Chapter 1: Project Foundation

Be able to describe the difference between projects and operations. A project is temporary in nature with a definite beginning and ending date. Projects produce unique products, services, or results. Operations are ongoing and use repetitive processes that typically produce the same result over and over.

Be able to differentiate between project management, program management, portfolio management, and a project management office. Project management brings together a set of tools and techniques to describe, organize, and monitor the work of project activities; program management refers to the management of groups of related projects; portfolio management refers to the management of a collection of programs and projects that support a specific business goal or objective; and the project management office oversees the management of projects and programs throughout the organization.

Be able to list some of the skills every good project manager should possess. Communication, budgeting, organization, problem solving, negotiation and influencing, leading, and team building are skills a project manager should possess.

Be familiar with the components of the PMI Talent Triangle. The components are technical project management, leadership, and strategic and business management.

Be able to define the role of the project manager. The project manager is the individual assigned to lead the team that is responsible for achieving the project objectives.

Be able to differentiate between the organizational structures and the project manager’s authority in each. Organizations are usually structured in some combination of the following: functional, projectized, and matrix (including weak matrix, balanced matrix, and strong matrix). Other types of organizational structures exist, such as multidivisional, virtual, hybrid, and PMO. Project managers have the most authority in a projectized organization and the least authority in a functional organization.

The PMBOK® Guide emphasizes that you should not confuse this generic life-cycle structure with the project management process groups because the processes in a process group will consist of activities that may be performed and recur within each phase of a project as well as for the project as a whole.

Be able to name the five project management process groups. The five project management process groups are Initiating, Planning, Executing, Monitoring and Controlling, and Closing.

Chapter 2: Initiating the Project

Be able to name the ten Project Management Knowledge Areas. The ten Project Management Knowledge Areas are Project Integration Management, Project Scope Management, Project Schedule Management, Project Cost Management, Project Quality Management, Project Resource Management, Project Communications Management, Project Risk Management, Project Procurement Management, and Project Stakeholder Management.

Be able to distinguish between the 13 needs or demands that bring about project creation. The 13 needs or demands that bring about project creation are market demand, stakeholder demand, business process improvement, competitive forces, material issues, organizational need, customer requests, technological advances, legal requirements, ecological impacts, political changes, economic changes, and social needs.

Be able to define decision models. Decision models are project selection methods that are used prior to the Develop Project Charter process to determine the viability of the project. Decision models include benefit measurement methods and mathematical models.

Be familiar with payback period. Payback period is the amount of time it will take the company to recoup its initial investment in the product of the project. It’s calculated by adding up the expected cash inflows and comparing them to the initial investment to determine how many periods it takes for the cash inflows to equal the initial investment.

Understand the concept of NPV and IRR. Projects with an NPV greater than zero should be accepted, and those with an NPV less than zero should be rejected. Projects with high IRR values should be accepted over projects with lower IRR values. IRR is the discount rate when NPV is equal to zero and IRR assumes reinvestment at the IRR rate.

Be able to identify where the high-level scope is documented and what it is based on. The high-level scope is defined and documented within the project charter and is based on the business and compliance requirements.

Be able to identify where the high-level risks, assumptions, and constraints are documented and what they are based on. The high-level risks, assumptions, and constraints are defined and documented within the project charter and are largely based on the existing environment, historical information, and expert judgment.

Be able to list the Develop Project Charter inputs. The inputs for Develop Project Charter are business documents, agreements, enterprise environmental factors, and organizational process assets.

Be able to describe the purpose of the business case. The purpose of a business case is to understand the business need for the project and determine whether the investment in the project is worthwhile.

Be able to describe the importance of the project charter. The project charter is the document that officially recognizes and acknowledges that a project exists. The charter authorizes the project to begin. It authorizes the project manager to assign resources to the project and documents the business need and justification. The project charter describes the customer’s requirements and ties the project to the ongoing work of the organization.

Understand the Identify Stakeholders process. The purpose of this process is to identify the project stakeholders, assess their influence and level of involvement, devise a plan to deal with potential negative impacts, and record stakeholder information in the stakeholder register.

Chapter 3: Planning Project Scope and Schedule Management

Understand the purpose of collecting requirements. Requirements are collected to define and document the project sponsors’, customers’, and stakeholders’ expectations and needs for meeting the project objective.

Know the outputs of the Collect Requirements process. The outputs of the Collect Requirements process include requirements documentation and requirements traceability matrix.

Understand the purpose of the project scope statement. The project scope statement serves as a common understanding of project scope among the stakeholders. The project objectives and deliverables and their quantifiable criteria are documented in the project scope statement and are used by the project manager and the stakeholders to determine whether the project was completed successfully. It also serves as a basis for future project decisions.

Be able to describe the purpose of the scope management plan. The scope management plan has a direct influence on the project’s success and describes the process for determining project scope, facilitates creating the WBS, describes how the product or service of the project is verified and accepted, and documents how changes to scope will be handled. The scope management plan is a subsidiary plan of the project management plan.

Be able to define a WBS and its components. The WBS is a deliverable-oriented hierarchy.

It uses the deliverables from the project scope statement or similar documents and decomposes them into logical, manageable units of work. The lowest level of any WBS is called a work package.

Know the difference between the precedence diagramming method (PDM) and the arrow diagramming method (ADM). PDM uses boxes or rectangles to represent the activities (called nodes) that are connected with arrows showing the dependencies between the activities. ADM places activities on the arrows (called activity on arrow), which are connected to dependent activities with nodes.

Be able to describe the purpose of the Estimate Activity Resources process. The purpose of Estimate Activity Resources is to determine the types and quantities of resources (human, equipment, and materials) needed for each schedule activity within a work package.

Be able to name the tools and techniques of Estimate Activity Durations. The tools and techniques of Estimate Activity Durations are expert judgment, analogous estimating, parametric estimating, three-point estimating, bottom-up estimating, decision making, data analysis, and meetings.

Be able to define the difference between analogous estimating, parametric estimating, and bottom-up estimating. Analogous estimating is a top-down technique that uses expert judgment and historical information. Parametric estimating multiplies the quantity of work by the rate. Bottom-up estimating performs estimates for each work item and rolls them up to a total.

Be able to calculate the critical path. The critical path includes the activities whose durations add up to the longest path of the project schedule network diagram. The critical path is calculated using the forward pass, backward pass, and float calculations.

Be able to define a critical path task. A critical path task is a project activity with zero float.

Be able to describe and calculate beta distribution. This is a weighted average technique that uses three estimates: optimistic, pessimistic, and most likely. The formula is as follows:

Be able to name the schedule compression techniques. The schedule compression techniques are crashing and fast-tracking.

Be able to describe a critical chain. The critical chain is the new critical path in a modified schedule that accounts for limited resources.

Be able to name the outputs of the Develop Schedule process. The outputs are project schedule, schedule baseline, schedule data, change requests, project calendars, project management plan updates, and project documents updates.

Chapter 4: Planning Project Cost and Quality Management

Be able to identify and describe the primary output of the Estimate Costs process. The primary output of Estimate Costs is cost estimates. These estimates are quantitative amounts—usually stated in monetary units—that reflect the cost of the resources needed to complete the project activities.

Be able to identify the tools and techniques of the Estimate Costs process. The tools and techniques of Estimate Costs are expert judgment, analogous estimating, parametric estimating, bottom-up estimating, three-point estimating, data analysis, project management information system, and decision making.

Be able to identify the tools and techniques of the Determine Budget process. The tools and techniques of Determine Budget are expert judgment, cost aggregation, data analysis, historical information review, funding limit reconciliation, and financing.

Be able to describe the cost baseline. The cost baseline is the authorized, time-phased cost of the project when using budget-at-completion calculations. The cost baseline is displayed as an S curve.

Be able to describe project funding requirements. Project funding requirements are an output of the Determine Budget process. They detail the funding requirements needed on the project by time period (monthly, quarterly, or annually).

Be able to identify the benefits of meeting quality requirements. The benefits of meeting quality requirements include increased stakeholder satisfaction, lower costs, higher productivity, and less rework, and they are discovered during the Plan Quality process.

Be able to define the cost of quality (COQ). The COQ is the total cost to produce the product or service of the project according to the quality standards. These costs include all the work necessary to meet the product requirements for quality. The three costs associated with cost of quality are prevention, appraisal, and failure costs (also known as cost of poor quality).

Be able to name four people associated with COQ and some of the techniques they helped establish. They are Crosby, Juran, Deming, and Shewhart. Some of the techniques they helped to establish are TQM, Six Sigma, cost of quality, and continuous improvement. The Kaizen approach concerns continuous improvement and specifies that people should be improved first.

Be able to name the tools and techniques of the Plan Quality Management process. The tools and techniques of the Plan Quality Management process consist of expert judgment, data gathering, data analysis, decision making, data representation, test and inspection planning, and meetings.

Chapter 5: Planning Project Resource, Communication, Procurement, Change, and Risk Management

Be able to define the purpose of the Plan Resource Management process. Plan Resource Management involves defining how to estimate, acquire, manage, and use resources; it is where roles and responsibilities for the project are determined.

Be able to describe the purpose of the communications management plan. The communications management plan determines the communication needs of the stakeholders.

It documents what information will be distributed, how it will be distributed, to whom it will be distributed, and the timing of the distribution.

Be able to define the purpose of the Plan Procurement Management process. The purpose of the Plan Procurement Management process is to identify which project needs should be obtained from outside the organization. Make-or-buy analysis is used as a tool and technique to help determine this.

Be able to identify the contract types and their usage. Contract types are a tool and technique of the Plan Procurement Management process and include fixed-price and cost-reimbursable contracts. Use fixed-price contracts for well-defined projects with a high value to the company, and use cost-reimbursable contracts for projects with uncertainty and large investments early in the project life. The three types of fixed-price contracts are FFP, FPIF, and FP-EPA. The three types of cost-reimbursable contracts are CPFF, CPIF, and CPAF. Time and material contracts are a cross between fixed-price and cost reimbursable contracts.

Be able to name the outputs of the Plan Procurement Management process. The outputs of Plan Procurement Management are a procurement management plan, procurement strategy, bid documents, procurement statement of work, source selection criteria, make-or-buy decisions, independent cost estimates, change requests, project documents updates, and organizational process assets updates.

Be able to define the purpose of the risk management plan. The risk management plan describes how you will define, monitor, and control risks throughout the project. It details how risk management processes (including Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks) will be implemented, monitored, and controlled throughout the life of the project. It describes how you will manage risks but does not attempt to define responses to individual risks.

Be able to define the purpose of the Identify Risks process. The purpose of the Identify Risks process is to identify all risks that might impact the project, document them, and identify their characteristics.

Be able to define the risk register and some of its primary elements. The risk register is an output of the Identify Risks process, and updates to the risk register occur as an output of every risk process that follows this one. By the end of the Plan Risk Responses process, the risk register contains these primary elements: identified list of risks, risk owners, risk triggers, risk strategies, contingency plans, and contingency reserves.

Be able to define the purpose of the Perform Qualitative Risk Analysis process. Perform Qualitative Risk Analysis determines the impact the identified risks will have on the project and the probability they’ll occur, and it puts the risks in priority order according to their effects on the project objectives.

Be able to define the purpose of the Perform Quantitative Risk Analysis process. Perform Quantitative Risk Analysis evaluates the impacts of risks prioritized during the Perform Qualitative Risk Analysis process and quantifies risk exposure for the project by assigning numeric probabilities to each risk and determining their impact on project objectives.

Be able to define the purpose of the Plan Risk Responses process. Plan Risk Responses is the process where risk response plans are developed using strategies such as escalate, avoid, transfer, mitigate, accept, exploit, share, enhance, develop contingent response strategies, and apply expert judgment. The risk response plan describes the actions to take should the identified risks occur. It should include all the identified risks, a description of the risks, how they’ll impact the project objectives, and the people assigned to manage the risk responses.

Chapter 6: Planning Stakeholder Engagement and Obtaining Project Plan Approval

Be able to describe the purpose of the stakeholder engagement plan. The stakeholder engagement plan identifies the management strategies necessary to effectively engage stakeholders.

Be able to state the purpose of the Develop Project Management Plan process. The project management plan defines how the project is executed, monitored and controlled, and closed, and it documents the processes used during the project.

Chapter 7: Executing the Project

Be able to describe the purpose of the Acquire Resources process. The Acquire Resources process involves acquiring and assigning physical and human resources, both internal and external, to the project.

Be able to describe the purpose of the Conduct Procurements process. Conduct Procurements involves obtaining bids and proposals from vendors, selecting a vendor, and awarding a contract.

Be able to name the tools and techniques of the Conduct Procurements process. The tools and techniques of the Conduct Procurements process are bidder conferences, advertising, data analysis, expert judgment, and interpersonal and team skills.

Be able to name the contracting life cycle stages. The stages of the contracting life cycle are requirement, requisition, solicitation, and award.

Be able to describe the purpose of the Develop Team process. The Develop Team process is concerned with creating a positive environment for team members; developing the team into an effective, functioning, coordinated group; and increasing the team’s competency levels.

Be able to name the five stages of group formation. The five stages of group formation are forming, storming, norming, performing, and adjourning.

Be able to define Maslow’s highest level of motivation. Self-actualization occurs when a person performs at their peak and all lower-level needs have been met.

Be able to name the five types of power. The five levels of power are reward, punishment, expert, legitimate, and referent.

Be able to identify the six styles of conflict resolution. The six styles of conflict resolution are forcing, smoothing, compromising, confrontation, collaborating, and withdrawal.

Be able to name the tools and techniques of the Manage Team process. The tools and techniques of Manage Team are interpersonal and team skills and the project management information system.

Be able to identify the distinguishing characteristics of Direct and Manage Project Work. Direct and Manage Project Work is where the work of the project is performed, and the majority of the project budget is spent during this process.

Be able to describe the purpose of the Manage Communications process. The purpose of the Manage Communications process is to collect, retrieve, store, and get information to stakeholders about the project in a timely manner.

Be able to describe the purpose of the Manage Stakeholder Engagement process. Manage Stakeholder Engagement concerns satisfying the needs of the stakeholders and successfully meeting the goals of the project by managing communications with stakeholders.

Be able to describe the various steps that a change request progresses through. Change requests are reviewed by the change control board through the Perform Integrated Change Control process. If approved, the changes are then implemented through the Direct and Manage Project Work process.

Be able to describe the purpose of the Manage Quality process. The Manage Quality process is concerned with making certain the project will meet and satisfy the quality standards of the project.

Be able to describe where risk response plans are documented and when they are executed. Risk response plans, contingency plans, and fallback plans are documented within the risk register and are executed when predefined risk triggers occur.

Be able to describe the purpose of the Implement Risk Responses process. The Implement Risk Responses process is responsible for implementing agreed-upon response plans so that overall risk exposure is managed and to minimize unique project threats and maximize opportunities.

Chapter 8: Monitoring and Controlling the Project

Name the outputs of the Monitor and Control Project Work process. The outputs are work performance reports; change requests, which include corrective actions, preventive actions, and defect repair; project management plan updates; and project documents updates.

Name the processes that integrate with the Control Procurements process. Direct and Manage Project Work, Control Quality, Perform Integrated Change Control, and Monitor Risks.

Name the purpose of the Validate Scope process. The purpose of Validate Scope is to determine whether the work is complete and whether it satisfies the project objectives.

Describe the purpose of the Control Costs process. The Control Costs process is concerned with monitoring project costs to prevent unauthorized or incorrect costs from being included in the cost baseline.

Be able to describe earned value management techniques. Earned value management (EVM) monitors the planned value (PV), earned value (EV), and actual cost (AC) expended to produce the work of the project. Cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI) are the formulas used with the EVM technique.

Know the purpose of the Control Scope and Control Schedule processes. The purpose of the Control Scope process is to monitor project and product scope and manage changes to the scope baseline. The purpose of the Control Schedule process is to monitor the status of the project’s progress and to manage changes to the schedule baseline.

Be able to name the tools and techniques of the Control Costs process. The tools and techniques of Control Costs are expert judgment, data analysis, to-complete performance index, and project management information systems.

For the exam, be familiar with the tools used to control quality. This includes checklists, check sheets, statistical sampling, and questionnaires and surveys.

Describe the purpose of the Control Quality process. The purpose of the Control Quality process is to monitor work results to see whether they comply with the standards set out in the quality management plan.

Describe the purpose of the Monitor Risks process. Monitor Risks involves identifying and responding to new risks as they occur. Risk monitoring and reassessment should occur throughout the life of the project.

Describe the purpose of the Perform Integrated Change Control process. Perform Integrated Change Control is performed throughout the life of the project and involves reviewing all the project change requests, establishing a configuration management and change control process, and approving or denying changes.

Be able to describe the purpose of a change control board. The change control board has the authority to approve or deny change requests. Its authority is defined and outlined by the organization. A change control board is made up of stakeholders.

Describe the purpose of the Monitor Communications process. Monitor Communications is responsible for monitoring and controlling communications throughout the duration of the project and ensuring that the communication requirements, needs, and expectations of stakeholders are met.

Describe the purpose of the Monitor Stakeholder Engagement process. The Monitor Stakeholder Engagement process is responsible for monitoring stakeholder relationships and adjusting the stakeholder management plan as a result of stakeholder engagement.

Chapter 9: Closing the Project

Be able to name the primary activity of the Closing process. The primary activity of the Closing process is to finalize the project, phase, or contract.

Be able to describe when the Close Project or Phase process is performed. Close Project or Phase is performed at the close of each project phase and at the close of the project.

Be able to name the process responsible for transferring ownership of the project’s final product, service, or result. The Close Project or Phase process is responsible for transferring the final product, service, or result of the project to the customer or transitioning it into operation.

Be familiar with key trends projects experience during project closure. Notable trends during project closure are that stakeholders have the least amount of influence whereas project managers have the greatest amount of influence and that costs are significantly lower.

Be able to name the four formal types of project closure. The four formal types of project closure are addition, starvation, integration, and extinction.

Know when and how resources are released from the project. Project resources are primarily released as part of finalizing project closure. The release of project resources is addressed in the resource management plan.

Be familiar with the purpose of the administrative closure procedures. Administrative closure involves collecting all the records associated with the project, analyzing the project success or failure, documenting and gathering lessons learned, properly archiving project records, and documenting roles and responsibilities.

Be familiar with the information distributed as part of the final project report. The final project report distributed by the project manager to stakeholders includes project closure–related information, project variances, and issues.

Be familiar with how lessons learned are captured at the end of the project and what information is recorded. At the end of the project, lessons learned can be documented by holding a comprehensive project review with stakeholders. The focus of lessons learned includes documenting what went well within the project, what didn’t go well, and what can be improved.

Know the process and output responsible for archiving project documents. Final project documents are archived as part of the organizational process assets updates output through the Close Project or Phase process.

Understand how to measure customer satisfaction. Customer satisfaction is measured through quality management, which ensures that the project meets conformance to requirements and fitness for use.