Exam Cram: PMP
Project Management Professional
Fourth Edition
PMP Exam Cram: Project Management Professional, Fourth Edition
Copyright © 2010 by Que Publishing
All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the publisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions. Nor is any liability assumed for damages resulting from the use of the information contained herein.
ISBN-13: 978-0-7897-4223-0
ISBN-10: 0-7897-4223-3
Library of Congress Cataloging-in-Publication Data:
Solomon, Michael (Michael G.), 1963-
PMP exam cram : project management professional / Michael G. Solomon.
—3rd ed.
p. cm.
Rev. ed. of: PMP. 2nd ed. c2006.
ISBN-13: 978-0-7897-4223-0 (pbk. w/CD)
ISBN-10: 0-7897-4223-3
1. Project management—Certification. 2. Project management—
Examinations—Study guides. I. Solomon, Michael (Michael G.), 1963- PMP.
II. Title.
HD69.P75F736 2010
658.4’04—dc22
2009040546
Printed in the United States of America
First Printing: November 2009
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Contents at a Glance
CHAPTER 1 Project Management Framework Fundamentals
CHAPTER 2 Understand Project Initiating
CHAPTER 3 Examine Project Planning
CHAPTER 4 Explore More Elements of Project Planning
CHAPTER 5 Understand Project Execution
CHAPTER 6 Investigate Project Monitoring and Controlling
CHAPTER 7 Explain Project Closing
CHAPTER 8 Professional and Social Responsibility
Answers to the PMP Practice Exam
Table of Contents
CHAPTER 1: Project Management Framework Fundamentals
The Project Management Framework
What a Project Is and What It Is Not
Changes in the PMBOK Guide, Fourth Edition
Project Management Knowledge Areas
Working with Organizational Politics and Influences
Differentiating Functional, Matrix, and Projectized Organizational Structures
Understanding Enterprise Environmental Factors
Project Life Cycle and Organization
Understanding Project Life Cycles
Project Management Process Groups
Understanding Project Life Cycle and Project Management Processes Relationships
Processes, Process Groups, and Knowledge Areas
Understanding Process Interaction Customization
CHAPTER 2: Understand Project Initiating
The Purpose of Initiating a Project
The Project Manager Assignment
The Project Charter and Its Purpose
Project Management Methodology
Project Management Information System
What the Project Manager Needs to Know
Using Management by Objectives
Accounting Concepts Used with Initiating Processes
CHAPTER 3: Examine Project Planning
Understanding PMI’s Planning Process Group
Work Breakdown Structure: A Common and Dangerous Omission
Activity Planning—From WBS to Project Schedule
Project Cost Estimating Factors
CHAPTER 4: Explore More Elements of Project Planning
Quality Theories and PMI Quality Management Approach
The Plan-Do-Check-Act (PDCA) Cycle
Quality Approaches and Project Management
Differences Among Quality Planning, Quality Assurance, Quality Control
Control Charts and Other Tools
Risk Management Planning and Risk Response Planning
Risk Breakdown Structure (RBS)
Risk Identification, Analysis, Response Planning, and Monitoring/Controlling
The Contract Statement of Work
The Procurement Management Plan
CHAPTER 5: Understand Project Execution
Tools and Techniques for Distributing Information
CHAPTER 6: Investigate Project Monitoring and Controlling
Integration and Scope Management
Factors That Cause Project Change
Monitor and Control Project Work
Perform Integrated Change Control
Verifying and Controlling Project Scope
Time, Cost, and Quality Management
Manage the Project Schedule and Budget
Identifying Variance with Earned Value Management
Communications, Risk, and Procurement Management
Communicating How Your Project Is Performing
CHAPTER 7: Explain Project Closing
Closing a Project or Phase Criteria
Ending a Procurement or a Project
CHAPTER 8: Professional and Social Responsibility
The PMI Code of Ethics and Professional Conduct
Aspirational and Mandatory Conduct
Aspirational Standards for Responsibility
Mandatory Standards for Responsibility
Aspirational Standards for Respect
Mandatory Standards for Respect
Aspirational Standards for Fairness
Mandatory Standards for Fairness
Aspirational Standards for Honesty
Mandatory Standards for Honesty
Qualifications, Experience, and Performance of Professional Services
Answers to the PMP Practice Exam
About the Author
Michael G. Solomon, CISSP, PMP, CISM, GSEC, is a full-time security and project management speaker, consultant, and trainer with more than 20 years of industry experience. He holds an MS in mathematics and computer science from Emory University (1998) and a BS in computer science from Kennesaw State University (1987). A former college instructor, Michael has written several IT and project management books, including PMP Exam Prep Course (LearnKey, 2009), PMP ExamCram2 (Que, 2005), Information Security Illuminated (Jones & Bartlett, 2005), Security+ Lab Guide (Sybex, 2005), and Computer Forensics JumpStart (Sybex, 2005).
Dedication
The content of this book would not be possible without the unyielding support of my family. I’d like to dedicate this work to three people. First, my best friend and wife, Stacey, who constantly brings out more in me than I thought possible. Second, two guys who challenge me each day to be the best I can be—my sons, Noah and Isaac. Thanks for letting me take over the dining room table. :>)
Acknowledgments
Thanks so much to all the people at Que who made this project possible and actually a smooth ride. Thanks, Betsy, Drew, and Kelvin for keeping me on track and making suggestions that improved the quality of the work.
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Introduction
The Project Management Professional (PMP) certification is a valued asset in the ever-evolving professional project management field. PMP certification in the professional arena ensures employers are hiring a project manager with thorough, tested knowledge in project management principles, years of hands-on, specific experience performing project management tasks, and a commitment to continuing education in the field of project management. Among fellow PMP-certified practitioners, PMP certification gives colleagues a commonality of experience and provides opportunities for networking. PMPs share the same frame of reference in project management, regardless of the field of endeavor.
PMP-certified individuals work in a wide array of industries, from aerospace to telecommunications. Many hiring supervisors specify PMP certification as a preferred skill set when soliciting project managers.
Both private and public sector employers recognize the value a PMP-certified employee brings to a project. Corporations embrace the consistent application of project management methodologies for initiating, planning, executing, controlling, and closing projects. The Project Management Institute (PMI) project framework is highly praised by companies and government entities whether they are engaged in large-scale development projects or simply undertaking small, reengineering initiatives. In both scenarios, the PMI approach offers a consistent project management methodology that can be tailored to the size and complexity of the project. This framework coupled with the PMP certification program ensures that PMP-certified practitioners are in high demand in the workforce.
PMI has brought the art and science of project management full circle through its PMP certification program and methodology, the Project Management Body of Knowledge (PMBOK). PMI seeks to evaluate project management professionals through the application of the certification process to ensure a dependable workforce with solid credentials. The PMP certification examination tests for comprehensive project management knowledge as well as a thorough understanding of the PMBOK. This approach ensures that PMP-certified practitioners have comparable qualifications and strategic competencies in all aspects of project management. PMI advocates the practice of project management as a discipline, not unlike engineering or any other precise, science-based course of study. As such, PMI developed the PMBOK as a comprehensive framework of best practices for the implementation of project management regardless of the specific industry.
The Project Management Institute
PMI is the premier project management organization in the world. It is a nonprofit, educational group intent on advancing the practice of project management through the promotion and promulgation of widely accepted standards. It has more than 420,000 members in more than 170 countries with more than 250 charter-based local chapters. This is quite a feat for an organization that started in 1969 with five volunteers!
PMI establishes professional standards, provides continuing education opportunities for members, engages in industry-specific research, and offers certifications aimed at unifying and strengthening the discipline of project management.
If you consider yourself a project management professional and want to earn your PMP, consider joining PMI. You will receive a reduced rate when sitting for your PMP examination as well as all the other benefits of PMI membership, including seminars, workshops, and other continuing education opportunities. These benefits include a community of peers that provides valuable information exchange about industry trends and access to the latest knowledge through a monthly magazine and quarterly research journals. To learn more about PMI and membership, visit PMI’s website at www.pmi.org.
What’s New in the PMBOK Guide, Fourth Edition
PMI as a member-driven organization is continually evolving to meet the needs of its membership and the project management profession. To this end, the PMBOK has been revised to incorporate feedback from members and to reflect current industry practice and developments since the last edition. For those readers familiar with the last edition—the PMBOK Guide, Third Edition—you will want to acquaint yourself with the changes in the Fourth Edition. This is particularly important if you used an earlier edition of the PMBOK to prepare for the PMP certification examination.
The new edition of the PMBOK pursues greater consistency and clarity over the Third Edition. The Fourth Edition completes the transition to a noun-verb format for all process names. Additionally, introductions and many descriptions have been rewritten to be more consistent throughout the PMBOK. Enterprise Environmental Factors are more clearly defined. This particular change helps emphasize the difference from Organizational Process Assets.
New material has been added to reflect changes, adaptations, and additions to tools and techniques used in the current practice of project management. The number of processes decreased from 44 to 42. Two processes were deleted, two processes were added, and six processes were combined into four processes. The added processes are
Collect Requirements—Section 5.1
Identify Stakeholders—Section 10.1
The deleted processes are
Develop Preliminary Scope Statement—Section 4.2
Plan Scope—Section 5.1
The changed processes are
Close Project—Section 4.7 changed to Close Project or Phase—Section 4.6
Manage Project Team—Section 9.4 changed from controlling to executing
Manage Stakeholders—Section 10.4 changed to Manage Stakeholder Expectations—also changed from controlling to executing
Plan Purchases and Acquisitions—Section 12.1 and Plan Contracting—Section 12.2 changed to Plan Procurements—Section 12.1
Request Seller Responses—Section 12.3 and Select Sellers—Section 12.4 changed to Conduct Procurements—Section 12.2
All the process inputs, tools, techniques, and outputs have been revised and updated to support improved integration and process mapping. In addition, project management processes have been mapped to show process integration. Also, process flow diagrams have been added to each process.
All these changes are the result of input from PMPs that was used to streamline and clarify the PMBOK. A complete listing of all changes to the PMBOK Guide, Fourth Edition is available in Appendix A of the PMBOK, and we also discuss these changes in more detail in Chapter 1, “Project Management Framework Fundamentals.” Each change is identified in its respective chapter in the PMBOK.
The new PMP certification examination went into effect on June 30, 2009 and is based on the PMBOK Guide, Fourth Edition.
The PMP Certification Process
PMP certification involves a number of steps, beginning with an application to the PMI that details the prospective PMP candidate’s qualifications, experience, and training. After a candidate has received approval from PMI to sit for the examination, he or she registers for the examination and must comply with various procedures set forth for the actual examination. The PMP certification process concludes with passage of the examination of issuance of PMP credentials by PMI.
Registering for the PMP Certification Exam
Prior to actually taking a PMP certification examination, you must submit an application to PMI for approval, including detailed documentation supporting your professional project management experience and training in specific areas of expertise.
Application Submission
An application is included in the PMP Credential Handbook, available on PMI’s website. This handbook provides detailed information on every step of the application process. If you believe you meet the requirements necessary for PMP candidates, you are ready to apply to PMI.
Candidates for PMP certification must meet both the educational and experience requirements for one of two categories. Verification forms showing compliance with these criteria must be submitted with your application for either category. Both categories are detailed in Tables I.1 and I.2.
Category One, shown in Table I.1, is for applicants possessing a bachelor’s degree or equivalent. In this category, less personal project management experience is necessary, although you must possess a minimum of 4,500 hours of hands-on project management activity. Category Two, shown in Table I.2, is ideal for candidates with longer work histories who do not hold a university degree. In this category, you can use 7,500 hours of project management performance to substitute for a college degree.
TABLE I.1 Category One Applicants
TABLE I.2 Category Two Applicants
Additional information related to the educational and experience mandates for PMP certification eligibility are provided in the PMP Credential Handbook.
Application Fee and PMI Membership
The application also requires an application fee tiered for PMI members and non-PMI member with the later paying a higher rate. For computer-based testing (CBT), members of PMI pay $405 for the examination while non-members are charged $555. The prices for paper-based testing (PBT) are $250 for PMI members and $400 for non-members. The annual cost for PMI membership is $119, which means that membership is actually cheaper than the difference between the examination cost for non-members and members. The total cost for joining PMI and sitting for PMI examination is $524. (This does not include chapter, special interest groups, and college memberships, which require additional fees.)
Audit
A random sample of applicants are chosen for audit prior to issuing eligibility letters. If you are selected for an audit, you are asked to provide additional information supporting your work experience, including supporting documentation from your supervisors that details your work on specific projects.
Examination Administration
The PMP certification examination is offered globally. Computer-based administration is available within North America and other countries through Prometric. In addition, a paper-pencil examination is offered at specific locations (see the PMP Credential Handbook for more information). A complete list of testing sites and vendors is available on the PMI website.
Prometric requires a PMI Identification Code to register. This code is provided to PMP candidates by PMI when approval is granted to sit for an examination. After you’ve been approved to sit for the exam, you can register online or use Prometric’s interactive voice response telephone registration system.
Specific instructions for registering are also included in your approval letter from PMI.
To learn more about Prometric and its administration of the PMP certification examination, visit Prometric’s website at www.prometric.com.
After your application has been approved by PMI, passing the actual PMP certification examination is your final step in becoming a PMP.
Re-Examination
Candidates who do not pass the PMP certification examination may apply to the PMI for re-examination using a form on PMI’s website. This form must be submitted within one year of your original examination date.
Cancellation
Candidates within North America can cancel and reschedule an examination two business days prior to the scheduled testing. Candidates outside North America must cancel at least seven calendar days in advance.
Candidates unable to appear for a scheduled examination due to a medical emergency must submit written notification to the PMI Certification Program Department within 72 hours of the scheduled exam. A rescheduling fee is charged. All circumstances are reviewed on a case-by-case basis.
Refund
A refund can be obtained by written request to the PMI one month before your exam eligibility expires. (You have one year from the date of your eligibility letter in which to take the PMP certification examination.) A $100 processing fee will be retained from your original application fee.
Arriving at the Exam Site
To be admitted into the test site you are required to present a form of identification that includes a picture and a signature (preferably your state driver’s license). Your approval letter from PMI and your registration confirmation from Prometric detail what forms of identification are acceptable. You are not allowed to bring anything to the exam. An examiner provides you with a calculator and scrap paper.
Wear comfortable clothing and layer your clothing. You spend up to four hours in the examination room, and your ability to concentrate and focus on the task at hand can be dramatically affected by the room temperature and your sense of comfort.
Get to your exam site early so you can review the PMP Cram Sheet provided in this book and any additional notes you create to quickly focus your mind on specific topics prior to the test. An early arrival ensures you have ample time to relax and mentally prepare for the examination.
In the Exam Room
Do not start the examination immediately. Sit down at your computer terminal and acclimate to the examination room and your immediate environment. Organize your peripherals for your comfort. Are the mouse and keyboard set correctly? Does your chair need to be adjusted? Is the monitor at the correct eye level for you? A few minor corrections can make all the difference during the next few hours.
Prior to the start of the examination, the test administrator will review any specific instructions and inform you what is and is not allowed during the examination period. You are allowed to take breaks and use the restrooms as necessary.
Pretest Tutorial
Prior to beginning the examination you are provided with a briefing and 15-minute online tutorial designed to familiarize you with the computer and operational procedures for the test. If you have taken a computer-based test previously, or have participated in computer-based training, you will feel comfortable in this environment. The pretest tutorial will show you how to navigate through the test using your computer mouse. You’ll be shown how to select an answer to a question, move forward to a new question, return to a previous question, and similar functions. The clock begins after you’ve completed the tutorial, so if you feel comfortable with the information presented, move forward to the actual examination.
Time Allotted for the Test
You have up to four hours to complete the examination. Pace yourself. There are 200 multiple-choice questions, which breaks down to 50 questions per hour and a little more than one minute per question. Not all questions require equal time. Don’t agonize over every question; read the question and each possible answer in its entirety prior to selecting an answer.
Answer the PMI Way
More than one answer can seem plausible and correct. You are not asked to select the correct answer but rather the best answer from those provided. Attempt to rule out any obviously wrong choices immediately to narrow your field of best answers. You should strive to select the best answer based on how you believe PMI and the PMBOK would respond given the question and not necessarily from your own project management experience.
The best answer as determined by PMI is provided as one of the four possible responses. Be suspicious of answers offering definitive responses like never and always. Some answers might tout non-PMI methods and reflect common project management misconceptions. Some answers might offer correct information, but the information is not pertinent to the question at hand. Similarly, some questions might contain factually correct information that has no bearing on the possible answers.
Pace Yourself During the Exam
After the first hour you will be able to determine your speed and make adjustments as necessary. It is important to be aware of your time so you won’t have to rush at the end to complete the examination. You should leave adequate time to review any responses you were unsure of and to return to unanswered questions. If you are spending more than one minute on a question, it is better to skip over the question and mark it for review later than to agonize over the question and lose the opportunity to answer other questions you know the answers to.
The examination allows you to mark questions for later review and make multiple passes through the exam. Mark every question you are unsure of even if you have selected an answer. This approach saves you time when you review your responses because you will not need to review any unmarked questions. If, on a second review, you determine an answer, unmark the question. Continue this process of going through all the marked questions until you have answered all the questions or are nearing the end of the allotted time period.
Save the last 20 minutes or so of the test to finalize any unmarked answers and ensure you have provided an answer to each question. Try to make a best guess by ruling out definitely wrong answers, as discussed earlier, but do not give up. Select an answer for each question—even if you have to guess. There is no penalty for guessing.
Throughout the testing period, keep an eye on the clock or use your watch timer to remind you at discreet intervals to take a break. It is amazing what simply standing up and stretching for a few minutes can do for your concentration.
At the conclusion of the test, candidates can opt to complete a satisfaction survey.
Exam Room Surveillance
You might be under surveillance during the examination. Some testing centers use both videotape and human monitors to ensure the validity of the test. After you get underway with your examination and start to concentrate on the task at hand, you will be unaware of any other activity. Any monitoring by the testing center will be unobtrusive.
Grading Your Exam
At the end of the examination period, the administrator immediately scores your exam and provide you with a printed copy of your results indicating pass or fail status. The scores are submitted to PMI by the end of the business day. If you have passed the examination, PMI will mail a PMP credential packet to you within six to eight weeks.
If you are taking a paper-pencil examination, answer sheets are scored when they are returned to the test administrator. You can request that your exam be hand scored for an additional $45 fee.
Any questions regarding your score from either the computer-based testing or paper-pencil examination should be addressed to PMI’s exam supervisor.
About This Book
This book offers you tools, techniques, tips, and other information to assist you in passing the PMP certification examination and becoming PMP certified. The emphasis is on reconciling your approach to the exam with PMI’s viewpoint and perspective on the examination. This book is not a guide to general project management but rather a specific study tool aimed at distilling PMI’s approach to project management as set forth in the PMBOK Guide, Fourth Edition. Project initiation, planning, execution, control, and closing are the core topics in this book and are parallel to those same key areas in the PMBOK.
Using This Book and CD
This book and CD prepare you to pass the PMP certification examination by highlighting important project management principles, providing insight into proven test-taking strategies, emphasizing key information you can expect to see on the examination, and providing exam practice questions. You get guidance and clarification on PMBOK concepts and understand their relationship to other project management methodologies. You have many opportunities to apply your knowledge through practice examinations and test questions.
There is a practice examination offered in this book as well as practice questions at the beginning and end of each section. The Cram Saver questions before each section help you decide how well you already know the material. If you answer all of the Cram Saver questions correctly you can choose to skim a section before going to its Cram Quiz at the end. After you complete a section, answer the Cram Quiz questions to determine how well you comprehended the information in the section. If you missed more than one or two questions, work your way through the section again, focusing on the concepts that you missed.
Similarly, you can test your knowledge and evaluate your level of preparation for the PMP certification examination by taking the practice exam under real conditions. After you’ve worked your way through this book, take the practice exam. Evaluate your results and then reread the chapters of this book related to those areas of the practice examination where you were less certain or did not select the correct answer.
Finally, the Cram Sheet condenses all the concepts, knowledge areas, processes groups, terminology, and formulates presented throughout this book into a tear-out sheet you can take with you to the exam site for quick review prior to entering the testing facility. The Cram Sheet is also a valuable tool for use in quick daily reviews after you have completed this book. Review the Cram Sheet every day; if there are any terms that seem vague then go to that particular topic in the book for a refresher.
Chapter Formats
Each chapter follows a regular structure, along with graphical cues about especially important or useful material. The structure of a typical chapter is as follows:
Topical coverage—Each chapter begins by listing the exam topics covered in that chapter.
Cram Saver questions—These are a short list of questions related to the specific section topic. Each question has a following explanation of both correct and incorrect answers. The Cram Saver questions help you decide how well you already know the material covered in the section.
Exam Alerts—Throughout the topical coverage section, Exam Alerts highlight material most likely to appear on the exam by using a special exam alert layout that looks like this:
Even if material isn’t flagged as an Exam Alert, all the content in this book is associated in some way with test-related material. What appears in the chapter content is critical knowledge.
Cram Quiz questions—Each section ends with a short list of test questions related to the specific topics of that section. Each question has a following explanation of both correct and incorrect answers. These practice questions highlight the most important areas on the exam.
The bulk of the book follows this chapter structure, but there are a few other important elements:
PMP Practice Exam—There is a full practice test found at the end of this book. The questions are designed to challenge your knowledge and readiness for the PMP exam.
Answers to the PMP Practice Exam—This provides the answers to the practice exam, complete with explanations of both the correct responses and the incorrect ones.
Cram Sheet—This appears as a tear-out sheet, inside the front cover. It is a valuable tool that represents a collection of the most critical items you should memorize before taking the test. Remember, you can dump this information out of your head onto the margins of your test booklet or scratch paper as soon as you enter the testing room.
You might want to look at the Cram Sheet in your car or in the lobby of the testing center just before you walk into the testing center. The Cram Sheet is divided under headings, so you can review the appropriate parts just before the test.
Using the CD-ROM
The CD contains two elements that help you prepare for the PMP exam:
Exam Practice Engine—This exam engine software includes all of the questions from the book’s practice exam in electronic format. You can take a full, timed exam or choose to focus on particular topics in study mode. Use your feedback and the topics listed in the book to zero in on the areas where you need more study.
Cram Quizzes—All of the book’s Cram Quizzes and their answers have been compiled into one convenient document on the CD for you to have another portable practice option.
About the PMP Exam
The PMP certification examination consists of 200 four-option, multiple-choice questions developed by PMPs. According to the PMI Credential Handbook, “The passing score for all PMI credential examinations is determined by sound psychometric analysis” and is not based on a fixed number of correct answers.
There are no prescribed guidelines for a course of study because the examination is objective in scope and intended to test your knowledge of the project management field; however, emphasis is strongly placed on the PMBOK.
Do note that the PMP exam includes a performance requirement specific to professional responsibility in the practice of project management. The PMI Code of Ethics and Professional Conduct is not a component of the PMBOK; rather it is a standalone document available on the PMI website that you will be tested on as part of the examination. The PMI Code of Ethics and Professional Conduct can also be found in the PMP Credential Handbook.
The PMP certification examination tests for professional responsibility and five process groups:
Initiating
Planning
Executing
Monitoring and Controlling
Closing
The most significant knowledge areas are planning, executing, and monitoring and controlling:
Planning—This knowledge area accounts for 23% of the test material.
Executing—This knowledge area accounts for 27% of the test material.
Monitoring and Controlling—This knowledge area accounts for 21% of the test material.
Overall, 71% of the examination deals exclusively with planning, executing, and monitoring and controlling projects.
Of the six exam domains, professional and social responsibility accounts for 9% of the PMP certification examination.
Initiating and closing represent the 11% and 9% of the exam, respectively.
A new PMP certification examination went into effect on June 30, 2009, based on the PMBOK Guide, Fourth Edition.
PMP Exam Topics
Table I.3 lists all of the PMP exam topics covered in this book. Use this table to find where a topic is covered in the book. For example, if your CD exam feedback indicates you scored poorly in a particular topic, find that topic in this table so you can find where it is covered in the book.
In general, the chapters are organized by process group. Within each process group the sections are organized by knowledge area. As much as possible, the flow is consistent with the project flow defined in the PMBOK. The numbers in the section references in the following table and throughout the book refer to the specific sections in the PMBOK Guide, Fourth edition. At any time you can go directly to the PMBOK to see the section that corresponds to the topic in this book that you are reading.
