pmp study guide

Wiley Publishing, Inc. PMP ® : Project Management Professional Study Guide 3rd Edition Kim Heldman, PMP Copyright © 2005 by Wiley Publishing, Inc., Hoboken, New Jersey Published simultaneously in Canada. ISBN-13: 978-0-7821-3601-X ISBN-10: 0-7821-3601-X No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sec- tions 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Pub- lisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. 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Since publishing the first edi- tion of our PMP: Project Management Professional Study Guide in April 2002, Sybex has earned the respect of tens of thousands of PMP candidates for providing accurate and acces- sible instruction on the skills and knowledge demanded by companies worldwide. Now with the update to the PMBOK (Project Management Body of Knowledge) in early 2005 and the recent revision to the PMP exam, the Project Management Institute has raised the standard by which project managers will be assessed in an increasingly competitive marketplace. The author and editors have worked hard to ensure that the new edition you hold in your hands is comprehensive, in-depth, and pedagogically sound. We’re confident that this book will exceed the demanding standards of the certification marketplace and help you, the PMP certification candidate, succeed in your endeavors. As always, your feedback is important to us. 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If any one or more provisions contained in this Agreement are held by any court or tribunal to be invalid, illegal, or otherwise unen- forceable, each and every other provision shall remain in full force and effect. To BB, my forever love. —Kimmie Acknowledgments Thank you to the thousands of readers who have read previous editions of the PMP Study Guide and recommended it to their friends and co-workers. Because of your success using the book in passing the PMP exam, we are able to continue to upgrade and refresh the Study Guide with tips and hints from readers and with the changes made by PMI. Thank you also to all of the instructors and PMI chapters who use this book in their classes. As always, a very special thank you to Neil Edde, Associate Publisher, for taking a chance on the first edition of this book and for giving me the opportunity to write it. Thank you again for the opportunity to revise and update it. This book clearly fits the definition of a project and the team at Sybex is the best project team on earth to work with. I appreciate all the hard work and dedication everyone on the team put into producing this book. First, a special thanks to Jeff Kellum, Acquisitions Editor, for over- seeing this project and for his many suggestions that helped improve and strengthen the text. Thank you also, for keeping everyone focused on the quick turn around time even though we faced some uncertainties in the midst of the project. Thank you to Elizabeth Campbell for all her help managing the many, many activities that must be coordinated in order to finish on schedule. She was very helpful throughout the process and didn’t scream when we found out close to the end of the project that some changes were needed to match up with newly published PMI materials. Thanks to Judy Flynn, copyeditor, who did an outstanding job of helping me with all my gram- matical blunders. (She’ll probably even find some in this sentence!) She’s the best copyeditor I’ve ever worked with. I appreciate her eye for detail and that she never told me “doh” after her suggestions. Thanks also to all the behind the scenes team members including proofreader Nancy Riddi- ough, and the compositors at Happenstance Type-o-rama! I again had the pleasure of working with Claudia Baca who served as the technical editor for this edition. Claudia was invaluable when helping me decipher areas of A Guide to the PMBOK that I questioned or weren’t clear to me. Thank you, Claudia, for your help, suggestions, and contribution. None of this would have been possible without the continued support and encouragement from my best friend in the whole world, BB. I love you and there’s no one else I’d rather spend the rest of my life with. Thank you to Bob and Terri, our best friends in all the earth, for your support and prayers—they’re always coveted. Thanks to my sister Jill and hubby John and to Sam, Prom- ise, and Destiny for their cheerleading behind the scenes. Thank you mom and dad for giving me the love of reading; some of my best memories are story time. And thanks also to the greatest chil- dren on the planet: Jason and Leah (our soon to be daughter-in-law), Noelle, and Amanda. And I can’t forget the two best grandchildren anywhere in the universe, Kate and Juliette. Thank you for your understanding of my limited availability and for your encouragement and support. Contents at a Glance Introduction xvii Chapter 1 What Is a Project? 1 Chapter 2 Creating the Project Charter and Preliminary Scope Statement 49 Chapter 3 Developing the Project Scope Statement 87 Chapter 4 Creating the WBS and Communicating the Plan 125 Chapter 5 Risk Planning 165 Chapter 6 Resource Planning 215 Chapter 7 Creating the Project Schedule and Budget 253 Chapter 8 Developing the Project Team 305 Chapter 9 Measuring and Controlling Project Performance 347 Chapter 10 Monitoring and Controlling Change 391 Chapter 11 Controlling Work Results and Closing Out the Project 427 Chapter 12 Professional Responsibility 465 Glossary 493 Index 521 Contents Introduction xvii Assessment Test xxvi Chapter 1 What Is a Project? 1 Is It a Project? 2 Projects versus Operations 3 Stakeholders 4 Project Characteristics 5 What Is Project Management? 6 Programs 6 Portfolios 7 Project Management Offices 7 Defining Skills Every Good Project Manager Needs 8 Communication Skills 9 Organizational and Planning Skills 9 Budgeting Skills 10 Conflict Management Skills 10 Negotiation and Influencing Skills 10 Leadership Skills 11 Team-Building and Motivating Skills 11 Understanding Organizational Structures 12 Functional Organizations 12 Projectized Organizations 15 Matrix Organizations 16 Understanding Project Life Cycles and Project Management Processes 20 Project Phases and Project Life Cycles 21 Project Management Process Groups 22 The Project Management Knowledge Areas 28 Project Integration Management 29 Project Scope Management 31 Project Time Management 32 Project Cost Management 33 Project Quality Management 34 Project Human Resource Management 34 Project Communications Management 35 Project Risk Management 36 Project Procurement Management 37 Summary 38 Exam Essentials 38 Key Terms 40 x Contents Review Questions 41 Answers to Review Questions 46 Chapter 2 Creating the Project Charter and Preliminary Scope Statement 49 How Projects Come About 50 Needs and Demands 51 Feasibility Studies 52 Kicking Off the Project Charter 54 Project Charter Inputs 54 Using Tools and Techniques for Charter Development 57 Selecting and Prioritizing Projects 57 Using Project Selection Methods 59 Project Management Methodology and Information Systems 65 Expert Judgment 67 Formalizing and Publishing the Project Charter 67 Key Stakeholders 67 Pulling the Project Charter Together 69 Project Charter Sign-off 70 Developing a Preliminary Project Scope Statement 71 Preliminary Scope Statement Inputs and Techniques 71 The Preliminary Scope Statement Document 72 The Kitchen Heaven Project Case Study 73 Summary 77 Exam Essentials 78 Key Terms 79 Review Questions 80 Answers to Review Questions 85 Chapter 3 Developing the Project Scope Statement 87 Developing the Project Management Plan 88 Developing Inputs 89 Documenting the Project Management Plan 90 Scoping Out the Project 93 Scope Planning Inputs 94 Scope Planning Tools and Techniques 95 Documenting the Scope Management Plan 95 Formulating Scope Definition 96 Defining the Scope Definition Inputs and Tools and Techniques 96 Writing the Project Scope Statement 100 Scope Statement Components 100 Approving and Publishing the Project Scope Statement 110 Updating the Project Scope Management Plan 110 [...]... particular exam, so be sure to study everything in the chapter Like the exam itself, this Study Guide is organized in terms of process groups and the natural sequence of events a project goes through in its life cycle By contrast, in other study guides, material is organized by knowledge area— Human Resource Management, Communications Management, and so on— and it can be confusing when studying for the exam... enough experience or education to sit for the PMP exam, you should consider sitting for the Certified Associate in Project Management (CAPM) exam The CAPM exam is structured like the PMP exam only the requirements are not as strict as they are for the PMP CAPM candidates typically work in a supporting role with a project manager or as a subproject manager Like the PMP, CAPM has two categories of requirements;... professionals in your field Why Become PMP Certified? The following benefits are associated with becoming PMP certified: It demonstrates proof of professional achievement It increases your marketability It provides greater opportunity for advancement in your field It raises customer confidence in you and in your company’s services Demonstrates Proof of Professional Achievement PMP certification is a rigorous... you taking the PMP exam, you can also use this book to study for the Certified Associate in Project Management (CAPM) exam The exams are similar in style and the information covered in this book will help you with either exam This book has been updated to reflect the latest edition of A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Third Edition It assumed you have knowledge of general... Buy This Book? If you are serious about passing the PMP exam (or the CAPM exam for that matter), you should buy this book and use it to study for the exam This book is unique in that it walks you through the project processes from beginning to end, just as projects are performed in practice When you read this book, you will benefit by learning specific Guide to the PMBOK processes and techniques coupled... specific to A Guide to the PMBOK It’s written so that you can skim through areas you are already familiar with, picking up the specific Guide to the PMBOK terminology where needed to pass the exam You’ll find that the project management processes and techniques discussed in this book are defined in such a way that you’ll recognize things you’ve always done and be able to identify them with A Guide to the... Download them right onto your Palm PocketPC device for quick and convenient reviewing Don’t rely on studying the Review Questions exclusively as your study method The questions you’ll see on the exam will be different than the questions presented in the book There are 200 randomly generated questions on the PMP exam and 150 on the CAPM, so it isn’t possible to cover every potential exam question in the... Certification tells potential employers you have gone the extra mile You’ve spent time studying techniques and methods as well as employing them in practice It shows dedication to your own professional growth and enhancement and to adhering to and advancing professional standards Provides Opportunity for Advancement PMP certification displays your willingness to pursue growth in your professional career... coupled with real-life scenarios that describe how project managers in different situations handle problems and the various issues all project managers are bound to encounter during their career This Study Guide describes in detail the exam objective topics in each chapter and has attempted to cover all of the important project management concepts How to Use This Book and CD We’ve included several testing... work This enhances the trust customers will have in you, which in turn will give you the ability to influence them on important project issues How to Become PMP Certified There are several requirements you need to fulfill in order to sit for the PMP exam PMI has detailed the certification process quite extensively at its website Go to www.pmi.org and click the Professional Development and Careers tab . your PMP exam prep needs. Since publishing the first edi- tion of our PMP: Project Management Professional Study Guide in April 2002, Sybex has earned the respect of tens of thousands of PMP. the PMP Study Guide and recommended it to their friends and co-workers. Because of your success using the book in passing the PMP exam, we are able to continue to upgrade and refresh the Study. Wiley Publishing, Inc. PMP ® : Project Management Professional Study Guide 3rd Edition Kim Heldman, PMP Copyright © 2005 by Wiley Publishing, Inc., Hoboken,