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Prepare for PMP certification exam success with this fully updated and comprehensive study guide
This study guide serves as a comprehensive resource for those who plan on taking the Project Management Professional (PMP) certification exam administered by PMI. The book helps you prepare for the exam, and it will continue to serve project managers as an on-the-job reference book.
The PMP Project Management Professional Exam Study Guide, Tenth Edition is fully updated to include recent changes to the exam. New content covers the integral role that Agile and other iterative practices have in project management. Updates also address the pivotal responsibilities of the project manager and the skill sets required for this position. The study guide was written to reflect the Project Management Process and Procedures found in the revised A Guide to the Project Management Body of Knowledge -- PMBOK® Guide, 6th Edition.
Well-known author and expert Kim Heldman, PMP, helps to prepare you for the exam with in-depth coverage of topics, concepts, and key terms. Learn more about the three main domain areas of people, process, and business environment, plus the predictive, agile, and hybrid approaches to project management.This guide is an effective learning aid that will take your understanding to the next level.
You'll also connect to a beneficial, on-the-go resource: an interactive online learning environment and test bank. This environment includes an assessment test, chapter tests, practice exams, electronic flashcards, and a glossary of key terms. A thorough review is the best prep for a challenging certification exam. So, get ready with this essential PMP study guide.
ABOUT THE AUTHOR
KIM HELDMAN, PMP®, is Senior Manager, IT/Chief Information Officer for the Regional Transportation District in Denver, Colorado, where she oversees an IT portfolio of projects that range from those small in scope and budget to multimillion-dollar, multiyear projects. Kim has more than 25 years of experience in IT project management, resource planning, budgeting, project prioritization, and strategic and tactical planning. Most of the real-world scenarios in this Study Guide are based on her actual experiences on the job. Visit her website at www.kimheldman.com.
Introduction xix
Assessment Test xxix
Answers to Assessment Test xlix
Chapter 1 Building the Foundation 1
Establishing the Foundation 3
Projects vs. Operations 4
Project Characteristics 6
What Is Project Management? 7
Programs 8
Portfolios 8
Organizational Project Management 11
Project Management Offices 11
Understanding How Projects Come About 13
Needs and Demands and Other Factors That Lead to Project Creation 14
Skills Every Good Project Manager Needs 17
Technical Project Management Skills 18
Business Management and Strategic Skills 18
Communication Skills 19
Organizational and Planning Skills 19
Conflict Management Skills 20
Negotiation and Influencing Skills 20
Leadership Skills 21
Team-Building and Motivating Skills 21
Role of a Project Manager 22
Understanding Project Management Process Groups 22
Determining a Project Methodology or Approach 28
Life Cycle Categories 29
Predictive Life Cycle Methodology 30
Agile Methodologies 33
Hybrid 38
Project Life Cycles 38
Understanding How This Applies to Your Next Project 39
Summary 40
Exam Essentials 41
Review Questions 43
Chapter 2 Assessing Project Needs 49
Exploring the Project Management Knowledge Areas 51
Project Integration Management 53
Project Scope Management 56
Project Schedule Management 57
Project Cost Management 58
Project Quality Management 59
Project Resource Management 59
Project Communications Management 60
Project Risk Management 62
Project Procurement Management 62
Project Stakeholder Management 63
Assessing Project Viability 64
Using Project Selection Methods 65
Assessing Project Needs and Creating the Project Charter 73
Enterprise Environmental Factors 78
Organizational Process Assets 78
Tools and Techniques 81
Formalizing and Publishing the Project Charter 82
Pulling the Project Charter Together 83
Key Stakeholders 84
Project Charter Sign-Off 87
Maintaining Project Artifacts 88
Introducing the Kitchen Heaven Project Case Study 89
Understanding How This Applies to Your Next Project 93
Summary 94
Exam Essentials 96
Review Questions 98
Chapter 3 Delivering Business Value 103
Understanding Organizational Structures 106
Functional Organizations 108
Project-Oriented Organizations 112
Matrix Organizations 114
Other Organizational Structures 118
Pmo 118
PMO in an Agile Environment 119
Project-Based Organizations 121
Influences of Organizational Structure on Agile Methodologies 122
Identifying Stakeholders 123
Discovering Stakeholders 124
Stakeholder Analysis 126
Categorizing Stakeholders 127
Stakeholder Register 134
Stakeholders on an Agile Project 135
Six Sigma Adaptive Methodology 137
Delivering Business Value 140
Business Value Network 142
Assessing Business Value 143
Delivering Business Value Incrementally 145
Examining Business Value 147
Subdividing Project Tasks 148
Understanding How This Applies to Your Next Project 151
Summary 152
Exam Essentials 153
Review Questions 155
Chapter 4 Developing the Project Scope 161
Developing the Project Management Plan 164
Project Complexity 168
Data Gathering and Interpersonal Skills 168
Documenting the Project Management Plan 169
Documenting the Project Management Plan Using a Predictive Methodology 172
Plan Scope Management 173
Alternatives Analysis 175
Documenting the Scope Management Plan 177
Documenting the Requirements Management Plan 178
Collecting Requirements 178
Gathering Documents for the Collect Requirements Process 180
Gathering and Documenting Requirements 185
Finalizing Requirements 189
Defining Scope 192
Writing the Project Scope Statement 194
Managing the Product Backlog 199
Creating the Work Breakdown Structure 201
Decomposing the Deliverables 202
Constructing the WBS 203
Backlog 211
Finalizing the WBS 212
Understanding How This Applies to Your Next Project 216
Summary 218
Exam Essentials 219
Review Questions 221
Chapter 5 Creating the Project Schedule 229
Creating the Schedule Management Plan 232
Defining Activities 233
Creating the Activity List 234
Breaking Down User Stories 235
Understanding the Sequence Activities Process 237
Precedence Diagramming and Leads and Lags 238
Project Management Information System 243
Project Schedule Network Diagrams 243
Estimating Activity Resources 244
How to Estimate Activity Resources 245
Documenting Resource Requirements 246
Estimating Resources in an Adaptive Methodology 247
Estimating Activity Durations 247
Project Calendars and Other Considerations 248
Estimating Techniques 249
Duration Estimates 253
Estimating Activity Durations Using Adaptive Methodologies 255
Developing the Project Schedule 257
Gather Documents to Assist in Developing the Schedule 257
Developing the Project Schedule 258
Project Schedule and the Schedule Baseline 272
Using a Kanban Board and Scrum Board 277
Scrum Board 279
Combining Techniques 280
Agile Release Planning 281
Applying Process Groups in an Agile Approach 281
Understanding How This Applies to Your Next Project 286
Summary 287
Exam Essentials 289
Review Questions 291
Chapter 6 Developing the Project Budget and Engaging Stakeholders 297
Creating the Cost Management Plan 300
Performing Plan Cost Management 301
Creating the Cost Management Plan 302
Estimating Costs 303
Estimating Techniques 307
Estimating Costs for an Agile Project 308
Creating the Cost Estimates 309
Establishing the Cost Baseline 311
Techniques for Developing the Project Budget 313
Developing the Cost Baseline 314
Understanding Stakeholders 318
Analyzing Stakeholders 319
Stakeholder Engagement Plan 320
Mentoring Stakeholders 321
Engaging Stakeholders in an Adaptive Methodology 322
Communicating the Plan 323
Planning Communications 324
Determining Communication Needs 325
Documenting the Communications Management Plan 331
Communicating on an Agile Team 333
A Closer Look at Adaptive Methodologies 335
Other Methodologies 340
Combining Methodologies 345
Understanding How This Applies to Your Next Project 348
Summary 349
Exam Essentials 351
Review Questions 353
Chapter 7 Identifying Project Risks 359
Understanding Risk 361
Creating the Risk Management Plan 362
Risk Attitude 363
Conducting Risk Meetings 364
Documenting the Risk Management Plan 366
Identifying Potential Risks 372
Data Gathering and Data Analysis Techniques for Identifying Risks 374
Documenting the Risk Register 378
Identifying Risks Using an Agile Approach 380
Analyzing Risks Using Qualitative Techniques 381
Performing Qualitative Risk Analysis 382
Ranking Risks in the Risk Register 390
Quantifying Risk 391
Performing Quantitative Risk Analysis 392
Updating the Risk Report 397
Developing a Risk Response Plan 398
Strategies for Creating Risk Responses 399
Documenting the Risk Responses Plan 404
Assessing Risks Using an Agile Approach 407
Planning for Project Compliance 409
Understanding How This Applies to Your Next Project 413
Summary 414
Exam Essentials 415
Review Questions 417
Chapter 8 Planning and Procuring Resources 423
Procurement Planning 425
Gathering Documents for the Procurement Management Plan 427
Source Selection Criteria 433
Procurement Management Plan 435
Procurements in an Agile Environment 442
Developing the Resource Management Plan 445
Understanding Enterprise Environmental Factors 446
Using Data Representation Techniques for Plan Resource Management 448
Documenting the Resource Management Plan 451
Resources on an Agile Project 455
Quality Planning 456
Preparing for Quality 457
Developing the Quality Management Plan 458
Documenting the Quality Management Plan 466
Quality Planning for Agile Projects 468
Project Planning Using Agile Methodologies 469
Bringing It All Together 470
Choosing a Life Cycle Methodology 473
Understanding How This Applies to Your Next Project 480
Summary 481
Exam Essentials 482
Review Questions 485
Chapter 9 Developing the Project Team 491
Directing and Managing Project Work 494
Direct and Manage Project Work Inputs 496
Project Management Information System 499
Deliverables and Work Performance Data 499
Directing Project Work on Agile Projects 504
Executing Practices for Delivering Project Work 508
Acquiring the Project Team and Project Resources 510
The Resource Management Plan 510
Techniques for Acquiring Resources 511
Project Team Assignments 515
Developing the Project Team 517
Generational Diversity 518
Tools and Techniques to Develop the Team 520
Developing Agile Teams 536
Team Performance Assessments 539
Managing Project Teams 543
Emotional Intelligence and Other Tools for Managing Teams 543
Lessons Learned Managing Teams 545
Understanding How This Applies to Your Next Project 547
Summary 548
Exam Essentials 550
Review Questions 552
Chapter 10 Sharing Information 559
Implementing Risk Responses 563
Conducting Procurements 563
Evaluating Proposals 564
Creating Procurement Agreements 571
Conducting Procurements on Agile Projects 573
Laying Out Quality Assurance Procedures 574
Managing Quality with Data and Audits 575
Quality Reports and Test and Evaluation Documents 580
Conducting Quality Assessments on an Agile Project 581
Managing Project Knowledge 582
Knowledge Management 583
Information Management 583
Managing Project Artifacts 583
Managing Project Information 584
Communication and Conflict Resolution Skills 585
Project Communications and Elements of Communicating 594
Communicating on Agile Projects 596
Managing Stakeholder Engagement 597
Observing and Conversing 598
Agile Frameworks 599
Agile Methodologies or Frameworks 600
Scaling Frameworks 601
Understanding How This Applies to Your Next Project 606
Summary 607
Exam Essentials 608
Review Questions 611
Chapter 11 Measuring and Controlling Project Performance 619
Monitoring and Controlling Project Work 624
Forecasting Methods 625
Work Performance Reports 626
Controlling Procurements 627
Procurement Documents and Approved Change Requests 629
Monitoring Vendor Performance 631
Closing Out Procurements 632
Monitoring Communications 636
Documents to Help Monitor Communications 637
Monitoring Communications with Meetings 637
Work Performance Information 639
Performing Integrated Change Control 642
How Change Occurs 643
Change Control Concerns 644
Configuration Control 645
Change Control System 646
Approved Change Requests 650
Changes in the Business Environment 651
Monitoring Stakeholder Engagement 654
Controlling Resources 654
Utilizing Control Quality Techniques 655
Control Quality Tools and Techniques 656
Verifying Deliverables 664
Monitoring and Controlling Risk 664
Monitor Risks Analysis and Meetings 666
Monitor Risks Updates 667
Monitoring Project Management Integrations 668
Understanding How This Applies to Your Next Project 671
Summary 672
Exam Essentials 674
Review Questions 676
Chapter 12 Controlling Work Results and Closing Out the Project 683
Controlling Cost Changes 686
Earned Value Analysis 687
Variance Analysis 689
Trend Analysis 692
To-Complete Performance Index 697
Earned Value Measures on Agile Projects 700
Monitoring and Controlling Schedule Changes 702
Burndown and Burnup Charts 703
Performance Reviews 705
Changes to the Schedule 706
Validating Project Scope 707
Controlling Scope 708
Measuring Work Results on Agile Projects 710
Formulating Project Closeout 713
Characteristics of Closing 713
Project Endings 714
Closing Out the Project 717
Administrative Closure Procedures 718
Regression Analysis 719
Close Project or Phase Final Report 719
Closing Out the Procurements 723
Closing Out an Agile Project 724
Celebrate! 725
Releasing Project Team Members 725
Balancing Stakeholders' Interests at Project Close 725
Competing Needs 726
Dealing with Issues and Problems 727
Balancing Constraints 727
Professional Responsibility 727
Responsibility 728
Respect 731
Fairness 734
Honesty 737
Role Delineation Study 739
Applying Professional Knowledge 739
Project Management Knowledge 740
Education Providers 740
Industry Knowledge 740
Understanding How This Applies to Your Next Project 746
Summary 748
Exam Essentials 750
Review Questions 752
Appendices 757
Appendix A Answers to Review Questions 759
Chapter 1: Building the Foundation 760
Chapter 2: Assessing Project Needs 761
Chapter 3: Delivering Business Value 763
Chapter 4: Developing the Project Scope 765
Chapter 5: Creating the Project Schedule 767
Chapter 6: Developing the Project Budget and Engaging Stakeholders 768
Chapter 7: Identifying Project Risks 770
Chapter 8: Planning and Procuring Resources 771
Chapter 9: Developing the Project Team 773
Chapter 10: Sharing Information 775
Chapter 11: Measuring and Controlling Project Performance 776
Chapter 12: Controlling Work Results and Closing Out the Project 778
Appendix B Process Inputs and Outputs 781
Initiating Processes 782
Planning Processes 784
Executing Processes 807
Monitoring and Controlling Processes 821
Closing Processes 836
Index 839
This book was designed for anyone thinking of taking the Project Management Professional (PMP®) exam sponsored by the Project Management Institute (PMI®). This certification is in high demand in all areas of business. PMI® has experienced explosive growth in membership over the last few years, and more and more organizations are recognizing the importance of project management certification.
Although this book is written primarily for those of you taking the PMP® exam, you can also use this book to study for the Certified Associate in Project Management (CAPM®) exam. The exams are similar in style, and the information covered in this book will help you with either exam.
This book has been updated to reflect the latest edition of A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth Edition (PMI®, 2017), and the new exam domains introduced in 2020. It assumes you have knowledge of general project management practices, although not necessarily specific to the PMBOK® Guide. It's written so that you can skim through areas you are already familiar with, picking up the specific PMBOK® Guide terminology where needed to pass the exam. You'll find that the project management processes and techniques discussed in this book are defined in such a way that you'll recognize tasks you've always done and be able to identify them with the PMBOK® Guide process names or methodologies.
PMI® offers the most recognized certification in the field of project management, and this book deals exclusively with its procedures and methods. Project management consists of many methods, each with its own terminology, tools, and procedures. If you're familiar with another organized project management methodology, don't assume you already know the PMBOK® Guide processes. I strongly recommend that you learn all of the processes-their key inputs, tools and techniques, and outputs. Take the time to memorize the key terms found in the Glossary as well. Sometimes just understanding the definition of a term will help you answer a question. It might be that you've always done that particular task or used the methodology described but called it by another name. Know the name of each process and its primary purpose.
The process names, inputs, tools and techniques, outputs, and descriptions of the project management process groups and related materials and figures in this book are based on content from A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth Edition (PMI®, 2017). The references to adaptive and hybrid methodologies, related materials, and figures in this chapter are based on content from the Agile Practice Guide (PMI®, 2017).
PMI® is the leader and the most widely recognized organization in terms of promoting project management best practices. PMI® strives to maintain and endorse standards and ethics in this field and offers publications, training, seminars, chapters, special interest groups, and colleges to further the project management discipline.
PMI® was founded in 1969 and first started offering the PMP® certification exam in 1984. PMI® is accredited as an American National Standards Institute (ANSI) standards developer and also has the distinction of being the first organization to have its certification program attain International Organization for Standardization (ISO) 9001 recognition.
PMI® boasts a worldwide membership of more than a half a million members with more than 200 countries and territories around the globe. Local PMI® chapters meet regularly and allow project managers to exchange information and learn about new tools and techniques of project management or new ways to use established techniques. I encourage you to join a local chapter and get to know other professionals in your field.
The following benefits are associated with becoming PMP® certified:
PMP® certification is a rigorous process that documents your achievements in the field of project management. The exam tests your knowledge of the disciplined approaches, methodologies, and project management practices as described in the PMBOK® Guide.
You are required to have several years of experience in project management before sitting for the exam, as well as 35 hours of formal project management education. Your certification assures employers and customers that you are well grounded in project management practices and disciplines. It shows that you have the hands-on experience and a mastery of the processes and disciplines to manage projects effectively and motivate teams to produce successful results.
Many industries are realizing the importance of project management and its role in the organization. They are also seeing that simply proclaiming a head technician to be a "project manager" does not make it so. Project management, just like engineering, information technology, and a host of other trades, has its own specific qualifications and skills. Certification tells potential employers that you have the skills, experience, and knowledge to drive successful projects and ultimately improve the company's bottom line.
A certification will always make you stand out above the competition. If you're a PMP® credential holder and you're competing against a project manager without certification, chances are you'll come out as the top pick. As a hiring manager, all other things being equal, I will usually opt for the candidate who has certification over the candidate who doesn't have it. Certification tells potential employers you have gone the extra mile. You've spent time studying techniques and methods as well as employing them in practice. It shows dedication to your own professional growth and enhancement and to adhering to and advancing professional standards.
PMP® certification displays your willingness to pursue growth in your professional career and shows that you're not afraid of a little hard work to get what you want. Potential employers will interpret your pursuit of this certification as a high-energy, success-driven, can-do attitude on your part. They'll see that you're likely to display these same characteristics on the job, which will help make the company successful. Your certification displays a success-oriented, motivated attitude that will open up opportunities for future career advancements in your current field as well as in new areas you might want to explore.
Just as the PMP® certification assures employers that you've got the background and experience to handle project management, it assures customers that they have a competent, experienced project manager at the helm. Certification will help your organization sell customers on your ability to manage their projects. Customers, like potential employers, want the reassurance that those working for them have the knowledge and skills necessary to carry out the duties of the position and that professionalism and personal integrity are of utmost importance. Individuals who hold these ideals will translate their ethics and professionalism to their work. This enhances the trust customers will have in you, which in turn will give you the ability to influence them on important project issues.
You need to fulfill several requirements in order to sit for the PMP® exam. PMI® has detailed the certification process quite extensively at its website. Go to www.pmi.org and click the Certifications tab to get the latest information on certification procedures and requirements.
www.pmi.org
As of this writing, you are required to fill out an application to sit for the PMP® exam. You can submit this application online at the PMI® website. You also need to document 35 hours of formal project management education. This might include college classes, seminars, workshops, and training sessions. Be prepared to list the class titles, location, date, and content.
In addition to filling out the application and documenting your formal project management training, there is one set of criteria you'll need to meet to sit for the exam. The criteria in this set fall into two categories. You need to meet the requirements for only one of these categories:
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