Every facet of human life is a project.

Every little step we take, from the moment we wake up

up to the time we settle to sleep, is filled with mini projects. It's then not a stretch to assume
that the way we handle actual projects (from work, school, etc.) is reflection of the way we
handle the biggest project there is - our existence. That's why it's doubly important to come up
with the perfect habit of proper planning and management of projects.

This page covers general information about the discipline of project management.

1. A project is a temporary endeavor. Projects are unique and non-repetitive. Building a

road is an example of a project. The process of building a road takes a finite amount of
time, and produces a unique product. Operations on the other hand are repetitive.
Delivering mail every day is an example of operation.
2. The characteristics associated with a project are - unique purpose, temporary in nature,
require resources (often from various domains), should have a primary sponsor and/or
customer, and involves uncertainty.
3. Project management is the application of knowledge, skills, tools, and techniques to
project activities in order to meet project requirements
4.A program consists of a related group of projects. Projects are finite where as programs
are ongoing and continuous. Programs may be repetitive and cyclic. In some cases
Project Management is a subset of Program Management. The project manager may
report to the program manager in such cases. A project may or may not be a part of a
program, but a program will always have projects.

A portfolio consists of multiple programs. As an example Building a house may be a

project. Building a colony consisting of row of houses is a program. Building a set of
colonies to develop a new city can be considered a portfolio.

5. A subproject is a subset of a project. Subprojects can be subcontracted. Technical or

Functional Manager may be in charge of a subproject.
6.Type of organization - This is an important concept to understand for the PMP exam.
The type of organizations in decreasing order of Project Manager's authority are -
o Projectized
o Strong Matrix
o Weak Matrix
o Functional

Project Manager has maximum authority in a Projectized organization and least

authority in a Functional organization. In Functional organizations staff is organized
based upon their specialty, such as engineering or sales. In these organizations,
functional managers are responsible for specialized departments like marketing. In
Functional organization, the role of Project Manager is limited. In Projectized
organization, PMs have more authority and independence. All the persons in the
project team report to the Project Manager.
 Real situations are a mixture of functional and projectized organizations. These mixed
situations are called matrix organizations. Strong matrix organizations have
characteristics of projectized organizations. Weak matrix organizations have
characteristics of functional organizations.

7. Leadership style varies from autocratic to democratic. Shared leadership involves team
members taking most of the decisions. It encourages team development.
8. Project Management consists of ten Knowledge Areas. These are
o Project Integration Management
o Project Scope Management
o Project Cost Management
o Project Time Management
o Project Risk Management
o Project Quality Management
o Project HR Management
o Project Communication Management
o Project Procurement Management
o Project Stakeholder Management

Each Knowledge area has further Processes. There are a total of 47 processes. Each
process has inputs, outputs and "tools and techniques" (ITTO). The PMBOK primarily
covers each of the processes and it's ITTO in detail. You need to understand the
concepts related to each of the input, output and "tools and techniques".

9.Further the discipline of Project Management has five process groups. These are -
o Initiation
o Planning
o Execution
o Control
o Closure

Each process is part of one of these five project phases. It is important to know the
process group for each of the 47 processes.

10. Project Sponsors are primarily involved in funding the project. Tasks performed by
project sponsor include
o Provides financial support
o Accepts the project during scope verification
o May provide key milestone and deliverables due dates
o Does not sign the Project Charter. This is done by Senior Management.

Tasks performed by the senior management include

o Issues the project charter

 o Helps organize the work into projects
o Helps identify risks
o Approves the final project plan

Stakeholders are all the individuals that are concerned with the project. Stakeholders
have vested interest in the outcome of the project. They include project team
members, customers, management, and other individuals who get impacted by the
project. Stakeholders role includes -

o Distributed information during the project.

o Notified of project plan changes
o Are listed in the project team directory.
o Become risk owners.
11. At the end of each project phase, reviews against a set of metrics are performed. If
the project fails to meet these metrics, the project may not be allowed to continue.
These phase end reviews are called Stage gates or Phase exits.
12. Project Life cycle: All projects have four parts in life cycle. These are -
1. Starting the project
2. Organizing and preparing
3. Carrying out the project work
4. Closing the project

13. At the beginning of the project there is less cost and less demand for resources. Also
there is a higher risk of failure at the beginning of the project. The risk reduces over
the life of the project. The stakeholder influence is maximum at the beginning of the
project and reduces over the life of the project.
14. Projects have multiple competing constraints. These are -
o Scope
o Quality
o Schedule
o Budget
o Resources
o Risk

Different stakeholders may give different priority to these constraints. As an example

budget may be the most important constraint for the project sponsor. Scope may be
imortant for a customer support engineer, and quality may be important for the
testing team. A project team has to balance the demand of these constraints.

15. Progressive Elaboration means adding more details in an iterative fashion. Project
Management Plan is developed using progressive elaboration.
 16. Project Management Office (PMO) is a group in an organization providing centralized
project management services. The exact role of PMO may vary across organizations.
PMO may provide services related to project management or may be directly
responsible for project management.
17. Enterprise Environmental Factors refer to external factors in the company, that may
influence the project. Enterprise Environmental Factors may include cultural factors,
political climate, infrastructure and other external factors within the organization that
may impact the project. Enterprise Environmental Factors are input to many planning
processes.

This chapter covers key concepts related to Project Integration Management.

1. The knowledge area of Project Integration Management consists of the following seven
processes -

Project Integration Processes

Project Phase Key Deliverables
Process
Develop Project Charter Initiating Project Charter
Develop Project Management
Planning Project Management Plan
Plan
Direct and Manage Project Work Execution Deliverables
Monitor and Control Project Monitoring and
Change Requests
Work Control
Perform Integrated Change Monitoring and Change Requests status
Control Control updates
Close Project or Phase Closure Final product

2. A project charter
o Formally authorizes the project.
o Gives the objectives and business case
o Identifies the Project Manager.
o Generic enough not to change often.
o Written by a Manager higher in authority than Project Manager.
o Includes name, description, deliverables
o A project does not start unless it has a Project charter.
3. The Inputs, Tools and Techniques and Output of Develop Project Charter process are
given below.

Tools & Techniques Outputs

 Develop Project Charter process

Inputs
Project Statement of work Expert judgment Project Charter
Business case
Contract
Enterprise environmental factors
Organizational process assets

4.During project execution the project team focuses on completing the tasks assigned.
The Senior Management protects the project from changes and loss of resources. The
Project Manager integrates all the pieces into the project as a whole.
5. The Inputs, Tools and Techniques, and Outputs of the Develop Project Management
Plan process are given in the table below.

Develop Project Management Plan

Tools &
process Outputs
Techniques
Inputs
Project Management
Project charter Expert judgment
Plan
Outputs from planning processes
Enterprise environmental factors
Organizational process assets

6.At the end of each phase of a project, a lessons learned document must be prepared.
The lessons learned document defines what was done right, wrong etc. It is required
to be completed in order for the project to be completed.
7. Project Management Information System (PMIS) is a system that keeps track of status
of all the project tasks. It is used to track the status of the project. The exam does not
focus on any specific system (for example Microsoft Project ).
8. Project Management Plan is developed by Project Manager with inputs from the team,
stakeholders and management. Project Management Plan development is iterative. A
Project Management Plan is bought into, approved, realistic and formal.
9.A Project Management Plan includes -
o Project Charter
o Budget
o Schedule
o Resources
o Scope Statement
 o WBS
o Responsibility charts/assignments
o Management Plans
10. A Project Management Plan consolidates other management plans. These are:
A. Scope management plan
B. Requirement management plan
C. Schedule management plan
D. Cost management plan
E. Quality management plan
F. Process improvement plan
G. Human resource plan
H. Communication management plan
I. Risk management plan
J. Procurement management plan

The Project Management Plan also includes project baselines. These are:

K. Schedule baseline
L. Cost performance baseline

and

M. Scope baseline
11. Project baseline refers to the original version of the project management plan. Once
the project management plan is baselined, it may only be changed by raising a change
request.
12. Progressive Elaboration involves the process of taking a project from concept to
detailed design.
13. Kick-off meeting happens after the planning phase and before the project execution.
It is typically used to communicate responsibilities of key stakeholders.
14. Direct and Manage Project Work process includes performing the work defined in the
PMP to achieve project goals. The Input, Tools and Techniques and Outputs of this
process are given below.

Direct and Manage Project

Tools & Techniques Outputs
Work process

Inputs
Project management plan Expert judgment Deliverables
Project management Work performance
Approved change requests
information system information
 Enterprise Environmental
Change requests
factors
Project management plan
Organizational process assets
updates
Project document
updates

15. Monitor and Control project work process includes tracking and reviewing the
progress of the project. The Input, Tools and Techniques and Outputs of this process
are given below.

Monitor and Control project work Tools &

Outputs
process Techniques

Inputs
Project management plan Expert judgment Change requests
Project management plan
Performance reports
updates
Enterprise environmental factors Project document updates
Organizational process assets

16. The change requests that get generated are evaluated as part of the Perform
Integrated Change Control process. The change requests on the project deliverables
and project artifacts are managed in this process. The Input, Tools and Techniques
and Outputs of this process are given below.

Perform Integrated Change

Tools & Techniques Outputs
Control process

Inputs
Change request status
Project management plan Expert judgment
updates
Change control Project management plan
Work performance information
meetings updates
Change requests Project document updates
Enterprise environmental factors
Organizational process assets
 17. Change Control Board is formed to review change requests. It is used to approve or
reject change requests. After the project scope has been baselined, each requested
change must go through a change control review process.
18. Project Manager needs to be proactive in looking for deviations from project plan and
then take timely corrective action. After that the Project Manager needs to evaluate
the effectiveness of corrective action, and measure performance of corrective action,
and then determine the need for further corrective action.
19. When a change request is received, the following steps must be taken (in this order) -
0. Evaluate (assess) the impact of change to the project
1. Create alternatives including cutting other tasks, crashing, fast-tracking etc.
2. Meet with management, sponsors etc.
3. Meet with the customer if necessary
20. The Close Project or Phase is the process of formal completion of all project related
activities. The Input, Tools and Techniques and Outputs of this process are given
below.

Tools &
Close Project or Phase Outputs
Techniques
Inputs
Final product, service or result
Project management plan Expert judgment
transition
Accepted deliverables Organizational process assets updates
Organizational process
assets

21. At the end of each phase of a project, a lessons learned document must be prepared.
The lessons learned document defines what was done right, wrong etc. It is required
to be completed in order for the project to be completed.

This chapter covers key concepts related to Project Integration Management.

1. The knowledge area of Project Integration Management consists of the following seven
processes -

Project Integration Processes Project Phase Key Deliverables

 Process
Develop Project Charter Initiating Project Charter
Develop Project Management
Planning Project Management Plan
Plan
Direct and Manage Project Work Execution Deliverables
Monitor and Control Project Monitoring and
Change Requests
Work Control
Perform Integrated Change Monitoring and Change Requests status
Control Control updates
Close Project or Phase Closure Final product

2. A project charter
o Formally authorizes the project.
o Gives the objectives and business case
o Identifies the Project Manager.
o Generic enough not to change often.
o Written by a Manager higher in authority than Project Manager.
o Includes name, description, deliverables
o A project does not start unless it has a Project charter.
3. The Inputs, Tools and Techniques and Output of Develop Project Charter process are
given below.

Develop Project Charter process Tools & Techniques Outputs

Inputs
Project Statement of work Expert judgment Project Charter
Business case
Contract
Enterprise environmental factors
Organizational process assets

4.During project execution the project team focuses on completing the tasks assigned.
The Senior Management protects the project from changes and loss of resources. The
Project Manager integrates all the pieces into the project as a whole.
5. The Inputs, Tools and Techniques, and Outputs of the Develop Project Management
Plan process are given in the table below.

Tools & Outputs

 Develop Project Management Plan Techniques
process

Inputs
Project Management
Project charter Expert judgment
Plan
Outputs from planning processes
Enterprise environmental factors
Organizational process assets

6.At the end of each phase of a project, a lessons learned document must be prepared.
The lessons learned document defines what was done right, wrong etc. It is required
to be completed in order for the project to be completed.
7. Project Management Information System (PMIS) is a system that keeps track of status
of all the project tasks. It is used to track the status of the project. The exam does not
focus on any specific system (for example Microsoft Project ).
8. Project Management Plan is developed by Project Manager with inputs from the team,
stakeholders and management. Project Management Plan development is iterative. A
Project Management Plan is bought into, approved, realistic and formal.
9.A Project Management Plan includes -
o Project Charter
o Budget
o Schedule
o Resources
o Scope Statement
o WBS
o Responsibility charts/assignments
o Management Plans
10. A Project Management Plan consolidates other management plans. These are:
A. Scope management plan
B. Requirement management plan
C. Schedule management plan
D. Cost management plan
E. Quality management plan
F. Process improvement plan
G. Human resource plan
H. Communication management plan
I. Risk management plan
J. Procurement management plan

The Project Management Plan also includes project baselines. These are:

K. Schedule baseline
 L. Cost performance baseline

and

M. Scope baseline
11. Project baseline refers to the original version of the project management plan. Once
the project management plan is baselined, it may only be changed by raising a change
request.
12. Progressive Elaboration involves the process of taking a project from concept to
detailed design.
13. Kick-off meeting happens after the planning phase and before the project execution.
It is typically used to communicate responsibilities of key stakeholders.
14. Direct and Manage Project Work process includes performing the work defined in the
PMP to achieve project goals. The Input, Tools and Techniques and Outputs of this
process are given below.

Direct and Manage Project

Tools & Techniques Outputs
Work process

Inputs
Project management plan Expert judgment Deliverables
Project management Work performance
Approved change requests
information system information
Enterprise Environmental
Change requests
factors
Project management plan
Organizational process assets
updates
Project document
updates

15. Monitor and Control project work process includes tracking and reviewing the
progress of the project. The Input, Tools and Techniques and Outputs of this process
are given below.

Monitor and Control project work Tools &

Outputs
process Techniques

Inputs
 Project management plan Expert judgment Change requests
Project management plan
Performance reports
updates
Enterprise environmental factors Project document updates
Organizational process assets

16. The change requests that get generated are evaluated as part of the Perform
Integrated Change Control process. The change requests on the project deliverables
and project artifacts are managed in this process. The Input, Tools and Techniques
and Outputs of this process are given below.

Perform Integrated Change

Tools & Techniques Outputs
Control process

Inputs
Change request status
Project management plan Expert judgment
updates
Change control Project management plan
Work performance information
meetings updates
Change requests Project document updates
Enterprise environmental factors
Organizational process assets

17. Change Control Board is formed to review change requests. It is used to approve or
reject change requests. After the project scope has been baselined, each requested
change must go through a change control review process.
18. Project Manager needs to be proactive in looking for deviations from project plan and
then take timely corrective action. After that the Project Manager needs to evaluate
the effectiveness of corrective action, and measure performance of corrective action,
and then determine the need for further corrective action.
19. When a change request is received, the following steps must be taken (in this order) -
0. Evaluate (assess) the impact of change to the project
1. Create alternatives including cutting other tasks, crashing, fast-tracking etc.
2. Meet with management, sponsors etc.
3. Meet with the customer if necessary
20. The Close Project or Phase is the process of formal completion of all project related
activities. The Input, Tools and Techniques and Outputs of this process are given
below.
 Tools &
Close Project or Phase Outputs
Techniques
Inputs
Final product, service or result
Project management plan Expert judgment
transition
Accepted deliverables Organizational process assets updates
Organizational process
assets

21. At the end of each phase of a project, a lessons learned document must be prepared.
The lessons learned document defines what was done right, wrong etc. It is required
to be completed in order for the project to be completed.

This chapter covers key concepts related to Project Time Management.

1. The knowledge area of Project Time Management consists of the following processes -

Time Management
Processes Project Phase Key Deliverables
Process
Plan Schedule Management Planning
Define Activities Planning Activity List, Milestone list
Project Schedule network
Sequence Activities Planning
diagrams
Activity resource requirements,
Estimate Activity Resources Planning
Resource breakdown structure
Estimate Activity Durations Planning Activity duration estimates
Develop Schedule Planning Project Schedule
Work Performance
Monitoring and
Control Schedule measurements,
Controlling
Change Requests

2. The Define Activities process has the following Inputs, Tools and Techniques and
Outputs -
 Define Activities Process
Tools and Techniques Outputs
Inputs
Scope baseline Decomposition Activity list
Enterprise environmental factors Rolling wave planning Activity attributes
Organizational process assets Templates Milestone list
Expert judgment

3. The Sequence Activities process has the following Inputs, Tools and Techniques and
Outputs -

Sequence Activities
Process Tools and Techniques Outputs
Inputs
Precedence diagram method Project schedule network
Project scope statement
(PDM) or AON diagrams
Activity List Applying leads and lags Project document updates
Activity attributes Schedule Network Templates
Milestone list Dependency determination
Organizational process
assets

4.The Estimate Activity Resources process has the following Inputs, Tools and
Techniques and Outputs -

Estimate Activity Resources

Process Tools and Techniques Outputs
Inputs
Activity resource
Activity List Expert judgment
requirements
Resource breakdown
Activity attributes Alternative analysis
structure
Resource calendars Published estimating data Project document updates
Enterprise environmental factors Bottom-up estimating
Project Management
Organizational process assets
software
5. The Estimate Activity Durations process has the following Inputs, Tools and Techniques
and Outputs -

Estimate Activity Durations

Process Tools and
Outputs
Techniques
Inputs
Activity duration
Activity list Expert judgment
estimates
Activity attributes Analogous estimating Project document updates
Activity resource requirements Parametric estimating
Resource calendars Three-point estimates
Project scope statement Reserve analysis
Enterprise environmental factors
Organizational process assets

6.The Develop Schedule process has the following Inputs, Tools and Techniques, and
Outputs-

Develop Schedule Process

Tools and Techniques Outputs
Inputs
Organizational process assets Schedule network analysis Project Schedule
Project scope statement Critical path method Schedule baseline
Activity List Schedule Compression Schedule data
Activity attributes What-if scenario analysis Project document updates
Project Schedule Network diagram Resource levelling
Activity Resource requirements Critical chain method
Resource Calendars Scheduling tool
Activity duration estimates Applying calendars
Project Management Plan -
Adjusting Leads and Lags
Risk Register
Enterprise environmental factors

7. The Control Schedule process has the following Inputs, Tools and Techniques and
Outputs -
 Control Schedule Process
Tools and Techniques Outputs
Inputs
Work performance
Project management plan Performance reviews
measurements
Organizational process assets
Project schedule Variance analysis
updates
Work performance Project management
Change requests
information software
Organizational process Project management plan
Resource leveling
assets updates
What-if scenario analysis Project document updates
Adjusting leads and lags
Schedule compression
Scheduling tool

8. Bar charts (or Gantt charts) are used to display tasks and their dates in a graphical
fashion. They are used to display information of the type task 1 is scheduled from date
A to date B. Typically the date range is displayed in the X-axis and the tasks on the Y-
axis. Bar charts do not show task dependencies. They are generally used to track
progress and show to the team.
9.Milestone charts are similar to bar charts but display only major events. They display
major milestones (for example bridge design completed). They are used to report
status to Management.
10. Network diagrams are used to display activities and their dependencies. Network
diagrams can be used to perform critical path analysis. Network diagrams can also be
used to perform crashing and fast tracking of the project.
There are two type of network diagrams -
o Activities on Node (or Precedence)
o Activities on Arrow (or AOA)

Precedence is most commonly used. AON and AOA cannot have loops or conditional
relationships.

11. An activity in a network diagram is displayed as shown below.

Activity name
Activity Number Estimate
12. As an example -
 Documentation
2 5 days

13. In the above example Documentation is activity number 2 and is estimated to last 5
days.
14. Precedence (or Activity on Node) diagrams can be used to display four type of
relationship between activities. These are
o Finish-To-Start
o Start-To-Start
o Start-To-Finish
o Finish-To-Finish

Finish-to-start relationship means the dependent activity cannot start until the first
activity is finished. This is the most common way to represent relationships between
activities.

15. Activity on Array (AOA) network diagrams have the following characteristics.
o AOA only uses Finish-To-Start relationship between tasks.
o PERT and CPM can only be used with AOA.
o Dummy events are shown with dotted lines. They do not take any time. They
show dependencies between tasks.
16. Longest path through the network diagram is called the critical path. The activities on
the critical paths are called critical activities.
17. Lags are inserted waiting times in between tasks. For example Task B cannot start
until three days after task A completes.
18. Slack or Float is the amount of time a task can be delayed without delaying the
project. Tasks on the critical path have zero float.
19. Critical Path Method (CPM) has the following characteristics.
o It uses one time estimate per activity
o It can be drawn only using AOA diagrams
o It can have dummy events
20. Program Evaluation and Review Technique (PERT) has the following characteristics.
o It uses three estimates per activity - optimistic, pessimistic and most likely
o It can be drawn only using AOA diagrams
o It can have dummy events
21. PERT utilizes more information than CPM as it considers the "Pessimistic" and
"Optimistic" values in addition to the "Most Likely" value in its calculations. The
following are formulae used by PERT -
Mean = (P + 4M + O)/6
Standard Deviation = (P-O)/6
Variance = ((P-O)/6)2
Here P is the pessimistic estimate, O is the optimistic estimate and M is the most
likely estimate.
22. GERT is another type of network diagram. It can support looping.
 23. If a project has more than one critical paths then the risk to the project increases.
24. Resource levelling refers to keeping the resources same across the duration of the
project.

This chapter covers key concepts related to Project Cost Management.

1. The knowledge area of Project Cost Management consists of the following processes -

Project Cost
Processes Project Phase Key Deliverables
Process
Plan Cost
Planning
Management
Activity Cost Estimates,Basis of
Estimate Costs Planning
estimates
Determine Budget Planning Cost performance baseline
Monitoring and
Control Costs Work performance measurements
Controlling

2. Alternative identification process identifies other solutions to an identified problem.

3. Value Analysis approach is used to find more affordable, less costly methods for
accomplishing the same task.
4.The Estimate Costs process takes the following inputs -
o Scope baseline
o Project schedule
o Human resource plan
o Risk register
o Enterprise environmental factors
o Organizational process assets
5. Depreciation is technique used to compute the estimated value of any object after few
years. There are three type of depreciation techniques. These are
o Straight line depreciation The same amount is deprecated (reduced) from the
cost each year.
o Double-declining balance - In the first year there is a higher deduction in the
value - twice the amount of straight line. Each year after that the deduction is
40% less than the previous year.
 o Sum of year depreciation - Lets say the life of an object is five years. The total
of one to five is fifteen. In first year we deduce 5/15 from the cost, in second
year we deduce 4/15, and so on.
6.Analogous Estimating is an estimating technique with the following characteristics -
o Estimates are based on past projects (historical information)
o It is less accurate when compared to bottom-up estimation
o It is a top-down approach
o It takes less time when compared to bottom-up estimation
o It is a form of an expert judgment
7. In Parametric Modeling Estimation, you use a mathematical model to make an
estimate. It is of two types.
o Regression Analysis

is a mathematical model based upon historical information.

o Learning Curve model is based upon the principal that the cost per unit
decreases as more work gets completed.
8. Bottom up estimation is same as WBS estimation. It involves estimating each work
item and adding the estimates to get the total project estimate.
9.You can expect five to ten questions related to Earned Value Management. These are
generally pretty simple once you have good understanding of the concepts, and
remember the formulae. These formulae are explained below.
10. Planned Value (PV) refers to what the project should be worth at this point in the
schedule. It is also referred as BCWS (Budgeted Cost of Work Scheduled).
11. Earned Value (EV) is the physical work completed to date and the authorized budget
for that. It is also referred as BCWP (Budgeted Cost of Work Performed).
12. Actual Cost (AC) is the actual amount of money spent so far. It is also referred as
ACWP (Actual Cost of Work Performed).
13. Estimate At Completion (EAC) refers to the estimated total cost of the project at
completion.
14. CPI refers to Cost Performance Index. It is defined as
CPI = EV/AC
If CPI is less than 1, this means that the project is over budget.
15. BAC refers to Budget at Completion. It is related to EAC.
EAC = BAC/CPI
16. ETC refers to Estimate to Completion. It is defined as
ETC = EAC - AC
17. CV refers to Cost Variance. It is defined as
CV = EV - AC
18. SV refers to Schedule Variance. It is defined as
SV = EV - PV
Negative cost or schedule variance means that project is behind in cost or schedule.
19. SPI refers to Schedule Performance Index. It is defined as
SPI = EV/PV
 20. VAC refers to Variance At Completion. It is defined as
VAC = BAC - EAC
21. The process of Cost budgeting defines time phased cost estimates for the project. For
example, in the first month the project will require $10,000. Cost estimating involves
defining cost estimates for tasks. Cost budgeting defines cost estimates across time.
22. The tools and techniques used for Estimate Costs are -
o Expert judgment
o Analogous estimating
o Parametric estimating
o Bottom-up estimating
o Three-point estimates
o Reserve analysis
o Cost of quality
o Project Management estimating software
o Vendor bid analysis
23. Cost baseline refers to what is expected to be spent on the project. It is usually an S-
curve. That is the expenditure is less in the beginning, and the end. The expenditure is
maximum during the middle of the project.
24. The after project costs are called life cycle costs.

This chapter covers key concepts related to Project Risk Management.

1. The knowledge area of Project Risk Management consists of the following processes -

Risk Management Processes

Project Phase Key Deliverables
Process
Plan Risk Management Planning Risk Management Plan
Identify Risks Planning Risk register
Perform Qualitative Risk
Planning Risk register updates
Analysis
Perform Quantitative Risk
Planning Risk register updates
Analysis
Risk related contract
Plan Risk Responses Planning
decisions
Monitoring and
Monitor and Control Risks Risk register updates
Controlling
 2. A project risk is a potential source of deviation from the project plan. Project risks can
have a negative or positive impact on the project. Project risks that are negative are
called threats. Project risks that are positive are called opportunities.
3. Responses to threat include --
o Reducing the probability of risk
o Developing contingency plans
o Passively accepting consequences.
o Transferring risk

Insurance is an example of transferring risk.

4.Non-critical risks should be documented. They should be revisited and reviewed

regularly.
5. Risks are identified in all phases.
6.Work-around refers to how to handle risks that have occurred but are not part of risk
response plan. This happens in risk monitoring and control phase.
7. Delphi technique is most commonly used to obtain expert opinions on technical issues.
It can be used to get inputs on Scope, Estimates or Risks. Some characteristics of the
Delphi technique are -
o The experts identities are anonymous. They are not in the same room.
o The PM tries to build a consensus among the experts.

This chapter covers key concepts related to Project Quality Management.

1. The knowledge area of Project Quality Management consists of the following processes
-

Quality Management
Processes Project Phase Key Deliverables
Process
Quality Management Plan,
Plan Quality Managment Planning
Quality Metrics
Perform Quality Assurance Execution Change Requests
Monitoring and Quality control
Perform Quality Control
Controlling measurements
2. The process of Plan Quality Management includes defining quality requirements of the
project and documenting how the project will ensure compliance. The ITTO of Plan
Quality Management process are given below.

Plan Quality Process

Tools and Techniques Outputs
Inputs
Quality management
Scope baseline Cost-benefit analysis
plan
Stakeholder register Cost of quality Quality metrics
Cost performance baseline Control charts Quality checklists
Process improvement
Schedule baseline Benchmarking
plan
Project document
Risk register Design of experiments
updates
Enterprise environmental
Stastical sampling
factors
Organizational process
Flowcharting
assets
Proprietary quality management
methodology
Additional quality planning tools

3. Grade refers to category or rank given to entities having same functional use but
different technical characteristics. As an example, for different grades of hotels, the
customers expectations are different. Poor grade may be acceptable, but poor quality
is not.
4.The aim of quality is to ensure "Conformance to requirements" and "fitness for use".
5. Quality Policy defines the company goals and how to adhere to them. This acts as an
input to Quality Planning for a project. Quality Policy is part of Organizational Process
assets.
6.Deming suggested a process of Plan-Do-Check-Act to improve quality. According to
Deming, each process should go through these steps to improve the quality.
7. Kaizen Theory - Apply continuous small improvements to reduce costs and ensure
consistency.
8. Marginal Analysis - You compare the cost of incremental improvements against the
increase in revenue made from quality improvements. Optimal quality is reached
when cost of improvements equals the costs to achieve quality.
9.The value of sigma of Normal Distribution are given below. These are important for the
exam.
 Normal Distribution Sigma values
Percentage covered
Sigma
One sigma 68.26%
Two sigma 95.46%
Three sigma 99.73%
Six sigma 99.99%
Based on the above table, we can see that in six sigma one out of 10,000 items can
have defects. In three sigma, twenty seven out of 10,000 items can have defects.

10. Giving extras i.e. doing more than the project scope is called gold-plating. PMI does
not recommend gold-plating.
11. Quality must be planned in and not inspected in. Prevention is more important than
inspection.
12. Quality Assurance is done during execution of the project. It includes -
o Process of evaluating overall performance on a regular basis
o Re-evaluating quality standards
o Quality audits - structured review of quality activities that identify lessons
learned. These lessons learned are used for process improvement.

Perform Quality Assurance involves reviewing the quality requirements and auditing
the results from quality control measurements. Perform Quality Assurance uses data
created during Perform Quality Control.

ITTO of Perform
Quality Assurance Tools and Techniques Outputs
Inputs
Plan Quality and Perform Quality Organizational process
Project management plan
Control tools and techniques updates
Quality metrics Quality audits Change requests
Work performance Project management
Process analysis
information plan updates
Quality control Project document
measurements updates

13. Perform Quality Control focuses on correctness of work. It includes inspections. The
inputs, tools and techniques and outputs (ITTO) used for Perform Quality Control
process are -
 ITTO of Perform Quality
Control Tools and Techniques Outputs
Inputs
Project management plan Cause and effect diagram Quality control measurements
Quality metrics Control charts Validated changes
Quality checklists Flowcharting Validated deliverables
Work performance Organizational process assets
Histogram
measurements updates
Approved change requests Pareto chart Change requests
Project management plan
Deliverables Run chart
updates
Organizational process
Scatter diagram Project document updates
assets
Statistical Sampling
Inspection
Approved change requests
review

14. In Just-In-Time (JIT) Quality, the amount of inventory is zero. The inputs are made
available, just when they are required. This reduces the storage cost.
15. Rule of seven : In control charts, if there are seven points on one side of mean, then
an assignable cause must be found.
16. The process of Analogous Estimation involves looking at the history of past projects,
and use them to make estimates.

This chapter covers key concepts related to Project Human Resource Management.

1. The knowledge area of Project Human Resource Management consists of the following
processes -

Human Resource Management

Processes Project
Key Deliverables
Phase
Process
Plan Human Resource Management Planning Human Resource Plan
Acquire Project Team Execution Project Staff assignments
 Team performance
Develop Project Team Execution
assessments
Manage Project Team Execution Change requests

2. Plan Human Resource Management process involves identifying and documenting

project roles and responsibilities. The table below gives the inputs, tools and
techniques, and Outputs for the Plan Human Resource Management process -

Plan Human Resource Management

Process Tools and
Outputs
Techniques
Inputs
Organization charts
Human resource
Enterprise environmental factors and
plan
position descriptions
Organizational process assets Organizational Theory
Activity resource requirements Networking

3. Acquire project team process involves identifying and obtaining the team necessary to
execute the project. The table below gives the inputs, tools and techniques, and
Outputs for the Acquire project team process -

Acquire project team process Tools and

Outputs
Techniques
Inputs
Project management plan Pre-assignment Project staff assignments
Enterprise environmental
Negotiation Resource calendars
factors
Project management plan
Organizational process assets Acquisition
updates
Virtual teams

4.Develop project team process involves improving the competencies of the team
members and improving teamwork between the team. The table below gives the
inputs, tools and techniques, and Outputs for the Develop project team process -

Develop project team

process Tools and
Outputs
Techniques
Inputs
 Project staff assignment Interpersonal skills Team performance assessments
Enterprise environmental factors
Project management plan Training
updates
Team-building
Resource calendars
activities
Ground rules
Co-location
Recognition and
rewards

5. Responsibility Assignment Matrix (RAM) defines who does what. The Staffing
Management Plan defines when will people get added and removed from the
project.
6.A Project Manager may yield authority over the project team in one of the following
ways -
o Referent - project team knows the PM
o Formal Power - Power due to Project Managers position
o Technical Power - Project Manager has strong technical skills in the projects
domain.
o Coercive Power - The project team is afraid of the power the Project Manager
holds.
7. Conflicts in the team are caused due to the following reasons in decreasing order of
occurrences.
o Schedules
o Project Priorities
o Resources
o Technical Opinions

So the most common cause of conflicts in projects are issues related to schedules.

8. Conflicts are best resolved by those in the team.

9.There are standard conflict resolution techniques available to resolve conflicts. These
are (from best to worst) -
o Problem Solving or Confrontation (look at the facts, analyze them and find a
solution). This is an example of win-win situation.
o Compromising (Find the middle route). This is an example of loose-loose
situation.
o Withdrawal or Avoidance
o Smoothing (Emphasize the agreements)
o Forcing (Do it my way). This is an example of win-loose situation.
10. The process of problem solving has these steps -
o Define the cause of the problem
 o Analyze the problem
o Identify solution
o Implement a decision
o Review the decision, and confirm that the problem is solved.
11. Manage project team process is the process of tracking team member performance
and managing issues within the team. The table below gives the inputs, tools and
techniques, and Outputs for the Manage project team process -

Manage project team

process Tools and Techniques Outputs
Inputs
Observation and Enterprise environmental factors
Project staff assignments
conversation updates
Project performance Organizational process assets
Project management plan
appraisals updates
Team performance assets Conflict management Change requests
Performance reports Issue log Project management plan updates
Organizational process
Interpersonal skills
assets

12. War room is a technique for team building. As part of this the project team meets in
one room. It helps to create a project identity.
13. Halo Effect is the assumption that because the person is good at a technology, he will
be good as a project manager.
14. There are many organizational theories. Some of the main ones are - Expectancy
Theory, McGregory Theory, Herzberg Theory, Maslow's Hierarchy of needs.
15. Expectancy Theory - People accept to be rewarded for their efforts. This is a
motivation factor. People put in more efforts because they accept to be rewarded for
their efforts.
16. McGregory Theory of X and Y - There are two type of employees. Employees of type
X need to be always watched. They cannot be trusted and need to be micro managed.
Employees of type Y, on the other hand, are self-motivated. They can work
independently.
17. Herzberg Theory - Hygiene factors (salary, cleanliness etc.) if not present can destroy
motivation. However good hygiene alone does not improve motivation. What
motivates people is the work itself. The motivation factors for employees include
responsibility, self-actualization, growth, recognition etc.
18. Maslow's Hierarchy of needs - there are various levels of needs for an employee.
When a lower level is met, employee attempts to reach the next higher level. The
maximum satisfaction is achieved when the employee reaches the highest level of
satisfaction - self-fulfillment. These level of needs from the highest to lowest are -
 o Self-fulfillment
o Esteem
o Social
o Safety
o Physiology

This chapter covers key concepts related to Project Communications Management.

1. The knowledge area of Project Communications Management consists of the following

processes -

Communications Management
Processes Process Group Key Deliverables
Process
Communication
Plan Communications Management Planning
Management Plan
Organization process
Manage Communications Executing
assets updates
Monitoring and
Control Communication Performance Reports
Controlling

2. Plan Communications Management defines how and when the various stakeholders
receive information, and communicate with each other.
3. Memos, emails are examples of non-formal communication.
4.The total number of communication channels between n stakeholders is n(n-1)/2. So if
there are ten stakeholders in a project, there are 45 channels of communication.
5. Plan Communications process involves determining what kind of information should be
shared with which project stakeholder. This is documented in the Communication
management plan. Also documented is how and when the communication needs to
be shared with stakeholders. The Inputs, Tools and Techniques, and Output of Plan
Communications process is given below.

Plan Communications
Process Tools & Techniques Outputs
Inputs
Communication requirements Communications
Stakeholder register
analysis management plan
 Stakeholder management
Communication technology Project document updates
strategy
Enterprise environmental
Communication models
factors
Organizational process
Communication methods
assets

6.Throughout the project duration, information is shared with stakeholders as planned.

This sharing of information is part of the Manage Communications process. The
Inputs, Tools and Techniques, and Output of Manage Communications process is
given below.

Manage
Communications Tools & Techniques Outputs
Inputs
Organizational process assets
Project management plan Communication methods
updates
Information distribution
Performance reports
tools
Organizational process
assets

7. The Control Communications process involves sharing the project status reports and
measurements with appropriate stakeholders.

Control Communications
Process Tools & Techniques Outputs
Inputs
Project Management Plan Variance analysis Performance reports
Organizational process assets
Work performance information Forecasting methods
updates
Work performance Communication
Change requests
measurements methods
Budget forecasts Reporting systems
Organizational process assets
This chapter covers key concepts related to Project Procurement Management.

1. Procurement Management involves getting work done by people outside the project
team. Project Procurement Management includes administering contracts and
change control process to manage contracts or purchase orders. The knowledge area
of Project Procurement Management consists of the following processes -

Procurement Management
Processes Project Phase Key Deliverables
Process
Plan Procurement
Planning Procurement Management Plan
Management
Selected Sellers, Procurement
Conduct Procurements Execution
contract award
Monitoring and
Control Procurements Change requests
Controlling
Close Procurements Closure Closed procurements

2. The Plan Procurement process involves build versus buy decisions. The Inputs, Tools
and Techniques, and Outputs of Plan Procurement process are listed in the table
below.

Plan Procurement Management

process Tools and
Outputs
Techniques
Inputs
Make-or-buy Procurement management
Scope baseline
analysis plan
Procurement statements of
Requirements documentation Expert judgment
work
Teaming agreements Contract types Make-or-buy decisions
Risk register Procurement documents
Risk-related contract decisions Source selection criteria
Activity resource requirements Change requests
Project schedule
Activity cost estimates
Cost performance baseline
Enterprise environmental factors
 Organizational process assets

3. A contract is a formal agreement. It is a legal document biding to both seller and buyer.
Changes to contract must be in writing and formally controlled. Most Governments
back all contracts by providing a court system.
4.The process of Conduct Procurement involves receiving seller responses, selecting a
seller, and awarding a contract. During this process bids or proposals from sellers are
evaluated, and one or more seller is selected to execute the work.

Conduct Procurement
process Tools and Techniques Outputs
Inputs
Project Management Plan Bidder conferences Selected sellers
Proposal evaluation
Procurement documents Procurement contract award
techniques
Source Selection criteria Independent estimates Resource calendars
Qualified seller list Expert judgment Change requests
Project management plan
Seller proposals Advertising
updates
Project documents Internet search Project document updates
Make-or-buy decisions Procurement negotiations
Teaming agreements
Organizational process assets

5. Sole Source refers to a market condition in which only one qualified seller exists in the
market.
Single Source refers to a market condition in which the company prefers to contract
with only one seller.
Oligopoly refers to a market condition where very few sellers exist, and the action of
one seller will have impact on other seller prizes.
6.Bidder conferences are meetings between buyer and sellers before the bid is
submitted. The conference is used by buyers to provide consistent information to all
sellers.
7. The process of Control Procurement involves managing procurement relationships and
ensuring the seller performance meets the procurement requirements.

Control Procurement
process Tools and Techniques Outputs
 Inputs
Contract change control
Procurement documents Procurement documentation
system
Procurement performance
Project management plan Organizational assets updates
reviews
Contract Inspection and audits Change requests
Project management plan
Performance reports Performance reporting
updates
Approved change requests Payment systems
Work performance
Claims administration
information
Records management system

8. Contract can be used as a risk management tool, as in transferring risk.

9.Centralized Contracting refers to a separate contracting office that handles contracts
for all projects. In De-centralized Contracting a contract administrator is assigned for
each project.
10. Force majeure is a powerful and unexpected event, such as hurricane or other
disaster.
11. Privity is contractual information between customer and vendor.
12. The process of Close Procurement involves completing each procurement. The
process involves verifying that all planned work as per the contract has been
completed.

Close Procurement
process Tools and Techniques Outputs
Inputs
Project management plan Procurement audits Closed procurements
Organizational process
Procurement documentation Negotiated settlements
updates
Records management
system

Project stakeholder management is comprised of the processes required to identify the

people, groups, and organizations that can impact or be impacted by the project. It involves
analyzing stakeholder expectations in developing management strategies for effectively
engaging stakeholders and project decisions and execution. Stakeholder management also
focuses on continuous communications with stakeholders, managing conflict, and promoting
appropriate stakeholder engagement in project decisions and activities.

The following processes and primary goals of project stakeholder management are defined
below:

 Identify Stakeholders. Goal: stakeholder register.

 Plan Stakeholder Management. Goal: stakeholder management plan.
 Manage Stakeholder Engagement. Goal: issue log, change requests.
 Control Stakeholder engagement. Goal: work performance information, change
requests.

The high level Project Stakeholder Management output elements, by Process Group, are:

Monitoring and
Initiating Planning Executing Closing
Controlling
Stakeholder Work Performance
Stakeholder Stakeholder
register Info
register Management plan
CR's CR's
Project stakeholder management focuses on the processes required to identify the people,
groups, or organizations that can either impact or be impacted by the project. Some of these
processes include the following:

 Analyzing stakeholder expectations and their impact on the project.

 Developing appropriate management strategies for engaging stakeholders.
 Implementing continuous communications with stakeholders to understand needs and
expectations.
 Fostering stakeholder engagement in the project for decisions and activities.
 Focusing on stakeholder satisfaction as a key project objective.

Identify Stakeholders is the process of identifying all individuals or organizations that can be
positively or negatively impacted by the project, and documenting their influence, impact,
interest, and involvement on project success.
This is a key area in the project management process, as many projects fail due to a lack of
complete stakeholder identification. Most projects will have a large number of stakeholders,
and it is a project manager's job to identify stakeholders and understand the impact of the
project on their specific business areas. In this respect, the project manager's job amounts to a
relationship management function.
The key output of this process is to create a stakeholder register which identifies in great
detail, everything about the stakeholders on the project.

For further information on Project Stakeholder Management, consult EdWel's PMP Textbook
5th Edition.
As part of the Manage Stakeholder Expectations process, the project manager works with the
stakeholders, understands and addresses their needs and expectations. The Inputs, Tools and
Techniques, and Output of Manage Stakeholder Expectations process is given below.

Manage Stakeholder Expectations

Process Tools & Techniques Outputs
Inputs
Communication Organizational process assets
Stakeholder register
methods updates
Stakeholder management strategy Interpersonal skills Change requests
Project management plan
Project management plan Management skills
updates
Issue log Project document updates
Change log
Organizational process assets

This chapter covers PMI's code of Professional Conduct. The PMP code of Professional
Conduct is defined here

1. Culture Shock refers to the initial disorientation that a person first experiences when
visiting a country other than his own.
2. Ethnocentrism is a typical belief that one's culture is superior to the foreigner's culture.
3. PMP's Code of Professional Conduct is a document provided by PMI. It is a guide to
Project Managers on how to conduct as a professional.
4.PMP aspirants need to provide accurate and truthful information through out the
application process. Any violations can lead to disciplinary action.
5. If a project team member or the project manager has a conflict of interest, then it must
be brought into notice of all the stake-holders, to prevent any appearance of
improperiety. As an example of this consider a case where a Project Manager is
evaluating some vendors. Lets assume the Project Manager has friendship with one of
the vendors. In such a situation, the Project Manager should let all the stakeholders
know, and offer herself to be excluded out of the evaluation process.
6.The confidentiality of any intellectual property information that a PMP professional
works with, must be maintained.
7. Any information that a PMP provides to general public must be accurate and truthful.
8. A PMP must not accept any form of inappropriate gifts. Similarly a PMP must not offer
inappropriate compensation for personal gains.