hands have focused on testing and discovered a problem
in a previous queue that is not within spec. How should the team
best respond?
A. Assign more resources to the testing tasks to discover defects
more quickly.
B. Review the speci�cation at fault to adapt it to a more realistic
tolerance.
C. Perform a root-cause analysis of the problem and adjust to bring
the product back into speci�cation.
D. Bring up the obstacle in the daily stand-up meeting to make sure
the entire team is aware of the issue.
93. e project has a CPI of 1.2 and a SPI of 1.1 and has been managed
from the start by Daphne. No matter what actions Daphne takes
with the Customer, it seems that change requests continue to hit the
project team too frequently - too many - too fast. Which of the
following statements is the most accurate?
A. Daphne should continue to work with the Customer to in�uence
factors that bring about the change requests.
B. Daphne should recognize the excellent performance results and
not upset the Customer with further discussions about change
requests.
C. Daphne should communicate face to face with the Customer that
the project performance cannot be undercut by the risk of any
future change requests.
D. Daphne should commit to the Customer that only those change
requests that result in traceable value to the Customer will be
accepted in the future.
94. During the planning meeting for the upcoming iteration, the
development team committed to the iteration backlog. What
should be reported up to the parent project manager, and what is
the next step for the team?
A. e iteration backlog contents, and to begin the iteration work
following the team ground rules and daily stand-up meeting
schedule.
B. e updated release plan, and to timebox the effort for each story
in the iteration backlog.
C. e iteration backlog list, and to plan how to deliver the features—
what tasks, what team members, and what other resources.
D. e updated release plan, and to evaluate the risk associated with
each story and understand potential responses to each risk.
95. Bob is managing a project that is in month 14 of a 24-month
project. e team has just entered the phase that has the greatest
uncertainty and was the most difficult to estimate when building
the budget for the sponsor. Bob was given numbers this morning
that indicate the overall project TCPI has actually dropped below 1
for the first time in the project. What should Bob do with this piece
of information?
A. TCPI is below 1 indicating that the project is performing better
than expected, so Bob should share the news with the sponsor as
soon as possible.
B. TCPI is below 1 indicating that the project is performing worse
than expected, so Bob should share the news with the sponsor as
soon as possible.
C. TCPI is below 1 indicating that the project is performing better
than expected, so Bob should watch this trend for another month
and then report his �ndings and conclusions to the sponsor.
D. TCPI is below 1 indicating that the project is performing worse
than expected, so Bob should watch this trend for another month
and then report his �ndings and conclusions to the sponsor.
96. A parent project manager meets with you as coach of an agile sub-
project to ask that a decision be made regarding which team
member should own a particular task, based on skill-set. As you
decline and describe your role, you define which term for the PM’s
understanding?
A. Consultant
B. Servant leader
C. Process owner
D. Guardian of agile
97. At what point in project planning would you decide to change the
project scope in order to avoid certain high-risk activities?
A. Identify Risks.
B. Qualify Risks.
C. Control Risks.
D. Plan Risk Responses.
98. During an iteration planning session, as facilitator you recognize
that most of the development team is not being included. What
would be a good technique to use in this case?
A. Call a break to the meeting and meet individually with team
members to determine why they are not sharing their opinions
during the meeting.
B. Call down the team and criticize them that they are not inclusive
and should not claim a consensus unless everyone contributes.
C. Ask intermittent questions to get the opinions of team members
that are not included in the conversation.
D. Interrupt the meeting to have an impromptu mentoring session
about the agile approach and team self-direction.
99. Your project team has completed identifying risks that might
impact the new project. Some time and effort have gone into
performing qualitative risk analysis, and the risk register has been
updated with the results. e project team members have all
suggested next steps to help quantify each risk. Which team
member’s suggestion should NOT be carried out?
A. Make use of a decision-tree diagram and calculate EMV.
B. Perform sensitivity analysis to determine which risks have the
largest potential impact on the project.
C. Calculate risk probability and impact assessments for each
remaining risk.
D. Create an in�uence diagram to show risk entities, outcomes, and
in�uences.
100. During the iteration retrospective meeting, the team might be
reviewing:
A. How well issues are being exhibited to the stakeholders’
satisfaction on the information radiator.
B. Good techniques for virtual team communications.
C. e de�nition of done.
D. How agile approaches differ from predictive approaches to project
management.
101. e process of Estimate Activity Resources is closely coordinated
with another process from a separate Knowledge Area. What is that
process and why?
A. Collect Requirements because you need to have the right people
on the project team who are familiar with the work to be
performed to properly document requirements.
B. Identify Risks because your team needs to have enough experience
to carry out risk identi�cation to mitigate project failure.
C. Control Quality because your team must have staff skilled in using
the speci�c tools of this process.
D. Estimate Costs because this process determines the cost to
conduct an activity based on the type and quantity of resources
required.
102. As team coach, you have received news of the re-organization of the
functional departments related to soware development. To shield
the team from distractions or re-assignments due to the new
organizations, your role would be to:
A. Meet with each functional manager to explain how agile teams
function.
B. Counsel management to assign the team members 100% to the
team.
C. Explain to the project sponsor that a critical project success factor
is the stability of the team and ask for the sponsor to protect the
team structure.
D. Organize the team to stand together to reject any outside changes
to personnel assignments.
103. Assume that your project budget follows a familiar S-curve over
time. is is common to most projects. If the S-curve represents the
cost baseline, which of the following statements is most accurate?
A. Project funding requirements are derived from the cost baseline
but they probably will not result in the same S-curve because of
the timing of funding.
B. Project funding requirements in total should be slightly less than
the cost baseline.
C. Project funding requirements should track the same S-curve as
the cost baseline and remain parallel over the life of the project.
D. Program funding requirements may be greater than or less than
the cost baseline depending on the time period being measured.
104. As the project manager of the UVW Project, you pick up on the fact
that the finance manager isn’t happy about the fuzzy forecasting of
the current project’s costs, due to the agile subproject components.
What is your best course of action?
A. Meet with the project sponsor to make sure she is handling the
�nance manager’s issues.
B. Write a white paper on agile �nancial management and place on
the company’s knowledge management system.
C. Meet with the manager to discuss the bene�ts of agile in reducing
costs; explain the burn rate and the release plan.
D. Write a description of agile release planning, iteration costs, and
forecasting. Email the description to the project steering
committee.
105. is question offers a familiar scenario: you work for a
pharmaceutical company that has grown fast and is aggressive in
bringing new products to market. e current project you are
leading is not that exciting - it involves an upgrade to the customer
management system used by the company. When the project kicked
off, many of the top resources had rolled off other tasks. You were
able to recruit many of the best resources to your team. e project
has 9 months remaining on the revised schedule. Today, the
marketing department broadcasted a press release indicating that
your company won a huge contract with great bonus potential
based on performance. Without discussing this with you, one of
your team members, named Francis, goes directly to the person
who is expected to lead the new project and asks to be a part of the
team. What should you do?
A. Go directly to Francis’s functional manager and report the
offensive behavior.
B. Call a meeting with Francis and your project sponsor so that the 2
of you can discuss Francis’s actions with him.
C. Bring the item up in the next team meeting, document it in the
team issue log, and monitor it yourself.
D. Discuss the matter with Francis as soon as possible in a meeting
with him.
106. You are managing a hybrid project—a predictive focus with an agile
sub-project component. e agile team coach has pushed back for
her team about the high volume of reporting requirements that you
are requesting. e coach, in proper agile fashion, suggests which of
the following alternatives?
A. Inviting you to visit the team work space occasionally—and
possibly listen in on daily stand-up meetings at times.
B. Bi-weekly reporting rather than weekly updates.
C. Having you as project manager attend the agile team’s weekly
status meetings.
D. e coach’s scheduling a meeting with your project sponsor to
explain how agile works and why you as project manager are
voiding the bene�ts of the agile approach, asking the sponsor to
intervene and reduce these reporting requirements.
107. One of the tools used for estimating the duration of an activity is
the three-point estimate. What is the other name of this estimate,
and which accompanying statement is accurate?
A. GERT and M should be less than P but greater than O.
B. Triangular Distribution and M should be less than O but greater
than P.
C. Triangular Distribution and M should be greater than O but less
than P.
D. GERT and O should be greater than P but less than M.
108. While facilitating your agile team’s interface with the parent
waterfall project, you are approached by the project manager to
complete the high-level work breakdown structure components
associated with the agile team’s contribution. Which of the
following would comprise your best response to this request of the
project manager?
A. e project backlog
B. e agile theme
C. e agile practices
D. e agile epics
109. When a functional manager approaches you as project manager to
include management of specific on-going support desk efforts for
her department, which of the following statements would you share
with her about projects to reject her request?
A. A project can involve even a single person, but a support desk
team is too many people.
B. A project would involve unique and temporary elements;
operational or on-going content is not in project scope.
C. A project may create a capability to provide a service, but the
support desk service doesn’t need reinventing.
D. A project may create a result; support desks are notorious for
never delivering a �nal result.
110. e agile team’s definition of “Done” included verifying that the
delivered utilities met all of the customer’s response time
enhancement requests. e team’s approach to fast delivery of
working soware was best exhibited by:
A. Using test-focused development tools with dynamic response
indicators.
B. Dedicating a testing specialist to focus on that �nal veri�cation
before delivery.
C. Embedding the customer’s representative in the team.
D. Performing automatic integration and regression testing.
111. Johnson accepted an offer from another company, and Isabel has
inherited the project to manage to completion. Johnson cannot be
reached, so Isabel is forced to search project documents to get what
she needs. She found the contracts to be very helpful, but Isabel
wants to make sure she has a full comprehension of the
expectations of the sponsor. What two documents would be most
useful?
A. e stakeholder register and the communications management
plan.
B. e WBS and the project charter.
C. e communication management plan and the scope statement.
D. e communication plan and the stakeholder management
strategy.
112. e iterative, incremental development seems to be nearing the
bottom of the project backlog. ough there are a few features
remaining in the uncommitted backlog, the sponsor has met with
the product owner to consider the current iteration being the last.
is is probably due to:
A. e sponsor had a budget decrease mandate from senior
management.
B. e perceived value of the remaining stories being less than the
burn rate per iteration.
C. e product owner called the meeting since the development team
is burned out.
D. e defects still needing rework have grown to exceed the value of
the remaining stories in the backlog.
113. A normal part of projects involves repairing broken soware code,
fixing defective products, or revamping the results so that they
meet acceptable quality standards. In which process would the team
make these types of repairs, fixes, or take corrective action?
A. Direct and Manage Project Work.
B. Control Quality.
C. Perform Integrated Change Control.
D. Monitor and Control Project Work.
114. While estimating efforts required to complete Story-17, the team
determines it is more effort than Story-4 and less effort than Story-
11. is represents what approach in estimating?
A. e delta technique
B. Planning poker
C. Affinity estimating
D. Triangulating, or relative sizing.
115. Rochelle is reviewing risk analysis performed by fellow team
members. She views a report that shows decision nodes, costs
associated with the nodes, chance nodes, rewards associated with
these nodes, and a final net path value for each possible path. What
process are Rochelle and the team engaged in, and what tool is
being used here? Pick the best combination from these four choices:
A. Perform Qualitative Risk Analysis and Risk Quality Assessment
and Analysis.
B. Perform Qualitative Risk Analysis and Decision Tree Analysis.
C. Perform Quantitative Risk Analysis and Expected Monetary Value
Analysis.
D. Perform Quantitative Risk Analysis and Probability Impact
Analysis.
116. As the agile XYZ team, a component of the hybrid Project PQR,
completes its final iteration, the core PQR team owns collecting the
necessary information about XYZ to provide support and
integration for the remainder of the PQR Project. e PQR
guidelines for this knowledge transfer would most likely be found
in:
A. PMIS
B. Requirements management plan
C. Knowledge management plan
D. Stakeholder engagement plan
117. Zebra Gear provides equipment, clothing, and apparel to referees
and sports officials in the US. e CEO wants to expand slowly into
the UK market. One of her concerns is with shipping and order
fulfillment in the new market. Your company was hired to perform
a gap assessment and produce a series of reports. e reports
should highlight likely problems or gaps and recommend solutions.
You have been working with your project team to fully define the
scope of the new project with the CEO and her core team. Of all the
tools listed for the Define Scope process, which one is least likely to
be effective or applicable in this situation?
A. Expert judgment because your team will have a hard time �nding
people with experience with this type of international business.
B. Facilitated workshops because one key to success with those
sessions is to have the decision-makers in the room; the CEO is
probably very busy and she may not be available.
C. Product analysis because the deliverable for this project is more of
a service or result.
D. Decomposition because the nature of gap analysis makes it
difficult to get down to work packages.
118. e product owner facilitates each of the team’s iteration planning
meetings to groom and update the project backlog. She provides
the estimation of the customer value, but wants the team to discuss
the uncertainties related to each story to assess how the backlog
priority might be affected. is allows the team to consider
committing the iteration backlog based on the:
A. Certainty of the points that can be delivered in the iteration.
B. e team’s velocity and the BUF (Backlog Uncertainty Factors).
C. Risk-adjusted backlog.
D. Limitation of the number of points “Done” in the previous
iteration.
119. Kim comes to you with an idea for an easy improvement to the
product your project is building. e change will take very little
time and add no additional cost. e enhancement was not
included in this project but may be needed during the next build.
What should you do?
A. Build to the project scope and do not add the enhancement.
B. Since the impact on costs is zero, add the enhancement for the
current Customer.
C. Perform risk analysis before making a decision.
D. Ask the Customer to sign off on the enhancement.
120. Camille is the program manager, and in her weekly meetings, she
reviews results with her predictive and agile project facilitators,
Charles and Jose, respectively. Both of them are expressing the need
for more resources, so Camille has asked to see the details of their
schedules and activity lists. Jose presents what information?
A. e project backlog.
B. e iteration backlog.
C. e release plan and the team’s velocity.
D. e iteration burndown chart.
121. How would you categorize or describe the work results of the
project?
A. Projects produce products.
B. Projects result in services, results, or products.
C. Outputs of projects must pass acceptance criteria.
D. Change control boards have the ultimate say over those
speci�cations of the �nal work product produced by the project.
122. George, a developer on your agile project, approaches you as team
coach and asks for your approval to take 5 days of vacation in the
next iteration. You reply:
A. “Let’s look at the backlog to see if that is a bad time before I
approve it.”
B. “Based on the sustainable pace, we can only spare you for 3 days.”
C. “Bring it to the team for their decision.”
D. “You’ve earned it—approved.”
123. Raj, the project manager, is meeting with Sue, the Customer, at the
working assembly line to compare the product modifications to the
specification. Raj and Sue are most interested in the results of the
modifications. e goal of the project is to increase efficiency on
this section of the line by 15%. Which tool would be the best for
them to use during this meeting?
A. Variance Analysis.
B. Inspection.
C. A Pareto Chart.
D. Alternatives Generation.
124. While planning the JKL Project, you bring together the soware
development team coaches as well as the control account managers
to create the consolidated plan of the entire hybrid project. e
coaches are bringing their release plans and backlogs to the
meeting; what will the control account managers bring?
A. Work breakdown structure, Activity list.
B. e JKL project scope statement.
C. e JKL S-curve.
D. e JKL project charter.
125. Manage Communications is a process that is all about executing the
plans that have been made and responding to requests for
information as they arise. Which of the following techniques is not
considered as relevant to this process as the others?
A. Communication Style Assessment.
B. Con�ict Resolution Techniques.
C. Feedback.
D. Presentations.
126. Which answer best completes the following statement: “e project
charter of a hybrid project is …”
A. Developed before the business case and aer the project plan is
deemed to be hybrid.
B. Developed aer the business case and before the project plan.
C. Developed before the contract and aer the project plan.
D. Developed before the contract and before the project plan.
127. Which process is best described as the process of communicating
and working with stakeholders to meet their needs and address
issues?
A. Direct and Manage Project Communication.
B. Perform Integrated Change Control.
C. Manage Stakeholder Engagement.
D. Manage Communications.
128. While bidding on a project, you recognize part of the deliverable is
very well understood with little contention over requirements, and
that another component is not well-defined. e less understood
component may be a source of complexity in the project with a need
for evolutionary understanding. Your best approach, in this case,
would be to:
A. Recommend creating a program that coordinates the bene�ts of
an agile project and the predictive project separately.
B. Recommend a hybrid project with a predictive approach to the
well-known and an agile approach to the fuzzy components.
C. Recommend the Taylor approach with colocated team members
and a department-wide daily stand-up meeting.
D. Recommend a hybrid project with the better de�ned components
being addressed in an agile approach, and the complex aspects of
the project being managed with a �rm command-and-control
predictive approach.
129. Members of the team have provided data from their respective
areas to Chafik. Now, he can analyze the summarized data, draw
conclusions, and share them with key stakeholders. Chafik is
puzzled because Lisa is in charge of the project schedule and
reports a cumulative SPI of .87 while Ankit reports that the CPI is
1.14 - Alex reports a drop in rework and defects for the period.
From these four statements, choose the statement that would best
describe an interpretation of the data for Chafik.
A. Tell Cha�k that the cost overruns are not due to quality issues but
most likely are due to the inefficient work of the team.
B. Tell Cha�k that his project is behind schedule but ahead of budget
and to be happy with the quality improvements.
C. Tell Cha�k that his project is ahead of schedule but behind budget
and he should be pleased with the quality improvements.
D. Tell Cha�k that there is not enough data to forecast an estimated
�nal budget or delivery date for the project, but focus on the good
quality results.
130. e project life cycle includes regular and frequent retrospectives
to gauge how the project work is being performed—to build in
opportunities to: improve the process, deliver completed features,
and gain team consensus for the project adjustments. e project is
said to be:
A. Predictive and adaptive.
B. Agile Scrum.
C. Test-�rst development.
D. Iterative, incremental, and adaptive.
131. Margaret is gathering information from the last month of project
activity as she prepares to meet with key stakeholders, make sure
they are getting the data they need, and respond to any issues.
Margaret is looking for all supporting data related to a recent
request to modify the shipping specifications for vital parts. She
recalls that this topic of shipping requirements was a very big
concern for one of the customers, but she cannot remember who
that person was. What two items will be key inputs to Margaret in
this process?
A. Requirements documentation and Work performance
information.
B. Issue log and Stakeholder engagement plan.
C. Change log and Responsibility assignment matrix.
D. Change log and the Work breakdown structure.
132. e team has a challenge to consensus based on two different
methods of structuring a solution to a soware issue discovered in
this iteration. ey decide to perform two spikes together to arrive
at a unified solution. e conflict of the two approaches is being
resolved with what technique?
A. Smoothing.
B. Experimental.
C. Problem-solving.
D. Adaptive.
133. Consider the following four lists related to the process of
monitoring and controlling risks. Which list is most accurate, if you
start with the output, then list the tool or technique, and finally the
input related to this process?
A. Work performance measurements, Trend analysis, Work
performance information.
B. Work performance information, Audits, Work performance data.
C. Risk register, Meetings, Project management plan updates.
D. Risk register, Risk reassessment, Meetings.
134. An agile team may use all of the following items or events in
support of the project budget EXCEPT:
A. Refactoring.
B. Release planning.
C. Burn rate.
D. Velocity.
135. Which of the following is the best explanation of the differences
between the Validate Scope and Manage Quality processes?
A. ey may be performed in parallel, but Validate Scope should be
�nished last.
B. Manage Quality is all about correctness, while Validate Scope is all
about completeness.
C. Validate Scope is primarily concerned with acceptance and
Manage Quality is primarily concerned with following the quality
standards on the project.
D. Validate Scope is about correctness, and Manage Quality is about
completeness.
136. At the daily stand-up meeting, as coach you took a few seconds to
recognize that a team member had completed a critical training
experience and that she can share what she learned with the team in
approaching a solution to a high-value story this iteration. is is
an example of:
A. Building projects around motivated individuals.
B. Improper use of the daily stand-up meeting.
C. Paired programming.
D. “i-shaped” specialization.
137. Which of these statements about a work breakdown structure is not
accurate?
A. Once the scope baseline is established, the WBS should represent
all the official scope of the project.
B. e number of levels in a WBS will vary.
C. e goal with decomposing the WBS is to keep going until you
don’t know enough information to continue decomposing or
you’ve reached the work package level.
D. e WBS results in many work packages that all have a single
schedule activity associated with them.
138. Hybrid Project HIJ has identified stakeholders and created a
stakeholder register. Which of the following statements is not true
about a stakeholder register?
A. No processes use it as a tool.
B. Only one process creates or generates this list of stakeholders.
C. It contains the communication requirements for each stakeholder.
D. e stakeholder register is most closely associated with the
process of Identify Stakeholders.
139. Accepted deliverables are an input to the process of closing the
project or phase carried out in Integration Management. What
process produces those accepted deliverables?
A. Perform Integrated Change Control.
B. Monitor Project Execution.
C. Validate Scope.
D. Monitor and Control Project Work.
140. As team facilitator working closely with the product owner (PO),
you have picked up on signals that the PO may have a desire to
move into agile team coaching. You take the initial step by:
A. Recommending to the PO that they get some training in agile and
learn more about servant-leadership.
B. Communicating with the team that they should encourage the PO
to take the steps to get into team coaching.
C. Investigating what other team coaches exist in the organization
and who could help the PO.
D. Discuss with the PO what the team coach role is all about and
offer to mentor the PO about it if there is an interest.
141. A project team member may have a strong preference to being led
by a project manager who practices either eory X or eory Y
leadership and motivation styles. Who is attributed with
development of the eory X and eory Y motivational
descriptions?
A. McDonald.
B. Maslow.
C. McGregor.
D. McClelland.
142. As team facilitator, you challenge your team’s agile training by
asking: “Following agile principles, which of the following would
most align?” What is the best response that allows you to rate the
training as effective?
A. Being lean by minimizing any project work that is not essential.
B. Delivering the product backlog in a single release to ensure the
entire project feature set has technical excellence and good design.
C. Maintaining the change control system to effectively increase
delivery time and reduce cost by constraining change.
D. Looking back at lessons learned at the close of the project to
determine best practices for the next project team.
143. Jonas is performing a number of administrative tasks as the
contract work is nearly complete for this project. Assume only one
contract and one vendor was used on this project. In what order
would Jonas and the team perform these processes?
A. Conduct Procurements, Create WBS, Validate Scope, Control
Procurements, Close Project or Phase.
B. Develop Schedule, Create WBS, Validate Scope, Control
Procurements, Close Project or Phase.
C. Create WBS, Develop Schedule, Validate Scope, Close Project or
Phase, Close Procurements.
D. Create WBS, Develop Schedule, Validate Scope, Control
Procurements, Close Project or Phase.
144. As manager of the project, you decide to add an agile component to
be delivered by a soware development company. Which statement
about contracting is the most accurate of these four?
A. Buyer must ensure that Seller abides by the terms of the contract
and that deliverables are of acceptable quality.
B. Seller must ensure that Buyer does not add to the contractual
scope of the work that has been documented and signed by both
parties.
C. Buyer and Seller must ensure that all actions are taken in the best
interest of their respective companies, their owners, and their
shareholders by law.
D. Buyer and Seller must ensure that both parties meet their
contractual obligations and that their own legal rights are
protected.
145. roughout the life of a project, there can be a great deal of
pressure on the PM to meet the expectations of stakeholders and
communicate with them appropriately. Read the following 4
descriptions and choose the one that best describes what this
process entails:
A. Clarifying and resolving issues that have been identi�ed and
documented.
B. Resolving issues that have been identi�ed and addressing
concerns that have not become documented issues yet.
C. Actively managing the expectations of stakeholders while
passively reporting status to the PMO when required.
D. Actively listening to the needs of stakeholders.
146. In initial review of the project backlog, the product owner and the
rest of the team meet to determine a realistic release plan with
minimal viable product releases. e goal is to:
A. Estimate how many iterations will be involved so that the Finance
Department can understand the burn rate for cash �ow planning
purposes.
B. Groom the project backlog to order it based on the priority of
estimated points for product features.
C. Determine the approach to deliver incrementally to get value in
the hands of the customer as fast as possible.
D. Organize the work based on the skills of the team, when speci�c
team members will be available to work, and what competing
projects will usurp resources.
147. Which of the following statements is least accurate in describing
the process of stakeholder identification that a project manager
should carry out in a project?
A. is process should identify stakeholders who may be impacted
negatively by the project result or work.
B. is process should identify both internal and external
stakeholders, including vendors or sellers performing work for the
project team.
C. Identifying stakeholders is vital to project planning because it
helps determine who should be involved in de�ning the project
scope baseline.
D. Identifying stakeholders is an initiating process that should be
conducted and closed out very early in the project.
148. e team is meeting with vendors today to pick a supplier of an
automated testing system for the agile project underway. e team
met yesterday to discuss:
A. How far they expect the potential vendor to go in trying to win
favor with the team and garner the contract.
B. How to get the best deal from the selected vendor by using unclear
terminology that might mislead the vendor in the team’s favor.
C. e make-or-buy decision that has led to this vendor meeting and
what to do if they actually decide to “make” the system
themselves.
D. e agreement factors that are must-haves, as well as the
conditions and terms that are �exible.
149. eresa took over for another PM aer about half of the project was
completed. She is looking for guidance for how she might reward
team members for excellent performance. What document is the
best source for finding that specific information?
A. Staffing management plan.
B. Resource management plan.
C. Human resource plan.
D. Reward guidelines.
150. e team facilitator counsels the team that the information
radiator should be set up in or near the team space. What is the
focus of this radiator?
A. To keep a scoreboard of who is doing what on the project team so
that the team is always on the same page.
B. To ensure that the temperature doesn’t fall below a comfortable
level for the team.
C. To display the work area layout so that team members can see
their current workstation assignments and phone extension info.
D. To convey important aspects of the project to passers-by for
transparency.
151. Which of the following processes is not in the Planning process
group?
A. Create WBS.
B. Determine Budget.
C. Develop Project Charter.
D. Collect Requirements.
152. You are in a meeting with the sponsor to review project status, but
someone spilled coffee on the one copy of your report, and your
laptop is back in the office. You can barely make out some of the
numbers. e report shows that schedule variance for the project is
$15,000. Planned value = $105,000, and actual cost = $114,000. Do
you have enough data to calculate the cost variance, and if you do,
what is it?
A. No, you do not have enough data.
B. Yes, CV is $6,000.
C. Yes, CV is ($24,000).
D. Yes, CV is ($9,000).
153. As a hybrid project manager, you have already learned that an agile
sub-project can continue on past the scheduled completion date of
the parent project. To keep current with the agile component, you
should:
A. Schedule weekly meetings with the product owner and the team
coach to get a status update.
B. Keep an eye on the release plan posted on the information
radiator; review any applicable burndown charts, too.
C. Attend the team’s daily stand-up meeting to fully understand how
they are progressing.
D. Require weekly reporting of the team’s SPI and CPI to forecast
where they are heading.
154. Your agile team is in Iteration-H and faces project closure very
soon. What will be one of the team’s concerns for the customer
value to be realized?
A. Con�rmation that the product owner correctly disaggregated the
epics into stories.
B. Validation that the transfer of the deliverable ownership will also
include the necessary knowledge transfer for the product support
life cycle.
C. Finding new assignments for each of the team members to quickly
zero the burn rate for the current project.
D. Using the �nal iteration review to con�rm that the customer truly
understands the value delivered by the project team.
155. Your company has limited resources and must choose between two
projects for the next period. Project Green has a present value of
$11,000,000. Project Orange has a present value of $7,500,000.
What is the opportunity cost of choosing Project Green?
A. $7.5 Million.
B. $3.5 Million.
C. $11 Million.
D. $1 Million.
156. e project team is busy performing quality assurance for the
current phase of the project. Why is the team most interested in the
quality control measurements?
A. ese measurements are compared against the plan to see if the
deliverables are of acceptable quality.
B. ese measurements are the results of quality activities so they
indicate if the plan is being followed.
C. ese measurements are compared with the quality metrics and
the Customer is asked to sign off on those that pass inspection.
D. ese measurements help the team �nd quality issues, initiate
change requests, and implement correction action.
157. Which of the following statements is not true regarding the
collection of project requirements?
A. e requirements documentation produced from this process
becomes an input to other processes.
B. e project team or a subset of the team makes use of the project
charter, the stakeholder register, and the scope statement to carry
out this process to document requirements.
C. e project manager should be able to tie each work package back
to a requirement that was de�ned in this process.
D. is process is all about understanding, documenting, and
managing customer expectations.
158. Jamal is the agile team facilitator for the Rhino Project, with an
estimated nine iterations. At the end of the third iteration, the team
has completed half the project backlog. Jamal gets called into an
emergency meeting with the product owner and the project
sponsor. e sponsor breaks the news that the prior quarter
financials for her organization were not good; as a result, the
sponsor is forced to shut down funding for four projects, including
the project that Jamal is coaching. Jamal is very upset - the project
is going well and the team is performing excellent work. As he
leaves the meeting, Jamal considers what action he should take first.
As the team facilitator, what should Jamal do?
A. Request a formal, written document from the sponsor that
indicates project termination.
B. Update the team and advise they should stop the iteration activity
and close.
C. Request a meeting with the sponsor and her management to
report on the progress made to date on the project.
D. Take the steps to close out the contract.
159. e system that supports all aspects of the project management
processes from initiating through closing is:
A. Information technology.
B. e information distribution system.
C. e project management information system.
D. e work authorization system.
160. e Otter Company has just absorbed one of its former
outsourcers, the CDE Group. Jolene, formerly of CDE, is now on
your Otter agile team, but is not planning to move to your local
office, two states away. To facilitate her integration with the team,
what should be considered first?
A. What techniques and tools are available that can enhance Jolene’s
day-to-day communications as a virtual team member.
B. What project tasks can Jolene be assigned by the team that
complement her skill set and need to work remotely,
independently.
C. What workspace in Jolene’s home is suitable for an office that
would support a webcam and technologies to help her team
interface.
D. What possibilities exist for Jolene to commute to Otter’s location
so she can colocate and integrate with the agile team as she
should.
161. e most important factor in project integration is:
A. A clearly de�ned scope.
B. Timely corrective action.
C. Team buy-in on the project plan.
D. Effective communication.
162. e agile project delivers a product, service, or result during which
project event?
A. e iteration-H review and subsequent project closure.
B. e �nal step of the iteration retrospective.
C. Incrementally by iteration review or demonstration.
D. Incrementally by the completion of work breakdown structure
component.
163. In a strong matrix organization that delivers agile as well as
waterfall projects:
A. More power is given to the functional manager.
B. More power is given to the project manager.
C. More power is given to the project expeditor.
D. More power is given to the project coordinator.
164. e resource management plan may contain:
A. e escalation �owchart.
B. How to develop the Resource Management Plan.
C. e project organizational chart.
D. e work authorization system.
165. You are the project manager for a project, and the Customer just
asked for a cost estimate for a group of tasks the team will perform.
What type of estimate would you prefer that the Customer request
from you?
A. Control.
B. De�nitive.
C. ROM.
D. Parenthetical.
166. Roger has brought an estimate for network connections and
webcam equipment to facilitate his home office as a remote team
member of your agile team. As coach, you have prepared senior
management for the concept of virtual teaming to get the right
contributors together for a high performance, agile team, with
positive acceptance. What would be the best next step?
A. Procure and implement the setup as soon as possible.
B. Ask Roger to get two more estimates from other service providers
so that the procurement governance can be in compliance.
C. Meet with the project sponsor, Roger’s functional manager, and
the �nance manager to look at the pros and cons for Roger’s
proposal.
D. Explain to Roger that his home office is for his convenience and
not a requirement of the company. If he wants to work remotely
on a virtual team, he would be responsible for the services fees.
167. e project team, including those members who work remotely, are
all meeting together for the week in order to test, document, and
finalize delivery of the first major project deliverable. What is this
practice called that a project manager may use from time to time to
help develop the project team?
A. Collaboration.
B. Colocation.
C. Team-building.
D. Quality circles.
168. e project charter has just been signed, approving you as the agile
team facilitator for the Reporting Task Force. e project sponsor is
the product owner, and you are meeting with her to determine who
you both desire to perform on the agile team. How do you describe
to functional managers what staff resources you are seeking?
A. Mature developers with agile experience and a broad skill set.
B. Creative developers with experience applying their speci�c
specializations in various situations.
C. Mature developers that have applied report coding experience
with the speci�c databases in question.
D. Creative and adaptable individuals that are self-starters with
demonstrated enthusiasm, initiative, and ability to thrive in high-
con�ict situations.
169. e team is getting slightly behind on the project schedule, so
Francine has moved team members Joseph and Sally from their
prior assignments to new tasks. Rick is thrilled because he had been
working nights and weekends in an effort to complete the task -
now, he has help! What process is being described, and what tool
has Francine used?
A. Develop Schedule and the tool of Resource Leveling.
B. Estimate Activity Durations and the tool of Crashing.
C. Develop Schedule and the schedule compression tool of Crashing.
D. Control Schedule and the tool of Resource Optimization.
170. e agile team has identified an issue with the way the acceptance
criteria is defined on the back of the story card. With whom should
the developers collaborate to approach resolving the issue?
A. Project sponsor.
B. Product owner.
C. Team facilitator.
D. Primary stakeholders.
171. ere are 49 Processes, and most of them result in more than one
output. One of the outputs of the Direct and Manage Project Work
process is:
A. e deliverables.
B. e work authorization system.
C. Approved change requests.
D. e key performance information.
172. e agile team is meeting with a new member to quickly orient him
to the project. He asks, “What do you do when you are near the end
of an iteration and the burndown chart doesn’t reflect the targeted
progress?” e team best responds:
A. We press on with the work at hand, trying to complete the most
valuable features �rst.
B. We put everything in high gear, working a few extra hours than
normal each day to get it done.
C. We prepare for the next iteration by reducing the team velocity
and adjusting how much we commit to in an iteration.
D. We have a quick swarm to determine how to adapt our process to
increase our velocity and recover this iteration as much as
possible.
173. Which of the following is the best description of the project plan?
A. A formal, approved document that consolidates all subsidiary
management plans and baselines from planning processes.
B. e formal, approved document that integrates planning
processes and tells how the project measurement baseline will be
de�ned.
C. e formal, approved document that contains the work
breakdown structure, schedule management plan, budget,
contracts, cost management plan, and quality management plan.
D. e document that outlines all of the work to be performed on a
project and how change requests will be managed.
174. As team facilitator, you are being asked by the product owner, who
is new to the organization, to help him identify the types of
stakeholders that will be related to the project. You help by:
A. Reviewing the organization chart and explaining who’s who.
B. Using historical information from another project and showing
who those stakeholders were.
C. Showing him a questionnaire survey that can be emailed to all of
the department managers to discover where project interest exists.
D. Bringing him together with the project sponsor and another
product owner to discuss the grid analysis technique and applying
it to the organization.
175. Quality audits are considered an important tool in the quality
management knowledge area. Which of the 4 statements best
describes the impact a quality audit is most likely to have on the
cost of quality?
A. Quality audits should result in an increased cost of quality as the
performing organization makes an investment in either internal or
external resources to conduct the audits.
B. Quality audits have nothing to do with the cost of quality, which is
directly tied to product failure.
C. Quality audits should result in a reduced cost of quality and an
increase in customer acceptance of the product of the project.
D. Quality audits should result in a reduced cost of quality but have
no direct correlation with customer acceptance of the product of
the project.
176. e product owner solicits the team to help groom the backlog
every iteration because:
A. Value to the customer may vary based on timing such as windows
of opportunity and variable market demand.
B. e risk assessment of outstanding stories may be different based
on current knowledge, thus affecting the adjusted value and the
backlog prioritization order.
C. e customer’s acceptance criteria of various stories may have
changed, affecting the points estimated by the team.
D. e team may re-estimate the points associated with each story,
affecting the next iteration backlog commitment.
177. e Monitor Communications process is a fairly straight-forward
yet important process related to this area of Communications
Management. In this process, who is responsible for ensuring that
the data that is collected, analyzed, and distributed is accurate and
timely?
A. All members of the team.
B. Members of the team who have been assigned the role of
Facilitator.
C. e project manager.
D. e manager of the performing organization.
178. Now that the delivery organization has become about 50% agile in
its approach, the criteria for the annual Project Manager of the Year
Award and associated bonus has come under review based on
criticism from the agile community. How would the best performer
of the year best be handled in view of agile projects, too?
A. e criteria should be modi�ed to allow the product owner and
the team facilitator to be considered for the award as well as those
predictive PMs.
B. e award should be discontinued going forward; it is unfair and
biased toward an archaic form of motivation based on monetary
compensation for performance.
C. e criteria should be expanded to award the best performing
team rather than the project manager—who should be a servant
leader anyway!
D. e award should be morphed into the Project of the Year Award
to recognize good performance. e associated bonus should be
dropped because it is too expensive to compensate the entire team
for a job well done.
179. e PM has many responsibilities described for the knowledge area
of Integration. Of the following four choices, what would you
consider the most important function of the project manager
during project integration?
A. Taking action to make sure the team is uni�ed and on the same
page.
B. Allocating resources, materials, and people to optimize project
performance.
C. Communicating with key stakeholders to maintain support of the
Sponsor and buy-in from the in�uential people.
D. Problem-solving and decision-making for internal and external
resources to keep the project moving forward.
180. In preparing for iteration review, the team and the product owner
collaborate to preview the acceptance. If the team considers a
feature to be “Done,” but the product owner does not, then what is
the next step?
A. Appeal the product owner’s opinion to the project sponsor for
higher-level authority to override the PO’s opinion.
B. Put effort into high-gear to complete the product owner’s idea of
“Done” before the iteration review.
C. Ignore the product owner’s opinion and demonstrate the feature at
review. e team determines the de�nition of “Done,” not the
product owner.
D. Retain the story as not “Done” and add it to the upcoming
iteration backlog depending on the current grooming of the
project backlog.
181. Robert has a crisis on his hands. It is relatively early in the project
schedule; Robert has 3 team members in his office all talking at
once. Gene, Maria, and Anshul are very upset about their
assignments on the project. ey contend that they are responsible
for more work than they can manage. Robert has very little patience
- he’s managing 32 full-time staff, including another 8 contractors
on this project. e others are not complaining, so why should
these 3 be upset? Maria speaks up for the group and suggests
Robert make use of one tool to control the schedule more
effectively. What tool do you believe Maria suggests to Robert?
A. Schedule Compression.
B. Resource Leveling.
C. Crashing.
D. Performance Reviews.
182. During story card development and backlog grooming, the team
including the product owner evaluates and considers the effort, the
acceptance criteria, and what other value-driving aspect?
A. e uncertainties of threats or opportunities and the effect on the
value prior to prioritization.
B. e effect of including the story in an iteration and the resulting
burn rate.
C. e EMV, or expected monetary value, of the feature and its
contribution to the organization’s bottom line and the team’s
reputation for creativity and quality.
D. e team considers what additional features beyond the product
owner’s description that could be combined to make the story
deliver much more value in the market.
183. You have a problem with Ted. e project you are leading has high
visibility as this is the first phase of a multi-year engagement with a
new customer. e contract was negotiated such that the customer
can elect to extend the agreement into the next phase upon
completion of the prior phase. You selected Ted to be the
spokesperson for the project team at the status meetings at the
customer site. ese take place every other week. Four of these
meetings have taken place, and Ted is not performing up to
expectations. He does not read his audience well, spending too long
on topics of low interest and not long enough on those items of
keen interest to the customer. Ted seems ill-prepared and has
expressed that this role seems trivial to him. You have met with Ted
three times to coach, prepare, and assist him. ings have not
improved. e information must be distributed effectively in these
meetings - what should you do?
A. Move Ted out of this role of project spokesperson and �nd
someone better suited for the role.
B. Dismiss Ted from the team and recommend to his functional
manager that Ted be �red.
C. Place a formal, written letter in the personnel �le of Ted regarding
this issue.
D. Find someone outside your organization who can provide
professional training to Ted in this area.
184. e team is several iterations into the project, and the burndown
charts reflect that the committed stories are never delivered within
the iteration. What are two approaches to remedying this situation?
A. First, meet with the team tracker to ensure the burndown charting
is being done correctly; Second, give the team a pep talk to boost
productivity and get more “Done” in the iterations.
B. First, use iteration retrospectives to improve the work processes;
Second, reduce the team’s velocity to reality.
C. First, change the perspective by shiing to burnup charts for
progress tracking; Second, adjust the team’s velocity down by 25%
to see if that spurs them on.
D. First, change the team’s velocity to the average of the previous
iterations’ actual delivery; Second, review the agile principle of
sustainable pace with the team to help them boost that pace.
185. You could make the argument that the process of Develop Project
Management Plan is the most important process belonging to the
Planning process group. Of the following choices, which choice
would not be considered a Planning process?
A. Develop project management plan.
B. Identify risks.
C. Identify stakeholders.
D. Perform quantitative risk analysis.
186. As the team begins to look at the question of “How to perform
stories?” during iteration planning, discussion about one story
makes it clear that not everyone on the team comprehends its
meaning. What is the first step to take?
A. Have the team explain to the product owner the nature of the
ambiguity or fuzziness and have her restate the story with more
clarity.
B. Table the story in the parking lot and come back to it later in the
iteration when its priority brings it back into view.
C. Have the team facilitator explain her interpretation to clear up the
misunderstanding.
D. e team should narrow the interpretation down to only two
possible meanings and then vote or come to a consensus about
which meaning they will support.
187. Which of the following best describes when a project has been
successfully completed?
A. All quality metrics have been validated and accepted.
B. Contracts are closed.
C. e team has delivered product, service, or results to a customer
and avoided legal actions, including arbitration.
D. e team delivers all work packages on time and on budget.
188. During iteration planning, the team works to cra a goal—an
iteration commitment. What is the correct sequence and best
approach?
A. Review the stories, use Planning Poker to assign a value, groom
the backlog, pick the top stories that can be performed in the
iteration, and assign the iteration backlog.
B. Review the stories, use the product owner’s assigned value, groom
the backlog, estimate effort in points, pick the top stories that can
be performed in the iteration based on velocity, and assign the
iteration backlog.
C. Review the stories, use the product owner’s assigned value, adjust
the value upward for threats and down for opportunities, groom
the backlog, estimate effort in points, pick the top stories that can
be performed in the iteration based on velocity, and assign the
iteration backlog.
D. Review the stories, use the product owner’s assigned value, groom
the backlog, estimate effort in points, pick the top stories that can
be performed in the iteration based on velocity, determine if the
team has the talent to perform, and assign the iteration backlog.
189. As a project manager is developing, managing, and leading the
team, that PM should be aware of Tuckman’s model. According to
this model, how many stages are there, and what factors would
most likely affect the duration of each stage?
A. 4 stages and the duration can be in�uenced by the team size,
leadership, and team dynamics - how they interact.
B. 5 stages and how long those stages last may depend upon the team
dynamics, size, and the leadership present.
C. 5 stages and the duration of each stage is affected by the presence
of these roles - devil’s advocate, negotiator, and information
seeker.
D. 4 stages and the duration of each stage depends on team diversity,
technical complexity, and cultural norms.
190. e agile team asks the coach for an opinion: “We need a skill in
writing queries for the customer’s database, but no one on the team
has that experience. What should we do?” What is your best
response?
A. “Use a group decision-making technique that takes into account
the pros and cons of the alternatives, and then decide.”
B. “Hire a database subject matter expert.”
C. “Send one of you to get training, then have her come back and
train everybody.”
D. “Check with the customer to see if a different database could be
used with which you have experience.”
191. Read the following descriptions and choose the one that best
describes the purpose for the process called Plan Risk Management.
A. De�nes how to identify, rank, and react to risk events in an
organization.
B. De�nes how to identify, qualify, and quantify risk threats in your
project.
C. De�nes the risk register for a given project.
D. De�nes how to conduct risk management activities for a project.
192. Your agile team is building a case for the use of virtual teaming as
they develop the staffing plan for the project. Which of the
following 4 justifications is not valid?
A. e use of virtual teams will allow use of team members who work
from home offices and those may be vital resources with unique
skills that help your project team.
B. ey may be able to include team members with unique skills who
live in other, remote regions or work during different shi or
hours.
C. Lower travel costs and decreased commuting times will bene�t the
project.
D. e quality of work will be better as virtual team members make
use of osmotic communications and return higher quality results.
193. e project charter provides useful information regarding a new
project. Which of the following statements is false regarding the
project charter?
A. e project charter justi�es why the project is being undertaken -
the document explains the business case.
B. e project charter assigns a person to the role of project manager.
C. e project charter shares the summary-level budget.
D. e project charter summarizes the process to be carried out to
perform risk identi�cation.
194. Two project managers are having a discussion about hiring
resources. One favors hiring people who can do each other’s job, a
term she refers to as “generalizing specialists.” What is reasonable
to infer from her preference?
A. She does not have an overly technical project.
B. She is managing a project using an adaptive methodology.
C. She will likely have difficulty in project integration.
D. She does not realize the term “generalizing specialist” is a
contradiction in the context of project management.
195. Samantha is the sponsor for the project and has set up a meeting
next Friday with Sherry, the project manager. Samantha
communicated to Sherry that the purpose of the meeting was to
analyze project results to date and determine if the project team is
fulfilling the quality requirements that Samantha has established.
e actions carried out in the meeting would fall into what process?
A. Control Quality.
B. Manage Communications.
C. Plan Quality Management.
D. Manage Quality.
196. As team facilitator, you were approached by the project sponsor
with questions about the team’s progress and how it is being
reported. Identifying a coaching moment for the organization, you
explain to the sponsor:
A. How the team uses a daily stand-up meeting to report progress,
and that stakeholders are welcome to listen - just not participate.
B. at the agile principles being followed do not value
comprehensive documentation, and that voluminous status
reports are not created in the vein of being lean.
C. How the team is using a burndown chart to depict daily iteration
progress, and the burnup chart is showing progress against the
release plan.
D. How story cards are prioritized by customer value, and that the
estimated points represent the team’s perceived effort. e project
backlog, therefore, is the best view of what remains to be done by
the team.
197. During a weekly status meeting, Leah brings up some interesting
news. Leah realized that an important testing stage was somehow
le out of the project plan. In light of the entire project, the testing
stage will not take too long or require excessive resources. Some
team members suggest that the testing is not even critical for the
go-live delivery. What should the PM do?
A. Set up the testing stage as a new mini-project, assign resources,
and manage it separately.
B. is testing stage did not make the project plan, so it should be
omitted until the next iteration or sprint is performed.
C. Meet with senior management, explain the situation, and ask for
their input.
D. Return to planning processes for this testing stage.
198. e product owner and team are working to understand what the
customer is looking for with the new web page design. A helpful
technique in this case would be:
A. Extreme personas
B. Test-driven development
C. Attributes of INVEST
D. Wireframes
199. When changes are approved and made to the project, those changes
should be:
A. Added to the project baselines.
B. Compared against the project baselines.
C. Added to the project plan.
D. Compared against the project plan.
200. ZXY Consulting is performing a project for the Customer, ABC
Industries. e offices of ABC Industries are a one-hour drive from
the offices of ZXY. Early in the project, ZXY consultants discovered
that the Customer does not like email and has a strong preference
for in-person status meetings. is project will run for more than a
year, and many status meetings will take place. What advice is the
best advice for the consultants at ZXY?
A. Reduce the number of status meetings to save time and money.
B. Build a case for alternative methods for distributing the
information and present the ideas to the Customer.
C. Challenge the Customer to accept email updates for these status
meetings pointing out that it will save the Customer a lot of
money over the life of the project.
D. Discuss the preferred schedule of status meetings with the
Customer and include that data in your schedule and budget
estimates for the project.
FINAL EXAM ANSWERS
1. A is the incorrect statement which makes Answer-A the best choice.
Control Quality is generally performed prior to Validate Scope, not the
other way around. e output of Control Quality - Veri�ed
Deliverables - serves as an input to Validate Scope, which then outputs
Accepted Deliverables. Answer-B is true - they may be carried out in
parallel. Answers-C and -D are true - both have inputs of deliverables
and use inspection as a tool.
2. D. A �nal iteration with no new features may be used to harden the
product, or improve its quality and reliability. is “hardening”
iteration is oen called “Iteration-H.”
3. D is the correct choice for this question. ese answers are long and
require a careful reading for accuracy. e problem with Answer-D is
that a false conclusion is reached based on a correct phrase. e
beginning phrase is accurate; however, the communications plan
should be monitored, reviewed, and revised as needed throughout the
life of the project. For example, the team may build a set of reports for
key stakeholders weekly. Aer some time, key stakeholders may relax
that requirement and back it off to monthly reporting. So, change the
plan to re�ect this revision.
4. A. e agile team members’ motivation is maximized by allowing the
self-organizing and self-correcting natures of the team to function
freely.
5. D. As part of Perform Integrated Change Control, the project manager
will need to know when change has occurred, manage the changes,
and in�uence the factors that cause change, but the project manager
should not take on the attitude of denying change whenever possible.
Some change is inevitable, and all change requests should be evaluated
and not automatically rejected.
6. B. e issue log would be open and visible to stakeholders as well as
the development team when displayed in an information radiator.
7. C. Risk Categorization is a tool used during the process of Perform
Qualitative Risk Analysis. e team may make use of a Risk
Breakdown Structure (RBS) to look for potential sources of risk or the
WBS to look for other areas of the project that may be affected by a
risk. e purpose of the Risk Categorization tool is to help the team
categorize each risk - to deepen the understanding of the risk, its
impact, and its likelihood.
8. B. e team is the decision-maker for project procurements.
9. A. e activity list is a decomposition of the WBS. It takes the work
packages and breaks them down into activities that can be sequenced,
estimated, and assigned.
10. D. Agile teams are self-organized—even to the point of selecting who
serves on the team.
11. A. Negotiation is the best choice. Sandy is proactively negotiating with
the program manager to get those resources that she has worked with
in the past and now wants on her project team. Answer-B is not a bad
choice either - this sounds like pre-assignment given the timing. But,
Answer-B is not the correct choice: e question asks which tool most
closely �ts the description of the ACTIONS that Sandy took. Sandy’s
action in the scenario was Negotiation - based on her presenting a
strong case. e Pre-assignment action of the program manager
remains to be decided upon as a result of Sandy’s negotiated position.
12. B. Even though agile is a team-centric approach, it is unnecessary for
the entire team to be present at a bidder conference. No decisions are
being made here. e product owner may not have the technical depth
to respond to questions, and even less so would be an independent
third party. e best answer is ‘B.’
13. A. is is a straightforward question that requires you to know the
de�nition of corrective action. Answer -B is more descriptive of
rework. Answer -D is incorrect since corrective actions generally come
in the form of change requests from monitoring and controlling
processes.
14. C. Embedding the service provider or developer within the project
team space will enhance immediate feedback, thus increasing
productivity, quality, and acceptance of the deliverable to the team.
Colocation works well with customer collaboration, even when the
team is the customer!
15. Answer-B is the best choice. e Develop Project Charter process is
used to validate or re�ne decisions made during the prior phase or
iteration of this process. So, even the process that produces the
Charter may be revisited, especially if the project has more than 1
phase. Answer-D comes in second place, but Answer-B is the best
choice.
16. A. B’ is incorrect; the team facilitator has no authority to “force.” ‘D’ is
incorrect; servant-leadership places the team before the leader, but not
a burden to make decisions for the team. ‘C’ is an example of
smoothing or accommodating, which is not a favored con�ict
resolution method. In this scenario, ‘A’ is applicable; the team will
eventually make the decision for Lucy and Juan, but they will be well-
equipped with the creative approaches that resulted from the initial
con�ict.
17. C. is is a nasty question that forces you to compare 4 answers and
look for subtle differences. Answer-C is the best description or
explanation of the Create WBS process. Answer-A is too vague and
makes reference to requirements - not accurate. Answer-B mentions
activities - those come aer this process, so that is incorrect. Answer-
D is not accurate - it mentions subdividing work packages further. In
this process, the team decomposes larger deliverables progressively
until work packages (the lowest level of decomposition) are achieved.
en, the team moves on to another process. erefore, Answer-D is
not accurate. Answer-C is the best choice.
18. B. An outside factor affecting the project, such as the going market for
a developer, helps provide a basis for planning or making a decision.
‘C’ is incorrect; HR information is more sensitive and con�dential and
not contained in an information radiator.
19. A. Read the end of the question carefully, and you will note that you
are asked for a Process Group. at limits your choices to 5 valid
responses. Now, consider the actions of the new team - they are
carrying out Stakeholder Analysis, speci�cally to reach consensus on
Bob and his level of in�uence. Stakeholder Analysis is a tool of the
Identify Stakeholders process. at process is 1 of 2 in the Initiating
Process Group. Answer-A is the best choice.
20. B. Planning Poker provides a quick method of relative sizing. ‘C’ might
have been proper if the cups were labeled in sizes rather than INVEST
(for good quality story cards).
21. D. Tia and Anton are working in the process of Monitor Risks, and
they are using the tool called Reserve Analysis (one of the techniques
under Data Analysis). Answer D is correct.
22. C. is question on ADR is obscure, but we want you to be exposed to
it now - before the actual exam! ADR stands for Alternative Dispute
Resolution - how the Buyer and Seller will manage any contract
disputes or disagreements that may arise. Many contracts include ADR
mechanisms or steps or clarity and planning.
23. B. e procurement management plan, which is created in the Plan
Procurement Management process, includes performance reporting
speci�cations.
24. C. e agile project team is self-managed and approves its own change
requests.
25. B. In a functional organization, most of the power rests with the
functional manager. Answer-B is the best answer because in this
setting, it is likely the PM will run into more issues trying to obtain
sufficient resources. Answer-A is not correct - the functional manager
holds the most power. Answer-C is not correct - the PM wishes that
the functional manager would share power! Answer-D is not correct -
again, it describes more of a utopia than reality for the PM.
26. C. All 4 choices are extremely close here, but it is the approved project
charter that formally initiates the project. e bottom line is that
document must be signed by someone with proper authority to make
the project official.
27. D. is long-winded question describes the process of Identify
Stakeholders and the tools of expert judgment and stakeholder
analysis that pertain. at process is one of two Initiating processes.
erefore, Answer-D is the best answer. Again, the question does not
ask for the name of the process; it asks for the process group.
28. A. Did you choose ‘D?’ It was close to being correct, except that ‘A’ is
the de�nition of the project deliverables at varying levels of detail that
would be placed on the product backlog. e stories themselves
represent the deliverables and the effort to achieve them—the project
scope.
29. D. is question draws on your knowledge of the quality management
processes and your understanding of the tools. First, scan the answers
for bogus terms and eliminate those. In this case, none of the answers
involve made-up terms. Next, read the answers carefully. e sponsor
is not concerned with theoretical conversations. Answers-A and -B fall
into that category - whitepapers and categories of costs are not relevant
to Samantha’s speci�c project. at leaves Answers-C and -D. Answer-
C compares a control chart from the current project with a prior
project. Nothing in the question indicates that comparison would be
meaningful to the sponsor of the current project. at leaves us with
Answer-D - an updated checklist indicating when steps were carried
out. Simple but effective. Answer-D is the best choice.
30. C. Whether agile or predictive, the key to this question is to recognize
the description as contracting with a selected seller. Answer C is the
only correct combination of results- the Agreement (Contract) and a
Selected Seller. All other choices include results from planning or
monitoring the contract.
31. D. Project Resource Management has 6 processes, and 3 of them are
executing. e �rst of the executing processes is Acquire Resources
followed by Develop Team and then Manage Team.
32. D. Tell her about the story points being based on effort and not value,
but that the backlog is a good representation of the value that is
planned to be earned. Deliver updates on the increments and the
backlog status.
33. A. is one was extremely straightforward. e quality management
plan is used to guide the Manage Quality process
34. C. C is the best choice. Answer-C actually de�nes the con�ict
resolution technique of smoothing or accommodating. An agile team
would treat con�ict openly and directly, considering each member’s
viewpoint before making a resolution decision as a team.
35. B. Prioritizing requests for change is one of many jobs of the project
manager. Answer-A is not a good answer because of the wording that
says turn the requests over to the board. at passive implication is not
what you are looking for in the role of the PM. Answer-C is not a good
choice. e requested changes may cause rework or a change to how
plans are being executed now. Best to evaluate the changes now, so
Answer-C is not a good move to make. Likewise, Answer-D is not a
good choice. Your manager has placed you in the role to make
decisions and set priorities like this one. Answer-D may sound
reasonable, but assessing and prioritizing the 3 requests is the
responsibility of the PM, not the manager of the PM. Answer-B is the
best choice of these 4.
36. B. A’ is incorrect; Task estimation would occur on the stories that are
committed to the iteration. ‘C’ is incorrect; e story effort is
estimated only for near-term stories aer the backlog is groomed. ‘D’
is incorrect; the release plan would result from the features being
de�ned and assigned to iterations for release.
37. A is the best choice. Cost Aggregation is the tool. (Not Cost
Aggravation!) e tool sums up costs starting at the activity level, up
to work package, up to control account, up to total project. Each other
answer has a problem in the sequence or the name of the tool.
38. C. Answer-A is incorrect because punishment is not a con�ict
resolution method, but rather a form or power - though not applicable
unless applied to the entire team! Answers-B and -D are valid
methods, with Answer-D being a better option for con�ict resolution.
Answer-C (Forcing) is not really valid, that is, it does not apply, when
the team is self-managed. Who forces whom? So, ‘C’ is the correct
answer to this question.
39. B. Tough question - answer B is the best choice. Trish has described the
purpose of the monitoring and controlling process of the
Communications knowledge area called Monitor Communications.
Answer C is very tempting, but it does not list the name of a process; it
lists an output.
40. B. e team’s velocity re�ects the points performance of the team in
iteration points. However, be careful not to compare one team’s project
velocity with another project velocity- the points are not standard
measurements across the organization. e parent project manager
will probably need some coaching on agile velocity!
41. A. e question is asking for the best de�nition out of 4 possible
choices for critical chain. Ignore the drama with Fran and Mark and
look for the best de�nition. e critical chain is a resource-constrained
critical path. Answer-A is the best choice. Answer-B is wrong - critical
chain starts with critical path and then introduces the factor of limited
resources. at analysis oen leads to a new critical path. ey are not
the same. Answers-C & -D include elements of truth mixed with false
terms or ideas. Critical chain does include 2 types of buffers - the
project buffer is placed at the end of the critical chain to protect
delivery date; and, the feeding buffers mitigate the risk of feeding paths
that may burn through their �oat and could cause a delay to the
critical chain. So, feeding buffers are introduced at those points along
the critical chain where feeding paths that are not critical intersect
with the critical chain.
42. B. When the cost (burn rate) of the project, or next iteration, exceeds
the bene�t or value estimated for the next increment, then business
rules indicate that the investment is not worthwhile; the project is
over. e exception to this rule is if the project trigger is due to a legal
requirement, a charitable cause, or environmental responsibility. Such
projects typically cost more than the business value, but other values
come into play.
43. D is the best choice. Be prepared for lengthy answers that may require
some time to read and review.
44. D. e team, including the product owner, should have the same
expectations of what it means for a story or feature to be complete, and
this is called the de�nition of “done.”
45. B. e term “baseline” causes grief for many test-takers. Memorize that
the baseline (whether it is the scope baseline, schedule baseline, cost
baseline, or performance measurement baseline) includes the original
plan plus all approved changes. Once the budget change was approved,
it should be added to the cost baseline.
46. D. At �rst glance, many people think that the wording of answer ‘D’ is
impossible, but it is the correct choice. is problem should be solved
in the usual 3 steps with one additional step at the end. First, draw out
the network diagram based on the table. Your representation should
resemble the one below:
e next step is to list out all of the possible paths through the network.
In this example, they are:
Start-A-B-C-I-Finish
Start-A-B-H-I-Finish
Start-D-E-H-I-Finish
Start-F-G-I-Finish
e third step is to add up the values associated with each path. Using
the paths above, they are:
Start-A-B-C-I-Finish = 11
Start-A-B-H-I-Finish = 12
Start-D-E-H-I-Finish = 12
Start-F-G-I-Finish = 16
e �nal additional step is to increase the value of H from 3 to 7 and
evaluate the impact. at would change the list to:
Start-A-B-C-I-Finish = 11
Start-A-B-H-I-Finish = 16
Start-D-E-H-I-Finish = 16
Start-F-G-I-Finish = 16
e answer, therefore, is that the critical path would change (there are
now 3 critical paths), but the end date remains the same.
Moving from 1 critical path to 3 increases the schedule risk
considerably, invalidating choice ‘C’.
47. B. Adding up the resource cost per month: $6000 + $7000 + 5($6500)
= $45,500. 2 iterations per month brings the iteration burn rate to:
$45,000 per month ÷ 2 iterations per month = $22,750 per iteration.
is is the cash �ow that the Finance department needs to know to
supply your funding requirements.
48. D. ough business people and developers should work together daily,
that group is larger than the team. e principle is to “Build projects
around motivated individuals. Give them the environment and
support they need, and trust them to get the job done.”
49. D. At least the PM is consistent - all six times, he has invited everyone
to the change control party! Too many people, and not enough
control. e actions of this project manager demonstrate a lack of
understanding for performing integrated change control. It is a bad
idea to invite the entire team (even when small) to a meeting to vet a
change request. Perhaps a subset of the team is needed to weigh in or
help evaluate impacts, but not everyone. And, certainly not the
Customer along with mentors, friends, and family! Bad ideas - maybe
Answer-A IS an appropriate course of action!
50. D. Fred is a servant-leader of the agile team, but Leo does not “report”
to him as product owner. Because the predictive project owner, Anita,
has full project authority, consider her the “CEO” of the project.
51. D. e key to answering this question correctly is understanding the
project charter. It contains a summary milestone schedule and the
assignment of the project manager. e stakeholder engagement plan
will be developed in planning and not as part of initiating activities.
52. B. Fine-scale feedback results from frequent, incremental, functional
releases that open the team to small feedback loop resulting in quick
turnaround of advantageous changes for the customer’s bene�t.
53. B. An important input to developing the schedule is the output of the
Sequence Activities process. Project network diagrams convey task-to-
task �ow based on dependencies and logical relationships of tasks.
Answer-A is incorrect because the schedule is used as an input to the
Determine Budget process. Answer-C is incorrect because, even
though reserve analysis is a tool used in estimating activity durations,
the output of contingency plans is a result of active risk acceptance
which does not impact schedule development. Answer-D is not the
best answer in that quality planning is not as directly associated with
schedule development as is sequencing the project activities.
54. A. Also known as test-�rst development, test-driven development
would target the acceptance criteria �rst as a design spec, minimizing
rework and the need for an all-hands swarm. WIP limits might
highlight the bottleneck more quickly, but not solve the root-cause.
Pair programming is a practice that would help facilitate test-driven
development, but it is not the full remedy for this situation.
55. D is correct. e similarities of these 2 tools can be striking which
presents a challenge in keeping the purpose and uniqueness of the
tools clear in your mind. Go into the exam with a visual of the tool and
knowing how one differs from another. Some of these answers can be
distracting - they sound good. However, Answer-D is the best choice.
A Pareto Chart or diagram is a histogram that has been ordered or
prioritized by frequency of occurrence.
56. A. e question asks about a good technique. Answers-B, -C, and -D
are reactionary, and some not even proper. Regardless, the technique
of embedding the developers within your team is a good agile
technique in a normal state! It provides many bene�ts in quality,
communication, and productivity. In view of the risk of the
subcontractor’s issues, having the developers close at hand may deliver
the needed value more quickly than the subcontractor’s woes arrive.
57. D is correct and the best choice. e Stakeholder Engagement Plan is
created by Plan Stakeholder Engagement which is so straight-forward
that you may shy away from the obvious choice! However, the fact
remains that the Stakeholder Engagement Plan is the vital component
here and best answer. Another important part of the overall plan is the
communications management plan. However, that component of the
plan is the second-best choice for this question about the process of
Manage Stakeholder Engagement.
58. C. e value to the new owners will be seamless transition of
ownership of the product. ‘B’ is speculative, not substantiated by the
questioned scenario, and not probable with a good de�nition of Done
as a working premise. ‘D’ is incorrect; an agile team would only
promote “barely sufficient” documentation.
59. D. First, consider that the question is describing actions taken in the
Collect Requirements process. Two of the inputs to the Collect
Requirements process are the project charter and the stakeholder
register. erefore, the two processes that create these must have taken
place. ey are outputs of De�ne Project Charter and Identify
Stakeholders, so the correct answer is Answer-D. is would be
considered an easy question on the exam; it is based on knowing the
ITTOs in the process framework.
60. C. C is best. First of all, the scenario describes an opportunity or
positive risk, not a threat. So, disregard Transfer and Mitigate because
those are strategies for negative risks. at leaves Exploit or Share.
Share is the strategy that involves teaming agreements, partnerships,
and joint ventures to pursue opportunities or positive risks that may
otherwise be out of reach.
61. B. Flowcharting is the best tool here - choose Answer-B. Barbara needs
to uncover the bottlenecks - �nd the snags in the processes that are
causing quality issues with the output. Flowcharting is a great tool for
that purpose - it helps uncover failing processes. Barbara may �nd that
one department is at fault, or the problems may be in the transition or
handoff from one department to another. Or, quality issues may be
due to something as simple as communication. Flowcharting the
processes will help determine next steps. It is a technique of the Data
Representation tool.
62. D. ough the team self-manages, self-directs, and self-corrects, it is
the role of the program manager to coordinate the projects and
operations under the program umbrella to create the program’s
common bene�t.
63. C. Given the information presented in the question, the best advice to
Vijay is to charge the training back to the project budget for
GlobalCorp. GlobalCorp should pay for the development of a team
member. Answer-C is the best choice. e question indicates that
Vijay authorized the training and mentions no approval or
communication with the client on this point. Answer-A is not a good
choice, because Vijay did not ask the client before authorizing the
training. Answer-B is not good advice - Vijay could get into trouble if
he assumes his own PMO will pay for the training without asking �rst.
Answer-D is not a good choice.
64. C. e charter would name the project manager and de�ne the
associated authority levels. For an agile project, the team may not be
totally formed, but it can be named and authorized. Answers-A and -D
would depend on the team, and though a sponsor may set a high-level
budget, it would be premature for Finance to commit a cash �ow
without knowing an initial burn rate projection from the formed team.
65. B. One of the main reasons con�ict arises on a project is due to
communication, and one of the results of a project’s communication
lines being broken is that con�ict increases.
66. D. First know that BCR stands for Bene�t Cost Ratio. Project Looper
has a BCR of 2.3 meaning that for every dollar of cost invested in the
project, $2.30 of bene�t or revenue will be realized. Answer-A is not
good because we don’t know what the other project choices are. One
may have a BCR that is greater than 2.3. Answer-B is not a correct
choice - that term is made up but sounds fancy. Answer-C is incorrect
for the same reason as Answer-A - we don’t know how this project
stacks up against others. Note that the team lead role includes helping
with measuring the project’s bene�t in anticipation of the charter - and
then helping to realize that bene�t via the project execution.
67. A. Valid means of push communications include email, letters, press
releases, voice messages, and faxes, to name a few. Answer-A - the
knowledge repository - is an example of a pull communication
method. Stakeholders would have to take action to go pull data from
that source. Others are pushed out to them. erefore, Answer-A is
the best answer.
68. A. When an obstacle is noted, it should not hijack the time-boxed
stand-up meeting. Continue the meeting, then immediately assess the
threat as a team. ‘C’ may be an eventual resolution. ‘B’ may have
forgotten that a risk register may not exist on the project, and ‘D’
violates the discipline of the stand-up meeting; the coach may have to
throw a �ag on that play!
69. A is correct. If you got this one correct, give yourself a high-�ve.
Changes and issues �ow into and out of the process of Manage
Stakeholder Engagement through the project documents and the
project documents updates.
70. D. Since the boost is identi�ed with two features, the team’s velocity
would not change overall. However, the effort for those speci�c
features would be less; therefore adjust the points estimate. is allows
more stories to be committed to future iterations, thus delivering more
value faster to the customer. ‘C’ is not substantiated based on the
information provided, nor is it how “slack” is handled looking into the
future.
71. A. Cutting the scope is a strategy for avoiding risk. Avoid or Answer-A
is the correct choice. e de�nition given for the strategy of Avoid
includes changing the project management plan in order to eliminate a
threat entirely. is change of scope (impacting the scope baseline)
quali�es.
72. A. B’ may be too obvious and place Roger on the hot seat too oen.
e round-robin technique is a common facilitation technique that
encourages everyone to contribute without their feeling necessarily
attacked. ‘C’ is too covert in an open, transparent team. ‘D’ alludes to
McClelland’s three-needs theory, but is not applicable here.
73. A is the correct answer - that’s the right Process Group. e project
manager is officially named and assigned in the project charter - which
is one of the outputs of Develop Project Charter - an initiating process.
74. C. A complex effort with poorly de�ned deliverables is fertile ground
for an agile approach. Did you select ‘B?’ is is not a bad tactic, but
vetting issues, problems, and desired results might be better performed
with the product owner’s focus on stakeholders and being the voice of
the customer. e value to be delivered may be misunderstood by a
technical team or an agile coach.
75. D. D is the best choice and offers the most logical explanation tied to
the accompanying stage. Because of the potentially destructive nature
of this stage, the coach would like for the team to move through the
Storming stage with positive momentum. e coach will be more
engaged and needed during this stage to help new agile team members
understand self-organization and to preserve relationships and build
trust. is can be a destructive stage and not very productive.
Naturally, the coach’s desire is for the team to mature through this
stage quickly with little casualties.
76. A. e team has collective ownership for the product as generalizing
specialists. ‘A’ brings the team’s overall SQL level up. ‘B’ alludes to an
SQL-silo—non-agile. ‘C’ is a similar response which does not add to
the team’s SQL abilities for the project. ‘D’ assumes the customer can
do the SQL coding!
77. D. Schedule constraints would not contain leads and lags for activities.
‘A’, ‘B’, and ‘C’ would all make sense to include as schedule constraints.
78. A. At an enterprise level, executive sponsorship is key to success of any
change management effort. ‘D’ may be a good tactic over time, but will
not address the immediate needs of jump-starting agile conversion.
79. D. Close Project or Phase from Integration was the process. e output
of Final Product, Service, or Result Transition is the one you should
have selected.
80. B. On the burndown chart, when actual progress is below the planned
progress line, you could interpret that as the team’s being ahead of
schedule. ‘D’ would not occur because speci�c stories are not reported
on the burndown chart—maybe on the Kanban board?
81. B. B is the bad description; therefore, Answer-B is the correct answer.
e problem with Answer-B is the use of task-oriented (incorrect)
instead of deliverable-oriented (correct). Answers-A, -C, and -D are all
correct statements regarding the WBS.
82. C. e description of the project should drive the recommendation for
the agile approach due to complexity and the blurred vision of the
deliverable(s). Answers-A and -B would be driven by a more clear
project de�nition and a probable predictive approach. Answer-D
would not be your contribution as a project manager but rather the
contribution of the PMO.
83. D. In this case, the con�ict is of a technical nature, so the best way the
project manager could solve the problem is by using his or her
technical expertise. ‘A’ is incorrect because legitimate power might stop
the �ght, but it wouldn’t solve the problem. ‘B’ is incorrect because it
also might stop the �ght, but would not solve the problem. ‘C’ would
probably be the least effective approach to solving this particular
problem, since referent power is relying on personality or someone
else’s authority.
84. D. e work of the current iteration is the most important value to
deliver as decided by the product owner. e new feature may be
valuable and worthwhile, but that determination is the role of the
product owner as the voice of the customer in assessing the value and
the priority within the backlog.
85. A. e second of the three processes in Procurement Management is
called Conduct Procurements. at process belongs to the Process
Group of Executing.
86. D. As coach or facilitator, none of the answer choices except D are
appropriate. Answer-A may have been attractive, but the relative value
of the backlog features must be determined by the product owner and
the stakeholders, including the program manager. e urgent schedule
and the dependency may not represent a high-value situation.
87. B is the best selection of these 4. ROM stands for Rough Order of
Magnitude estimate and is generally in the range of plus or minus
50%. at level of �uctuation is not acceptable for executing or
controlling phases. at leaves us with planning or initiating as
choices. Initiating is the more appropriate choice for a ROM estimate.
Answer-B is the best choice. Caution: Even though these phases were
named like the process groups - they are not the same thing!
88. B. e MVP attributes do not include pro�tability. Answers-A, -C, and
-D describe characteristics of a true MVP.
89. D. A Pareto chart or diagram is a form of histogram. A histogram is a
bar chart. With a Pareto chart, that histogram is ordered or ranked
from greatest to least. So, the data is the same - it is simply reordered
to promote analysis. Histograms and Pareto diagrams are both
examples of the Data Representation tool. Answer-D is the correct
choice.
90. A. One of the strengths of the adaptive, iterative approach is the
improvements obtained from the iterative retrospective - an
opportunity to adapt and eliminate waste—improve processes! Since
the team was ready to jump into the next planning meeting, it is the
coach’s responsibility to ensure the team is following the agile
approach—hence the interruption. is holds true even if the agile
effort is a part of a larger predictive project—or a hybrid project.
91. C. e term slack is synonymous with �oat.
92. C. e best response is to solve the real problem. Answer-A does not
solve the issue. Answer-B is not up to the team, but rather up to the
customer, and probably not appropriate. Answer-D may be the right
thing to do, but Answer-C should be in process prior to -D.
93. A. Regardless of the past, Daphne needs to be proactive and in�uence
the root causes of change. Daphne should engage the Customer and
discuss the reasons for the high number of change requests and the
impact on the team and results. Answer -A is the best choice. Answers
-B, -C, and -D take an incorrect approach to change requests. Future
change requests should be allowed, naturally, and evaluated for merit.
But, the bigger issue is reaching a common understanding with the
Customer as to the approach to de�ning scope and managing changes
to it.
94. C. e typical planning meeting starts with “What?” will be developed,
and then begins to review “How?” it will be delivered. Answer-A
might seem next, but the “How? Planning,” though quick, is important
and should not be skipped. Answer-B is incorrect, the story effort is
not timeboxed, though the iteration is. Answer-D is incorrect; risk
assessment and value adjustments are done while grooming the
product backlog. e parent project manager of this obviously hybrid
project would need to know the plan for the upcoming iteration’s
progress - or the iteration backlog.
95. A. TCPI is below 1 - that is good news, indicating that the team is
performing better than expected when it comes to costs or spending
efficiency. A TCPI below 1 indicates a CPI above 1 - all good. at
eliminates Answers-B and -D. With remaining Answers-A and -C, we
have to pick the preferred timing of the communication. e question
indicates the level of uncertainty and risk during this phase and
further indicates the active participation of the sponsor in initial
planning. erefore, Bob should communicate the latest news now - as
soon as possible - to the sponsor. We have every reason to believe that
she or he would be interested in this good development. Answer-A is
the best choice.
96. B. e coach is best described as a servant leader, facilitating the team
and providing support for the team rather than directing or making
assignments. e coach does not “own” the process, but rather helps
the team follow the process, allowing adaptation where the team
decides within the bounds of agile principles and values.
97. D. Plan Risk Responses would be the point at which you determine an
appropriate response to the risks that have been identi�ed, quali�ed,
and quanti�ed. Only aer the risks are fully understood and analyzed
would you make a change to the scope.
98. C. Simply prompting team members for an input is a oen used and a
quite effective method to promote additional engagement in a
meeting.
99. C is the correct answer. is tool does not belong in the process
described. Risk probability and impact assessment is carried out in the
prior process of qualitative analysis - not here in quantitative analysis.
So, the team would respond to this member that this tool has already
been used. e other 3 choices are valid data analysis tools of this
process of quantitative analysis.
100. A. Answer-A is the only discussion topic that alludes to “looking back”
at project performance or opportunities for improvement, adaptation,
or adjustment.
101. D. is type of question makes the head throb. All 4 answers sound
good and make a rational argument. However, we have to choose the
best answer of the 4. at choice is Answer-D. Estimate Activity
Resources is closely coordinated with Estimate Costs. Both processes
focus on the quantity and type of labor, materials, and equipment to be
used on the project activities. erefore, Answer-D is the best choice.
102. B. ough Answer-A �ts the role of the team facilitator, the best
response is to follow the recommendation that team members be
100% dedicated to the agile team to allow stability and consistent,
sustainable performance. e sponsor’s role is to pay for the project.
103. A is the most accurate statement and the best answer. is question is
very difficult, as it requires an understanding of the differences in
these two outputs of Determine Budget. When graphed, the project
funding requirements will likely appear more as incremental steps up
as opposed to a smooth S-curve. ese steps represent the funding
that typically takes place in a given month, quarter, or other period.
Regarding Answer-D, note the use of the word Program instead of
Project - that was tricky.
104. C. As a project manager of a hybrid project, you should be as agile
conversant as a coach. One of your roles is to educate the organization
about agile and help promote project success. A casual, non-
threatening face-to-face may be the best method of feedback based on
your discernment of the �nance manager’s feelings.
105. D. When the project manager gets involved in monitoring and
controlling project work, sometimes these types of issues will arise.
e best course of action to deal with this con�ict is to confront it
head on, as soon as possible. e PM does not need to run to the
functional manager - talk to Francis directly �rst! e PM does not
need to involve the Sponsor - this is a job for the PM to handle. Don’t
attack Francis or deal with this issue in a crowd, like in a team
meeting. is conversation should take place in a private setting so
that the PM and Francis can have open, clear communication. en,
the PM can discuss the impacts of Francis’s behavior on the team and
the project.
106. A. As coach, facilitating the interface of the agile team with the
organization is a key role. Removing impediments to the approach
might be well-served by introducing the PM to the highly-visible
radiators in the team work space that communicate the team’s status.
Showing the PM how a daily stand-up works to help the team
communicate may build the PM’s con�dence in the approach. ‘C’ is
incorrect; there are no status meetings. ‘D’ is incorrect on many levels.
‘B’ is incorrect because it does not follow the agile value of less
documentation.
107. C. Triangular Distribution is another name for the three-point
estimate. Now, to decode the letters: P stands for Pessimistic, O for
Optimistic, and M for Most-Likely in this formula. erefore, it is
accurate to say that M should be greater than O but less than P.
Pessimistic will be the highest estimate; Optimistic will be the lowest
estimate; Most-Likely will be somewhere between the other two.
108. D. ough the WBS does not equate exactly to epics, the agile project
presented in epic form may provide the high-level that the PM can
integrate into the project’s WBS. Answer-A is incorrect in that the
project backlog may have varying degrees of detail not appropriate for
WBS components. Answer-B is incorrect in that the theme may only
apply to a speci�c iteration, for example, “Reporting.” Answer-C is
incorrect in that the practices may re�ect an approach without any
deliverable content.
109. B. B’ is the best answer here. e de�nitive nature of a project is its
being temporary; on-going support operations would not belong in a
project’s scope. ‘D’ is just silly. ‘C’ is incorrect; the project scope was
not requested to change or create the service. ‘A’ is incorrect in that the
project team size is not an issue here
110. C. Fast delivery with veri�ed speci�cations and customer acceptance is
best exhibited by embedding the customer within the team, providing
�ne-scale or immediate feedback within a small loop. ‘B’ is incorrect
because agile emphasizes generalizing specialists over “i-shaped”
specialists (like a testing specialist). ‘A’ is not best because it lacks the
customer acceptance of ‘C.’ ‘D’ is not best because it may test
compatibility or functionality without testing performance against
timing speci�cations - nor with customer feedback and acceptance.
111. A. You may be advising Isabel to go meet with the sponsor and ask!
at is great advice, but it is not a proposed answer. Given our choices,
Answer-A is the best answer. Isabel wants to understand sponsor
expectations. ose should be documented in both the stakeholder
register and the communications management plan. Other answers are
close, but Answer-A is the best choice given.
112. B. A seemingly on-going agile development may come to an end most
likely when the value of the outstanding features or stories exceeds the
cost of the next iteration—the burn rate. ‘A’ may have occurred, but is
not evident or conjectured by the question. ‘C’ is incorrect; an agile
team would have a sustainable pace to prevent burnout. ‘D’ is incorrect
in that there is no correlation between the cost of rework and the value
of delivering remaining stories.
113. A. e process of Direct and Manage Project Work is where defects are
repaired, documents are rewritten, reports are reproduced, corrective
and preventive actions are carried out. erefore, Answer-A is the best
answer here. Yes, these problems are detected in other processes. Once
�agged, the team determines the severity of the error or defect and
those that can be salvaged are reworked in this execution process.
114. D. is is Relative sizing, also known as triangulating, to position or
rank the stories in order of effort before estimating.
115. C is the best choice as it represents a valid combination of the correct
process name and an appropriate tool or technique. EMV analysis
(expected monetary value analysis) is oen used along with decision
tree analysis to apply probabilities of events to the cost or reward
associated to that event. If you missed this question, it is likely that
Answer-B tripped you up. e tool sounds correct, but the process is
not correct.
116. A. A is the best choice of the four. e PMIS (Project Management
Information System) would house the PM Plan, including the
Communication Mgmt Plan and the Scope Management plan. ‘C’ is a
madeup term. Neither ‘B’ nor ‘D’ would be expected to contain
guidelines for knowledge transfer among the team. e Scope Mgmt
Plan would most likely discuss this as an interim deliverable in the
project life.
117. C. is question is a challenge because it tests both your knowledge of
Inputs - Tools - Outputs and your practical application of project
management. Answer-C is the best choice of the 4. First let us address
the basic level of quali�cation. Answers-A, -B, and -C are valid tools to
the De�ne Scope process. Answer-D (decomposition) is not; discard
Answer-D as a choice. Answer-A lists expert judgment. It MAY be
difficult to �nd the right expert, but that is not the best choice for this
scenario. Answer-B lists the valid technique of facilitated workshops as
part of the tool of interpersonal and team skills. It is true that the PM
may struggle to get the right people in the sessions. Answer-C lists
product analysis - that is a valid tool, but it will not align well with this
project of gap analysis with reports as a deliverable. erefore,
Answer-C is the best choice as the least effective technique to use.
118. C. e uncertainties associated with each story card, whether threats
or opportunities, either add or subtract value for the customer’s
perceived value. e backlog is then re-prioritized or groomed based
on the resulting values—also known as a Risk-adjusted backlog.
119. A. PMI has a strong opinion on this point. Success is delivering the
de�ned, agreed-to scope. Nothing more; nothing less. Go with
Answer-A - that’s your best choice. Answer-B seems reasonable, but it
goes back to the official scope. If it’s not in scope, don’t do it regardless
of your schedule or budget. Answer-C wisely points to the need to
assess risks that this new feature may present; however, that’s a decoy.
Don’t gold-plate. Answer-D is not a good choice either. Stick to the
scope.
120. C. If asking for more resources, Jose would present the release plan
and current velocity. More resources should help accomplish the
release plan, or improve the plan. ‘A’ and ‘B’ show the work to be done,
and ‘D’ only shows progress in the current iteration. None of these
incorrect answers would be used to request additional resources.
121. B. e work results (output) of the project may be products, services,
or results. Answer-A is incomplete because work results could be a
product, a service, or a result. Answer-C is incorrect because the work
results don’t have to meet quality speci�cations or pass acceptance
criteria. Answer-D is bogus - the change control board reference is
nice - but Answer-B is the best answer here.
122. C. e team coach facilitates the process and guides the team in
process. However, the coach does not approve/disapprove or make
decisions. ‘C’ correctly re�ects the team responsibility to determine
how vacation is handled and how upcoming iterations are affected.
123. B. Inspection is correct - Answer-B. e question describes the
Validate Scope process. Inspection is 1 of only 2 tools of that process.
124. A. Based on the context of the question’s including control account
managers (CAM), one should assume that the WBS has been
developed and control accounts have been de�ned. Since the CAMs
are identi�ed, expect their further decomposition of their WBS
sections to be brought to the meeting—and probably the ensuing
activity list, too. ‘B’ is not the best answer; it is not decomposed
enough for CAM assignment. ‘C’ usually is planned downstream of
scope and schedule; it probably isn’t in play just yet. ‘D’ is too
preliminary a document to add much value in this planning meeting.
125. A. e communication styles assessment would take place in the prior
process of Plan Communications Management. Now we are executing
that plan, using the results of that assessment and other analysis.
126. B. e charter is developed aer the business case and before the
project plan. e business case is actually an input into the Develop
Project Charter process as a Business Document. is is true
regardless of the project’s being predictive, agile, or hybrid. e project
contract, if existing, is a business document preceding the chartering
of the project.
127. C. is question describes the goal or purpose of the process named
Manage Stakeholder Engagement. Answer-C is correct. Answer-A is
made up. Answers-B and -D are not accurate answers.
128. B. Hopefully you didn’t misread ‘C’ as a “tailored” approach. e
“Taylor approach” is a made-up term. ‘A’ would not be best in that
program management here rather than project management may be
too high of a level for coordination that could come from a hybrid
project manger. ‘D’ is incorrect; it reversed the logical sense of which
project components to handle via agile versus predictive.
129. B. Good interpretation of data for Cha�k to pass along to key
stakeholders. SPI below 1 indicates less than expected progress per the
schedule. CPI greater than 1 indicates better than expected spending
efficiency.
130. D. D’ best describes the project. ‘A’ is incorrect—the description does
re�ect a predictive approach. ‘B’ is not the best answer—there are
other methodologies than Agile Scrum that could be being described
here. ‘C’ is an agile practice, but is not targeted by the description.
131. B. e �rst step with this question is to identify the process and focus
on the question is being asked. e question describes the Manage
Stakeholder Engagement process and asks for two inputs. e only
accurate combination is in Answer-B - Issue log and Stakeholder
Engagement Plan.
132. c. e team is collaborating together - confronting the problem head-
on rather than confronting each other. e “problem-solving”
approach is effective, and a spike to support the decision is a great
common ground, collaborative approach. Experimental and Adaptive
are made-up terms relative to con�ict resolution. Smoothing is not
appropriate in this scenario - focusing on something good to take
attention away from the con�ict was not described here.
133. B. is question asks you to place the inputs, tools, and outputs in
reverse order for a given process. Answer B does that correctly.
Answer A is incorrect because it lists work performance
measurements as an output of this process - it is not. Answer C’s list
does not match the question. Answer D lists 2 tools and no outputs.
134. A. Answers-B,-C, and -D are items that would come into play related
to the agile project budget. e expected number of iterations and the
burn rate might be the basis for the budget estimate; velocity may
drive the release plan. Refactoring is the re-organization or
simpli�cation of the product without changing scope or functionality
—this is not related to the budget.
135. C. is question is a bit misleading by referencing Validate Scope and
comparing it with a process in the Quality Management area. e
tendency is to compare Validate Scope with Control Quality… not
Manage Quality.
136. A. Training and individual development, especially when brought back
into the team, is an excellent motivator as re�ected in Answer-A. ‘D’ is
incorrect—“i-shaped” specialization re�ects silos of deep
specialization—not re�ected in this scenario with the sharing of what
was learned with the team. ‘C’ is a two-person coding practice, not
applicable in this case. And, yes, the stand-up meeting is a great place
to apprise the team about success and accomplishment - even if it was
training!
137. D is a false statement about the WBS. It implies that each work
package will have 1 and only 1 associated schedule activity. at is not
accurate. Answer-A is a true statement about the WBS. Answer-B is
true - the number of levels will vary in a WBS depending on many
factors, such as the industry and complexity of the project. Answer-C
is an awkward, long statement but it is true. When the team is creating
the WBS, the team keeps breaking down the project deliverables until
they reach work packages or don’t have enough information to
continue at the present time.
138. C. C is the correct choice because this is a false statement. Answers-A,
-B, and -D are true about the stakeholder register. It is not a tool; it is
created by Identify Stakeholders. Answer-C is close but not accurate.
ere are numerous Planning processes that have this input as a
project document. e stakeholders of the agile component of a hybrid
project would also be re�ected in this stakeholder register.
139. C. If you got this one correct, clap your hands. Answer-C is the correct
answer to this tricky question. Answers-A and -D are very appealing
answers, as both name a legitimate Process, and both are closely
associated with deliverables. However, both Answers-A and -D refer to
change requests and do not include Accepted Deliverables as an
output. Answer-B is a made up name. Answer-C is correct - Validate
Scope produces Accepted Deliverables which feed into the Close
Project or Phase process.
140. D. Being a team coach may present opportunities to mentor others in
the organization as you educate others about agile. An initial step in
this scenario would be one-on-one conversation—not a broadcast
discussion like ‘B!’ ‘A’ and ‘C’ are less of a personal investment on your
part and a lack of taking the opportunity to be a mentor—and possibly
putting off the PO on the whole idea!
141. C. e wording of this question is a distraction. e �rst sentence adds
very little helpful information. e question, in a round about way, is
asking for the originator of the eory X and eory Y motivational
theory. at is Douglas McGregor and dates back to the 1960s.
Answer-C is correct. Answers-B and -D are decoys - correct names of
the originators of other motivational theories, but not applicable to
eory X and Y.
142. A. “Simplicity—the art of maximizing the amount of work not done—
is essential.” Answer-A re�ects this principle, while all of the others
contradict agile principles.
143. D. By the description given, Jonas appears to be in the Control
Procurements process. But, the question asks you to place the
processes in order. e correct order is in Answer-D - create the WBS,
build the schedule, validate the work performed, close the contract,
and close the project. Answer-D lists the correct order and the correct
Process names.
144. D. Some of these questions are tricky, as they require a comprehensive
understanding of Procurement Management. Not one of these answers
is false. However, you are asked to pick the best answer. Answer-D is
your best choice - it is the most complete and correctly addresses the
interests of both Buyer and Seller.
145. B is the best choice as it is the most complete and accurate description
of the process of Manage Stakeholder Engagement of those given.
Answer-A is accurate; however, Answer-B provides a description that
is richer - more complete. Answers-C and -D are inaccurate or
incomplete statements as it relates to this process.
146. C. e release plan of MVPs will be based on how the features can be
delivered incrementally, following the ideas of getting value—working
products—into the customer’s hands through early and continuous
deliveries. ‘A’ is incorrect; the burn rate is not based on the release plan
or MVPs. ‘B’ is incorrect; e backlog is ordered by highest customer
value �rst. ‘D’ is incorrect; the entire team is tasked with the project
work, not speci�c specialists or individuals.
147. D. e �rst 3 answers are true statements. Answer-D is the correct
answer to the question - it is very close but becomes a false statement
with the inclusion of close out in the phrase. Identify Stakeholders is a
continuous process - it takes place early and should be revisited
throughout the project. Answer-D is the best choice.
148. D. In preparing for selection and subsequent negotiation, the team
should come to a consensus about acceptable terms—with the legal
and purchasing departments in attendance, too! ‘A’ and ‘B’ are not
sound business practices for an ethical, mutually-bene�cial agreement.
‘C’ is incorrect; the make-vs-buy decision should have been made
before going this far into vendor selection and contracting.
149. B. e resource management plan contains a recognition plan for team
members.
150. D. e information radiator is a highly-visible information display for
the team as well as stakeholders to see the project and its status at a
glimpse. is follows the idea of transparency to all stakeholders about
the project information.
151. C. Identify Stakeholders and Develop Project Charter are the only two
Initiating processes.
152. B. Schedule Variance is calculated as EV-PV. In this example, we are
given the PV and the SV, so we must solve for EV. SV=EVPV;
$15,000=EV-$105,000. So, EV=$120,000. Now, CV=EV-AC. So,
CV=$120,000-$114,000. erefore, CV=$6,000. Do not be surprised if
you have to perform this type of calculation on the actual exam, using
2 formulas in order to reach the answer.
153. B. Agile teams will certainly push back against regular, formal
reporting. e team coach or product owner would be responsible to
inform the hybrid PM about agile practices and what the information
radiator can provide to satisfy his needs for keeping his thumb on the
pulse of the agile team.
154. B. e knowledge transfer approach should be con�rmed or validated
near project close to prevent new ownership from losing expertise
with the deliverable once the team is disbanded. ‘D’ doesn’t provide
any more value than what is delivered, but is a sales job on the
customer to highlight the value of the team. ‘C’ is not the
responsibility of the current project team; the project costs (burn rate)
are nil once the project is closed. ‘A’ is incorrect; the product owner
and team would deal with epics and stories earlier in the project life
cycle than in Iteration-H.
155. A. e opportunity cost is not the difference in the two; it is what you
missed by not choosing the other project. Because you invested in
Project Green - you missed out on the present value (bene�t) of
Project Orange - $7.5 Million. e project manager’s role provides
assistance with this type of bene�t measurement for project selection
prior to chartering.
156. B is the best choice of the four. Remember that the focus on Manage
Quality is carrying out the quality plans that have been made. So,
quality control measurements are the proof or evidence that quality
activities are occurring. e team can see the results of inspections,
sampling, control charts, and the like and have con�dence that quality
plans are being carried out. e other answers lean to the
understanding of the next process - that of Control Quality, where we
focus on the product, not the process.
157. B is the false statement here. It is very close to true - it has 1 false
element in it that invalidates the statement. e scope statement is not
used to Collect Requirements because it will be developed later. De�ne
Scope uses Requirements Documentation as an input; therefore,
Answer-B is false and the best choice. Answer-A is a true statement -
the Requirements Documentation and the Requirements Traceability
Matrix are vital inputs to other processes. Answers-C and -D are both
true statements.
158. B. Jamal has good reason to be disappointed; the team was delivering
value! However, as coach, his �rst course of action is to guide the team
to begin the closure steps—now, not at the end of this iteration!
Answer-B is the best choice. e other answers may be logical steps -
the team may very well take these actions as a part of closing the
project. Closure includes a degree of documentation, so these steps
may soon follow for requesting a formal notice and working with
procurement to close out any related contracts. However, the �rst
action needs to be closing the iteration and the project.
159. C. e project management information system (PMIS) is the one
described in the question. ‘A’ is not a good choice because you don’t
have to have information technology from beginning to end in order
to successfully deliver many projects. ‘B’ is a made up term. ‘D’ is not a
good choice because the work authorization system (WAS) is used to
make sure that the work is performed at the right time and in the right
sequence.
160. A. Technology can enhance the virtual team member’s interface with
the team. ‘B’ is incorrect; silo work is non-agile, and Jolene needs to
share team ownership of the project. ‘C’ is too speci�c, though it may
fall out of Answer-A later on. ‘D’ is incorrect; it is impractical given the
two-state distance—the commute would probably not be sustainable,
though face-to-face experiences are bene�cial at times, especially
during kick-off or new member introduction.
161. D. Communication is important at all points in the project, but it is
critical during integration. When performing integration
management, the project manager’s job is primarily to communicate.
162. C. Agile principles promote early and continuous delivery of working
value-added features, with a preference to a shorter time scale. ‘D’ is
incorrect—there probably is not a WBS for the agile project due to a
value of working deliverables over documentation. ‘B’ is incorrect;
aer the retrospective, start planning the next iteration… e delivery
occurs during or at the end of the iteration—before the retrospective.
‘A’ is incorrect; delivery occurs frequently and throughout the project,
not just at the end.
163. B. In a matrix organization, power is shared between the project
managers, agile project teams, and functional managers. In a strong
matrix, the project manager or agile team is more powerful, while in a
weak matrix, the functional manager has more power. From the agile
perspective, the agile team may be in a much better position with
senior management support in a similar strong matrix orientation. In
no circumstances would ‘D’ be correct, as the project coordinator is,
by de�nition, weaker than a project manager.
164. C. e project organizational chart, showing positions and reporting
relationships, is a part of the resource management plan
165. C. In this situation, your preference would be to provide as broad a
range as possible in the estimate. at would give your team the most
room on either side of the estimate - high or low. Looking at the 4
choices, 3 are valid choices; Answer-D is a made-up term. From
Answers-A, -B, and -C, Answer-C represents the broadest range. ROM
stands for rough order of magnitude; some refer to it simply as Order
of Magnitude. at preliminary estimate provides the least risk -
broadest range - lowest stress to you, the project manager.
166. A. Prevent any delays in providing the team with the environment and
support they need - build projects around motivated individuals! ‘A’ is
the best answer—the political work has been done; the question is
about the estimate and next steps. ‘B’ is presuming a lot more than the
information given in the scenario. ‘C’ may be necessary in some other
situations, but you should be well past this step by this point. ‘D’ is
unfounded based on the question statement—and go back to the agile
principle of motivated individuals to not make this mistake!
167. B. Colocation is the tool described when team members come to the
same location for a period of time. Colocation can be very effective
when the team needs to focus to solve problems, complete phases, or
reach milestones. Face-to-face communications are always the most
effective.
168. A. Wow, ‘D’ sounds like a real-go-getter! But having the attribute of
being a developer might better serve the team. Agile teams perform
better with experienced, mature (not in age, but mature in judgment
based on experience) contributors that have “T-shaped” skill set - not
a deep and sole expertise as in “i-shaped.” Both ‘B’ and ‘C’ answers
re�ect “i-shaped” developers.
169. D. D is the best choice. Francine is controlling the schedule by moving
resources to those tasks that require more resources. Resource
Optimization is the technique being described by this scenario. Note
that resource optimization moves or reassigns resources to relieve
pressure both from those resources and the tasks they are working.
is scenario is a better description of resource optimization than the
schedule compression technique of crashing. Crashing usually involves
adding new resources (staff or contractors) to tasks. In this case,
Francine is moving team members from one set of tasks to another.
And, Rick is grateful!
170. B. e product owner is the voice of the customer—the representative
of the key stakeholders of the project deliverables. is focused role
helps the agile team to have one clear voice that de�nes value,
acceptance, and project bene�t.
171. A. e deliverables are the primary output of Direct and Manage
Project Work - that’s why we do projects. Answer-B is not a good
choice here. Answer-C is appealing, but it says approved change
requests - these change requests pop up during the process, but they
are not approved or rejected until vetted in Perform Integrated Change
Control. Answer-D sounds like Work Performance Information - but
key performance information is not a term used as part of the
processes of project management.
172. A. A sustainable pace is advocated by agile principles to protect the
team from burn-out, abuse, and dangerous fatigue. No heroics are
valued in meeting the iteration backlog. ‘C’ may occur in the iteration
retrospective, but not yet in the current iteration work period. ‘D’ may
sound like a good choice, but too much adaptation and analysis at this
point may inhibit productivity. e burndown chart may actually
re�ect suitable progress if the team continues the iteration as planned
—progress is not always linear.
173. A. Granted, this is a tough question. All answers contain some true
elements, but there are decoys or extras in 3 of the answers. Answer-A
is the best choice. e project plan is a formal document. It is created
during planning, and is used to guide the execution processes,
monitoring and control, and closure. It is a consolidation of the
subsidiary planning processes. Answer-B is incorrect because it refers
to a bogus term - the project measurement baseline. Answer-C is
nearly correct, but it is an incomplete list and has contracts in it.
Contracts are not a part of the project plan. Answer-D is incorrect
because it is more like a hybrid of the de�nition of the work
breakdown structure and change control than it is to the project plan.
174. D. D’ would be the most help. Being new to the organization, the
product owner will bene�t from knowing other employees and
learning how they identify and categorize project stakeholders. e
grid analysis technique will help tremendously as the product owner
begins analysis and categorization of speci�c groups and individuals
related to this particular project. e other answer choices may be
parts of a solution, but ‘D’ is the most complete and most helpful.
175. C. C is the best of the choices. It correctly states that quality audits (a
tool of Manage Quality) help to reduce the cost of quality and increase
the likelihood that the Customer or Sponsor will accept the output of
the project - the quality will meet the speci�cations. Answer-C is the
only correct or true statement given.
176. B. e product owner would not need the team if the variable is the
customer’s value, as in ‘A.’ ‘C’ and ‘D’ are incorrect because the point
effort estimated for stories does not affect the prioritization, but rather
how many stories can be committed to an iteration based on points
and team velocity. ‘B’ makes for the best choice because the
uncertainties, whether threats or opportunities, may change as more is
known along the course of the project, thus affecting the value
adjustment due to risk, and thus the priority level based on value—the
risk-adjusted backlog.
177. C. e project manager is ultimately responsible for the accuracy of
the information that is being gathered and reported. e PM is
responsible for the timeliness of the reports, as well. Other team
members may be assigned tasks to help carry out the reporting of vital
data; however, it is ultimately the responsibility of the leader of the
team - the project manager.
178. C. Since agile teams are self-organized and manage their own projects
—how should you recognize the contribution without awarding the
entire team? Of course, this applies to predictive projects, too—
motivation and reward works for everybody! ‘D’ may be close, but
down plays awarding employees for best performance—a bit de-
motivating! ‘A’ is short-sighted in that the agile team is still le out. ‘B’
is inaccurate; the Expectancy eory of motivation is alive and well in
the workforce!
179. D. is question is sticky - you read it and hope for an answer E that
says ALL OF THESE. However, you won’t �nd that option on the
actual PMP® exam. So, you must evaluate each answer and look for the
“best” choice. Answer-D is the best choice. During Integration, the
project manager’s job involves solving problems and making decisions
to keep the team focused on the work to be performed. It is not the
team’s job to do this - they look to the PM for leadership! e project
manager should be resolving the issues and problems that come up
and keeping the team focused on the work. Yes, team unity,
communication, and resource allocation are all important. But, during
integration, the PM needs to evaluate reports and inputs from all areas
of the project, make decisions, solve problems, and provide clear
leadership. Answer-D is the best choice.
180. D. C’ is incorrect; the product owner as a member of the team has a
voice in the de�nition of “Done.” ‘A’ is incorrect; it is not the sponsor’s
role to override the product owner; con�ict within the team should be
settled within the team. ‘B’ is incorrect since it violates the principle of
sustainable pace. ‘D’ is the best answer—and hopefully the team cam
investigate this together to understand and resolve the differences in
interpretation of the de�nition of “Done.”
181. B. Based on the information given, Answer-B is the best. e tool of
Resource Optimization includes Resource Leveling, which smooths
out the distribution of work to resources. It optimizes the work and
can be used to make sure that certain resources are not over-utilized.
Yes, some of these other tools could be argued as a valid choice. But
none is better than Resource Leveling in this scenario.
182. A. e risk-adjusted backlog results from the correct answer ‘A.’ ‘D’
would be inappropriate and the same as “gold-plating” beyond the
customer’s desire to invest. ‘C’ is incorrect; EMV may be used to
determine the value of a threat or opportunity, but pro�t and
reputation are involved. ‘B’ is incorrect; the burn rate is not a function
of the feature value, but rather the team costs.
183. A is the best choice given. Clearly, this project is important to your
organization. You cannot afford to leave Ted in this role. Move
someone else into the role, and this time, make sure you assign the
right person with the right skill set. Answer-A is the best choice
because it focuses on your project. at sounds cold and ruthless, but
for the exam your goal is project success �rst - do not sacri�ce the
project in order to train or develop staff. Answer-B may or may not be
the best action. Ted may be very valuable in other areas of the project -
the question does not provide that information. Answer-C does not
solve the issue. Answer-D sounds nice, but you need to make a move
with this key role.
184. B. Obviously, the team is over-committing the iteration backlog. It is
time to reduce the velocity stat to reduce how much effort the team is
committing. ‘A’ does not address this approach. ‘C’ touches on it, but
the 25% reduction is random; shiing to a burnup view does not
change the result. ‘D’ is incorrect in that reviewing the principle of
sustainable pace would not have the effect of increasing that pace.
185. C. Do not be fooled by the use or non-use of capital letters. Know the
process names and what they represent. Answer-C is the correct
answer - the only process that is not a planning process is Identify
Stakeholders, an Initiating process. A key role of the PM is maintain 2-
way communications with the stakeholders—Identify Stakeholders is
an important Initiating process for the success of the project as well as
that of the PM.
186. A. A’ re�ects honesty and transparency in going to the product owner
to get to the root cause of the misunderstanding. ‘B’ is incorrect in that
with the correct understanding up front, the entire iteration may be
more productive. e understanding would lead to a better estimate of
effort and a better iteration commitment to start with. ‘C’ is not the
role of the facilitator who is probably not a subject matter expert. ‘D’ is
incorrect—especially when the product owner could clear up this
mess!
187. D. e key factors of project success come back to the big 3 of scope,
schedule, and cost. Work packages are the lowest element (most
detailed) of the official scope of the project represented in the WBS;
therefore, completing the work packages within the schedule and
budget constraints of the project environment is the ultimate measure
of success. Clearly, these other choices are desirable, as well. It’s great
to hit quality metrics, have customer acceptance, close contracts, and
avoid lawsuits. ose are all positive things. Answer-D is the best
answer of the 4 choices.
188. D. Review the stories, use the product owner’s assigned value, groom
the backlog, estimate effort in points, pick the top stories that can be
performed in the iteration based on velocity, determine if the team has
the talent to perform, and assign the iteration backlog.
189. B. Tuckman’s model describes 5 stages and indicates that how long
each team remains in a stage �uctuates from team to team and project
to project. Factors include leadership, team size, and team dynamics.
190. A. Both ‘B’ and ‘C’ re�ect the facilitator’s making the decision for the
team - this doesn’t smell agile! ‘D’ might be a normally good probing
idea, but the customer’s choice in databases is probably a design
constraint that is real. ‘A’ re�ects a good coach’s response—identify a
process that maintains the responsibility for the decision within the
team—they are accountable!
191. D is the best of these choices. Answer-A is too broad in the reference
to the organization instead of a project. Risk management may
certainly vary from project to project within an organization. Answer-
B is too restrictive in that it lists threats explicitly. Answer-C is
inaccurate - the risk register is not an output of this process.
192. D. Read carefully. With this question, some of the answers actually list
more than 1 justi�cation. Read the full answer and make sure all of it
is correct. Here, ‘D’ is the false statement - the best choice for the logic
of the question. ‘D’ tosses in osmotic communications—referring to
the bene�ts of communication that take place with teams working in
the same workspace. at is just the opposite of the remote or virtual
team. Don’t be thrown off by the term.
193. D. e project charter is developed very early in the life of the project,
oen with the assistance of a PM. It’s much too early to be specifying
approaches for managing risk. Answer-D is the best choice - a “false”
statement. Answer-A is true - it is appropriate that the project charter
specify why the project is being undertaken and oen even includes a
business case. Answer-B is true - the project charter is the document
in which the project manager is named. Answer-C is also a true
statement. e project charter may specify known schedule milestones
and a summary level budget. Note that a charter is required for project
initiation for either predictive or agile projects - and this includes
hybrid!
194. B is correct. e term “generalizing specialist” is a term that comes
from adaptive, or agile methodologies. It means that the team is cross
trained and can do each other’s work. Answer-C is not a good choice,
since using generalizing specialists works best during integration
activities.
195. D. e meeting is best described as an audit, and audits are a tool of
Manage Quality.
196. C. A’ is incorrect because the stand-up meeting is a communications
tool for the team; it is not intended to be a status reporting event. ‘B’
though almost true is not the best response to the sponsor about status
reporting. ‘D’ is incorrect—the product backlog does report status or
completion information, but rather work that is still to be committed
and started. ‘C’ is the best answer in this scenario—it guides the
sponsor to understand the reporting of progress by the agile team and
an appropriate use of burnup and burndown charts.
197. D. Remember the concept of progressive elaboration - this applies
here. e processes are not set in stone; if you have a project plan, you
can update it. Answers-A and -C are unnecessary. ‘B’ throws in some
agile concepts which do not apply in this context!
198. D. Each answer choice represents a helpful technique that can be used
in various agile scenarios. However, ‘D’ represents a speci�c technique
of creating a non-working model, even to the point of being hand-
drawn, that helps visually convey design elements and functionality
expectations of deliverables just like a web page.
199. A. You may get this type of ugly, vague question on the actual exam.
Out of 4 messy choices, Answer- A is the best choice. It is a true
statement - approved changed requests should be added to the
appropriate baselines for scope or schedule or cost. Recall that a
baseline is de�ned as the original plan plus all approved changes.
Answer-B is not correct because the approved change should be added
to the baseline. For analysis purposes, the baseline is most useful when
compared against actual results - not against changes. Answer-C is an
interesting choice - stating that approved change requests should be
added to the project plan. You could argue that updates to the baseline
would include these approved changes; therefore, they would be
re�ected in the project plan - it includes 3 baselines. at is true;
however, Answer-A is still a better choice - more direct and a true
statement. Answer-D is not correct for the same reasons that Answers-
B and -C are not correct. Given this background, Answer-A is the best
choice.
200. D. e Customer does not like email and has a preference for face-to-
face meetings. Very well, plan accordingly. Answer-D is the best choice
for this question about how to Manage Communications. ZXY
Consulting should tailor the reports, frequency, and format to the
needs of the Customer, their key stakeholder. One key role of the PM
is to proactively promote 2-way communications with the
stakeholders. Face-to-face is the most effective method.
Glossary
Denotes an agile term or concept
A
Acceptance: e act of approving the deliverables. Acceptance is usually
performed by the project manager and the customer or sponsor at the
end of the project, project phases, or at prede�ned milestones.
Acceptance of the product, service, or result is formal.
Accepted Deliverable: Deliverables that the customer has accepted as
correct and complete. Accepted deliverables are the key output of the
Validate Scope process.
Acquire Resources: An executing process focused on getting the right
materials and the right people to work on the project at the right time.
Activity: Also called schedule activity. An activity is a task that must be
performed in order to complete work on the project. Activities are
created by further decomposing work packages. Under current
guidelines, the primary difference between a work package and an
activity is that a work package is a component of the scope and describes
some aspect of the deliverable, while an activity describes the work that
must be done in order to complete the work package. Schedule activities
are �rst de�ned, then sequenced and estimated for duration.
Activity Attributes: e informational components that accompany each
schedule activity. ese may include information on dependencies, leads
and lags, assignments, accountability, requirements, constraints and
assumptions.
Activity Duration Estimates: e length of time an activity is expected to
take to complete. Duration estimates are oen expressed as a probability
range.
Activity List: e list of all schedule activities to be performed, derived by
decomposing the work packages into their schedule components. e
activity list is a primary output of the De�ne Activities process.
Activity on Arrow (AOA): A type of graphical project network diagram
where schedule activities are represented by lines with arrows. e lines
are connected by nodes, usually represented by circles. AOA diagrams
are seldom used in practice today and have been replaced by AON (see
next entry).
Activity on Node (AON): A type of graphical project network diagram
where schedule activities are represented by nodes (usually rectangles),
and their interdependencies are represented by lines with arrows.
Activity Resource Estimates: e material and human resources that are
expected to be required to complete an activity. Resource estimates are
oen expressed as a probability range.
Activity Resource Requirements: e resources required to complete the
activities in the activity list. Typically these are physical, human, and
organizational resources but do not include �nancial resources.
Actual Cost (AC): Also known as Actual Cost of Work Performed (ACWP).
A term used in earned value management. Actual cost represents the
amount that has been spent by the project up to a point in time. It is
oen contrasted with earned value to show the difference between the
amount of value earned on the project (represented by earned value) and
what was spent to earn that value (represented by the actual cost).
Actual Cost of Work Performed (ACWP): See Actual Cost
Adaptive: e agile approach that values responding to change over
following a plan. Adaptive methodologies constantly seek solutions that
deliver maximum value to the customer, and they recognize that the
customer and the team’s understand is likely to evolve and change with
each deliverable.
Affinity Diagram: A visual tool that groups individual items into categories.
Affinity Estimating: A technique designed to rapidly estimate a large
feature backlog. It uses t-shirt sizes, coffee cup sizes, or the Fibonacci
sequence of numbers to rapidly place user stories into similarly sized
groups.
Agile: A set of principles for project management based on the Agile
Manifesto. Agile emphasizes self-organizing teams, customer
collaboration, rapid releases, responding to change, and the elevation of
value. It is a way of managing projects that embraces uncertainty and
breaks the project into very short phases, referred to as iterations. Agile
methodologies empower the team and keep plans �uid and adaptable.
Agile Epic Story: See Epic.
Agile Manifesto: A document created in 2001 that lays out the guiding
principles of agile projects and methodologies. e Manifesto is
organized around four statements that describe the values that agile
methodologies share.
Agile Modeling: A representation of the work�ow of a process or
system that the team can review before it is implemented in code.
Stakeholders and non-programmers should be able to understand and
work with the model more easily than code.
Agile Space: Team space that encourages colocation, collaboration,
communication, transparency, and visibility.
Agile eme: See eme.
Agreements: A document, de�ning intentions around the project or some
component of the project, that has been accepted by both parties. It is
helpful to think of agreements as contracts for purposes of the exam.
Allowable Costs: Costs that are allowed under the terms of the contract.
Typically, allowable costs become relevant under certain types of cost-
reimbursable contracts where the buyer reimburses the seller’s allowable
costs. If there are non-allowable costs in a contract, the buyer is not
obligated to reimburse the seller for these.
Alternatives Analysis: A data analysis technique used in several processes
to identify multiple possible approaches to solving a problem.
Analogous Estimating: Also known as “Top-Down Estimating.” An
estimating technique that uses the historical information from
previously performed activities that are similar in nature, to estimate the
effort, duration, or cost needed to complete an activity.
Analytical Techniques: A logical approach that looks at the relationship
between outcomes and the factors that can in�uence them.
Application (exam): e application for the PMP or CAPM exam which
requires the applicant to document an adequate combination of
education and experience in project management. e application must
be received and processed by the Project Management Institute before
the applicant is eligible to schedule his or her certi�cation exam.
Arrow Diagramming Method: e method that produces activity on arrow
(AOA) diagrams. See Activity On Arrow for more information.
Assumption: Anything that is considered to be true while planning.
Assumptions should always be documented and validated, and they are
oen closely linked to constraints.
Assumption Log: A list of all uncertainties that are treated as true for the
purposes of planning.
Assumptions Analysis: A review of the risks and an analysis of the factors
that were treated as true for planning purposes to see if those are still
valid.
Attribute Sampling: A way of measuring quality where the results for each
item or attribute are evaluated to either true or false to represent
whether or not the item met quality standards. Contrast with Variable
Sampling.
Audit: A structured review of the process and activities to evaluate which
ones should be improved. e goal of the audits is to improve both the
acceptance of the product and the overall cost of quality.
Autocratic: A decision making technique where one person has authority
and takes responsibility for making a decision for the project or team.
Autocratic decision making can be an efficient way of reaching a
decision; however, it commonly increases risk related to the quality and
the adoption of the decision.
B
Backlog: See Product Backlog or Iteration Backlog.
Backward Pass: A technique used to calculate slack, or �oat, that begins
with the last node of a project network diagram and logically works
backward to the start. Using the backward pass technique, each schedule
activity’s late start and late �nish dates are determined.
Bar Chart: A term in project management that equates to a Gantt chart. In a
bar chart, horizontal bars represent lengths of time for schedule
activities. A calendar of dates represents the horizontal (X) axis.
A bar (Gantt) chart
Baseline: e original approved scope, cost, or schedule, plus all approved
changes. Baselines represent the approved plan, and they are especially
useful for measuring how actual results deviate from the plan. It is
important to remember that baselines can, and typically do, change
throughout the life of the project as changes are approved. Baselines
occasionally apply to other measured areas such as performance and
quality.
Basis of Estimates: e backup detail showing how cost or schedule
estimates were derived, where they came from, who was involved, what
information was used, and what estimating technique was used.
Benchmarking: Using data from other projects, departments, or
organizations to measure performance of the project or product.
Benefit Cost Ratio: e ratio of the expected bene�ts and the anticipated
costs. A higher BCR is more desirable.
Benefits Management Plan: e plan that communicates the expected size
of bene�ts to be realized by the project and when and how those bene�ts
will be delivered.
Bottom-up Estimating: A technique for estimating overall project duration,
effort, or costs by estimating the lowest levels of the schedule or work
breakdown structure (WBS) and aggregating those numbers up to the
summary nodes on the WBS. Bottom-up estimating is widely considered
to be a relatively accurate, but oen tedious, technique for estimating.
is technique is the opposite of top-down or analogous estimating.
Bidder Conference: A meeting for potential sellers to come and understand
the work they are considering bidding on. In a bidder conference, all
bidders are given the same information and are kept on a level playing
�eld.
Brainstorming: A technique to gather ideas that involves getting ideas from
many participants in a rapid-�re and non-judgmental environment.
Ideas are not evaluated until aer they have all been gathered.
Budget: See Cost Baseline
Budgeted at Completion (BAC): e planned (budgeted) amount for the
total project. e BAC represents what the project should cost at the
point it is completed if everything proceeds according to plan.
Budgeted Cost of Work Performed (BCWP): See Earned Value
Budgeted Cost of Work Scheduled (BCWS): See Planned Value
Buffer: Extra time or money added to the schedule or budget to allow for
unanticipated overruns. Buffers are useful since they allow for some
slippage without affecting the overall schedule or budget.
Burn Chart:
(Burndown Chart) A chart used to communicate progress during and at
the end of an iteration. It shows the number of stories that have been
completed and the ones that remain. e idea is that as the project
progresses over time, the backlog of work will “burndown” or lessen.
(Burnup Chart) e inverse of a burndown chart, showing functionality
completed over time. Progress trends up as stories are completed and
value is accumulated.
Burn Rate: e rate at which the project consumes �nancial resources,
representing negative cash �ow. Burn rates are oen used by agile
projects as a way to budget costs for planned iterations. Most oen it is
calculated simply by adding up the team cost. It is communicated by the
cost per iteration, cost per week, cost per month, or some other measure
that is meaningful to the performing organization. If the team “burns”
$15,500 / week, then that would represent the team’s burn rate.
Business Case: e social, economic, or business outcomes that justify
undertaking this project or part of the project.
Business Documents: An input that includes the business case for the
project and the bene�ts management plan.
C
Capability: See Epic.
Cause-and-Effect Diagrams: Also known as an Ishikawa diagram, or a
�shbone diagram. Cause and effect diagrams graphically show the
relationships between causes and effects. ey are primarily used in risk
and quality to help uncover the causes of risks, problems, or issues.
An example of a cause and effect diagram
Certified Associate in Project Management (CAPM): A project
management credential created and managed by the Project
Management Institute. e CAPM is for anyone who works on a project,
can demonstrate the required education, and can demonstrate an
adequate understanding of the PMBOK® Guide.
Change Control: Deliberately managing change to a project, whether that
change is to the scope, cost, schedule, or quality baseline. In change
control, change requests go through a formal process before they are
approved or rejected. See Perform Integrated Change Control in chapter
4 for more information on the speci�c process associated with change
control.
Change Control Board: A group with formal responsibility for evaluating
project change requests. e change control board makes up a part of
the overall change control system.
Change Control System: e procedures for evaluating and managing
requested changes to the project. is system varies from project to
project and from organization to organization.
Change Log: e list of all changes, whether or not they were requested,
made to the project. e change log is used as an input to various
processes to ensure that the impacts of changes are properly reviewed
and evaluated.
Change Request: Any requested change to a documented baseline. Change
requests are typically only implemented once the scope, cost, schedule,
or quality is “baselined.” Since change requests are formal, before project
baselines exist a less formal method is generally used. Change requests
are processed according to the change control system.
Charter: See Project Charter or Team Charter
Checklist: Any set of procedural instructions used to ensure that product or
component quality is achieved. Checklists are used in the Manage
Quality and Control Quality process.
Claim: An issue with performance against the contract brought by one party
against another. Claims could be made by the buyer against the seller for
non-performance, or by the seller against the buyer for untimely
payment. Claims must be resolved before the contract can be properly
closed out.
Close Project or Phase: e closing process that administratively closes a
phase or the overall project. In Close Project or Phase, all �nal project
documentation and project �les are completed, and lessons learned are
documented.
Closing Processes: e process group, containing only one process, that
focuses on closing out the project or an individual phase. is process
group focuses on releasing resources, delivering the product, and
gaining formal stakeholder approval.
Coach: (Team facilitator) An agile servant-leader role that exists to help
the team follow the process and works to help identify and remove any
obstacles. In the eXtreme Programming (XP) methodology, the Coach is
the person who keeps the team focused on learning and the XP
processes. e Coach embodies the XP values and will help the team
deliver value while improving.
Collaboration: Working together and sharing tools and information to
create a work product or result. (Collaboration is also a favored
technique for resolving con�ict in all types of projects. It is closely
associated with problem-solving as a technique.)
Collect Requirements: A planning process in scope management that
documents the stakeholders’ needs for the project. e resulting
requirements documentation focuses on how the requirement, once it is
built, will satisfy the underlying need or meet the opportunity that drove
it.
Colocation: Physically locating everyone on a project team in the same
space or general area. Colocation is used to break down distance barriers
and facilitate team-building. A war room where all project team
members work together is an example of colocation.
Common Cause: A reason contributing to a quality problem that is usually
considered acceptable. Common causes are looked at as unpreventable,
or if they are preventable, the cost of prevention would not justify the
bene�t. Contrast with Special Cause.
Command and Control: A non-agile principle where decisions are made by
individuals higher up on the organizational chart and are handed down
to the team.
Communication: e act of accurately encoding, sending, receiving,
accurately decoding, and verifying a message. Communication between
a sender and a receiver may be formal, informal, oral, or written. On
agile teams, communication should be transparent and free-�owing. e
entire team should have a strong sense of what is occurring with all
aspects of their project.
Communication Channels: e number of possible formal or informal
paths of communication on a project. e concept of communication
channels is particularly helpful in understanding how the addition of a
small number of people to a project team can complicate the project
manager’s job of controlling communications. e formula for
calculating communication channels is: [n (n-1)] ÷ 2, where n = the
number of people in the communication model.
Communication Model: e formal paths of communication that will be
used on the project. e traditional communication model involves a
sender, a receiver, and a message, and both sender and receiver have
responsibilities as to how they act upon the message.
Communications Management Plan: e component of the project plan
that speci�es communications requirements and how those
requirements will be addressed by the project. e communications
management plan describes what communications will be provided, to
whom, in what format, and how oen.
Compliance: Meeting a regulation. Compliance is one justi�cation for a
project to be initiated.
Compromise: A method of negotiating where both parties give up
something in order to reach an agreement. Compromise is considered to
be lose-lose.
Conduct Procurements: e executing process in procurement
management, where the seller responses are gathered, a seller is selected,
and the contract is awarded. Conduct Procurements will only be
performed on projects that procure goods or services from outside the
organization, but on those projects it may be performed multiple times
as needed.
Cone of Uncertainty: A term describing the difficulty of estimating
early due to unknowns and how that should improve over time. e
cone of uncertainty indicates that the ability to estimate should get more
accurate if estimates are given shortly before the work is performed.
Conflict: Difference of opinion or agenda on a project among team
members or stakeholders. While not all con�ict can be resolved to
everyone’s satisfaction, it is primarily the project manager’s job to drive
con�ict resolution so that the project is not jeopardized. Some con�ict is
healthy and encouraged on agile projects, as it can lead to process
improvement and a higher quality product.
Conflict Resolutions: Working to come to an acceptable agreement when
areas of con�ict arise.
Consensus: A group decision technique where the group agrees to support
an outcome, even if the individuals do not all agree with the decision.
Constraint: Any external factor that limits the ability to plan. e most
common constraints are scope, schedule, and cost, but they could be any
factor, such as the law, quality, weather, or resource availability.
Constraints and assumptions are oen closely linked.
Context Diagram: e generic term for a use case diagram that shows
systems and the “actors” that interact with each system. Each actor may
be a user or another system.
Contingency or Contingency Reserve: See Reserve.
Contingency eory: A theory by Fred Fielder that states that the set of
skills and attributes that helped a manager in one environment may
actually work against them in another environment.
Contingent Response Strategies: A way of making a plan related to risk
that only activates if certain conditions occur.
Continuous Integration: e practice of regularly checking in each
team member’s work and building and testing the entire system. e
most rigorous methodologies do this daily with the goal of quickly
catching systemic errors that may have been introduced.
Contract: A legal document that speci�es the relationship between two
parties. In project management, these two parties are most oen referred
to as buyer and seller.
Contract Change Control System: e formal system for managing
changes to the contract so that all changes are tracked and processed,
and all relevant parties are noti�ed of the changes.
Control: See Monitoring and Controlling
Control Account: Also known as a “cost account,” a control account is a
node on the WBS where the scope, schedule, and cost are measured.
Control accounts contain one or more work packages and are used to
measure earned value or delegate authority. A project may have
numerous control accounts placed on the WBS at nodes where it would
be particularly meaningful to measure the earned value of those parts of
the project.
Control Account Manager: e individual accountable for the delivery of
the work contained in the Control Account to the scope, budget, and
schedule.
Control Account Plan (CAP): e plan for how a given control account will
be performed and measured. Since each control account is a division of
the overall project, each CAP functions essentially like a mini-project
plan for that division of work.
Control Chart: A specialized chart used in statistical process control to help
determine whether or not a process is in control. Control charts are
oen associated with control limits, speci�cation limits, means, standard
deviations, and the rule of seven.
Control Costs: e process to monitor and control project costs to ensure
they align with the plan. Control Costs is proactive to anticipate change
and risk factors, as well as reactive to actual factors that affect project
costs.
Control Limits: e upper and lower limits, used in statistical process
control, that determine whether or not a process is in control. Upper and
lower control limits are set at prescribed intervals and measured in
standard deviations, above and below the mean. As long as the data
points fall between the control limits, the process is in control.
Control Procurements: e monitoring and controlling process performed
by the buyer to ensure compliance by the seller or other party. Control
Procurements compares performance against terms and conditions
speci�ed in the contract to make certain that the seller meets his or her
contractual obligations. e seller’s performance is typically rated or
evaluated by the buyer and is communicated back to the seller.
Control Quality: e monitoring and controlling process that focuses on
work product quality. Control Quality is different from Manage Quality
in that Control Quality inspects actual work products and tests them
against requirements, while Manage Quality looks at the overall quality
process to ensure that it is being followed and that it is working
effectively.
Control Resources: e monitoring and controlling process within resource
management that makes sure the �ow and usage of physical resources
lines up with the resource management plan.
Control Schedule: A monitoring and controlling process where the planned
schedule is compared with the work performance information. If the
project is ahead of schedule or behind schedule, corrective action in the
form of change requests or updates to the plan may be necessary.
Control Scope: A monitoring and controlling process that ensures that
changes to the scope baseline are properly controlled.
Corrective Action: Any action taken to bring future results in line with the
plan. Corrective action may change the plan, or the way the plan is
executed.
Cost: Any project expenditure. Costs are tracked on numerous levels, but
usually tie back to a chart of accounts and nodes on the work breakdown
structure.
Cost Account: See Control Account
Cost Aggregation: e practice of rolling activity cost estimates up to the
work package level and the control account level. May also be applied to
rolling costs up into accounting periods to evaluate and control cash
�ow.
Cost-Benefit Analysis: An analysis of potential scope changes and the
forecasted bene�ts of making these changes and the costs involved.
Quality is the section on the exam where this is most relevant, and in
quality management, bene�ts should always outweigh costs.
Cost Forecasts: Cost estimates adjusted for performance. ere are several
ways to do this, including using the Estimate At Complete, the Estimate
To Complete, the Budgeted at Completion, the Cost Performance Index,
and others.
Cost Baseline: Also known as the budget. e cost baseline is a time-phased
plan for when funds will be disbursed on a project. It helps the
performing organization anticipate cash �ow needs for the project life-
cycle. Accuracy is dependent upon a well-de�ned project scope and
schedule, although a summary-level cost baseline is typically supplied
with the project charter before the scope and schedule are fully de�ned.
e total project budget is the cost baseline plus management reserve.
Cost Management Plan: e plan for how project costs will be measured,
monitored, and controlled. e cost management plan is created in the
Plan Cost Management process.
Cost of Quality (COQ): e sum of all project costs expended associated
with achieving quality. Cost of Quality includes a complete analysis that
includes planning, execution, control, the costs of potential alternatives,
and the costs of quality failure.
Cost Performance Index (CPI): Expressed as CPI = EV÷AC, the CPI is an
earned value calculation borrowed from the discipline of cost
accounting. e CPI can be useful for predicting future performance
based on previous history, as well as for plotting trends over time.
Conventional wisdom dictates that a CPI >= 1 is preferable since that
indicates that the project is earning value at a cost that is better than
planned, while a CPI < 1 is undesirable since it indicates that
performance lags the plan.
Cost-Plus-Fee (CPF): Also known as Cost-Plus-Percentage-Of-Cost
(CPPC), it is a type of contract where the buyer pays the seller’s costs for
performing contractual duties plus a fee that is tied to the costs.
Typically this fee is calculated as a percentage of costs. is contract type
places a large portion of the risk on the buyer, as the seller stands to be
�nancially rewarded when costs run high.
Cost-Plus-Fixed-Fee (CPFF): A type of contract where the buyer pays the
seller’s allowable costs for performing contractual duties plus a �xed sum
for performing the work. e buyer bears much of the risk by paying the
seller’s allowable costs; however, this contract type places some of the
burden on the seller, since the seller’s pro�t is �xed regardless of how
long or expensive the contract work is.
Cost-Plus-Incentive-Fee Contract (CPIF): A type of contract where the
buyer pays the seller’s allowable costs for performing contractual duties
plus an incentive fee tied to the seller’s performance. e incentive is
oen calculated by the seller’s performance at keeping costs down. is
contract type distributes the risk between the buyer and the seller.
Cost-Reimbursable Contract (CRC): A type of contract where project costs
incurred by the seller are reimbursed by the buyer. In addition, the buyer
typically pays the seller an additional fee for the seller’s pro�t. Cost-
reimbursable contracts oen include incentives to the seller to keep costs
down, where the seller would share a percentage of the cost savings with
the buyer. e share of risk distributed to the buyer and seller depends
upon the speci�cs of the contract.
Cost Variance: Commonly abbreviated as CV, cost variance is the earned
value minus the actual costs, expressed as CV = EV-AC. Cost variance is
useful to represent how project spending is tracking against the plan. A
positive cost variance is generally considered to be a good thing, and a
negative cost variance indicates overspending and is considered to be
undesirable.
Crashing: Applying additional resources to one or more activities in order
to complete the work more quickly. Crashing usually increases cost more
than risk and can lead to the law of diminishing returns as resource
allocation passes optimal levels. Compare with Fast Tracking.
Create WBS: e planning process for creating the work breakdown
structure. is process decomposes all of the work necessary to perform
the project and organizes it into the work breakdown structure (WBS).
e scope baseline, including the WBS, the WBS dictionary, and the
project scope statement, is the primary output of this process.
Criteria: Objective measures for acceptance or judging quality.
Critical Activity: Any schedule activity that appears on the project’s critical
path. An activity is designated as critical if its delay would delay the
overall project assuming all other activities �nished as planned.
Critical Chain Method: A technique for managing a project’s schedule that
focuses on managing the constraints caused by limited human and
material resource availability. Based on the eory of Constraints, the
critical chain method manages schedule buffers and emphasizes
�exibility and keeping all resources fully working.
Critical Path: One or more combinations of activities from start to �nish in
a project network diagram, any one of which delayed would delay the
completion of the entire project. It is the path of longest duration in the
network diagram.
Critical Path Method: A technique of schedule analysis, where the schedule
activities are evaluated to determine the �oat (or slack) for each activity
and the overall schedule. e critical path method uses forward pass,
backward pass, and �oat analysis to identify all network paths, including
the critical path. e reason this technique is known as the critical path
method is that the path of least �exibility and highest risk (i.e., the
critical path) is identi�ed so that it may be managed appropriately.
Customer: e individual or organization who will accept the project’s
deliverable. e role of customer should not be confused with the
sponsor even if the same person �lls both roles. In an agile project, the
customer or their representative will de�ne and prioritize business value.
e customer participates as part the agile team.
D
Daily Stand-Up Meeting: A brief meeting, usually held at the start of
the day, where the entire team attends and participates by brie�y
answering three questions: “What did you accomplish yesterday,” “What
do you plan to do today,” and “Are you encountering any obstacles?”
Daily stand-ups are important to the �ow of communication and to the
early detection of any issues. Most agile methodologies �rmly keep these
meetings to 15 minutes in length (timeboxed).
Data: e term generally referring to raw data. Data, when processed,
becomes information, and that is eventually transformed into reports.
Data Analysis: Any technique used to analyze raw data, including
alternatives analysis and reserve analysis.
Data Gathering: Any technique used to solicit and document ideas such as
brainstorming, expert interviews, focus groups, questionnaires and
surveys, and benchmarking. Data gathering techniques may be oriented
toward a high quantity of ideas or higher quality ideas.
Data Representation: Any means of depicting data visually in order to aid
in its comprehension by team members, customers, the performing
organization, or other stakeholders.
Decision Making: Any one of numerous tools such as voting or
multicriteria decision analysis, used to drive to a decision.
Decision Tree: A tool used in risk management to analyze risk and the
expected monetary value of a decision or event to evaluate the outcome
of certain scenarios. Decision trees are used to evaluate uncertainty.
Decomposition: A technique for progressively breaking down the scope
into smaller and smaller components. Decomposition is performed on
the project scope statement to derive the components of the work
breakdown structure and typically stops when the decomposed pieces
are small enough to be assigned and estimated for time and cost. ese
smaller nodes (work packages) are later decomposed further into
schedule activities.
DEEP: An acronym describing desirable attributes of a product
backlog.
It stands for: (D)etailed Appropriately, (E)stimable, (E)mergent,
(P)rioritized.
Defect: An issue when the project’s product, service, or result does not
match the documented scope. Defects are oen costly and require
rework. An “escaped defect” is one reported by the customer aer being
delivered by the team. Surges in the number of escaped defects likely
indicate a process problem with the team.
Define Activities: e planning process that takes work packages from the
work breakdown structure (WBS) and further decomposes them into
schedule activities.
Define Scope: e planning process that results in the project scope
statement. e goal of this process is to develop a detailed understanding
of the scope and to document that understanding.
Deliverable: e product, service or result, or a part thereof, that is
presented to the customer or stakeholders for acceptance.
Delphi Technique: A form of expert judgment where a group of
stakeholders is asked a question or opinion in a way that prevents the
people being polled from knowing who the others are. Named aer the
blind oracle at Delphi in ancient Greece, the Delphi Technique is oen
used to prevent highly-opinionated stakeholders from in�uencing the
rest of the group.
Dependency: A relationship between two or more activities where one
activity must be started or completed before another related activity may
be started or completed. Considering two activities of “Purchase
Laptops” and “Con�gure Laptops,” the start of activity “Con�gure
Laptops” might be said to be dependent upon the �nish of activity
“Purchase Laptops.” A Dependency may be mandatory, discretionary,
internal, or external to the organization. It is also known as a logical
relationship between nodes. See entries on Start-Finish, Start-Start,
Finish-Finish, and Finish-Start.
Design for X (DfX): A methodology where design is applied to the top
priorities, including Design for Cost (DfC), Design for Assembly (DfA),
Design for Manufacturing (DfM), Design for Logistics (DfL), Design for
Serviceability (DfS). Design for X is a tool of Manage Quality.
Design Of Experiments (DOE): A technique using data analysis to
determine optimal condition. It is most oen used when there are
multiple variables to be considered, and this technique analyzes how
factors in�uence and change these variables. An engineer might use
DOE to evaluate and determine the right combination of transmission
gearing, wheel size, and tires for a new automobile within the cost
constraints he or she has been given.
Determine Budget: e planning process where the individual cost
estimates are compiled into the cost baseline. e cost baseline is a time-
phased representation of costs so that stakeholders can see what funds
will be needed and when they will be needed.
Develop Project Charter: An initiating process where the project charter is
produced. is process typically occurs very early in the project, but also
may take place at the beginning of each project phase. e output of this
process formally authorizes the project to begin, names the project
manager, and provides resources for the project.
Develop Project Management Plan: e planning process in which all
subsidiary components of the project plan are integrated into a single
plan that will drive the rest of the project. e 19 subsidiary components
include: the Requirements Management Plan, the Scope Management
Plan, the Schedule Management Plan, the Cost Management Plan, the
Quality Management Plan, the Resource Management Plan, the
Communications Management Plan, the Risk Management Plan, the
Procurement Management Plan, the Stakeholder Engagement Plan, the
Schedule Baseline, the Cost Baseline, the Scope Baseline, the Change
Management Plan, the Performance Measurement Baseline, the Project
Life Cycle Description, Development Approach, the Con�guration
Management Plan, and Management Reviews.
Develop Schedule: e planning process where the activities are arranged
on a calendar to create a schedule. e project schedule may take several
forms and have varying degrees of detail.
Develop Team: e executing process of enhancing the project team.
Develop Team focuses on improving the overall sense of teamwork and
the individual skills and abilities of the project team members.
Diagramming Techniques: Various means of depicting a system or a virtual
concept such as a business or system process �ow using drawings to
show entities, relationships, and interactions.
Dictatorship: A group decision technique where one person makes the
decisions for the entire group. is technique is generally not viewed
favorably when it comes to the exam.
Direct and Manage Project Work: A high-level executing process as part of
integration management that focuses on carrying out the project plan.
Direct and Manage Project Work is closely tied to the process Monitor
and Control Project Work, where the performance and quality of the
execution is measured against the plan.
Direct Cost: A cost, usually measured and reported in Control
Procurements, that is a direct project expense. Direct costs may include
salaries of project workers, materials, and other expenses that are solely
for the project. ey do not include overhead or shared expenses.
Generally, direct cost data is collected and reported as part of the Direct
and Manage Project Work process and becomes part of the Work
Performance Information.
Disaggregation: Breaking down epics or large stories into smaller user
stories. Disaggregation is similar to decomposition on predictive
projects.
Document Analysis: A technique used in �ve processes. For example,
document analysis is used in the Collect Requirements process to review
existing documentation in order to gather requirements for a new
product. An organization’s marketing literature developed for a product
that does not yet exist would be an example of a document that would be
used for analysis.
Documentation: Something the Agile Manifesto values less than working
soware. Agile practitioners generally view the right level of
documentation as being “barely sufficient.”
Done: A term that must be explicitly de�ned and agreed upon by the
entire team. e de�nition of done is important so that each team
member means exactly the same thing when they say that a piece of
work is “done.” e most common de�nition of done for a module is
that it compiles and runs without error and passes all prede�ned
acceptance tests and regression tests.
Dummy Activity: A part of Activity On Arrow (AOA) project network
diagrams where a schedule activity is assigned a duration of 0. A dummy
activity, represented as a dashed line between two circular nodes, is used
to create logical relationships.
Duration: e amount of time needed to complete a schedule activity or
work package. Duration is different from effort, since duration is
concerned with calendar time, while effort is concerned with work
hours. For example, a schedule activity that takes 8 workers 5 days,
would require 40 days of effort, but may be possible to complete in the
duration of only one workweek. Durations are estimated during the
Estimate Activity Durations process.
E
Early Finish Date (EF): Used for schedule activities on project network
diagrams, the early �nish date is the earliest date possible that an activity
could be completed given all of the constraints, durations, and logical
relationships that exist within the schedule.
Early Start Date (ES): Used for schedule activities on project network
diagrams, the early start is the earliest date possible that an activity could
start given all of the constraints, durations, and logical relationships that
exist within the schedule.
Earned Value (EV): Also known as Budgeted Cost of Work Performed
(BCWP), Earned Value is a cost accounting term representing the
budgeted cost of the work that has actually been completed up to a point
in time. Earned Value (EV) is different from Actual Cost (AC) because
EV measures what was actually done and how much it was estimated to
cost, which is different from what has been spent. For instance, if the
project spent $100,000 but expected to spend $200,000, the EV would be
$200,000, while the AC would only be $100,000. EV=Actual % Complete
X BAC.
Earned Value Management (EVM): e cost accounting technique of
measuring work completed (earned value) against the plan (planned
value). ere are various calculations to show past performance and to
predict future performance, technically applied to predictive projects. In
an agile project, if such reporting is required, EVM is best applied at the
iteration or release plan level using burn rates and velocity to
approximate predictive EVM.
Economic Value Add: e total value a project creates for shareholders.
EVA = Aer tax pro�ts – (capital invested X costs of capital)
Effort: e amount of work needed to complete an activity. Effort is
different from duration, as duration measures how long something will
take on a calendar. For example, 240 man hours of effort might only take
one calendar week of duration to complete if enough resources. Effort is
estimated during the Estimate Activity Durations process.
Emotional Intelligence: e ability to relate to others and to lead.
Emotional Intelligence is not directly related to traditional intelligence
measures like IQ, even though one may see it abbreviated as EQ
(emotional quotient). Emotional Intelligence is an important leadership
skill for leaders to be able to relate to teams.
Empowerment: A necessary attribute of agile teams. e concept of
empowerment on an agile project means that the team is able to make
the necessary decisions to add value. is is in contrast to predictive
projects where teams typically have to ask permission or escalate most
decisions.
Engineering Task: See Task.
Enterprise Environmental Factors: Any factor outside of the project’s
control that in�uences the project. is could include organizational
attitudes, culture, reporting relationships, government, the economy,
laws, etc.
Epic or Epic Story (Capability): A very large story that may span iterations.
Epics must be disaggregated into their component user stories before
they are useful at a tactical level.
Estimate: A numerical representation of cost or time. Estimates should
always specify the con�dence and expected margin of error. For
example, an early estimate for the design of a soware database might be
represented as follows: Database Design, Preliminary Estimate = 92
hours +/- 50%.
Estimate Activity Durations: e planning process that estimates how long
a schedule activity should take. ese estimates may be expressed as a
speci�c number (e.g., 2 weeks) or as a range (e.g., 1 to 3 weeks). Activity
durations are derived through a variety of methods, but are generally a
function of the amount of work to be done, the resources applied to the
task, expert judgment, and historical information.
Estimate Activity Resources: e planning process that estimates the
material and human resources needed to perform a schedule activity to
completion. is process may be performed before, aer, or in parallel
with the process of Sequence Activities.
Estimate At Complete (EAC): e forecasted amount a project should cost
at its end, factoring in all of the performance metrics that have occurred
at this point in the project. At a project’s beginning, the Estimate at
Complete (EAC) should be equal to Budgeted at Complete (BAC);
however, if the project performs better than expected, or if risk
occurrence is lower than expected, EAC could be lower than BAC.
Conversely, if there are performance or risk problems with the project,
the EAC may well trend higher than the BAC. ere are numerous
methods for calculating EAC and the closely related ETC. For the
purposes of exam preparation, use the formula of EAC = BAC ÷ CPI.
Estimate Costs: e planning process of estimating the costs of activities
which have not been performed. Estimate Costs is performed aer the
scope has been de�ned, the activities have been decomposed, and the
duration and resources for each activity have been estimated. e cost
estimates are later mapped back to the work breakdown structure and
are used to create the budget.
Estimate To Complete (ETC): e forecasted amount it will take to �nish a
project from a point in time going forward. e Estimate To Complete
(ETC) factors in known performance metrics. e ETC answers the
question “how much more will it cost us to complete the project at this
point?” ere are numerous methods for calculating the ETC and the
closely related EAC. For the purposes of exam preparation, use the
formula ETC = EAC - AC.
Executing Process Group: One of the �ve process groups. All of the 49
project processes and activities are organized into one of �ve process
groups, Initiating, Planning, Executing, Monitoring and Controlling, or
Closing. 10 of the 49 processes are executing. All executing processes
and activities focus on carrying out some aspect of the project plan, and
on most projects, the majority of project costs are expended during
executing processes.
Exit Gate: A logical point at the end of a project phase, where an
independent party reviews that phase’s deliverables to determine
whether or not they were completed successfully and the subsequent
project phase should be initiated. Exit gates are also commonly referred
to as stage gates, phase gates, or kill points.
Expectancy eory: A motivation theory that states that team members
make choices based on their expected outcomes.
Expected Monetary Value (EMV): A method to calculate the value of
potential future outcomes, factoring in the possible costs and probability
of events. Decision tree analysis is one method that uses expected
monetary value.
Expert Judgment: Using knowledgeable groups or individuals to assist in
project decisions. Expert judgment is a highly favored technique within
project management.
Expert Power: e power that comes through possessing a level of
expertise.
Extreme Persona: A team-manufactured persona (see Persona) that is
strongly exaggerated in order to elicit requirements that standard
personas might miss.
eXtreme Programming (XP): A highly disciplined agile methodology
that runs one week iterations and has programmers work in pairs. XP
de�nes the roles of Coach, Customer, Programmer, Tracker, and Tester.
F
Facilitated Workshops: A meeting or series of meetings where a facilitator
works with project stakeholders from various disciplines to determine
requirements. Joint Application Design (JAD) and Quality Function
Deployment (QFD) are examples of speci�c types of facilitated
workshops.
Facilitation Techniques: A technique used in integration management to
move early stakeholders toward consensus on the broad goals of the
project.
Fast Tracking: Performing project activities in parallel that would have been
performed in sequence. It is most oen the discretionary dependencies
that are discarded in order to fast track activities. Fast tracking usually
results in the project schedule being completed in a shorter time frame,
but it typically increases risk.
Feature: A word with widely varying meanings in the agile community.
For the purposes of this book and exam preparation, a feature is a group
of stories that delivers value to the customer.
Feedback: Verbal and nonverbal communication cues that a speaker
must monitor to determine whether the listener is receiving and
comprehending the message.
Fibonacci Sequence: A sequence of numbers oen used in agile estimating.
e numbers are calculated by beginning with the series 0, 1, and adding
the previous two numbers together to get the next number, resulting in
the following series: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144… When
using the Fibonacci sequence for planning poker or similar estimating
methods, it is oen simpli�ed (modi�ed) as 0, 1, 2, 3, 5, 8, 13, 20, 40,
100.
Final Report: e summary of the project including information on
performance, scope, cost, schedule, quality, and risks. e �nal report
may be written at the end of the project or aer each phase.
Finish Date: e date that an activity is predicted (or permitted) to �nish,
based on the analysis of the schedule. e early �nish date of a schedule
activity is calculated by performing a forward pass on the project
network diagram, and the late �nish date is calculated by performing a
backward pass.
Finish-to-Finish (FF):e logical relationship between nodes in a project
network diagram. A �nish-to-�nish relationship between two schedule
activities (e.g., activities T and W) indicates that regardless of when
activity W starts, it cannot �nish before activity T does.
Finish-to-Start (FS):e most common logical relationship between nodes
in a project network diagram. A �nish-to-start relationship between two
schedule activities (e.g., activities D and E) indicates that the successor
activity (activity E) cannot be started until the preceding activity
(activity D) has �nished.
Firm-Fixed-Price Contract: See Fixed-Price Contract
Fishbone diagram: See Cause-and-Effect diagram
Fixed-Price-Incentive-Fee Contract: A type of contract where the seller is
paid a �xed price for the contract but can also earn an incentive fee, paid
by the buyer, for achieving prede�ned targets related to the seller’s
contract performance. Risk is considered shared between the buyer and
seller in this agreement.
Fixed-Price Contract (AKA Lump Sum): A contract that speci�es a �xed
price for the deliverable paid by the buyer to the seller. Firm-�xed-price
contracts transfer primary risk to the seller, since the seller is paid one
price regardless of costs, efforts, or any other potential uncertainty.
Firm-�xed-price contracts are also referred to simply as �xed price
contracts. A purchase order is one example of a �xed-price contract.
Float (slack): e amount of time a schedule activity could be delayed
without impacting the �nish date of the project.
Flowcharting: A graphical, logical representation of a sequence. In project
management, �owcharts are most oen used in the area of quality to
determine how one set of inputs may lead to one or more outcomes.
Process analysis may also depend heavily on process �owcharting.
Forcing: Exerting power to gain compliance. Forcing is not a favored
method of problem solving since it does not deal with the underlying
problem(s) that led to con�ict.
Forward Pass: A technique for calculating the early start and early �nish
dates of schedule activities. e forward pass is part of the critical path
method and is paired with a backward pass to determine activity and
schedule �oat and the critical path.
Free Float: e amount of time a schedule activity may slip without
impacting the early start of any other successor activities. Free �oat is
oen confused with �oat, but it is different in that �oat is concerned
with disrupting the �nish date of the project and the critical path, while
free �oat is concerned with disrupting the planned start or �nish date of
any successor schedule activity.
Functionality: In an agile context, an action that a system performs that
adds value to the customer or user. If the user cannot see or experience
something, then it does not count as functionality.
Functional Manager: A manager of a department or functional group
within an organization. Functional managers are vital to most
companies since they have deep expertise within a given area and
perform the human resource management duties for the employees of
their departments. Project managers experience most of their con�ict
(e.g., resource scheduling) with functional managers.
Functional Organization: A very common type of organization that has
strong (vertical) departments, organized around function or expertise.
In a functional organization, the functional manager generally has more
organizational power than the project manager, and the project manager
may struggle to receive signi�cant support, recognition, or authority.
G
Gantt Chart: See Bar Chart
Gatekeeper: e person responsible for evaluating the project deliverables
between phases at the phase exit gates. e gatekeeper is preferably an
impartial person from senior management who does not work directly
on the project.
e term “gatekeeper” also has a usage in resource management to
describe a constructive team role where a person works to ensure that
others are involved in a discussion or a process.
Generalizing Specialist: A type of team member favored on agile
projects. Generalizing specialists are highly interchangeable, which
favors the agile practice of committing to a package of scope. If one
generalizing specialist falls behind, another can usually step in to help.
Generalizing specialists are usually seasoned professionals, sometimes
referred to as “T-shaped” due to broad skills, where a specialist with
deep, narrow expertise may be referred to as “i-shaped.”
Gold Plating: e practice of adding more scope than the customer
requested and more than the team has planned for. Gold plating
increases risk and is not a favored practice.
Grade: A way of evaluating the product’s suitability for use. In project
management low grade may be acceptable, depending on the
application; however, low quality is never acceptable. For example, a
project may call for producing a consumer-grade refrigerator. Producing
a higher grade refrigerator would not only be uncalled for but would
likely incur unjusti�ed higher expense. While grade traditionally applies
to physical items (e.g., steel, foodstuffs, video monitors), it may also
apply to non-physical items (e.g., soware encryption or communication
signals).
Grooming: Cleaning up the product backlog through various activities
such as removing items, reprioritizing them, disaggregating them, or
estimating them.
Ground Rules: Rules of conduct, sometimes unwritten, that apply to the
entire project team. Ground rules are adopted by the team to establish
behavioral norms among the members and should be communicated
with everyone on the team. Expecting everyone on the agile team to
assemble at 8:00 a.m. for a daily stand-up meeting without being asked
would be an example of a ground rule.
Group Creativity Techniques: Techniques used in meetings and workshops
such as brainstorming, mind mapping, and the nominal group
technique to generate creative thinking and potential solutions.
Group Decision-Making Techniques: Techniques used by the project
manager to move the group toward consensus or decision. e four
popular group decision-making techniques for the exam are Unanimity,
Majority, Plurality, and Dictatorship.
H
Hammock Activity: An activity that summarizes other schedule activities.
While the project execution occurs at the lower (sub) activity level,
hammock activities are used for tracking and reporting purposes. Most
times, a hammock activity groups activities that would not be related
through the work breakdown structure.
Hardening Iteration: e sometimes controversial practice of building
in an iteration prior to a signi�cant release where no new development,
functionality, or value is planned. Instead, the team tests the
functionality and the integration of features that have been developed in
previous iterations and ensures the functionality is solid. Proponents say
this is necessary for large, complex projects where the team may not be
able to perform every test as part of every iteration, while critics
complain that this practice oen runs contrary to the team’s “De�nition
of Done.”
Herzberg’s Motivation-Hygiene eory: A theory of motivation that
divides factors into either hygiene factors or motivational factors.
Hygiene factors, such as a paycheck, do not provide motivation;
however, motivation factors, such as achievement or responsibility, do
motivate but will not work without the presence of hygiene factors.
Histogram: A statistical tool that uses a column chart to show frequency of
occurrence of a particular item. For instance, a histogram showing the
ages of a group of people might show the number of people from 0 up to
10 years of age as the �rst bar, the number of people 10 up to 20 as the
second bar, and so on. Histograms are widely used in quality
management to determine statistical trends and identify issues or
problems. See Resource Histogram.
Historical Information: Any information from previous projects that has
been archived by the performing organization. Historical information
can be used to help evaluate future project decisions.
Historical Information Review: A tool used in the Determine Budget
process. When using historical information, past data or project results
are considered to estimate or forecast budgets for the current project.
For example, a project to build a road might be estimated at a certain
amount of money per kilometer based on similar projects.
I
Ideal Time: e amount of time an assignment would take if there were no
interruptions or distractions. Some agile projects provide estimates
using ideal time rather than actual time.
Identify Risks: e planning process of anticipating all of the risks that
could happen on the project. Common tools used to facilitate risk
identi�cation include checklists, brainstorming, SWOT analysis, and
expert judgment.
Identify Stakeholders: e initiating process where all of the groups or
people who will be considered on this project are identi�ed. e
resulting stakeholder register documents their names, their interests,
and their involvement on the project.
Implement Risk Responses: An executing process that carries out the
planned risk responses to respond to the identi�ed project risks.
Imposed Date: A date that is provided to the project and may not be moved.
An imposed date may come from internal sources, such as senior
management, or external sources, such as a government entity. Imposed
dates are treated as constraints during Estimate Activity Durations and
Develop Schedule.
Incremental Delivery: e agile concept that functionality should be
delivered in small stages rather than as a complete solution. e
customer bene�ts from seeing the solution evolve by being able to
in�uence it and learn from it as it develops. is also follows the agile
principle of satisfying the customer through early and continuous
delivery of value.
Independent Estimates: Estimates generated by experts outside of the
project for the purposes of comparing with those from the team. When
used as part of procurement, independent estimates involve parties that
do not intend to bid on the project, therefore presumably making them
less likely to be biased.
Indirect Cost: A cost, usually tracked as part of a contract, that is not
expended directly for the project’s bene�t. Indirect costs include such
things as overhead and management expense that may be shared by
things other than a single project. How indirect costs are tracked and
accounted for varies depending on the organization or the contract.
Influence Diagram: A chart showing how a set of in�uences may affect
outcomes. e diagrams depict the components that go into the
decision-making process. In�uence diagrams are used as a tool in the
data analysis group in the Perform Quantitative Risk Analysis process,
along with simulation, sensitivity, and decision tree analysis.
Influencer: Stakeholders who can positively or negatively affect the project
due to their ability to in�uence the customer, the performing
organization, or the project team.
Information: Data that has been organized and processed to make it more
meaningful. Data eventually becomes information and information is
�nally processed into reports.
Information Management: Using a system to allow the team to capture and
share tools, documents, templates, etc.
Information Management Systems: A way to collect, manage, and
distribute project information. A project portal or collaboration site
could be examples of information management systems.
Information Radiator: A group of artifacts that is used to
communicate project status to the team and other stakeholders.
Information radiators are an important part of maintaining transparency
and visibility into the team’s progress.
Interactions: In an agile context, this generally refers to face-to-face
conversations between team members, customers, and stakeholders. e
Agile Manifesto makes it clear that “individuals and interactions” are
favored “over processes and tools.”
Interpersonal and Team Skills: e ability to lead people and develop a
team without resorting to formal authority.
Initiating Process Group: e processes that take place early in a project or
project phase. Initiating processes are involved with starting (chartering)
the project or phase and the identi�cation of stakeholders. Only two of
the 49 processes are initiating processes.
Input: Something needed or used by a process to create the outputs for that
process.
Inspection: Reviewing the functionality or suitability of a product, service,
or result against the requirements. e desired result of inspection is
acceptance.
Internal Rate of Return (IRR): A way to look at the project’s anticipated
returns as an interest rate. is helps organizations weigh the bene�ts of
alternative investments. When dealing with the IRR, a bigger number is
more desirable.
Interviews: A meeting between a business analyst and a user, key
stakeholder, or expert to gather and document requirements.
INVEST: An acronym describing the desirable attributes of a good user
story. It stands for (I)ndependent, (N)egotiable, (V)aluable, (E)stimable,
(S)mall, and (T)estable.
Invitation for Bid (IFB): See Request for Proposal
Ishikawa Diagram: See Cause-and-Effect Diagram
Issue: An unresolved threat or problem on the project, or a point of
disagreement.
Issue Log: A document where all stakeholder issues can be recorded. e
issue log is an important artifact for tracking, communicating, and
managing issues.
Iteration: A cycle of work that is repeated on agile projects. Iterations
generally consist of a short planning session, followed by a period of
work, and �nally a retrospective to evaluate the process and the results
and make adjustments. Several iterations may be combined to form a
release, and iterations are repeated multiple times throughout the
project. Agile principles state that iterations may last from two weeks to
two months; however, the eXtreme Programming (XP) methodology
condenses them to one week.
Iteration Backlog: e work that is committed to be performed on a
given iteration. e iteration backlog is expected to “burndown”
throughout the iteration (not to be confused with the product backlog).
Iteration Burndown Chart: See Burn Chart.
Iteration Retrospective: See Retrospective.
Iterative: An approach to planning, execution, and control that breaks
execution into relatively short cycles and reassesses the plan aer each
cycle.
J
Job Shadowing: See Observations.
Justification: See Business Case.
K
Kaizen: e Japanese management philosophy of continuous improvement,
literally meaning “small changes.” Aer an initial, generally incomplete
delivery, Kaizen advocates small, frequent changes initiated by the team.
Kanban: A Japanese management philosophy that literally means
“signal.” Kanban focuses on promoting visibility of the work-in-progress
(WIP) and limiting the amount of work-in-progress the team allows. In
a typical Kanban environment, the work being performed by each
member of the team is displayed on a Kanban board, which shows the
work and its stage of completeness. A team member will not take on a
new task until the current one is done, thereby limiting WIP.
Kanban Board: Literally “signboard.” A Kanban board is a task board
that originated with Lean Manufacturing, used to provide information
on where user stories are in the work�ow. As user stories are completed,
more work is “pulled” from the backlog onto the Kanban board, an
artifact that shows work-in-progress (WIP). Kanban boards display the
work�ow stages (e.g., Started, Designed, Coded, Tested, Done) and
where the tasks are within that work�ow. e team and interested
stakeholders can tell at a glance what work is being performed by the
team and what stage the items are in. Kanban boards encourage visibility
and limiting WIP.
Kill Point: See Exit Gate
Knowledge Area: One of the competency domains within project
management. e 49 processes of project management are grouped into
ten knowledge areas.
Knowledge Management: Increasing knowledge within the organization by
encouraging the team to interact and share.
L
Lag: Changing the �nish-to-start relationship between two schedule
activities so that the dependent activity cannot start until a given
amount of time aer its preceding activity �nishes. Given that activity B
(erecting a building frame) cannot start until Activity A (pouring
concrete) has �nished, if 3 days of lag time were applied to activity A
(e.g., to allow the concrete to cure), then activity B could not start until 3
days aer activity A �nishes. Lags are used to represent calendar time
that must elapse when no actual work is taking place by project
resources. (Contrast with “lead” below.)
Late Finish Date (LF): e latest possible date a schedule activity can �nish
without impacting the critical path, assuming all estimated durations are
accurate. e late �nish (LF) is calculated as follows: LF = EF + Float, or
by performing a backward pass on the project network diagram.
Late Start Date (LS): e latest possible date a schedule activity can start
without impacting the critical path, assuming all estimated durations are
accurate. e late start is calculated as follows: LS = LF − DURATION +
1, or LS = ES + Float, or by performing a backward pass on the project
network diagram.
Lead: Changing the �nish-to-start relationship between two schedule
activities so that the dependent activity can start before the preceding
activity �nishes. Given that Activity-B cannot start until Activity-A has
�nished, if 2 days of lead time were applied to Activity-B, then Activity-
B could start 2 days before Activity-A �nishes. Leads are used to
efficiently manage the schedule and get a head start on certain activities
where possible.
Leading: e act of establishing a direction, aligning the team to that vision,
and motivating and inspiring them.
Lean: An agile methodology based on the seven principles of Eliminate
Waste, Amplify Learning, Decide as Late as Possible, Deliver as Fast as
Possible, Empower the Team, Build Integrity In, and See the Whole.
Lean is a highly disciplined methodology that seeks to maximize the
work that is not performed.
Legitimate Power: Also known as formal power, legitimate power is
positional power where the project manager has authority and the
backing of the organization.
Lessons Learned: e formally documented information the team has
acquired during execution of the project. Lessons learned speci�cally
focus on variances in the project and document how the team would
plan or execute differently if they had a speci�c component of the
project to perform again. e lessons learned register documents the
current project, while the lessons learned repository stores information
for all projects in the organization
Level of Effort (LOE): Supporting work that does not produce an actual
deliverable such as support or follow-up activities. Level of effort is oen
difficult to measure effectively and to relate back to a product or service.
It is tracked and reported at a high level.
Life-Cycle Costing: A method of looking at the total cost of ownership of an
item rather than only looking at the cost to the project.
Logical Relationship: See Dependency
M
Majority: A group decision-making technique where a simple majority of
votes is enough to make a decision. Many political elections are
examples of the majority technique, where anything over 50% is
sufficient to decide the outcome.
Make-or-Buy Analysis: A technique used in Plan Procurement
Management. Make-orbuy analysis looks at the component of the
project to determine whether it is rational to make it internally or to buy
it from an outside vendor. Several factors go into this decision; however,
all other things being equal, buying is favored over making.
Management Reserve: See Reserve.
Managing: e act of assembling and working with teams and organizing
and executing tasks to deliver key results.
Manage Communications: e executing process where information is
distributed to the stakeholders according to the communications
management plan.
Manage Project Knowledge: An executing process that leverages lessons
learned on previous projects and captures lessons learned on the current
project.
Manage Stakeholder Engagement: e executing process where the project
team communicates and works with stakeholders to ensure their needs
are addressed and their issues are resolved.
Manage Quality: e executing process that focuses on the overall quality
activities to ensure that all of the plans are being followed and that the
project meets the quality requirements. Contrast with Control Quality.
Manage Team: e executing process of directing the project team to
complete the work of the project plan, monitoring their performance,
and working to improve performance and resolve issues where
necessary.
Market Research: Looking outside of the performing organization to gather
information about current trends and capabilities in the industry.
Market research is a data gathering technique used in the Plan
Procurement Management process.
Maslow’s Hierarchy of Needs: A theory of human motivation by Abraham
Maslow that states that lower needs such as food and clothing must be
satis�ed before higher needs such as esteem and self-actualization may
be achieved.
Matrix Organization: An increasingly popular organization that is a hybrid
between a functional and a projectized organization. A matrix
organization provides a project manager with control over the projects,
while preserving the functional manager’s control over departments. e
project manager “borrows” resources from one or more departments for
a temporary project, while the functional manager performs
administrative and human resource duties for the resources.
McClelland’s ree Needs eory: Also called Achievement eory, this
theory states that in order to be motivated, people have needs for
Achievement (nAch), Power (nPow), and Affiliation (nAff) that must be
satis�ed.
Meetings: Live or online sessions where the participants exchange
information, collaborate in real time, and drive to decisions. A meeting
is a common tool used frequently in processes. Each stakeholder who
attends should have a clearly de�ned role pertaining to the meeting and
expectations of the meeting.
Methodology: A speci�c set of practices, processes, and artifacts that
prescribe how a project should be planned, executed, and controlled.
Methodologies are an organization’s speci�c implementation of the
processes of project management. ey typically include checklists,
procedures, and document templates.
Milestone: A notable event in the project. A milestone may be a date, a
project deliverable, or any signi�cant point of interest.
Milestone Schedule: A high-level schedule that shows only signi�cant
schedule points. A milestone schedule is oen supplied along with the
project charter, where the milestones become schedule constraints.
A Milestone Schedule, With Four Milestones Represented
Mind Mapping: A means of visually depicting relationships between items
to help understand relationships.
Minimal Marketable Feature (MMF): e smallest deliverable that can
add value to users. A single MMF is typically comprised of a group of
user stories. By focusing on breaking the project into MMFs, the team
can focus on a small set of valuable functionality that can be delivered to
the customer quickly.
Modeling: An approach used in schedule management and risk
management. Modeling and simulation can help identify problems or
areas of risk with the project before they actually occur. What-if scenario
analysis and Monte Carlo analysis are examples of modeling techniques.
Monitor and Control Project Work: A high-level integration process used
to ensure that the project work being performed matches the plan. If the
results do not line up with the plan, either the way the work is being
performed is altered, or the plan is changed to re�ect a more realistic
scenario.
Monitor Communications: A monitoring and controlling process,
performed throughout the project, that compares the project
communications with the communications management plan and
makes any needed adjustments.
Monitor Risks: e process that reviews the risks that have and have not
occurred on the project and evaluates how the execution of the risk
management plan lines up to the plan itself.
Monitor Stakeholder Engagement: A monitoring and controlling process
that ensures that the right stakeholders are involved on the project at the
right level and in the right way.
Monitoring and Controlling Processes: One of the �ve process groups.
Monitoring and controlling processes constitute 12 of the overall 49
processes which generally measure the work results against the plan and
make adjustments or take corrective action where variances exist.
Monte Carlo Analysis: e risk management technique used to compute
large numbers of possible scenarios and identify areas of high risk.
Monte Carlo analysis is almost always performed by computer due to the
high numbers of scenarios considered. e output is a range of possible
schedule due dates and costs.
Multi-criteria Decision Analysis: A way of rating or assigning values to
different dimensions of the project.
N
Negative Float: A situation that occurs when an activity’s start date occurs
before a preceding activity’s �nish date. Negative �oat is an indication of
a scheduling issue, usually an imposed date.
Net Present Value (NPV): e same as present value but NPV also
subtracts out the costs.
Networking: e tool used to build or leverage existing relationships to help
complete the project work.
Node: A point on a project network diagram. In activity on node diagrams,
a node represents a schedule activity, while in activity on arrow
diagrams, a node is simply a connecting point.
Nonverbal Communication: Ways of communication that do not involve
words or vocalizations such as body language, expressions, hand
motions, or posture.
O
Observation and Conversation: A preferred way of getting in touch with
the team and staying attuned to the progress and morale of the team.
Also known as “Managing By Walking Around” (MBWA).
Observations (Job Shadowing): Watching product users or subject matter
experts work as a way to gather scope and requirements.
On-Demand Scheduling: An agile approach where teams use a Kanban
board showing work in progress. Technically work is not scheduled in
advance. Instead, work is “pulled” from the board when resources
become available or when work is completed.
Operations: Ongoing activities needed to continue business. Operations are
not considered part of a project, but they oen are considered part of a
program.
Opportunity: Anything that could have a positive impact on the project’s
scope, schedule, or cost. Opportunities are also considered as risks to the
project, as they represent uncertainty.
Opportunity Cost: e value of a project that was not performed so that
another one could be. Opportunity cost is typically calculated by taking
the value of the best alternative that was passed up.
Organization Chart: A chart that shows the reporting relationships among
a group of people working for an organization or for a project.
Organizational Breakdown Structure (OBS): A chart that relates work
packages to the parties in the organization responsible for their
completion. Most easily observed when related to a RAM chart or RACI
chart.
Organizational Process Assets: All historical information or knowledge
that an organization has at its disposal, which may be used to help future
projects. Examples of organizational process assets would include
templates, forms, research results, work breakdown structures, quality
standards, benchmarks, previous plans, contracts, etc.
Osmotic Communication: Communication which occurs as a result of
people sitting in the environment. One team member overhearing two
other team members conversing in the war room and thus becoming
informed would be an example of osmotic communication.
Output: Something coming out of a process. For example, in the process
Create WBS, the work breakdown structure is part of the scope baseline,
which is the output.
P
Paralingual Communication: Communication that is vocal but not verbal
such as the tone of voice, volume, or pitch.
Parametric Estimating: Using organizational process assets such as
historical data to formulate estimates based on past performance or
results. Parametric estimating is considered to work best on highly linear
and scalable components with adequate historical information. e
better the parametric model and the information coming in, the more
reliable the parametric estimate will be.
Pareto Chart: A column chart, or histogram, used in quality management
to show problems and help the team to know where to focus their efforts
based on frequency of the problem.
Path: A series of schedule activities that have a relationship that carries
through from the project’s start to the �nish.
Path Convergence: A point at which two or more network paths converge.
Payback Period: e amount of time it will take for an organization to
recover its �nancial investment in a project based on the value the
project is expected to provide; time from start to break even point.
Percent Complete: A planned or actual value showing how much of the
project’s work has been completed. Percent complete is sometimes used
to report on various levels of the work breakdown structure as well.
Perform Integrated Change Control: e monitoring and controlling
process where requested and unrequested changes are reviewed
according to the change control system. Perform Integrated Change
Control focuses on changes to the product, service, or result as well as
the organizational process assets that endure past the project.
Perform Qualitative Risk Analysis: A planning process to look at non-
quanti�able aspects of each risk. Perform Qualitative Risk Analysis
prioritizes the risks using the probability impact matrix, according to
which risks have the highest factors of likelihood and potential impact.
Perform Quantitative Risk Analysis: e planning process where all risks
are analyzed and assigned a value as it relates to the risk’s impact on the
project. Risks are typically quanti�ed in terms of potential impact on
budget or schedule so they may be weighed against the risk tolerance of
the key stakeholders.
Performing Organization: e organization responsible for executing the
project. A project manager typically works for the performing
organization to manage planning, execution, monitoring and
controlling, and closing activities. While the project sponsor typically
works for the performing organization, the customer may or may not.
Persona: An imaginary person or identity created by the team to model
interactions with the system in order to gather requirements. For
example, if the team were creating a point of sale system, they may create
a persona they call “Taylor” to represent a user who purchases large
quantities of an item and then returns them for credit later that day. (See
Extreme Persona).
Personnel Assessment Tools: Surveys and assessments to give the project
manager and the team greater insight into team member working styles
and preferences. A personality assessment would be one example of a
personnel assessment tool.
Phase: A grouping of project activities. Many projects are divided into two
or more phases in order to provide a point where the deliverables can be
evaluated. Phases are separated by exit gates or kill points where
someone who does not directly work with the project (the gatekeeper)
evaluates the deliverables to determine whether or not the next phase is
initiated. Phases should not be confused with process groups.
Plan Communications Management: e planning process that analyzes
the project, the stakeholders, and the communications needs of the
project and creates the communications management plan.
Plan Cost Management: e planning process that creates the cost
management plan, which is the plan that guides the activities in the
other three cost management processes.
Plan-Do-Check-Act (PDCA): e cycle of work popularized by
Deming that proposes that work should be planned, executed, veri�ed,
and adjusted or corrected. Agile implements the Plan-Do-Check-Act
cycle in smaller, more rapid iterations than predictive projects.
Plan Procurement Management: e planning process where the project
team performs make-or-buy analysis and decides what goods and
services will be created or performed internally and what will be
procured from external sources. Additionally, the procurement
documents are created, and potential sellers are identi�ed.
Plan Quality Management: e planning process where quality targets are
identi�ed. Plan Quality Management also determines how these targets
will be met and spells out how the other two quality processes (Manage
Quality and Control Quality) will be carried out.
Plan Resource Management: e planning process that determines how the
project will be organized and staffed in terms of the personnel and how
the physical resources will be acquired. e resource management plan
is the primary output of this process.
Plan Risk Management: e process that creates the risk management plan.
Plan Risk Management focuses on planning for the six subsequent risk
processes.
Plan Risk Responses: e planning process that determines how each
identi�ed risk will be mitigated, avoided, transferred, shared, exploited,
enhanced, escalated, or accepted.
Plan Schedule Management: e process that creates the schedule
management plan, which shows how the remaining schedule
management processes will be carried out.
Plan Scope Management: e process in the scope knowledge area that
plans how the other �ve scope management processes will be carried
out. e two major outputs of this process are the scope management
plan and the requirements management plan.
Plan Stakeholder Engagement: e process that plans how the team will
relate to stakeholders and the involvement stakeholders will have on the
project.
Planned Finish Date: e date a schedule activity should be �nished if that
activity’s work begins on time and is completed according to plan.
Planned Start Date: e date work on a schedule activity should begin
according to the plan.
Planned Value (PV): Also known as the Budgeted Cost of Work Scheduled
(BCWS). An earned value management term representing the progress
that should have been accomplished on the project at a given point in
the schedule. Planned Value (PV) is contrasted with Earned Value (EV),
and calculated as PV=Planned % Complete X BAC.
Planning Component: A node on the WBS where further decomposition of
the scope is not yet understood—a placeholder for later planning (See
Rolling Wave Planning). ere are no detailed schedule or cost
estimates. Planning components are oen given to outside groups to
perform the work.
Planning Package: See Planning Component.
Planning Poker: An exercise that has many different forms across agile
projects. Team members individually estimate the effort to deliver a user
story by writing the estimate down on an index card. en each team
member simultaneously turns over his or her card, and the discussion is
focused on the high and low estimates to understand why the team
member thinks it will be particularly difficult or easy. e team discusses
and repeats as needed until all estimates are relatively in line. Estimates
may be for hours, a number of days, ideal days, or affinity estimates such
as XS, S, M, L, or XL, or points along the modi�ed Fibonacci sequence.
Planning Processes: e process group containing all of the processes
associated with planning or creating a plan. 24 of the 49 processes of
project management are planning processes, which accounts for more
than any other process group.
Plurality: A group decision-making technique where the largest block of
individuals decides the outcome. Plurality differs from Majority in that
plurality does not require more than 50% to be in agreement. For
example, if 30% vote in favor of outcome A, and 30% in favor of
outcome B, and 40% in favor of outcome C, outcome C would carry the
group because it represents the largest block. It is not uncommon for the
plurality technique to employ a run-off between the two options that
received the highest votes until one option receives a true majority.
PMBOK: Different from the PMBOK® Guide, the PMBOK is an acronym for
the project management body of knowledge, which includes the sum of
all knowledge in the profession of project management.
PMBOK® Guide: e ANSI Standard for project management from PMI.
PMBOK® Guide is an abbreviation for the full title of the standard,
which is “A Guide to the Project Management Body of Knowledge.” e
standard is de�ned as being applicable to most projects, most of the
time.
PMI: e Project Management Institute. Founded in 1969, they are the
largest organization of project managers in the world.
PMI-ACP®: e Agile Certi�ed Practitioner® credential, administered
by the Project Management Institute. It is designed to demonstrate
pro�ciency in agile practices.
Portfolio: A group of projects and programs intended to achieve a business
result. A portfolio usually refers to all of the projects and programs in an
organization.
Position Description: A document describing the responsibilities of a
speci�c project team role. For most positions, the position description
should be created in advance of �lling the position. is document can
be a useful tool for recruiting.
Precedence Diagramming Method (PDM): e technique that uses the
analysis of logical relationships to create Activity on Node diagrams. See
entry for Activity on Node for more information.
Predictive [Project] Management: See Traditional Project Management.
Present Value: An economic calculation that calculates how much future
payments are worth in today’s currency. Present value is always smaller
than the sum of future payments due to the time value of money. With
project selection, Present Value provides a way of factoring in the time
value of money to calculate a project’s worth. Present value calculations
are very useful to compare one potential project or opportunity with
another.
Prevention: e concept, in quality management, that states that quality
cannot be inspected into a product but should be planned in from the
start in order to avoid problems.
Preventive Action: Action taken proactively in order to prevent or avoid
anticipated future problems. Preventive action is tied to risk
management.
Probability and Impact Matrix: A graphical risk analysis tool that plots the
likelihood (probability) of each risk event on the Y (vertical) axis, and
the risk event’s potential impact on the X (horizontal) axis. e X and Y
values are multiplied together to give a risk score. Risks with the highest
scores are prioritized higher for analysis and response.
Procedure: A set of rules to be followed in order to achieve a desired result.
Process: A set of inputs, tools, and techniques, used together to produce one
or more speci�c outputs for the project. ere are 49 processes of project
management which make up the core of the PMBOK® Guide. Each
process is organized so that it belongs to one knowledge area and one
process group.
Process Group: An organization of the 49 processes of project management
by overall function. Every process is assigned to a single process group
according to whether its purpose is initiating, planning, executing,
monitoring and controlling, or closing the project.
Process Improvement Plan: e quality management plan for how
activities will be reviewed and analyzed so that efficiency improves as the
project progresses.
Procurement: Buying goods or services from outside of the organization.
Procurement is generally treated as a formal activity.
Procurement Management Plan: e component of the project plan that is
used to manage one or more contracts that exist on the project. e
procurement management plan details the types of contracts to be used
and governs how changes to the contract will be managed, how claims
will be processed, and how contract-related communication will be
handled. Any information known about the procurement process will be
detailed in this plan, and it should specify the process by which any
contract(s) may be updated.
Product: e primary deliverable of the project. Projects may produce
products, services, or results, and these must be accepted by the
customer or sponsor.
Product Backlog: All of the known features that are to be implemented
throughout the project, regardless of the planned iteration or release.
Product Life Cycle: e different market phases of a product. Not to be
confused with project life cycle.
Product Owner: e agile project role that represents the customer,
users, and stakeholders, and understands and advocates for the overall
business value of potential features. e Product Owner maintains the
product backlog and also leads the �rst part of each iteration planning
meeting.
Product Roadmap: An artifact that shows an overview of current
and/or planned product functionality. e product roadmap will have
less detail than the release plan.
Product Scope: All of the requirements and functionality necessary to
create an acceptable product, service, or result.
Product Scope Description: A document that describes the characteristics
of the project’s product. e product scope description is progressively
elaborated. Its main purpose is to help create a common understanding
of the product among stakeholders.
Program: A group of related projects, managed together, usually to realize
some common efficiencies. Programs may also include ongoing
operations, which individual projects do not have.
Program Management: Coordinated management of two or more projects
in order to realize common efficiency.
Program Management Office: e group within the performing
organization responsible for establishing program standards, supporting
with expert knowledge, and providing templates and a repository for
organizational process assets and other historical information. e
actual authority of program management offices varies according to
organization and industry.
Progressive Elaboration: An iterative approach where planning occurs in
cycles rather than all up front. Projects which use progressive
elaboration typically do some planning, some execution, some
monitoring and controlling, and then repeat that cycle. Agile projects are
highly progressively-elaborated.
Project: A time-limited undertaking to deliver a unique product, service, or
outcome. In this de�nition, “unique” means that it has never been
performed by this organization before. Projects do not include ongoing
operations, although they do need to consider them up front.
Project Calendar: A calendar that is speci�c to this project, factoring in the
constraints of all participating organizations and geographical and
demographic regions. Project calendars show which days will be
working days and which ones will be non-working.
Project Charter: e document that formally starts the project. e charter
typically is issued by the sponsor and names the project manager.
Additionally, it may list the high-level project requirements, the high-
level milestones, and a summary-level preliminary budget. e charter is
a formal document created in the Develop Project Charter process. It
authorizes the project manager to expend organizational resources in
order to accomplish the project objective.
Project Coordinator: e project role that is weaker than a project manager
in terms of authority. A project coordinator can typically assign project
resources but is not authorized to spend project funds. When the role of
project coordinator exists on a project, it is in the place of a project
manager. Project coordinators report to someone from senior
management who has ultimate responsibility for the project.
Project Expeditor: e project role that has some project responsibility but
little organizational authority. Project expeditors ensure that tasks are
completed on time and that the project is progressing as planned;
however, they cannot assign project resources or spend project funds.
Project expeditors report to someone from senior management who has
ultimate responsibility for the project.
Project Funding Requirements: e amounts of funds that will be required
and the dates those funds will be required in order to perform the
project. Project funding requirements are tied to the schedule and the
cost baseline.
Project Life Cycle: A group of project phases speci�ed by an organization’s
project management methodology. e project life cycle is made up of
all of the project phases, viewed as a whole. Projects are divided into
phases in order to create logical management and decision points. See
Phase for more information.
Project Management Information System (PMIS): e system used to
support management of the project. It serves as a repository for
information and a tool to help with communication and tracking. e
PMIS supports the project from beginning to end.
Project Management Office (PMO): A group within the performing
organization responsible for providing standards and guidance to
projects and project managers. e role and responsibility of the PMO
varies from organization to organization, with some PMOs directly
accountable for project success. A PMO may be supportive, controlling,
or directing.
Project Management Plan: e plan for how the project will be managed.
e project management plan is a formal, approved document
composed of the other planning documents. Once approved, the project
management plan is placed under control. e project management plan
is also known, more succinctly, as the project plan.
Project Management Professional® (PMP): A project management
certi�cation managed by the Project Management Institute.
Project Management Soware: Soware to automate and assist the
processes of project management, including the gathering, storing,
updating, and reporting of information and the calculating of schedules
and budgets.
Project Management System: All of the processes, people, tools and
techniques, and methodologies used to manage the project. e project
management system should be described in the project plan.
Project Manager: e role of the person ultimately responsible for the
project. e project manager has the authority to spend project budget
and to assign project resources in order to realize the project’s goals.
Project Network Diagram: a graphical way of depicting schedule activities,
their dependencies, and sequence. e most common form of project
network diagram is an Activity on Node diagram where the nodes are
represented by rectangles and the dependencies are represented by
arrows that connect the nodes.
Project Network Node: a rectangle within an Activity on Node project
network diagram that represents an individual schedule activity.
Project Organization Chart: A graphical chart depicting reporting
relationships of all team members, speci�cally for this project. A project
organization chart may differ from the standard organization chart in
that it is not unusual for a project manager to have someone who ranks
higher than him in the organization reporting to him on the project.
Project Plan: See Project Management Plan
Project Schedule: A project document that prescribes the current view of
when activities should take place and in what order, based on actual
performance to date and schedule forecasts. It may differ from the
Schedule Baseline by the Schedule Variance and updated schedule
forecasts.
Project Scope: All of the work to be performed on the project. e project
scope is documented in the project scope statement and the work
breakdown structure.
Project Scope Statement: A narrative description of the scope. e scope
statement contains the goals of the project, the product description, the
requirements for the project, the constraints and assumptions, and the
identi�ed risks related to the scope. It should also include the acceptance
criteria and any items that are out of scope that would be helpful to
document.
Project Selection Methods: Any of the calculations that organizations use
to choose to initiate a project. Most of these are �nancial calculations to
help determine priority.
Projectized Organization: An organizational structure that is arranged
around projects. In a projectized organization, the project manager also
�lls the role of functional manager for the project team, meaning that
the human resources report directly to the project manager. Projectized
organizations give the project manager a great degree of control and
authority; however, that control comes with more administrative
responsibility that can reduce the project manager’s ability to focus on
the actual project.
Prompt List: A list used by teams to facilitate a risk review. A prompt list
helps identify new risks that might have occurred by giving a list of
categories for the team to review.
Prototypes: Functional or non-functional incomplete models of a product
to allow stakeholders to interact with it and re�ne design before it is
constructed.
Pull Communication: Forms of communication where the sender might
post information that must be pulled down by the receiver. A blog post
could be one example of pull communication. Contrast with Push
Communication.
Punishment Power: Also known as coercive power, it is the ability to
punish a team member if a goal is not met. Punishment power is not
viewed favorably in the �eld of project management.
Push Communication: Forms of communication where the sender actively
delivers the information to the receiver. A sent email would be one form
of push communication. Contrast with Pull Communication.
Q
Quality: Conformance to speci�cations.
Quality Control Measurements: e results aer the tools and techniques
of Control Quality have been applied.
Quality Management Plan: e plan which speci�es how the quality policy
will be implemented on a project. e quality management plan is a
component of the project plan.
Questionnaires and Surveys: A technique used in Collect Requirements to
gather scope from a large group of stakeholders. is data gathering
technique is also used in Control Quality and Identify Stakeholders.
R
Refactoring: Improving the design of the source code so that it is easier
to test, debug, and maintain. is reorganization of working code should
not have noticeable effects on functionality or performance.
Referent Power: Power based on charisma or persuasive ability or based on
an alliance with a more powerful person in the organization.
Regulation: A requirement that must be followed, issued by an authority.
Relative Sizing: Estimating the size of a function or user story based on
the size of another one. e exercise of ordering a group of user stories
from most difficult to least difficult without actually estimating effort or
duration is an example of relative sizing. “Triangulating” is a related
term meaning to size a story’s effort based on its effort being greater than
one story’s, but less than another’s.
Release: A packaged group of iteration outcomes designed to be
delivered to end users and customers. e working deliverable in each
release is expected to be highly stable.
Release Plan: An agile non-binding expectation of what future iteration
increments (outcomes, deliverables) will be combined into releases to
the customer. (See Release).
Reports: e �nal form in the transformation from data to information to
reports. Reports should always be actionable.
Request for Information (RFI): Also known as a RFI, a request for
information is issued by a buyer to potential sellers to supply
information relevant to the procurement process.
Request for Proposal (RFP): A formal document, issued by the buyer to
potential sellers. Potential sellers respond to the request for proposal
with a proposal for how they would satisfy the buyer’s request. e
response should answer all of the questions asked by the buyer in the
RFP.
Request for Quotation (RFQ): A formal document, issued by the buyer to
potential sellers. An RFQ typically requests pricing on pre-existing
products or offerings. Potential sellers respond to the request for
quotation with pricing.
Requirement: Something that the product needs to do or an attribute it
needs to have. Requirements should be documented in advance.
Requirements Documentation: A document that ties each deliverable back
to the underlying need it will address.
Requirements Management Plan: e plan that tells how the requirements
will be gathered, prioritized, documented, measured, and traced. e
requirements management plan becomes part of the project
management plan.
Requirements Traceability Matrix: A table showing the stakeholder or
origin that produced each requirement and the functionality that will
address that requirement. is is a useful document since projects may
have difficulty remembering how and why a particular requirement
came to be—necessary information when assessing the impact of scope
change requests.
Reserve (Contingency Reserve): Time or funding that is added to the
schedule or budget to help manage overruns due to identi�ed risks.
Reserve is used so that the project manager can deal with routine
overruns without having to reformulate the cost or schedule baselines
aer each individual slippage. Contingency may or may not be
communicated to project stakeholders, and it may be added at an
activity level, at any node on the WBS, or even at an overall project level.
It is included in the Cost Baseline. (Management Reserve) differs from
Contingency Reserve in that it is not in the control of the project
manager and not in the Cost Baseline, though considered in the total
budget, or Project Funding Requirements. Management reserve is
applied to the project via a change request approved by senior
management.
Reserve Analysis: A technique used to determine how much cost or
schedule reserve is appropriate for a given activity, work breakdown
structure node, or time or funding category.
Residual Risk: Risks that remain aer planning risk responses has been
completed. All projects carry some residual risks.
Resources: People, organizations, or materials that can be used on a project.
Resource Breakdown Structure (RBS): A graphical organizational chart
that groups resources together by their function. For example, an RBS
might show all of the database designers grouped together and all of the
programmers grouped together. Within the Programmers node, they
may be further subdivided by the soware language in which they
program. is is useful for resource leveling. e RBS is most oen used
for human resources but may also include material resources. See
Resource Leveling for more information
Resource Calendar: A calendar that shows the dates project resources will
be in use on the project and days when they will not be used. is
facilitates making these resources available to other projects or needs
within the organization.
Resource Histogram: A column chart that graphically represents when a
resource will be in use on the project. Resource histograms provide a
good visual representation of how project resources will be used over
time.
Resource Leveling: e technique of making the resource requirements
match up with the organizational realities. Resource leveling effectively
means adjusting the requirements to meet what the organization can
supply, and negotiating with the organization to make sure it can supply
the project’s resource needs. All of this takes place within the cost and
time constraints imposed upon the project. One application of resource
leveling would be to try to ensure that all resources work a 40 hour week
and that no overtime is incurred.
Resource Management Plan: e plan for how team members and physical
resources will be identi�ed, acquired, managed, and deployed in the
project. e resource management plan is created in the Plan Resource
Management process.
Resource Optimization Techniques: Using optimization techniques such as
resource leveling and resource smoothing to match the schedule for
when a task needs to be completed to a resource’s availability.
Resource Smoothing: Adjusting the number of resources to help keep
resource usage relatively level. When resource smoothing is used, the
critical path and the completion date do not change even though
individual activity durations likely will move.
Responsibility Assignment Matrix: A grid where the work packages are
represented in the rows, and the resources are represented in the
columns. Each cell shows what responsibility (if any) a particular group
of resources will have in relation to a work package. A R.A.C.I. chart is a
speci�c type of R.A.M.
Retrospective: An agile meeting held aer the development in an
iteration is complete. e point of a retrospective is for the team to
review the process and the results and to identify opportunities to
improve them for the next iterations.
Return on Investment: e percentage that shows what return an
organization earns by investing in a project.
Return on Investment Capital: A calculation that answers the question “for
every dollar of capital the organization invests, how much should we
earn in return?”
ROIC = Net Income (aer tax) from Project ÷ Total Capital Invested in
the project
Reward Power: e power to offer a reward, recognition, or incentive to
team members.
Rework: Anything done to make a product or service conform to
speci�cations.
Risk: Any unknown on the project. Risks may be positive or negative.
Risk Acceptance: e decision to deal with the risk (opportunity or threat)
if and when it occurs. When risk acceptance is employed, no additional
planning or steps will be taken before the risk event occurs.
Risk Audits: Periodic reviews of risk events to see if the events that were
anticipated are the ones that are occurring and if new risks have become
apparent. Risk audits are concerned with how effective the overall risk
process is.
Risk Avoidance: Taking steps to eliminate the project threat. Moving a
project site from a potentially hazardous location would be an example
of risk avoidance.
Risk Breakdown Structure: A graphical chart showing risks organized into
categories. e organization of a risk breakdown structure will vary from
project to project.
Risk Database: e risk database contains all information on identi�ed
risks throughout the life of the project. e risk database will be used by
future projects to assist in risk analysis.
Risk Enhancement: A risk management strategy for making a positive
uncertainty (opportunity) even better for the project. For example, if
labor rates for work in another country came in at 75% of what was
expected, a risk enhancement strategy might be to move even more
work to that location to capitalize on the resource.
Risk Exploitation: A risk management strategy for making a positive
uncertainty (opportunity) more likely to occur.
Risk Management Plan: e component of the project plan that shows how
subsequent risk processes and activities will be performed.
Risk Mitigation: Looking to decrease either the likelihood of an identi�ed
threat’s occurrence, or its impact on the project if it does occur.
Risk Parameters: e measures of a risk’s urgency, proximity, dormancy,
manageability, controllability, detectability, connectivity, strategic
impact, and propinquity.
Risk Reassessment: Cleaning up the risk register by removing risks that are
no longer relevant and adding any new risks that have been identi�ed.
Risk Register: e project document containing all identi�ed risks relevant
to the project. e risk register contains information about each risk and
is updated throughout the project.
Risk Report: A summary document that examines the factors that are
contributing to risk and the high-level information on identi�ed risks.
Risk Transference: e risk response technique of shiing a threat to
another entity, usually a subcontractor or a vendor specializing in that
type of risk. Firm �xed-price contracts would be one type of risk
transference, as would be purchasing an insurance policy that protected
the project.
Role: e part a person will play on the project. For example, a senior
person in the organization may play a junior role on a given project.
Speci�c roles in a project organization may include Project Manager,
Project Coordinator, Project Expeditor, PMO, Functional Manager,
Customer, Product Owner, Stakeholder, Sponsor, Team member, Tester,
Tracker, Developer, Team facilitator, Scrum Master, and Coach.
Rolling Wave Planning: A planning technique that does not seek to answer
all questions or plan all project activities at the beginning. Instead, only
imminent project activities are planned in detail, while activities further
in the future are planned at a higher level.
Root Cause Analysis: A technique that places a premium on understanding
the underlying reasons behind a problem rather than focusing on the
problem or symptom. Root cause analysis is used in quality management
as a tool to prevent future defects. Root cause analysis is sometimes
aided by Root Cause Diagrams and by the Five Whys Technique.
Root Cause Diagram: See Cause-and-Effect Diagram.
S
Scatter Diagram: A chart that plots events against a dependent and an
independent variable to identify correlation and spot trends. Scatter
diagrams are most oen used in quality management, speci�cally in the
Manage Quality and Control Quality Processes.
ree different scatter diagrams
Schedule Activity: See Activity
Schedule Baseline: e original schedule plus all approved changes to it.
Schedule Data: Supporting information related to the schedule that would
not appear on the schedule network diagram.
Schedule Network Analysis: e techniques of performing a forward pass
or a backward pass through the schedule to determine early start, early
�nish, late start, and late �nish dates along with �oat, free �oat, and
negative �oat.
Schedule Compression: Work to reduce the overall calendar time for a
project. Crashing and fast-tracking are examples of schedule
compression techniques.
Schedule Forecasts: Updated projections for the activities and overall
schedule based on performance and actual data.
Schedule Management Plan: e plan for how the project schedule will be
measured, monitored, and controlled. e schedule management plan is
created in the Plan Schedule Management process.
Schedule Tool: A soware tool that uses schedule data and manual
adjustments to automatically calculate and update the schedule.
Scope (product or project): May refer to product scope or project scope.
e product scope contains all of the requirements, features, and
attributes the product, service or result needs for successful acceptance.
e project scope contains all of the product scope plus any other items
needed to successfully perform the project.
Scope Baseline: e combination of the scope statement, the WBS, and the
WBS dictionary. When these documents are put under control they
become the scope baseline.
Scope Management Plan: e plan, created in Plan Scope Management,
that describes how the other �ve scope management processes will be
carried out.
Scope Statement: See Project Scope Statement.
Scrum: A popular agile methodology developed by Jeff Sutherland and
Ken Schwaber. is methodology de�nes the roles of Scrum Master,
Product Owner and Team and practices daily stand-up meetings with
the team. Scrum iterations are known as Sprints. It is built upon the
three pillars of visibility, inspection, and adaptation. Scrum Sprints are
preceded by a planning meeting; the team pulls work from a prioritized
backlog, and a retrospective is held at the end of each sprint.
Scrum Master: One of three de�ned roles within the Scrum
methodology. e Scrum Master is responsible for helping the team to
follow the Scrum process.
SDLC: An acronym for the System Development Life Cycle. SDLC is a non-
agile, waterfall approach that speci�es that projects should be conducted
in long cycles with a heavy emphasis on up-front planning.
Self-organizing Teams: e agile practice of assembling a team, usually
made of generalizing specialists, and allowing the members to determine
how their efforts would be best put to use, not heavily managed or
directed. Self-organizing teams are formed more organically, highly
autonomous, and oen do not have anyone with the role of project
manager on them.
Seller Proposal: A potential seller’s response to a buyer’s request for
proposal. ese are used as an input into the Conduct Procurements
process.
Sequence Activities: e planning process of Sequence Activities takes the
schedule activities from the activity list and sequences them according to
the order in which they must be performed. is is accomplished by
determining which activities are dependent upon other activities. is
process produces project network diagrams as its primary output, and
these are used later to create the schedule.
Servant Leadership: e agile leadership principle that states that
leadership roles (e.g., Coach or Scrum Master) function best when they
lead by serving the team. Servant leaders do not ask anything of the
team that they would not be willing to do themselves.
Seven Basic Quality Tools: Seven tools used frequently in quality
management. ey are: cause-and-effect diagrams, �owcharts, check
sheets, Pareto diagrams, histograms, control charts, and scatter
diagrams.
Sigma: e Greek symbol σ that represents one standard deviation from the
mean. In quality management, a higher number of sigmas (e.g., Six
Sigma) represents very high quality, since, at that level, everything
within six standard deviations of the mean would be of acceptable
quality.
Silo: A condition where an individual or small group works in an
isolated condition with little interaction outside of this effort. Agile
projects favor more open and transparent communication rather than
silos, which are common in functional organization types.
Slack: See Float.
Smoothing: Also called Accommodating, smoothing plays down the
problem and diverts attention to things that are going well. Smoothing is
not a favored means of problem solving since it does not deal with the
underlying problem(s) that led to con�ict.
Special Cause: e reason contributing to a quality problem that is
considered to be generally preventable. Contrast with Common Cause.
Spike: A quick experiment used to help the team answer a question and
determine a path forward.
Sponsor: e person responsible for funding the project. e sponsor is
typically someone from senior management and may or may not be the
same person as the customer.
Sprint: An iteration on a Scrum project that lasts between one week to
one month.
Stage Gate: See Exit Gate
Stakeholder: Anyone who may in�uence the project or who has an interest
in the project, whether that interest is positive or negative.
Stakeholder Engagement Plan: e component of the project management
plan that speci�es the requirements and expectations for stakeholder
communications and their desired participation on the project.
Stakeholder Register: A table that documents all of the project
stakeholders, their interest on the project, and oen their importance on
this project.
Standard Deviation: A representation of how diverse or scattered a data set
is. In quality management, a low standard deviation is generally
preferred, since it shows that results are predictable and the process is
delivering products that are consistent.
Start-to-Finish: A logical relationship between nodes in a project network
diagram. A start-to-�nish relationship between two scheduled activities
(e.g., activities A and B) indicates that regardless of when activity B
starts, it cannot �nish until Activity A begins.
Start-to-Start: A logical relationship between nodes in a project network
diagram. A start-to-start relationship between two scheduled activities
(e.g., activities Q and R) indicates that activity R cannot start until
activity Q starts.
Statement of Work (SOW): e narrative description of the project’s
product, service, or result. e statement of work is intended to foster a
common understanding among stakeholders.
Statistical Sampling: Using a representative sample to draw statistical
inferences about a larger population.
Strategies for Opportunities: Ways to deal with potential positive
occurrences on the project, including escalation, exploitation, sharing,
enhancing, and acceptance.
Strategies for reats: Ways to deal with potential problems on the project
including escalation, avoidance, transference, mitigation, and
acceptance.
Story: See User Story
Story Card: An index card that holds the user story. e index card
format is used to limit the amount of detail and advance planning the
team performs. Oen the acceptance criteria or test cases are detailed on
the back of the story card.
Story Map: A group of backlogged stories that are broken down and
organized by user functionality with the goal of setting the right
development priorities.
Story Point: A unit of measure to express the estimated difficulty
(effort) of a user story. Story points may be expressed in hours or days or
as t-shirt sizes (XS, S, M, L, XL, XXL), or as a number of the Fibonacci
sequence.
Sustainable Pace: A team pace or velocity that can be maintained
inde�nitely. Agile teams work to avoid a time crunch at the end of an
iteration or release and instead try to keep an intense, but steady pace.
Swarming: An agile collaboration technique where the entire team is
focused on a single user story. Swarming may be used for the entire
product backlog or simply for a single, challenging story.
SWOT Analysis: A technique used to gather and categorize strengths,
weaknesses, opportunities, and threats about a population. Strengths
and weaknesses are internal, while opportunities and threats are external
to the organization.
System: e rules, processes, procedures, people, and other elements that
support an outcome or process. Several systems are de�ned in project
management, including the project management information system,
the change control system, and the work authorization system.
T
Task: A schedule activity. Some project management resources treat a task
as a sub-activity, or a further decomposition of a schedule activity;
however, for the purposes of the exam, you should think of the two
terms as being equivalent. In an agile context, also called Engineering
Task—A smaller division of work that may be taken on by one person
and generally accomplished rapidly. Tasks are smaller divisions than user
stories, and unlike stories, they may or may not deliver value to the
customer.
To-Complete Performance Index (TCPIc ): e performance the project
would need to achieve to end on target. In this case, a lower index is
good, since it means that you could underperform and still meet your
�nancial target, while an index of greater than one is bad since you are
essentially saying that you would need to over-perform against the plan
in order to meet your �nancial goals or targets.
Team: e entire group responsible for planning, executing, and monitoring
and controlling the project. e project team typically involves the
sponsor as well. Agile teams are empowered to make decisions for the
project and oen include the customer as a part of the team.
Team-Building Activities: Exercises designed to strengthen the sense of
team. Team building works best when the activities are begun early, and
the focus should last throughout the project.
Team Charter: is charter documents the ground rules team members are
expected to follow. e team charter sets expectations by describing how
the team will meet, work, communicate, interact, make decisions, and
other areas the team deems important. e team charter is created in the
Plan Resource Management process.
Team Facilitator: See Coach.
Team Performance Assessments: Evaluations conducted to gauge a team’s
effectiveness.
Technique: See Tool.
Template: A document that serves as a starting point for a particular output.
Examples of templates include documents with mandatory headers and
placeholders, complete examples from previous projects, or
commercially available documents. Templates are oen provided by the
project management office, and they may be generic or speci�c.
Test-Driven Development (Test-First Development): An agile-
friendly development practice where the acceptance tests for a module
are de�ned before the module is written. e code is then constructed
around passing these tests so that it should only pass when it performs
correctly.
eme: e main purpose behind a group of stories, an iteration, or a
release. e Product Owner or Customer determines the theme, and the
Team agrees on it. For example, a Product Owner may decide that the
theme of a particular iteration is “Reporting” or “Connectivity.” In such a
case, the user stories selected for this iteration would generally be
focused around that theme.
eory X: A management theory that presumes that workers must be
closely and constantly supervised in order to get maximum results.
eory Y: A management theory that assumes people are naturally
motivated and may be trusted to do good work.
reat: Anything that potentially jeopardizes the project’s planned scope,
time, or cost. Due to their uncertainty, threats are considered to be risks.
Also see Opportunity.
ree-Point Estimate: A technique for estimating duration or cost. e
three-point estimate uses a pessimistic, optimistic, and realistic estimate
to calculate. e formula most oen associated with the three-point
estimate is a simple average, expressed as follows: Estimate =
(Pessimistic + Realistic + Optimistic) ÷ 3.
Time and Materials Contract (T&M): A type of contract where the buyer
reimburses the seller for the seller’s time at a prede�ned rate and a price
for materials and supplies the seller uses on the project. A pure time and
materials contract shis the primary risk to the buyer, as there are no
direct �nancial incentives for the seller to control labor or material costs.
Timeboxing (Timebox, Timeboxed): Constraining the project or
release by setting a �rm delivery date and then working to get as much
value and functionality in the delivery as the schedule allows. May also
be applied to agile events such as the Iteration Planning Meeting, Daily
Stand-Up Meeting, and Iteration Retrospective.
Tolerance: e limits a project sets for quality acceptance.
Tool [or Technique]: e applied function, action, procedure, or routine
de�ned within one of the 49 project management processes to produce
the targeted process output.
Top-Down Estimate: See Analogous Estimate
Tornado Diagram: A graphical chart used in Perform Quantitative Risk
Analysis. Tornado diagrams show how sensitive the project is to risk by
depicting the effect of a single variable change, while holding all other
variables steady.
Change in project cost due to a 10% change in labor costs with all other project costs held
constant.
Total Float: e sum of all time that an individual activity can slip from its
early start date without affecting the �nish date of the project.
Total Quality Management (TQM): A philosophy of quality management
that focuses on bringing quality into the entire organization. TQM
became popular in the second half of the twentieth century by
expanding the view of quality beyond the product to include all people
and processes within an organization. Feigenbaum, Deming, Juran,
Crosby, and Ishikawa are considered to be the primary architects of
TQM.
Traditional [Project] Management (Predictive, Waterfall): In the agile
context, a reference to top-down, or waterfall project management,
which emphasizes longer cycles of heavy planning, execution, and
control, generally with less customer involvement in the team, known
for being resistant to changing requirements. On traditional projects,
teams are managed and are not self-organizing.
Training: Efforts to build the capabilities of the individuals and the team.
Non-project-speci�c training should generally be paid for by the
functional manager or the department.
Transparency (Visibility): A value on agile projects that is implemented
through showing what each member of the team is working on and
making each person’s progress transparent to all interested stakeholders.
Work and progress are displayed for everyone to see. One of three pillars
of empirical process: Transparency, Inspection, and Adaptability.
Trend Analysis: A statistical forecasting technique to predict results
related to scope, time, or cost by plotting a trend line based on previous
performance. Run charts are oen used in trend analysis to create trend
lines.
Trigger: A warning sign that a risk has occurred, is occurring, or is about to
occur.
Triple Constraint: e intersection of scope, time, and cost on a project.
e triple constraint emphasizes that one of these cannot change
without affecting at least one of the other two.
U
Unanimity: A group decision technique where everyone on the team must
agree with the decision before a decision is made. A jury is a common
example where unanimity is used.
User Story: One or more business requirements that will add value to
the user. A user story is relatively small in terms of the effort it would
take to implement. ey are typically captured on story cards (see Story
Card). User stories are stated in terms of business functionality and not
in technical terms. For instance, if the team needed to optimize a
database, this would not be characterized as a user story unless the
customer requested a performance increase that the database
optimization might lead to. User stories remain �uid (negotiable), even
aer being written.
V
Validate Scope: e monitoring and controlling process of inspecting
project deliverables and gaining their formal acceptance from the
appropriate stakeholders.
Value: e worth that a project delivers to the business. e quest to
add value drives most agile team decisions. In a product backlog, user
stories are prioritized by value to the customer as interpreted by the
product owner—to be delivered early and continuously.
Value Engineering: Trying to decrease costs, increase pro�tability, improve
quality, and shorten the schedule without changing the scope of an item.
Value Stream Mapping: A way to analyze a chain of processes with the
goal of eliminating waste. It is intended to give the analyst a deeper
understanding of the system by mapping it out. Value Stream Mapping is
a Lean technique used to analyze the �ow of materials and information
through the system and to identify and eliminate waste.
Variable Sampling: A method of quality management where the results for
each item or attribute are ranked on a scale to show the degree to which
they meet quality. Contrast with Attribute Sampling.
Variance: A difference between the plan and the executed results.
Variance Analysis: A tool used frequently in controlling processes to look at
the difference between the plan and the results and to understand the
contributing factors.
Variance at Complete (VAC): e difference between what was budgeted
and what is forecasted to have been spent. e VAC is calculated by
subtracting the estimate at complete from the budgeted at completion,
or VAC = BAC - EAC.
Velocity: e number of features or user stories that a team delivers in a
�xed iteration.
Vendor Bid Analysis: An analysis of what the project should cost
performed by aggregating individual vendor bids.
Verification: Inspecting the product, service, or result to ensure that the
processes and deliverables meet quality requirements.
Verified Deliverable: Deliverables that have been compared with the
documented scope and speci�cations to ensure that they are correct.
Veri�ed deliverables �ow out of the Control Quality process.
Virtual Team: A team that is geographically distributed. Although agile
projects favor colocating the team, virtual teams are oen a reality.
Having a virtual team makes communication and many other aspects of
the project more difficult. Virtual team members may never actually
meet in person and will use collaboration tools to share information and
do their work.
Visibility: See Transparency.
W
War Room: A dedicated, centralized location for project planning that may
also be used for execution and other project activities. A common use of
the war room is to colocate the team for a period of time, helping
facilitate communication and a sense of team and avoid silos.
Waterfall: See Traditional Project Management.
Wideband Delphi Estimating: An estimation technique where the
team comes together for a presentation on user stories and to discuss the
challenges but then estimates in private. he estimates for each story are
plotted on a chart with no names, the team discusses the range of points,
and the process is repeated until the team reaches consensus.
Wireframe: A lightweight non-functional user interface design that
shows the major interface elements and how they would interact.
Wireframes can give users an idea of how the system might function
without the team having to write code.
Withdrawal: A means of con�ict avoidance which practices avoidance in
the hopes that the problem will resolve on its own. Withdrawal is not a
favored means of problem solving since it does not deal with the
underlying problem(s) that led to con�ict.
Work Authorization System: Part of the overall project management
information system (PMIS), the work authorization system is used to
ensure that work gets performed at the right time and in the right
sequence. It may be an informal e-mail sent by the project manager to a
functional manager, or a formal system to get an assigned resource
released to complete scheduled work.
Work Breakdown Structure (WBS): A graphical, hierarchical chart
composed of nodes that are logically organized from top to bottom. e
WBS represents all of the work and only the work to be performed on
the project. Each node on the WBS has a unique number used to locate
and identify it.
Example WBS
Work Breakdown Structure (WBS) Dictionary: e WBS dictionary is a
companion document to the work breakdown structure (WBS). Since
the WBS is a graphical chart, there is not room for all of the supporting
information and attribute information that accompanies each node.
erefore, the WBS dictionary provides a place for this information and
is organized so that it corresponds back to each node on the WBS.
Supporting information found in the WBS dictionary may include the
following: time and cost estimates, the person or group responsible for
the deliverable, due dates, further descriptions, etc.
Work-In-Progress (WIP): Stories or tasks that have been begun. WIP
is typically openly displayed on an information radiator, and its progress
is shown as it moves through the work�ow.
Work Package: e lowest hierarchical level of the work breakdown
structure. Work packages represent deliverables on the project and
should be small enough to estimate for cost and duration. Work
packages are further decomposed into activities for further estimating
and scheduling purposes.
Work Performance Data: Raw, unprocessed data about how the team has
executed the work. Compare with work performance information.
Work Performance Information: Processed information on how the work
is being performed, gathered during the executing processes. Work
performance information begins to �ow as soon as the work is executed.
Among other things, it includes the status of deliverables, how things are
performing against cost and schedule goals, and how the product
measures up against quality standards.
Work Performance Reports: Useful and oen actionable formats of work
performance information.
Workaround: A response to an unplanned risk event.
Workflow: A series of agreed-upon stages in development the team
follows. For example if a team decided to move each task through a
series of stages such as “Started,” “Designed,” “Coded,” “Tested,”
“Integrated,” and “Done,” this would represent the team’s work�ow.
X
XP: See eXtreme Programming.
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PMP Exam content, additional questions, and study aids
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- Title Page
- Copyright
- Dedication
- Contents
- Forward
- About the Author
- About Velociteach
- Introduction
- Conventions Used in this book
- 01 The Exam
- What the Exam Tests
- A Passing Grade
- The Exam Material
- Getting to the Test (Application)
- Requirements to Apply with a College Diploma
- Requirements to Apply without a College Diploma
- Ongoing Education
- The Testing Environment
- The Time Limit
- Question Formats
- 02 Foundational Concepts
- Philosophy
- Importance
- Preparation
- Essential Terms
- Project Roles
- Project Context
- Common Inputs, Tools, Techniques, and Outputs
- Understanding Agile
- Methodologies
- Traditional Waterfall Projects
- The Agile Way
- Predictive, Agile, and Hybrid Approaches
- The Manifesto for Agile Software Development
- Agile Principles
- Team and Roles
- Planning with Agile
- Product Vision Statement
- Personas and Extreme Personas
- Wireframes
- Agile Themes
- User Stories and Story Cards
- Story Maps
- Features
- Minimally Marketable Feature
- Task
- Value Streaming Mapping
- Rolling Wave Planning
- Test-First Development
- Definition of “Done”
- Agile Estimating
- Wideband Delphi Estimating
- Planning Poker
- Affinity Estimating
- Idea Time
- Iteration and Release Planning
- Agile Modeling
- Timeboxing
- Continuous Integration
- Working with Agile
- Ground Rules
- Servant Leadership
- Which Approach is Best?
- Summary
- Foundational Terms and Concepts Questions and Answers
- 03 Process Framework
- Importance
- Preparation
- Essential Terms
- Organization
- Process Group 1 - Initiating
- Process Group 2 - Planning
- Process Group 3 - Executing
- Process Group 4 - Monitoring & Controlling
- Process Group 5 - Closing
- Processes of Project Management
- 04 Integration Management
- Philosophy
- Importance
- Preparation
- Processes
- Develop Project Charter
- Develop Project Management Plan
- Direct and Manage Project Work
- Manage Project Knowledge
- Monitor and Control Project Work
- Perform Integrated Change Control
- Close Project or Phase
- Agile Perspective
- Integration Management Questions & Answers
- 05 Scope Management
- Philosophy
- Importance
- Preparation
- Processes
- Plan Scope Management
- Collect Requirements
- Define Scope
- Create WBS
- Validate Scope
- Control Scope
- Agile Perspective
- Scope Management Questions & Answers
- 06 Schedule Management
- Philosophy
- Importance
- Preparation
- Processes
- Plan Schedule Management
- Define Activities
- Sequence Activities
- Estimate Activity Durations
- Develop Schedule
- Control Schedule
- Agile Perspective
- Special Focus: Critical Path Method
- Summary of Key Terms
- Exercises & Answers
- Schedule Management Questions & Answers
- 07 Cost Management
- Philosophy
- Importance
- Preparation
- Processes
- Important Concepts
- Plan Cost Management
- Estimate Costs
- Determine Budget
- Control Costs
- Agile Perspective
- Special Focus: Earned Value
- Exercises & Answers
- Cost Management Questions & Answers
- 08 Quality Management
- Philosophy
- Importance
- Preparation
- Definition of Quality
- Processes
- Quality Terms and Philosophies
- Plan Quality Management
- Manage Quality
- Control Quality
- Agile Perspective
- Quality Management Questions & Answers
- 09 Resource Management
- Philosophy
- Importance
- Preparation
- Processes
- Plan Resource Management
- Estimate Activity Resources
- Acquire Resources
- Develop Team
- Manage Team
- Control Resources
- Agile Perspective
- Resource Management Questions & Answers
- 10 Communications Management
- Philosophy
- Importance
- Preparation
- Processes
- Project Manager’s Role in Communications
- Plan Communications Management
- Manage Communications
- Monitor Communications
- Agile Perspective
- Exercises & Answers
- Communications Management Questions & Answers
- 11 Risk Management
- Philosophy
- Importance
- Preparation
- Processes
- Plan Risk Management
- Identify Risks
- Perform Qualitative Risk Analysis
- Perform Quantitative Risk Analysis
- Plan Risk Responses
- Implement Risk Responses
- Monitor Risks
- Agile Perspective
- Risk Management Questions & Answers
- 12 Procurement Management
- Philosophy
- Importance
- Preparation
- Processes
- Roles
- Contracts
- Plan Procurement Management
- Conduct Procurements
- Control Procurements
- Agile Perspective
- Procurement Management Questions & Answers
- 13 Stakeholder Management
- Philosophy
- Importance
- Preparation
- Processes
- Identify Stakeholders
- Plan Stakeholder Engagement
- Manage Stakeholder Engagement
- Monitor Stakeholder Engagement
- Agile Perspective
- Stakeholder Management Questions & Answers
- 14 How to Pass the PMP Exam
- The PMP Exam
- Reading the Questions
- A Guessing Strategy
- Spotting Tricks and Traps
- Don’t Get Stuck
- Exam Time Management
- Scratch Paper
- Budgeting Your Time
- Managing Your Review
- General Advice
- Managing Anxiety
- Professional Conduct
- 15 Final Exam
- Final Exam Questions
- Final Exam Answers
- Glossary of Terms
