CERTIFICATION OBJECTIVES
1.01 The PMBOK Guide, This Book, and the PMP Exam
1.02 Defining What a Project Is—and Is Not
1.03 Defining Project Management
1.04 Examining Related Areas of Project Management
1.05 Revving Through the Project Life Cycle
1.06 Defining Project Management Data and Information
Two-Minute Drill
Q&A Self Test
How you’ll do on your PMP examination depends on your experience, your ability to problem-solve, and your foundation in project management. This chapter aims to explain how both this book and the sixth edition of PMI’s A Guide to the Project Management Body of Knowledge (referred to the PMBOK Guide in this book) can help you grasp what you must know to pass the exam.
In addition to learning about the PMBOK (pronounced pim-bok) Guide and the exam, you’ll learn what a project is, how project management works, what the exam process itself looks like, and how project management and projects operate in different environments. We’ll also take a “big picture” look at the project charter and the project management plan. We’ve lots to do, so let’s go!
CERTIFICATION OBJECTIVE 1.01
If you’ve sat down to read the PMBOK Guide, you’ve obviously had a lot of time on your hands, you were really curious about it, or someone told you it was required reading for passing the Project Management Professional (PMP) examination. Here’s the truth about the PMBOK Guide: It’s boring. My apologies to all my friends at Project Management Institute (PMI), but it’s true. The PMBOK Guide is, however, concise, organized, and an excellent reference manual. I use it all the time. But it wasn’t written to be a thriller. The PMBOK Guide is an excellent book to use as a reference throughout your project management career.
The PMBOK Guide isn’t just made-up stuff from some project management theorists. It’s written by project management professionals from a variety of disciplines. The PMBOK Guide is considered a standard for project management—the terms, processes, and approaches are applicable to nearly all projects nearly all of the time. Sure, you may have projects in which you’ll need to do something different from what the PMBOK Guide advises, but those moments will probably be rare. The PMBOK Guide is written in very broad terms—it’s not a mandate, but a documentation of what’s most likely to happen in most projects.
The sixth edition of the PMBOK Guide will be referenced throughout this book. Why? Well, your PMP exam is largely based on the facts, figures, and subtleties of the current PMBOK Guide. The good news is that unlike the PMBOK Guide—fine book that it is—the book you have in your hands is written in plain language. This book, unlike the PMBOK Guide, focuses on how to pass the PMP exam. It will also help you be a better project manager and explain some mysterious formulas and concepts, but its main goal is to get you over the hump toward those three glorious letters: PMP.
The PMBOK Guide is, as its abbreviated name suggests, a guide, not the end-all-be-all of project management. It’s based on what’s generally recognized as good practice on most projects most of the time. It’s not specific to IT, construction, software development, manufacturing, or any other discipline, but it is applicable to any industry, any project, and any project manager.
For the most part, if you follow the PMBOK Guide, you’ll increase your odds of project success. That means you’ll be more likely to complete the project scope, reach the cost objectives of your project’s budget, and achieve those schedule commitments to which your project must adhere. But there’s no guarantee.
Throughout this book, you’ll see little tips like this one. These tips are here to cheer you on, get you moving, and remind you that you can do this. Create a strategy to study this book and the PMBOK Guide, and keep working toward your goal of earning the PMP.
The PMBOK Guide readily admits that not everything in it should be applied to every conceivable project. That just wouldn’t make sense. Consider a small project to swap out all of the workstation lights in an office building versus a project to build a skyscraper. Guess which one needs more detail and will likely implement more of the practices the PMBOK Guide defines? The skyscraper project, of course.
In the PMBOK Guide, sixth edition, PMI tells us that the PMBOK Guide is based on The Standard for Project Management, another PMI publication that walks through the five process groups of project management (Initiating, Planning, Executing, Monitoring and Controlling, and Closing). In the PMBOK Guide, sixth edition, you’ll see that The Standard for Project Management is now included as part of the PMBOK Guide—something new in this edition of the PMBOK Guide.
So, what’s the difference between the PMBOK Guide and The Standard for Project Management? There is much overlap between the two publications, but the PMBOK Guide offers much more detail on project management concepts, trends, tailoring the processes, and insight to the tools and techniques of project management. The Standard for Project Management is a foundational publication that describes, not prescribes, the most common, best practices of project management. This book, and your PMP exam, will focus on the contents of the PMBOK Guide, not The Standard for Project Management.
Your PMP examination is based largely on the PMBOK Guide. As mentioned, the PMBOK Guide is not a study guide; this book is. The following explains what this book will do for you:
Cover all of the objectives as set by PMI for the PMP examination
Focus only on exam objectives
Prep you to pass the PMP exam, not just take it
Encapsulate exam essentials for each exam objective
Offer 950 PMP total practice questions
Serve as a handy project management reference guide
Not be boring
Every chapter in this book correlates to a chapter in the PMBOK Guide. If you have a copy of the PMBOK Guide, blow the dust off it and flip through its 13 chapters. Now flip through this book, and you’ll see that it covers the same 13 chapters in the same order. And there’s a magical Chapter 14. Okay, it’s not magical, but it explains in detail the Code of Ethics and Professional Conduct, which is a major exam objective. Chapter 14 covers leadership, motivation, and how to balance stakeholder interests. Chapter 14 also introduces the concept of project priorities and dealing with cultural issues.
Each chapter is full of exciting, action-packed, and riveting information. Well, that’s true if you find the PMP exam exciting, action-packed, and riveting. Anyway, each chapter covers a specific topic relevant to the PMP exam. The first 3 chapters of this book offer a big-picture view of project management, while the remaining 11 chapters are most specific to the PMP exam.
In each chapter, you’ll find an “Inside the Exam” sidebar. This is what I consider to be the most important message from the chapter. At the end of the chapter, you’ll find a quick summary, key terms, and a two-minute drill that recaps all the major points of the chapter. Then you’ll be given a 25-question exam that’s specific to that chapter.
Not everyone can take the PMP exam—you have to qualify to take it. And this is good. The project management community should want the PMP exam to be tough, the application process to be rigorous, and the audits to be thorough. All of this will help elevate the status of the PMP and ensure that it doesn’t fall prey to the “paper certifications” other professions have seen.
There are two paths to earn the PMP: with a degree or without a degree, as shown in Figure 1-1. With a degree, you’ll need 36 non-overlapping months of project management experience and 4500 hours leading project management tasks within the last eight years. Without a degree, you’ll need 60 non-overlapping months of project management experience and 7500 hours of project management tasks within the last eight years. Note that non-overlapping months of project management experience means that if you’re managing two projects at the same time for 6 months, that’s just 6 months of project management experience—not 12 months of experience.
FIGURE 1-1 There are two paths to qualify for the PMP examination.
In addition to these requirements, you’ll need 35 contact hours of project management education. (My company, Instructing.com, is a PMI Registered Education Provider, and I teach a qualified PMP Exam Prep course online that’s accepted by PMI. Check out the course at www.instructing.com.) Finally, you’ll have to pass the 4-hour exam and then maintain your PMP credential with ongoing education.
Here are the major details of the 2018 PMP examination as of this writing. Always check on PMI’s web site to confirm the exam particulars:
PMI doesn’t tell us what the passing score is for the exam—it’s a secret—but the longstanding traditional score is 61 percent. The exam has 200 multiple-choice questions, 25 of which don’t actually count toward your passing score. These 25 questions are scattered throughout your exam and are used to collect statistics regarding student responses to see if they should be incorporated into future examinations. So this means you’ll actually have to answer 106 correct questions out of 175 live questions.
Clear and factual evidence of project management experience must be shown in each process group. On your PMP exam application, you’ll have to provide specifics on tasks you’ve completed in a process group. (See Table 1-1 for specific examples from PMI.)
TABLE 1-1 The Five Domains of Experience Needed to Pass the PMP Exam
Each application is given an extended review period. If your application needs an audit, you’ll be notified via e-mail. Audits are completely random, and there’s nothing you can do to avoid an audit. Audits confirm your work experience and education.
Applicants must provide contact information for supervisors on all projects listed on their PMP exam application. In the past, applicants did not have to provide project contact information unless their application was audited. Now each applicant must give project contact information as part of the exam application.
Once the application has been approved, candidates have one year to pass the exam. If you procrastinate in taking the exam by more than a year, you’ll have to start the process over.
PMP candidates are limited to three exam attempts within one year. If they fail each time during that period, they’ll have to wait one year before resubmitting their exam application.
Always check the exam details on PMI’s web site: www.pmi.org. They can change this information whenever they like. You can, and should, download the PMP Handbook from www.pmi.org to confirm your study efforts.
The PMP exam will test you on your experience and knowledge in five different areas, as Table 1-1 shows. You’ll have to provide specifics on tasks completed in each knowledge area of your PMP examination application. The preceding domain specifics and their related exam percentages are taken directly from PMI’s web site regarding the PMP examination. Although this information is correct as of this writing, always hop out to www.pmi.org and check the site for any updates as you prepare to pass the PMP exam.
Right at the beginning of the PMBOK Guide we’re introduced to the Code of Ethics and Professional Conduct. This code is something that you must read and agree to adhere to when submitting your PMP exam application. The Code of Ethics and Professional Conduct address the values project managers should possess and address—responsibility, respect, fairness, and honesty.
The Code of Ethics and Professional Conduct offers aspirational standards and mandatory standards for all PMI members, volunteers, certificate applicants, and certificate holders, not just PMPs. As a PMP candidate, the code will affect you in your exam application, in your career as a project manager, and in your dealings with vendors, stakeholders, and other project managers. You will encounter ethical questions on the PMP exam, and you’ll always have to choose the best answer, even if you don’t like the choices presented. I’ve included an entire chapter in this book to walk through the particulars of the Code of Ethics and Professional Conduct.
CERTIFICATION OBJECTIVE 1.02
Projects are endeavors. Projects are temporary. A project creates something, provides a service, or brings about a result. I know, I know, it sounds like some marriages.
To define a project, you can simply think of some work that has a deadline associated with it, that involves resources, that has a budget to satisfy the scope of the project work, and for which you can state what the end result of the project should be. So, projects are temporary work assignments with a budget, that require some amount of resources (people, equipment, tools, and so on), that require some amount of time to complete, and that create a definite deliverable—a service, result, or product.
Let’s look at project characteristics in more detail.
This one isn’t tough to figure out. Projects have to create a thing, invent a service, or change an environment. The deliverable of the project—a successful project, that is—satisfies the scope that was created way, way back when the project got started. Projects create the following deliverables:
Products Projects can create tangible products such as a skyscrapers or a design for piece of electronics, which is the end of the project. Or projects can create components that contribute to other tangible products, such as a project to design and build a specialized engine for a ship or custom electronics for a prototype device.
Services A project creating a service could establish a new call center, an order fulfillment process, or a faster way to complete inventory audits.
Results Projects can be research driven. Consider a research-and-development project with a pharmaceutical company to find a cure for the common cold.
Combination And, yes, projects can even be a combination of products, services, and results. There’s no rule that your project can create a product and a service; for example, you might be leading a project to develop a new drug. Developing the drug is the tangible product, creating a lab test that you run for a doctor to diagnose the illness is a service, and the clinical trials to get FDA certification are results.
Projects are unique. This means that every project you ever do is different from all the other projects you’ve done in the past. Even if it’s the same basic approach to get to the same end result, there are unique factors within each project, such as the time it takes, the stakeholders involved, the environment in which the project takes place, and on and on. All projects are unique, even if your company does the same type of project repeatedly. Lucky you.
Regardless of what some projects may seem like, they must be temporary. If the work is not temporary, it is operations. Like a good story, projects have a beginning, a middle, and an end. Projects end when the scope of the project has been met—usually. Sometimes projects end when the project runs out of time or cash or when it becomes clear that the project won’t be able to complete the project objectives, so it’s scrapped. You might also experience the end of the project when it becomes clear that the project is no longer needed, such as when a new technology supersedes the project you’re managing.
The goal of a project will vary based on what the project’s deliverable is, but typically, the result is to create something that’ll be around longer than the process it took to create it. For example, if you’re managing a project to build a skyscraper, you expect the skyscraper to be around much longer than the time it took to build it.
So temporary means that the project is temporary, and the deliverable may or may not be temporary. You can have a project to host a giant picnic for your entire organization and its customers. The project’s logistics, invitations, and coordination of chefs may take months to complete, but the picnic will last only a few hours. However, you could argue that although the picnic event was temporary, the memories and goodwill your picnic created could last a lifetime. (That had better be one good picnic!)
Sometimes temporary describes the market window. We’ve all seen fads come and go over the past years: pet rocks, the dot.com boom, streaking, and more. Projects can often be created that capitalize on fads, which means projects have to deliver fast before the fad fades away and the next craze begins. Fads and opportunities are temporary; projects that feed off these are temporary as well.
When’s the last time you managed a project in which the entire project team stuck with the project through the entire duration? It probably doesn’t happen often. Project teams are often more temporary than the project itself, but, typically, project teams last only as long as the project does. Once the project is complete, the team disbands and the project team members move on to other projects within the organization.
Project teams don’t have to be big groups of people to complete a project. In fact, the PMBOK Guide advises that projects can be completed by even a single person.
When you think about a project—any project—it’s all about change. Any project you’ve ever worked on changed something. You added a server to your work environment? Change. You created a new product for your customers? Change. You led a project to develop a new product? Change again. All projects drive change. In the business world, your projects move the organization from its current state to a desired future state, and projects facilitate that change from now to then. As a general rule, projects can be mapped to a MACD description:
Move A project moves something. You centralized all of your company’s data centers into one location. That’s a move project.
Add A project adds something to the current environment. You lead a project to build a new bridge in your city. That’s adding to the current city’s environment.
Change Projects can change the environment. You upgrade your workstations to the latest and greatest operating systems. That’s a change project.
Delete Projects can remove things and services from the current environment. You lead an effort to demolish derelict or abandoned houses as part of urban revitalization program. That’s a delete project.
Projects need to provide business value. Business value is the sum of the benefits that an organization can quantify. Benefits can usually be defined in financial terms, but they may also be intangible benefits, such as goodwill, brand recognition, benefits to the public, strategic alignment, and even your organization’s reputation. Time savings, a common business value, can be quantified. You’re looking for benefits for stakeholders in the form of monetary assets, equity, utility, fixtures, tools, and market share.
Business value is almost always quantified in financial terms—something that helps set the objectives of the project. You might be asked to predict the profitability of a project to justify the organization’s investment in the project. As you know, projects cost money and time, and you’ll have to justify that investment of resources up front. This is where we’ll get into project selection, return on investment, and whether your project—or any project—should move forward or not.
In alignment with business value is the discussion of project initiation: Why choose a project at all? For most project managers, this question is out of their scope of responsibilities, but they may get called upon to contribute to the project selection and initiation conversation. As a general practice, there are four reasons why projects get initiated:
Satisfy stakeholder requests, needs, and opportunities
Meet regulatory requirements, legal requirements, or social requirements
Change business and/or technological strategies in the organization
Improve upon existing products, processes, or services or add new products, processes, and services
CERTIFICATION OBJECTIVE 1.03
Project management is the supervision and control of the work required to complete the project vision. The project team carries out the work needed to complete the project, while the project manager schedules, monitors, and controls the various project tasks. Project management requires that you apply your knowledge, skills, tools, and techniques, and do whatever it takes, generally speaking, to achieve the project objectives. Project management is about getting things done.
Projects, being the temporary and unique things that they are, require the project manager to be actively involved with the project implementation. Projects are not self-propelled. Project management is accomplished by using the correct project management processes at the right time, to the correct depth, and with the correct technique. These processes, which you’ll learn throughout this book, are logically organized in five process groups:
Initiating
Planning
Executing
Monitoring and controlling
Closing
Although the information covered in this chapter is important, it is more of an umbrella of the ten knowledge areas that you’ll want to focus on for your PMP exam. You’ll see all of the 49 project management processes in detail in the upcoming chapters. At the beginning of each chapter, we’ll highlight the processes that the knowledge area deals with. Here’s a breakdown of the 49 processes that you’ll learn about throughout this book.
There are just two processes to know for project initiation:
Develop the project charter.
Identify project stakeholders.
There are 24 processes to know for project planning:
Develop the project management plan.
Plan scope management.
Collect project requirements.
Define the project scope.
Create the work breakdown structure.
Plan schedule management.
Define the project activities.
Sequence the project activities.
Estimate the activity duration.
Develop the project schedule.
Plan cost management.
Estimate the project costs.
Establish the project budget.
Plan quality management.
Plan resource management.
Estimate activity resources
Plan communications management.
Plan risk management.
Identify the project risks.
Perform qualitative risk analysis.
Perform quantitative risk analysis.
Plan risk responses.
Plan procurement management.
Plan stakeholder engagement.
There are ten executing processes:
Direct and manage project work.
Manage project knowledge.
Manage quality.
Acquire resources.
Perform team development.
Manage the team.
Manage communications.
Implement risk responses.
Conduct procurements.
Manage stakeholder engagement.
There are 12 monitoring and controlling processes:
Monitor and control the project work.
Perform integrated change control.
Complete scope validation.
Control the scope.
Perform schedule control.
Perform cost control.
Administer quality control.
Control resources.
Monitor communications.
Monitor risks.
Control procurements.
Monitor stakeholder engagements.
There is only one closing process:
Close out the project or the project phase.
As a project manager you’ll move between these five processes groups as appropriate in the project. Most projects begin with an identification of a business or societal need. Business needs generally focus on improving or maintaining profits, and societal needs include improving living conditions with new roads or cleaner water. This process may include some high-level requirements, costs, value statements, and timelines—what it’ll take for the project to be complete and to be considered successful. Your ongoing concern is to keep the stakeholders satisfied on the project’s progress by communicating the status of the project, showing evidence of progression toward project completion, and keeping the project constraints in balance. A constraint is any factor that limits the parameters of the project. The most common constraints in any project are time, cost, and scope, but you should also consider quality, resources (people, equipment, tools, and the like), and risks. Projects that are poorly managed are plagued by missed deadlines, blown budgets, quality issues, rework, scope expansion, stakeholder turmoil, and overall failure in achieving the project goals. Keep the following in mind:
Process groups are collections of project processes to bring about a specific result.
Process groups are not project phases. The project may follow a workflow through the process groups, but the phases of the project are specific to the actual project work.
Process groups are iterative. You can use the sequence of processes throughout the entire project, in each phase of the project, or both. I’ll discuss these points throughout the book, but for now this is a good foundation to understand why we all need effective, controlled project management. We achieve that goal through the five process groups and the project management processes. A project will also typically use ten project management knowledge areas. What you do in one knowledge area has a direct effect on the other knowledge areas. Chapters 4 through 13 will explore the following knowledge areas in detail:
Project integration management This knowledge area focuses on creating the project charter, the project scope statement, and a viable project plan. Once the project is in motion, project integration management is all about monitoring and controlling the work. If changes happen—and they will—you have to determine how that change may affect all of the other knowledge areas.
Project scope management This knowledge area deals with the planning, creation, protection, and fulfillment of the project scope. One of the most important activities in all of project management happens in this knowledge area: creation of the work breakdown structure. Oh, joy!
Project schedule management Schedule management is crucial to project success. This knowledge area covers activities, their characteristics, and how they fit into the project schedule. This is where you and the project team will define the activities, plot out their sequence, and calculate how long the project will actually take.
Project cost management Cost is always a constraint in project management. This knowledge area is concerned with planning, estimating, budgeting, and controlling costs. Cost management is tied to time and quality management—screw up either of these and the project costs will increase.
Project quality management What good is a project that’s done on time if the scope isn’t complete, the work is faulty, or the deliverable is horrible? Well, it’s no good. This knowledge area centers on quality planning, assurance, and control.
Project resource management This knowledge area focuses on organizational planning, staff acquisition, and team development. You have to acquire your project team, develop this team, and then lead the team to the project results.
Project communications management The majority of a project manager’s time is spent communicating. This knowledge area details how communication happens, outlines stakeholder management, and shows how to plan for communications within any project.
Project risk management Every project has risks. This knowledge area focuses on risk planning, analysis, monitoring, and control. You’ll have to complete qualitative analysis and then quantitative analysis to prepare adequately for project risks. Once the project moves forward, you’ll need to monitor and react to identified risks as planned.
Project stakeholder management Stakeholders are the all people who are affected positively or negatively, or perceived to be, by your project. They can influence your project’s success, because a subset of them defines the projects goals. This knowledge area requires that you and the project team
identify stakeholders,
plan how you’ll manage their concerns and requirements in the project,
plan how you’ll manage and control their engagement in the project, and
balance the needs, wants, threats, and concerns that stakeholders introduce to the project with the identified project requirements.
Project procurement management Projects often need to procure products, services, and results purchased from outside vendors in order to reach closing. This knowledge area covers the business of project procurement, the processes to acquire and select vendors, and contract negotiation. The contract between the vendor and the project manager’s organization will guide all interaction between the project manager and the vendor.
Chances are that you follow a prescribed methodology to manage projects where you work. Your work environment uses names for some of these processes that differ slightly from those presented here and in the PMBOK Guide, and that’s perfectly fine. The methodology that your organization uses to manage projects is just that—a method. The PMBOK Guide is not a methodology, but a guide to the best practices of project management.
The flexibility of the PMBOK Guide and project management is beautiful, when you think about it. Okay, maybe “beautiful” isn’t the best word, but the flexibility is important. The processes and approaches that you utilize in your project management approach involves tailoring of the processes, and that’s what’s needed in every project. Tailoring enables you to choose what processes should be used on a project and to what depth the processes should be used.
You do not use every process on every project. The larger the project, the more processes you will likely use. Consider a low-level project to swap out keyboards in an organization. Contrast that to a high-level project to construct a new headquarters for your company. The construction project has more uncertainties and will require more project management processes—and more tailoring of the processes to fit the uniqueness of the project.
CERTIFICATION OBJECTIVE 1.04
Project management is the administration of activities to change the current state of an organization into a desired future state. It manages a complex relationship between decision-making, planning, implementation, control, and documentation of the experience from start to finish. In addition to traditional project management, you may encounter, have encountered, or are actively participating in related areas. These related aspects often are superior to individual project management, are part of project management, or equate to less than the management of any given project.
Organizational project management (OPM) is an organizational approach to coordinate, manage, and control projects, programs, and portfolio management in a uniform, consistent effort. The philosophy of OPM is that by doing all work within projects, programs, and portfolio management with the same type of processes, actions, and techniques, the organization will consistently deliver better results than it would if the processes and approach were independent of one another. While project, program, and portfolio each have different skill sets, there is overlap in their approach, and these endeavors may utilize the same resources—including you, the project manager—to accomplish their objectives.
This section dissects the related areas of project management to see how they tie together to change a current state to a desired future state.
Program management is the management of multiple projects all working in unison toward a common goal. Programs achieve benefits by managing projects collectively, rather than independently. Projects within a program can better share resources, improve communications, manage interdependencies, resolve issues quickly, leverage resources, and provide more benefits for the organization than they would if each project were not managed collectively under a program. Projects within a program still have project managers, but the project managers work with, and often report to, the program manager.
Consider all of the work that goes into building a skyscraper, for example. Within the overall work, several projects may lead to the result. You could have a project for the planning and design of the building. Another project could manage the legal, regulatory, and project inspections that would be required for the work to continue. Another project could be the physical construction of the building, and other projects might entail electrical wiring, elevators, plumbing, interior design, and more. Could one project manager effectively manage all of these areas of expertise? Possibly, but probably not.
A better solution could be to create a program that comprises multiple projects. Project managers would manage each of the projects within the program and report to the program manager. The program manager would ensure that all of the integrated projects work together on schedule, on budget, and ultimately toward the completion of the program.
Another example is a program within NASA. NASA could create a program within the organization to explore space, and it comprises individual projects within that program. Each project included in the program has its own goals, initiatives, and objectives that are in alignment with the overall mission of the space program. Programs are a collection of individual projects working in alignment toward a common end.
Basically, programs have much larger scopes than projects do. Project plans and program plans differ in that project plans are often detail-oriented, while program plans are often at a higher level, with the details left to the project teams within the program. Although project managers are usually resistant to change, program managers expect change to happen within the program. Because programs are made up of projects, project managers can expect the program manager to interact regularly with their projects to monitor and control the success of each project. Programs are deemed successful, just like projects, based on their abilities to meet requirements, meet performance objectives, and benefit delivery.
Portfolios include projects, programs, and even operations that are managed and coordinated and should link to the strategic objectives for the organization, as demonstrated in Figure 1-2. Portfolios are created and controlled by upper-level management and executives and include financial considerations of the investment, return on investment, and distribution of risks for the programs, projects, and operations included in the portfolio. A portfolio describes the collection of investments in the form of projects and programs in which the organization invests capital. Project managers and, if applicable, program managers report to a portfolio review board on the performance of the projects and programs. The portfolio review board may also direct the selection of projects and programs.
FIGURE 1-2 Portfolios can contain operations, programs, and projects.
The portfolio review board—or even the direct management of the organization—also has a scope of projects and programs they’d like to invest in. This scope, however, is at a higher level than the scope of projects and programs, because the endeavors selected by the portfolio review board must fall within the strategic objectives of the company. Investments are made in projects and programs when there is a viable, strategic opportunity. Portfolio managers oversee the portfolio and monitor the organizational and marketplace environments to ensure that the components of the portfolio make sense to continue and to support the organizational objectives.
Consider these elements that may cause an organization to invest in a project or program as part of its portfolio:
Legal requirement
Compliance needs
Advancement in technology
Change in the market demand
Efficiency improvements, business need, or productivity analysis
Changes in operational capability
Environmental opportunity
Social need
The investments the company makes in projects and programs should have, of course, a positive return. These investments are monitored by the portfolio review board and portfolio manager through communications with the program managers and the project managers. The organization wants to see a return on investment through profits, social or performance improvements, reduction in waste, or other key performance indicators established at the selection of the projects and program investment.
While the focus of this book, the PMBOK Guide, and your PMP exam is on project management, it’s nearly impossible to avoid having a discussion on operations. Operations are the day-to-day activities that move a business forward. Projects are unique and temporary, while operations are not. Operations, programs, and projects overlap and work with one another, not opposed to one another. For your exam, you won’t need to know much about operations, other than that operations are ongoing. Portfolios can include, to be clear, operational activities, but our focus will be on the projects and programs within the portfolios.
Portfolio projects could be interdependent, but they don’t have to be. A portfolio is not the same as a program; it is a collection of projects, programs, and operations. The projects in a portfolio could be within one line of business, could be based on the strategies within an organization, or could follow the guidance of one director within an organization. There is a balance of risk in the selection of projects and programs. It’s not unusual to have some low-risk, high-risk, and moderate-risk selections to distribute the risk exposure across the components.
Project selections may pass through a project selection committee or a project steering committee, where executives will look at the return on investment, the value of the project, risks associated with taking on the project, and other attributes of the project. This is all part of project portfolio management.
Portfolios, programs, and projects obviously interact, but they each have a different purpose. A term you might occasionally see is organizational project management (OPM). OPM is the ideal model an organization uses when coordinating the efforts, goals, strategies, and investments of time and resources into portfolios, programs, and projects. An organizational strategic plan defines what investments should be made where, the expected return on investment, the risk distribution of each investment, and how each investment (the portfolio, program, or project) will contribute to the project’s achievement of benefits.
Subprojects are an alternative to programs. Some projects may not be wieldy enough to require the creation of a full-blown program, yet they may be large enough that some of the work can be delegated to a subproject. A subproject exists under the parent project, but it follows its own schedule for completing one or more deliverables. Subprojects may be outsourced, assigned to other project managers, or managed by the parent project manager but with a different project team. The following illustration shows a project containing multiple subprojects.
Subprojects are often areas of a project that are outsourced to vendors. For example, if you were managing a project to create a new sound system for home theaters, a subproject could be the development of the user manual included with the sound system. You would thus hire writers and graphic designers to work with your project team. The writers and designers would learn all about the sound system and then retreat to their own spaces to create the user manual according to their project methodology. The deliverable of their subproject would be included in your overall project plan, but the actual work done to complete the manual would not be in your plan. You’d simply allot the funds and time required by the writers and graphic designers to create the manual.
Subprojects do, however, follow the same quality guidelines and expectations of the overall project. The project manager has to work with the subproject team regarding supplying any needed materials, scheduling, value, and cost to ensure the deliverables and activities of the subproject integrate smoothly with the “master” project.
Meet Jane. Jane is a project manager for her organization. Vice presidents, directors, and managers with requests to investigate or to launch potential projects approach her daily—or so it seems to Jane. Just this morning, the sales manager met with Jane because he wants to implement a new direct-mail campaign to all of the customers in the sales database. He wants this direct-mail campaign to invite customers to visit the company web site to see the new line of products. Part of the project also requires that the company web site be updated so that it’s in sync with the mailing. Sounds like a project, but is it really? Could this actually be just a facet of an ongoing operation?
In some organizations, everything is a project. In other organizations, projects are rare exercises in change. There’s a fine line between projects and operations, and often these separate entities overlap in function. Consider the following points shared by projects and operations:
Both involve employees.
Both typically have limited resources: people, money, or both.
Both are hopefully designed, executed, and managed by someone in charge.
Jane has been asked to manage a direct-mail campaign to all of the customers in the sales database. Could this be a project? Sure—if this company has never completed a similar task and there are no internal departments that do this type of work as part of their regular activities. Often, projects are confused with general business duties: marketing, sales, manufacturing, and so on. The tell-tale sign of a project is that it has an end date and that it’s unique from other activities within the organization. Here are some examples of projects:
Designing a new product or service
Converting from one computer application to another
Building a new warehouse
Moving from one building to another
Organizing a political campaign
Designing and certifying a new airplane
The end results of projects can result in operations. For example, imagine a company creating a new airplane. This new airplane will be a small personal plane that would enable people to fly to different destinations with the same freedom they use in driving their cars. The project team will have to design an airplane from scratch that would be similar to a car, so that consumers could easily adapt and fly to Sheboygan at a moment’s notice. The project to create a personal plane is temporary, but not necessarily short-term. It may take years to go from concept to completion—but the project does have an end date. A project of this magnitude may require hundreds of prototypes and years of certification before a working model is ready for the marketplace. In addition, there are countless regulations, safety issues, and quality control concerns that must be pacified before completion.
Once the initial plane is designed, built, and approved, the end result of the project is business operations. As the company creates a new vehicle, they would follow through with the design by manufacturing, marketing, selling, supporting, and improving the product. The initial design of the airplane is the project—the business of manufacturing it, supporting sold units, and marketing the product constitutes the ongoing operations part of business.
In the creation of the plane, before the manufacturing of the actual plane begins, the project manager would have to involve the operational stakeholders in the project. The project manager needs the expertise of the people who’ll be doing the day-to-day operations of the plane manufacturing. Although operations and projects are different, they are also reliant on one another in most projects. The project deliverables often have a direct impact on the day-to-day operations of the organization. Communication and coordinated planning is needed between the project manager and the operational stakeholders.
Operations are the day-to-day work that goes on in the organization. A manufacturer manufactures things, scientists complete research and development, and businesses provide goods and services. Operations are the heart of organizations. Projects, on the other hand, are short-term endeavors that fall outside of the normal day-to-day operations an organization offers.
Let’s be realistic. In some companies, nearly everything’s a project. This is probably true if you work in an organization that completes projects for other companies. That’s fine and acceptable, however, since you’re participating in management by projects. There are still many operational activities that exist in these companies, such as accounting, payroll and HR, sales, marketing, and the like.
Once the project is complete, the project team moves along to other projects and activities. The people who are actually building the airplanes on the assembly line, however, have no end date in sight and will continue to create airplanes as long as there’s a demand for the product.
Projects must support the corporate vision, mission, and objectives or they don’t bring value to the organization. Business value is simply what the organization is worth; it is the sum of the tangible and intangible components of an organization. Tangible elements are easy to identify: cash, assets, equipment, real estate, and so on. Intangible elements are things like reputation, the company brand, and trademarks. Projects must contribute to the business value or they likely don’t fit within the strategic goals of the company.
CERTIFICATION OBJECTIVE 1.05
Consider any project, and you’ll also have to consider any phases within the project. Construction projects have definite phases. IT projects have definite phases. Marketing, sales, and internal projects all have definite phases. Projects—all projects—comprise phases. Phases make up the project life cycle, and they are unique to each project. Furthermore, organizations, project managers, and even project frameworks such as Agile or Scrum can define phases within a project life cycle. Just know this: The sum of a project’s phases equates to the project’s life cycle.
In regard to the PMP exam, it’s rather tough for the PMI to ask questions about specific project life cycles. Why? Because every organization may identify different phases within all the different projects that exist. Bob may come from a construction background and Susan from IT, each one being familiar with totally different disciplines and totally different life cycles within their projects. However, all PMP candidates should recognize that every project has a life cycle—and all life cycles comprise phases.
Because every project life cycle is made up of phases, it’s safe to assume that each phase has a specific type of work that enables the project to move toward to the next phase in the project. When we talk in high-level terms about a project, we might say that a project is launched, planned, executed, and finally closed, but it’s the type of work, the activities the project team is completing, that more clearly define the project phases. In a simple construction example, this is easy to see:
Phase 1: Planning and prebuild
Phase 2: Permits and filings
Phase 3: Prep and excavation
Phase 4: Basement and foundation
Phase 5: Framing
Phase 6: Interior
Phase 7: Exterior
Typically, one phase is completed before the next phase begins; this relationship between phases is called a sequential relationship. The phases follow a sequence to reach project completion—one phase after another. Sometimes project managers allow phases to overlap because of time constraints, cost savings, and smarter work. When time’s an issue and a project manager allows one phase to begin before the last phase is completed, it’s called an overlapping, or parallel, relationship because the phases overlap. You might also know this approach as fast tracking. Fast tracking, as handy as it is, increases the risk within a project.
A project is an uncertain business—the larger the project, the more uncertainty. It’s for this reason, among others, that projects are broken down into smaller, more manageable phases. A project phase allows a project manager to see the project as a whole and yet still focus on completing the project one phase at a time. You can also think of the financial distribution and the effort required in the form of a project life cycle. Generally, labor and expenses are lowest at the start of the project, because you’re planning and preparing for the work. You’ll spend the bulk of the project’s budget on labor, materials, and resources during project execution, and then costs will taper off as your project eases into its closing.
Projects are like snowflakes: No two are alike. Sure, sure, some may be similar, but when you get down to it, each project has its own unique attributes, activities, and requirements from stakeholders. One attribute that typically varies from project to project is the project life cycle. As the name implies, the project life cycle determines not only the start of the project, but also when the project should be completed. All that stuff packed in between starting and ending? Those are the different phases of the project.
In other words, the launch, a series of phases, and project completion make up the project life cycle. Each project will have similar project management activities, but the characteristics of the project life cycle will vary from project to project.
The project’s feasibility is part of the initiating process. Once the need has been identified, a feasibility study is introduced into the plan to determine if the need can realistically be met.
Project feasibility studies can be a separate project.
So how does a project get to be a project? In some organizations, it’s pure luck. In most organizations, however, projects may begin with a feasibility study. Feasibility studies can be, and often are, part of the initiation process of a project. In some instances, however, a feasibility study may be treated as a stand-alone project.
Let’s assume that the feasibility of Project ABC is part of the project initiation phase. The outcome of the feasibility study may tell management several things:
Whether the concept should be mapped into a project
If the project’s concept will deliver the anticipated value
The expected cost and time needed to complete the concept
The benefits and costs to implement the project concept
A report on the needs of the organization and how the project concept can satisfy these needs
There is a difference between a feasibility study and a business case. A feasibility study examines the potential project to see if it’s feasible to do the project work. A business case examines the financial aspect of the project to see if the project’s product, service, or result can be profitable, what the profit margin may be, what the financial risk exposure may be, and what the true costs of the project may be. Some projects can generate profit directly. A construction company running a project to build a new strip mall will hopefully net a profit when the project is done. The investment firm, say, who hired the contractor to build the strip mall as part of a larger development project will not see a profit until leasing operations start generating income.
By now, you’re more than familiar with the concept of a project life cycle. You also know that each project is different and that some attributes are common across all project life cycles. For example, the concept of breaking the project apart into manageable phases to move toward completion is typical across most projects.
As we’ve discussed, at the completion of a project phase, an inspection or audit is usually completed. This inspection confirms that the project is in alignment with the requirements and expectations of the customer. If the results of the audit or inspection are not in alignment, rework can happen, new expectations may be formulated, or the project may be killed.
As more and more projects are technology-centric, it makes perfect sense for the PMBOK Guide to acknowledge the life cycles that exist within technology projects. Even if you don’t work in a technology project, it behooves you to understand the terminology associated with these different life cycles for the PMP examination. You should know about five technology-based life cycles:
Predictive life cycles
Iterative life cycles
Incremental life cycles
Adaptive life cycles
Hybrid life cycles
Predictive Life Cycles The predictive approach requires the project scope, the project time, and project costs to be defined early in the project timeline. Predictive life cycles have predefined phases, in which each phase completes a specific type of work and usually overlaps other phases in the project. You might also see predictive life cycles described as plan-driven or waterfall methodologies, because the project phases “cascade” into the subsequent phases and the Gantt chart looks like a waterfall.
Iterative Life Cycles This approach requires that the project scope be defined at a high level at the beginning of the project, but the costs and schedules are developed through iterations of planning as the project deliverable is more fully understood. The project moves through iterations of planning and definition based on discoveries during the project execution. The project team focuses on iterations of deliverables that can be released while continuing to develop and create the final project deliverable.
Incremental Life Cycles Incremental life cycles create the final product deliverable through a series of increment. Each increment of the project will add more and more functionality. Like the iterative life cycle, increments are a predetermined set amount of time, such as two or four weeks, for example. Before each increment, the team and a specific stakeholder determine what can be created within each increment, and then the increments begins and the team tackles the defined objectives. The project is done when the final increment creates a deliverable with sufficient capability as determined by the stakeholders.
Adaptive Life Cycles Adaptive life cycles are either agile, iterative, or incremental. Adaptive life cycles follow a defined methodology such as Scrum or eXtreme Programming (XP). Change is highly probable, and the project team will be working closely with the project stakeholders. You might also know this approach as agile or change-driven, because the team must be able to move or change quickly and the project scope and requirements are likely to change throughout the project. This approach also includes iterations of project work, but the iterations are fast sessions of planning and execution that usually last about two weeks. At the start of each phase, or iteration, of project work, the project manager, project team, and stakeholders will determine what requirements will be worked on next, based on the set of project requirements and what has been completed in the project.
Hybrid Life Cycles The hybrid life cycle is a combination of predictive and adaptive life cycles. Parts of the project can follow the predictive life cycle, such as project requirements and the budget, yet still utilize the flexibility and iterations that the adaptive life cycle offers. Hybrid life cycles can be, well, a bit messy, because there may be debates over what’s established and what’s being flexible. The project team and the project manager need a clear understanding of the “must haves” in the project and what components provide flexibility.
See the video “Project Life Cycle.”
Most projects phases move the project along. They allow a project manager to answer the following questions about the project:
What work will be completed in each phase of the project?
What resources, people, equipment, and facilities will be needed within each phase?
What are the expected deliverables of each phase?
What is the expected cost to complete a project phase?
Which phases pose the highest amount of risk?
What must be true in order for the phase to be considered complete?
Armed with the appropriate information for each project phase, the project manager can plan for cost, schedules, resource availability, risk management, and other project management activities to ensure that the project progresses successfully.
Although projects differ, other traits are common from project to project. Here are a few examples:
Phases are generally sequential, as the completion of one phase enables the next phase to begin.
Cost and resource requirements are lower at the beginning of a project but grow as the project progresses. In a project, the bulk of the budget and the most resources are used during the executing process. Once the project moves into the final closing process, costs and resource requirements taper off dramatically.
Projects fail at the beginning, not at the end. In other words, the odds of completing are low at launch and high near completion. This means that decisions made at the beginning of a project live with the project throughout its life cycle, and a poor decision in the early phases can cause failure in the later phases.
The further the project is from completing, the higher the risk and uncertainty. Risk and uncertainty decrease as the project moves closer to fulfilling the project scope.
Changes are easier and more likely at the early phases of the project life cycle than near completion. Stakeholders can have a greater influence on the outcome of the project deliverables in the early phases, but in the final phases of the project life cycle, their influence on change diminishes. Thankfully, changes at the beginning of the project generally cost less and have lower risk than changes at the end of a project.
Your projects probably already follow a phasing structure that’s unique to the development, construction, or industry that you’re involved in. Typical phases of a project can include the following:
Concept
Feasibility study creation
Requirements gathering
Solution development
Design and prototype creation
Build or execution
Testing
Operational transfer or transition
Commissioning
Reviewing
Lessons learned documentation
There is some distinction between the project life cycle and the product life cycle. We’ve covered the project life cycle, the accumulation of phases from start to completion within a project, but what is a product life cycle?
In a project delivering products, a product life cycle is the parent of projects. Consider a company that wants to sell a new type of lemon soft drink. One of the projects the company may undertake to sell its new lemon soft drink is to create television commercials showing how tasty the beverage is. The creation of the television commercial may be considered one project in support of the product creation.
Many other projects may fall under the creation of the lemon soft drink: research, creation and testing, packaging, and more. Each project, however, needs to support the ultimate product: the tasty lemon soft drink. The product life cycle, though, also includes the ongoing operations of manufacturing, marketing, selling, distributing, and potentially end-of-life decommissioning of the product. Decommissioning of the product may involve a series of projects, but the other items are not projects—they are operations. Thus, the product life cycle oversees the smaller projects within the process and operations.
As a general rule, the product life cycle is the cradle-to-grave ongoing work of the product. Projects affecting the product are just blips on the radar screen of the whole product life cycle. Consider all of the projects that may happen to a home. The home is the product, while all the projects are things that make the product better or that sustain the existing product.
Suppose you’re the project manager for HollyWorks Productions. Your company would like to create a new video camera that allows consumers to make video productions that can be transferred to different media types, such as VHS, DVD, and PCs. The video camera must be small, light, and affordable. This project life cycle has several phases from concept to completion (see Figure 1-3). Remember that the project life cycle is unique to each project, so don’t assume the phases within this sample will automatically map to any project you may be undertaking.
FIGURE 1-3 The project life cycle for Project HollyWorks
1. Proof-of-concept In this phase, you’ll work with business analysts, electrical engineers, customers, and manufacturing experts to confirm that such a camera is feasible to make. You’ll examine the projected costs and resources required to make the camera. If things go well, management may even front you some cash to build a prototype.
2. First build Management loves the positive information you’ve discovered in the proof-of-concept phase—they’ve set a budget for your project to continue into development. Now you’ll lead your project team through the process of designing and building a video camera according to the specifications from the stakeholders and management. Once the camera is built, your team will test, document, and adjust your camera for usability and feature-support.
3. Prototype manufacturing Things are going remarkably well with your video camera project. The project stakeholders loved the first build and have made some refinements to the design. Your project team builds a working model, thereby moving into prototyping the video camera’s manufacture and testing its cost-effectiveness and ease of mass production. The vision of the project is becoming a reality.
4. Final build The prototype of the camera went fairly well. The project team has documented flaws, and adjustments are being made. The project team is also working with the manufacturer to complete the requirements for materials and packaging. The project is nearing completion.
5. Operational transfer The project is complete. Your team has successfully designed, built, and moved into production a wonderful, affordable video camera. Each phase of the project allowed the camera to move toward completion. As the project came closer and closer to moving into operations, risk and project fluctuation waned.
Every phase has deliverables. It’s one of the main points to having phases. For example, your manager gives you an unwieldy project that will require four years to complete and has a hefty budget of $16 million. Do you think management is going to say, “Have fun—see you in four years”?
Oh, if only they would, right?
Of course, in most organizations, that’s not going to happen. Management wants to see proof of progress, evidence of work completed, and good news about how well the project is moving. Phases are an ideal method of keeping management informed of the project progression. The following illustration depicts a project moving from conception to completion. At the end of each phase, there is some deliverable that the project manager can show to management and customers.
Once a phase concludes, how does the project manager know it’s safe to continue? Based on the size and type of the project, some form of scope verification must take place. Management and customers will want to see if the deliverable you have completed to date is in alignment with what they expected.
Project governance defines the rules for a project, and it’s up to the project manager to enforce the project governance to ensure the project’s ability to reach its objectives. The project management plan defines the project governance and how the project manager, the project team, and the organization will all follow the rules and policies within the project. Project governance can be seen as a constraint, but it really defines the project’s boundaries and expectations.
Let’s go back to that juicy project with the $16 million budget. We know management is not going to set us loose for four years. They’ll want a schedule of when we’ll be spending their money and what they’ll be getting in return. And when will this fun happen? At the end of a project phase. The project manager will be accountable for several things at the end of a project phase:
The performance of the project to date
The performance of the project team to date
Proof of deliverables in the project phase
Verification of deliverables in alignment with the project scope
The verification of the performance and the project deliverables are key to management determining whether the project (cross your fingers) should continue or not. Imagine that your project with a $16 million budget has produced a lousy deliverable that is outside of the project scope, and you’ve blown a few hundred thousand more than you said it would take to get to this point in the project. Hmmm…. Do you think the project will continue? An analysis by management will determine whether the project should be killed or allowed to go on. The idea of killing a project at phases is why phase completion is also called a kill point. (Uh, kill point for the project, not the project manager—hopefully.) Who’s to blame or why the project should be killed can be debated on a scenario-by-scenario basis.
Usually, one phase completes before the next phase begins—it’s a sequential relationship between phases. Each phase of a project relies on the phase before it. However, if you’ve ever driven past a large construction project, you may have seen something different at work. For example, we lived in Indianapolis during the construction of the new stadium for the Indianapolis Colts. During construction, we could see the foundation for one side of the stadium well underway and loads of construction happening. On the other side of the stadium, it was muddy and construction was just barely starting on the foundation.
The construction company chose to allow phases of the construction to overlap as it worked. Rather than completing all of the foundation for this giant stadium first, the next phase of the project was started as soon as possible—even if not all of the first phase was completed. Smart, huh? This approach to scheduling is called an overlapping relationship, and you might also know it as fast tracking. Fast tracking allows phases to overlap in order to compress the schedule and finish the job faster. Fast tracking does, however, add some risk to the project, as errors that go undetected in the prior phases could affect the current phase of the project work.
Finally, project managers can use an iterative relationship to manage project phases. Iterative relationships are great for projects such as research and software development. The idea is that the next phase of the project is not completely planned until the current phase of the project is underway. The direction of the project can change based on the current work in the project, the market conditions, or the discovery of more information.
Project phase completions are also known as stage gates. Stage gates are used often in manufacturing and product development; they enable a project to continue after a performance and deliverable review against a set of predefined metrics. If the deliverables of the phase, or stage, meet the predefined metrics, the project is allowed to continue. Should the deliverables not meet the metrics, the project may not be allowed to pass through the gate to move forward. In this unfortunate case, the project may be terminated or sent through revisions to meet the predetermined metrics. The following illustration shows the advancement of the project through phases.
As a project manager, you should identify the requirements and all of the stakeholders as close to the project launch as possible. With the expectations and requirements, the project manager can know what the exit criteria for a phase may be and can plan accordingly. There are few things more frustrating than getting to the end of a project phase only to learn the exit criteria you had in mind is different from what the customer is expecting.
The completion of a phase may also be known as a phase exit. A phase exit requires that the project deliverables meet some predetermined exit criteria. Exit criteria are typically inspection-specific and are scheduled events in the project schedule. Exit criteria can include many different activities, such as the following:
Sign-offs from the customer
Regulatory inspections and audits
Quality metrics
Performance metrics
Security audits
The end of a project phase
Of course, not all organizations are profit-driven; consider your favorite charities. These not-for-profit entities, however, still have a strategic vision and they use business philosophies to increase the value of their organization. The value of their organization can help them grow their presence, bring more donors to their cause, and promote awareness of their vision. Projects within these companies must also bring business value or they are a detriment to the organization. Projects—all projects—in for-profit or not-for-profit organizations must support the strategic objectives of the organization or they are a waste of resources.
Business value planning is an executive-level goal, but it is accomplished through upper management, portfolio managers, operations, program managers, and project managers within the company. The actions of the people within each organizational component have a direct influence on the business value. Errors, wasted materials, delays in the project, cost overruns, and other negative aspects of a project directly affect the profitability of the project, the success of the organization, and the overall business value of the organization.
CERTIFICATION OBJECTIVE 1.06
A core responsibility for a project manager is writing about the project. You’ll be writing about the intent for the project, what’s actually occurred in the project, what your plans are for when things go awry in the project (rarely does any project execute as planned), and loads more. Few people enjoy writing about project work, creating project plans, communicating via reports and e-mails, but it’s something that’s required of every successful project manager.
Here’s some good news: Although documenting the project is important, you don’t always have to start from scratch. You can reuse plans, reports, and documentation from a previous project, if you have one, as templates for your current project. Use what’s been done in the past to help you better communicate and manage your current project. Of course, this assumes that you have access to past project records on which to base your current work. These could come from similar projects you or others in the company have worked on. And if you don’t have documents to use as a starting point, a quick Internet search will reveal many documents you can adapt to fit your current project.
For your PMP exam, you’ll be asked to adapt past project records as templates for your current project. You’ll still have lots of documents to create, but go with the idea that you’re following a standard documentation approach in the organization, even if in real life that’s not how it works for you. You’ll be introduced to lots of documentation throughout the book and in preparation of your passing the PMP, but in this section we’ll look at some of the most important project documents.
Before we get too deep into documentation, however, let’s nail down some terms that relate to project management data and information. In a project, lots of data and information will be created, added to your project management information system (PMIS), compiled into reports, distributed, communicated, and sometimes even ignored. You’ll need to have good project knowledge to access the needed data and information quickly to communicate what’s happening in your project and determine why things are going the way they are.
You need to know three specific concepts that you’ll see throughout this book and that describe data and information:
Work performance data This is the raw data and facts about your project work. As your team completes assignments and works on assignments, they’ll report their status. The status can be communicated as a percent complete, as in progress, using start and finish dates, and in a number of different formats. You will likely also track the cost of the activities, number of change requests, defects, durations, and more. This business is all about the raw data—good to have, but not actually very useful until you analyze the data.
Work performance information Once you’ve collected the raw data—that is, the work performance data—you’ll analyze the data to make sense of it all. This analysis gives you useable information to help you better understand how well your project is actually performing. Work performance information can include the status of deliverables, status of change requests, and project forecasting on time and cost. It’s useable information, not just raw data.
Work performance reports Ah, reports—the love of every project manager I know. Well, maybe not, but the reports enable you to format and formalize the work performance information and communicate the information to management and stakeholders, and to create a record of where you’ve been and where you’re going in the project. You likely know work performance reports as status reports, memos, dashboards, or project updates. Work performance reports help to communicate project status, but they’re also used to help stakeholders make decisions about events and issues within the project.
Projects that are large in scope will likely be preceded by a business case, an analysis of the financial feasibility and validity of the proposed project. The business case will walk through the proposed project, include a sense of how much the project will likely cost, calculate the return on investment for the project, and offer reasons why the project should, or should not, be initiated. The business case can help decision-makers (the project sponsors or the project steering committee) make a go/no-go decision to proceed with the project.
The business case will present details of a needs assessment, or why the project is needed. It will map out the current need or opportunity the project will resolve and the stakeholders affected by the project, and it may rough out the project scope. This document will help identify how the proposed project meshes with the organizational goals and strategies. Business cases provide an analysis of the current state, insight into the risks and opportunities the project presents, and often include a recommendation regarding how the organization should, or should not, deal with the proposed project.
Business cases often begin with the analysis of the need and define the root cause of the project. Also included will be any known risks associated with the proposed project, success factors for the project, and decision criteria for the project, such as required, desired, and optional. A business case might also present options for the project, such as do nothing and maintain business as usual, do the minimum work needed to address the problem or opportunity, or do more than a minimum amount of work and seize the project opportunity.
When a project is initiated, it sets about to accomplish something, to create something, and, most importantly, to achieve business value for the organization. The project will create a result, and that result is all about benefits. Benefits are the results and outcomes of project actions. Consider a construction company, for example: When it constructs a building for a client, there are obvious benefits to the client and community, but there are also benefits for the construction company. The company will generate income, create opportunities to market itself based on the project success, maintain employees, provide educational opportunities with the team, and obtain other benefits as a result of the project work.
A benefits management plan defines the project benefits and typically addresses at least seven components:
Target benefits The tangible and intangible values the project will create. Benefits include the net present value of the project, which shows the value of longer projects with intermittent benefits realized during the project.
Strategic alignment How the benefits of the project align with the organizational business strategies.
Benefits realization timeline Defines when the benefits will be realized and useable.
Benefits owner The individual accountable to monitor, record, and provide status of the benefits throughout the project.
Metrics Measurements to show performance on benefits realization.
Assumptions Anything that is believed to be true, but that hasn’t actually been proven to be true.
Risks Opportunities or threats for the realization of business. Risks aren’t always negative; positive risks are called opportunities.
Like most plan development in project management, the development of the benefits management plan is an ongoing, iterative activity. As more information becomes available, things shift in the project, or the organizational goals change, the benefits management plan may need to be updated to reflect the changing environment within the organization.
This chapter covered the fundamentals of project management and the expectations for the PMP examination. The PMBOK Guide is an excellent book that documents the ideal processes and procedures for project management. The PMP exam is based on the PMBOK Guide, and this book (the one you’re reading now) focuses on the key exam essentials to help you pass your PMP exam.
We discussed what a project is and is not. Projects are temporary endeavors to create a unique thing, product, or service. An operation, on the other hand, is a series of activities that go on and on, such as manufacturing a car, writing a newspaper column, or running a business. Many businesses have a business model of completing projects for other people or organizations.
The PMP exam will focus on the function of the project manager, which covers the ten knowledge areas of project management: integration management, time, cost, scope, quality, human resources, communications, risk, procurement, and stakeholder management. Each of these knowledge areas will be discussed in detail in Chapters 4–13 in this book. In this chapter we also discussed the project life cycle and the project management life cycles. The PMP Code of Ethics and Professional Conduct is also discussed in Chapter 14.
Finally, we discussed project documentation. Even before a project begins, documentation is created through business cases and feasibility studies. Business cases examine the financial aspect of completing a project, while feasibility studies examine the feasibility of the organization taking on the project work. If a project is launched, the project documentation abounds. Project documentation can be based on historical information from past projects. Project documentation stems first from the raw data—the work performance data. Once the work performance data is analyzed, it becomes work performance information—information that you can use to make decisions and forecast project performance. Work performance information is then compiled and communicated through work performance reports, such as status reports, memos, or dashboards.
To pass the PMP exam, you will need to memorize the following terms and their definitions. For maximum value, create your own flashcards based on these definitions and review them daily.
adaptive life cycle Adaptive life cycles can be either agile, iterative or incremental. Change is highly probable, and the project team will work closely with the stakeholders regarding any changes in the project. You might also know this approach as agile or change-driven.
application areas The areas of discipline that a project may be based on. Consider technology, law, sales, marketing, and construction, among many others.
business value The total value of the tangible and intangible elements of an organization. Consider liquid assets, real estate, equipment, reputation, brand recognition, and trademarks.
Code of Ethics and Professional Conduct Addresses the values project managers should possess and addresses integrity, respect, fairness, and honesty.
deliverable A product, service, or result that a project creates; projects generally create many deliverables as part of the project work.
hybrid life cycle A combination of predictive and adaptive life cycles. Parts of the project can follow the predictive life cycle, such as project requirements and the budget, yet still utilize the flexibility and iterations that the adaptive life cycle offers.
incremental life cycle Incremental life cycles create the final product deliverable through a series of increments. Each increment of the project will add more and more functionality. Increments are a predetermined by a set amount of time, such as two or four weeks, for example.
Iron Triangle A term used to describe the three constraints of every project: time, cost, and scope. The sides of the Iron Triangle must be kept in balance or the quality of the project will suffer. Also known as the Triple Constraints model.
iterative life cycle This approach requires that the project scope be defined at a high level at the beginning of the project, but the costs and schedules are developed through iterations of planning as the project deliverable is more fully understood. The project moves through iterations of planning and definition based on discoveries during the project execution.
operations A generic term used to describe the activities that support the core functions of a business entity; the ongoing work of the business.
organizational project management (OPM) An organizational approach to coordinate, manage, and control projects, programs, and portfolio management in a uniform, consistent effort.
PMBOK Guide The abbreviated definition for PMI’s A Guide to the Project Management Body of Knowledge.
PMP Your goal. A PMP is certified by the Project Management Institute as a Project Management Professional.
portfolio A collection of projects and programs that have been selected by the organization based on factors such as risk, profitability, business value, business need, market demand, and other components.
predictive life cycle An approach that requires that the project scope, the project time, and project costs be defined early in the project timeline. Predictive life cycles have predefined phases, where each phase completes a specific type of work and usually overlaps other phases in the project.
programs A collection of projects working in unison to realize benefits that could not be achieved by managing each project independently of the others.
progressive elaboration The process of starting with a large idea and, through incremental analysis, actions, and planning, making the idea more and more specific. Progressive elaboration is the generally accepted planning process for project management, wherein the project management team starts with a broad scope and works toward a specific, detailed plan.
project An undertaking outside of normal operations to create a unique product, service, or result. Projects are temporary, while operations are ongoing.
project communications management One of the ten project management knowledge areas; it is the planning and management of communication among project stakeholders. (See Chapter 10 for more information on this topic.)
project cost management One of the ten project management knowledge areas; it is the estimating, budgeting, and controlling of the project expenses. (See Chapter 7.)
project feasibility study A study that examines the potential project to determine whether it is feasible to do the project work.
project human resource management One of the ten project management knowledge areas; projects are completed by people, and the project manager generally oversees the management of the human resources on the project team. (See Chapter 9.)
project integration management One of the ten project management knowledge areas; this knowledge area coordinates the activities and completeness of the other nine knowledge areas. (See Chapter 4.)
project life cycle The phases of a project as it moves from its launch to completion. Project life cycles are unique to each project and are not universal.
project management The management of the projects within an organization. It is the initiation, planning, executing, monitoring and controlling, and closing of the temporary endeavor of the project.
project management life cycle Universal to all projects, this life cycle comprises the project management process groups of initiating, planning, executing, monitoring and controlling, and closing. The process groups are not phases, but collections of processes.
project manager The individual who manages the project’s activities for an organization.
project portfolio management A management process to select the projects that should be invested in. Specifically, it is the selection process based on the need, profitability, and affordability of the proposed projects.
project procurement management One of the ten project management knowledge areas; this knowledge area oversees the purchasing and contract administration for a project. (See Chapter 12.)
project quality management One of the ten project management knowledge areas; this knowledge area defines quality assurance, quality control, and the quality policy for the project. (See Chapter 8.)
project risk management One of the ten project management knowledge areas; project risk management defines the risk identification, analysis, responses, and control of risk events. (See Chapter 11.)
project schedule management One of the ten project management knowledge areas; this knowledge area defines the approach to time estimating, scheduling, and control of the project activities. (See Chapter 6.)
project scope management One of the ten project management knowledge areas; this knowledge area defines the project requirements, scope creation, and control. (See Chapter 5.)
stage gates Also known as project phase completions, these allow a project to continue after a performance and deliverable review against a set of predefined metrics. If the deliverables of the phase, or stage, meet the predefined metrics, the project is allowed to continue.
subprojects Exists under a parent project, but follows its own schedule to completion. Subprojects may be outsourced, assigned to other project managers, or managed by the parent project manager but with a different project team.
The Standard for Project Management A foundational publication, included in the PMBOK Guide, sixth edition, that describes, not prescribes, the most common best practices of project management.
work breakdown structure The visual decomposition of the project scope that represents all of the deliverables the project promises to create.
The PMP exam is based on your experience and the sixth edition of PMI’s book A Guide to the Project Management Body of Knowledge.
This book, the one you’re reading now, explains project management in plain language and helps you prepare to pass the PMP exam.
Not everyone can take the PMP exam—you have to qualify for the test first.
Projects are temporary, unique, and create a product, result, or service.
Projects move from concept to completion through progressive elaboration.
Not all projects get selected. The reasons for choosing one project over another may vary from organization to organization. The selection of projects to be initiated and invested in is part of project portfolio management.
Projects have a definite beginning, middle, and ending; operations do not.
Programs are a collection of projects working in unison to realize benefits that would not be available if the projects were managed independently of one another.
Within the project management framework are ten knowledge areas that span the project management life cycle.
The focus of project integration management is managing all of the interactions of project components, processes, and knowledge areas.
The focus of project scope management is on protecting, fulfilling, and achieving the project objectives and benefits.
The focus of project schedule management is on scheduling activities, monitoring the project schedule, and working with the project team and stakeholders to ensure that the project completes on time.
The focus of project cost management is on estimating and maintaining project costs.
The focus of project quality management is on setting the quality expectations and then delivering the project product with the expected level of quality.
The focus of project human resources management is on developing the project team to work together to deliver the project as expected.
The focus of project communications management is on delivering needed information to the correct parties at the correct time. Much of project communications involves keeping the stakeholder informed of the project issues, risk, progress, and overall performance.
The focus of project risk management is on identifying and managing project threats and opportunities.
The focus of project procurement management is communicating with, selecting, and managing vendors to complete project work, deliver a project subcomponent, or supply project materials.
The focus of project stakeholder management is identifying project stakeholders, planning the management of the stakeholders, and then managing and controlling the stakeholder engagement throughout the project.
Projects often operate under the auspices of a program. A program is a collection of projects working together for a common goal. By orchestrating the management of the projects, benefits are realized that may not have been achieved if the projects were managed independently of one another.
A project manager must have multiple skills to be successful, including the ability to organize, solve problems, communicate, manage a budget, negotiate, and provide leadership for the project.
Project managers in different sectors of business, government, and nonprofit entities will encounter situations unique to their area of expertise. For example, a project manager of a construction project will have issues and concerns that differ from those of a project manager of a manufacturing project.
Predictive life cycles predict the work that will happen with the project. Predictive life cycles are known as waterfall projects or plan-driven projects.
Iterative life cycles plan the scope at a high level at the beginning of the project, but project costs and schedules are developed through iterations of planning as the deliverables of the project are more clearly defined.
Incremental life cycles create the final product deliverable through a series of increments. Each increment of the project will add more and more functionality. Like the iterative life cycle, increments are a predetermined set amount of time, such as two or four weeks.
Adaptive life cycles are either agile, iterative, or incremental. Adaptive life cycles follow a defined methodology such as Scrum or eXtreme Programming (XP). Change is highly probable, and the project team will be working closely with the project stakeholders.
Hybrid life cycle is a combination of predictive and adaptive life cycles. Parts of the project can follow the predictive life cycle, such as project requirements and the budget, yet still utilize the flexibility and iterations that the adaptive life cycle offers.
Work performance data is the raw data and facts about the project work. Work performance data are items likes percent of activities completed, start and finish dates, number of change requests, and actual duration of tasks.
Work performance information is the processed, useable analysis of work performance data. Work performance data is analyzed and then becomes work performance information—useable information to make project decisions.
Work performance reports are communications about project performance, such as status reports or variance reports. Work performance reports take the work performance information and formats and publish the information to communicate what’s happening within the project.
1. As a PMP candidate, you must have a firm grasp on what constitutes a project. Which one of the following is not an attribute of a project?
A. Has a definite starting date
B. Has no definite end date
C. Creates a product, service, or result
D. Requires resources
2. You are a project manager for Johnson Keyboards, Inc. Your organization has adapted the PMBOK Guide as a standard tool for how projects should operate, and you are involved in shaping the standardization for all future projects. In light of this information, what is the recommended course of action for the processes and procedures in the PMBOK Guide?
A. Not all processes and procedures in the PMBOK Guide are actually required on all projects.
B. All processes and procedures are to be followed as defined in the PMBOK Guide.
C. Not all processes and procedures are needed, unless the PMBOK Guide states the process or procedure is a requirement for the project type.
D. All processes and procedures are to be followed as identified in the PMBOK Guide; otherwise, the PMP is in violation of the PMP Code of Ethics and Professional Conduct.
3. Your organization is considering launching a new project. Robert, the CEO, wants to know what business value the proposed project will contribute. Which one of the following is not an example of business value consideration for a new project?
A. Return on investment
B. New equipment
C. Skills obtained by doing the project
D. Risk assessments within the project
4. You are explaining to a junior engineer the difference between a project and operations. Which one of the following is true only of operations?
A. They are performed by people.
B. They are constrained by limited resources.
C. They are ongoing.
D. They are planned, executed, and controlled.
5. You are the project manager for your company, Mark Manufacturers. Your company has a large client that has requested that a special component be created for one of its test engines. Your organization agrees and creates a standard contract with the customer, and your manager assigns you to manage this project. The project was launched because of which one of the following?
A. A customer request
B. A change in the technology your customer is creating
C. A legal requirement (contractual)
D. An organizational need
6. Project managers are not responsible for which one of the following in most organizations?
A. Identifying the project requirements
B. Selecting the projects to be initiated
C. Balancing demands for time, cost, scope, and quality
D. Establishing clear and achievable project objectives
7. You and William, a project stakeholder, are discussing risks within your project. Which one of the following best describes risk?
A. Any event that can cause your project to fail
B. Any event that may have a positive or negative effect on your project’s team
C. An uncertain event that may have a positive or negative effect on your project
D. An event that will cause time and cost constraints to be broken
8. You are the project manager for a large software development project. You have concerns that one of the components of the Iron Triangle is slipping. Your project sponsor, Jim Bob, is not familiar with the Iron Triangle, so you explain the concept to him. What will be affected if any angle of the Iron Triangle is not kept in balance?
A. Cost
B. Quality
C. Time
D. Scope
9. Which knowledge area includes the creation of the project charter?
A. Project scope management
B. Project cost management
C. Project integration management
D. Project communications management
10. Beth is a project manager and she’s working with Karen, the program manager. There is some disagreement about the project management methodology Karen is requiring all project managers to operate by. Who has authority over this decision in this scenario?
A. Project sponsor
B. Karen, as she is the program manager
C. Beth, as she is the project manager
D. Beth, as each project manager can select the appropriate project management methodology regardless of the program
11. You are working on a construction project that proceeds through the following sequential steps: planning and prebuild, permits and filings, site prep and excavation, build basement and foundation, framing, interior, and exterior. Each needs to be executed to the highest quality. Which one of the following is an example of a project life cycle phase?
A. Framing
B. Phase gate review
C. Project quality management
D. Executing
12. Smith Construction has won a contract to build a 77-story condominium building in downtown Chicago. The building will have 650 condos, a parking garage, indoor and outdoor pools, two floors for retail, two floors of offices, and several shared community rooms. Mary Anne Kedzie has elected to create a program for the creation of the building. Which one of the following best describes a program?
A. A standardized approach to project management within an organization
B. A standardized approach to project management with multiple projects coordinated together
C. A collection of related projects managed in coordination to gain control that would not necessarily be available if the projects were managed independently
D. A collection of related projects all contributing to one deliverable
13. Which one of the following statements best defines the difference between a program and a portfolio in regard to scope?
A. Programs do not have scopes, because they are made up of projects. Portfolios have an organizational scope.
B. Programs have larger scopes than projects. Portfolios have an organizational scope.
C. Programs have larger scopes than projects. Portfolios don’t have scopes because they are a financial investment.
D. Programs and portfolios can share the same scope because a portfolio may have two or more programs.
14. Who is usually responsible for portfolio management within an organization?
A. Project managers
B. Project sponsors
C. Stakeholders
D. Senior management
15. You are the project manager of a large project to install 1900 kiosks throughout college campuses in North America. The kiosks will collect applications for credit cards, phone services, and other services marketable to college students. The bulk of your project is focused on information technology integration, the wide area network (WAN) connections from each kiosk, security of the data transferred, and the database of the information gathered. For ease of management, you have hired local contractors to install the kiosks that you will ship to each campus. The contractors on each campus will be responsible for the WAN connection, the electrical connection, the security of the kiosk, and all testing. The local contracted work could be called what?
A. Risk mitigation
B. Operations
C. Subprojects
D. Management by projects
16. You’ll need to know and be familiar with several different project life cycle approaches for your PMP exam. Which life cycle approach defines the project scope, timeline, and project costs early in the project?
A. Predictive
B. Iterative
C. Incremental
D. Adaptive
17. Which of the following is likely to be part of an operation?
A. Providing electricity to a community
B. Designing an electrical grid for a new community
C. Building a new dam as a source for electricity
D. Informing the public about changes at the electrical company
18. Of the following, which one is not part of project integration management?
A. The creation of the project plan
B. The interaction between project teams
C. The execution of the project plan
D. The documentation of changes to the project plan
19. You are the project manager for the Fixture Installation Project in your organization. You’ve just completed the second of three phases. What event will happen next?
A. Phase gate review
B. Initiating of the third phase
C. Project quality management activities
D. Phase closure
20. You are a new project manager in a company that uses a project management office. A new technology has been released in the marketplace that will supersede the technology your project is implementing. There are doubts that the project should continue. Martin, a member of the project management office, is considering the amount of funds already invested in the project. What term is given to the monies you’ve already spent in the project?
A. Capital losses
B. Return on investment
C. Sunk costs
D. In the red
21. What term best describes the raw data of a project, such as number of change requests and actual duration?
A. Project data outcomes
B. Work performance information
C. Work performance data
D. Work performance reports
22. The project manager typically devotes the most amount of time to which of the following tasks?
A. Communications
B. Budget management
C. Project organization
D. Management of team negotiations
23. You have an excellent idea for a new project that can increase productivity by 20 percent in your organization. Management, however, declines to approve the proposed project because too many resources are already devoted to other projects. You have just experienced what?
A. Parametric modeling
B. Management by exception
C. Project portfolio management
D. Management reserve
24. Which one of the following documents is an analysis of the financial feasibility of a proposed project?
A. Feasibility study
B. Business case
C. Feasibility case
D. Portfolio analysis review
25. Of the following, which is the most important stakeholder involved with a project?
A. The project manager
B. The project sponsor
C. The chief executive officer (CEO)
D. The customer
1. As a PMP candidate, you must have a firm grasp on what constitutes a project. Which one of the following is not an attribute of a project?
A. Has a definite starting date
B. Has no definite end date
C. Creates a product, service, or result
D. Requires resources
2. You are a project manager for Johnson Keyboards, Inc. Your organization has adapted the PMBOK Guide as a standard tool for how projects should operate, and you are involved in shaping the standardization for all future projects. In light of this information, what is the recommended course of action for the processes and procedures in the PMBOK Guide?
A. Not all processes and procedures in the PMBOK Guide are actually required on all projects.
B. All processes and procedures are to be followed as defined in the PMBOK Guide.
C. Not all processes and procedures are needed, unless the PMBOK Guide states the process or procedure is a requirement for the project type.
D. All processes and procedures are to be followed as identified in the PMBOK Guide; otherwise, the PMP is in violation of the PMP Code of Ethics and Professional Conduct.
3. Your organization is considering launching a new project. Robert, the CEO, wants to know what business value the proposed project will contribute. Which one of the following is not an example of business value consideration for a new project?
A. Return on investment
B. New equipment
C. Skills obtained by doing the project
D. Risk assessments within the project
4. You are explaining to a junior engineer the difference between a project and operations. Which one of the following is true only of operations?
A. They are performed by people.
B. They are constrained by limited resources.
C. They are ongoing.
D. They are planned, executed, and controlled.
5. You are the project manager for your company, Mark Manufacturers. Your company has a large client that has requested that a special component be created for one of its test engines. Your organization agrees and creates a standard contract with the customer, and your manager assigns you to manage this project. The project was launched because of which one of the following?
A. A customer request
B. A change in the technology your customer is creating
C. A legal requirement (contractual)
D. An organizational need
6. Project managers are not responsible for which one of the following in most organizations?
A. Identifying the project requirements
B. Selecting the projects to be initiated
C. Balancing demands for time, cost, scope, and quality
D. Establishing clear and achievable project objectives
7. You and William, a project stakeholder, are discussing risks within your project. Which one of the following best describes risk?
A. Any event that can cause your project to fail
B. Any event that may have a positive or negative effect on your project’s team
C. An uncertain event that may have a positive or negative effect on your project
D. An event that will cause time and cost constraints to be broken
8. You are the project manager for a large software development project. You have concerns that one of the components of the Iron Triangle is slipping. Your project sponsor, Jim Bob, is not familiar with the Iron Triangle, so you explain the concept to him. What will be affected if any angle of the Iron Triangle is not kept in balance?
A. Cost
B. Quality
C. Time
D. Scope
9. Which knowledge area includes the creation of the project charter?
A. Project scope management
B. Project cost management
C. Project integration management
D. Project communications management
10. Beth is a project manager and she’s working with Karen, the program manager. There is some disagreement about the project management methodology Karen is requiring all project managers to operate by. Who has authority over this decision in this scenario?
A. Project sponsor
B. Karen, as she is the program manager
C. Beth, as she is the project manager
D. Beth, as each project manager can select the appropriate project management methodology regardless of the program
11. You are working on a construction project that proceeds through the following sequential steps: planning and prebuild, permits and filings, site prep and excavation, build basement and foundation, framing, interior, and exterior. Each needs to be executed to the highest quality. Which one of the following is an example of a project life cycle phase?
A. Framing
B. Phase gate review
C. Project quality management
D. Executing
12. Smith Construction has won a contract to build a 77-story condominium building in downtown Chicago. The building will have 650 condos, a parking garage, indoor and outdoor pools, two floors for retail, two floors of offices, and several shared community rooms. Mary Anne Kedzie has elected to create a program for the creation of the building. Which one of the following best describes a program?
A. A standardized approach to project management within an organization
B. A standardized approach to project management with multiple projects coordinated together
C. A collection of related projects managed in coordination to gain control that would not necessarily be available if the projects were managed independently
D. A collection of related projects, all contributing to one deliverable
13. Which one of the following statements best defines the difference between a program and a portfolio in regard to scope?
A. Programs do not have scopes, because they are made up of projects. Portfolios have an organizational scope.
B. Programs have larger scopes than projects. Portfolios have an organizational scope.
C. Programs have larger scopes than projects. Portfolios don’t have scopes because they are a financial investment.
D. Programs and portfolios can share the same scope because a portfolio may have two or more programs.
14. Who is usually responsible for portfolio management within an organization?
A. Project managers
B. Project sponsors
C. Stakeholders
D. Senior management
15. You are the project manager of a large project to install 1900 kiosks throughout college campuses in North America. The kiosks will collect applications for credit cards, phone services, and other services marketable to college students. The bulk of your project is focused on information technology integration, the wide area network (WAN) connections from each kiosk, security of the data transferred, and the database of the information gathered. For ease of management, you have hired local contractors to install the kiosks that you will ship to each campus. The contractors on each campus will be responsible for the WAN connection, the electrical connection, the security of the kiosk, and all testing. The local contracted work could be called what?
A. Risk mitigation
B. Operations
C. Subprojects
D. Management by projects
16. You’ll need to know and be familiar with several different project life cycle approaches for your PMP exam. Which life cycle approach defines the project scope, timeline, and project costs early in the project?
A. Predictive
B. Iterative
C. Incremental
D. Adaptive
17. Which of the following is likely to be part of an operation?
A. Providing electricity to a community
B. Designing an electrical grid for a new community
C. Building a new dam as a source for electricity
D. Informing the public about changes at the electrical company
18. Of the following, which one is not part of project integration management?
A. The creation of the project plan
B. The interaction between project teams
C. The execution of the project plan
D. The documentation of changes to the project plan
19. You are the project manager for the Fixture Installation Project in your organization. You’ve just completed the second of three phases. What event will happen next?
A. Phase gate review
B. Initiating of the third phase
C. Project quality management activities
D. Phase closure
20. You are a new project manager in a company that uses a project management office. A new technology has been released in the marketplace that will supersede the technology your project is implementing. There are doubts that the project should continue. Martin, a member of the project management office, is considering the amount of funds already invested in the project. What term is given to the monies you’ve already spent in the project?
A. Capital losses
B. Return on investment
C. Sunk costs
D. In the red
21. What term best describes the raw data of a project, such as number of change requests and actual duration?
A. Project data outcomes
B. Work performance information
C. Work performance data
D. Work performance reports
22. The project manager typically devotes the most amount of time to which of the following tasks?
A. Communications
B. Budget management
C. Project organization
D. Management of team negotiations
23. You have an excellent idea for a new project that can increase productivity by 20 percent in your organization. Management, however, declines to approve the proposed project because too many resources are already devoted to other projects. You have just experienced what?
A. Parametric modeling
B. Management by exception
C. Project portfolio management
D. Management reserve
24. Which one of the following documents is an analysis of the financial feasibility of a proposed project?
A. Feasibility study
B. Business case
C. Feasibility case
D. Portfolio analysis review
25. Of the following, which is the most important stakeholder involved with a project?
A. The project manager
B. The project sponsor
C. The CEO
D. The customer