PMP Study: 2009

PMP Books & Reference Material

I am putting together some useful books and other preparatory material for PMP exam.

Books

PMP Exam Prep, Sixth Edition: Rita Mulcahy - One of the very popular books that is used across the globe for PMP preparation. The language used in this book is very simple and it puts you into situations when you really start thinking through how much have I been using this PMI-ism in my projects. It provides you the tricks of the trade, Study Tips, Games & exercises, Common error & pitfalls, PMI-isms and very good practice exams at the end of each chapter.

PMBOK Guide 4th Edition - This is the book and you can not avoid it. PMBOK Guide 4th edition is written better than its previous version but it still remains a boring book. You have to go through this book couple of times to understand the concepts. This is the official book for PMP exam but do not count on this book alone. Some topics that appear in the exam are just mentioned there but no details are provided, it is left to the readers to get the details.

The PMP Exam: How to Pass on Your First Try by Andy Crowe - A self contained book for PMP exam, it provides all the information needed to prepare for the test. This book provides further help by way of providing insider secrets, test tricks & tips, numerous sample questions and exercises for clearing your concepts.

Head First PMP - This book has been written in a unique way. It is written in a visually rich format. As per Amazon - "Drawing on the latest research in neurobiology, cognitive science, and learning theory, Head First PMP offers you a multi-sensory experience that helps the material stick, not a text-heavy approach that puts you to sleep." It also provides a full length sample exam.

My take - You should have any one of the above books along with PMBOK Guide 4th edition. That should be sufficient for the exam.

Some other useful books -

Practice Questions Collection & Exam Simulator

PM Fastrack Exam Simulation Software for the PMP Exam: Version 6
- PM FASTrack is an exam simulation software program containing more than 1,400 questions and six testing modes, allowing you to create an unlimited number of different exams. Created with the help of a psychometrician (just like the actual exam) PM FASTrack is designed to simulate the exam and eliminate any surprises. The application also: tracks your progress with printable reports and graphs, provides explanations of answers.
PMP Exam Quicklet: Project Management Professional Practice Exams
- Three complete practice exams, 540 questions, to help you prepare for the Project Management Professional (PMP) exam. Answers are explained in detail, why the correct answers are correct and the incorrect answers are incorrect.
1000 PMP Exam Questions with Explanations, 5 Full Length 200 Question Exams: Project Management Professional Practice Exams, Based on PMBOK 4th Edition 2009
2009 PMP Exam Simulation Software: 6,000 Questions Based on PMBOK 4th Edition.
PMP Exam Success Series: 3500 Question Exam Simulation

Flashcards

Other Material

Contract Types

Contract types is one of the tools & techniques of Plan Procurements. Whenever you are getting into an agreement with a supplier outside the organization for any procurement, you will be signing the contracts. Any legal contractual relationships generally fall into the following categories -

Fixed Price Contracts
Cost Reimbursable Contracts
Time & Materials Contracts

There are pros & cons for each type of contracts. Let's try to understand each one of this by getting into the details of each contract.

Fixed Price Contracts - These type of contracts are negotiated at fixed total price. In such contracts, the scope of work has to be clearly defined. There are provisions of incentives also in these contracts if the requirements stated in the scope of work exceed any quantifiable measurements. On the other hand, if the completed work does not meet the defined standards or any other quantifiable measurement, damages are borne by the seller. In such type of contracts, the seller is at the higher risk.

As per PMBOK Guide 4th Edition, there are three types of fixed price contracts -

Firm Fixed Price Contracts (FFP) - In this type of contract, the fee is fixed for the products or services. No incentives are given while cost overruns are borne by the seller. Seller is at the highest risk here. Scope of work has to be very clearly defined for such type of contracts. One of the example for this type of contract can be - a purchase order for delivering an off the shelf product for a specified price by a specific date.
Fixed Price Incentive Fee Contracts (FPIF) - In such contracts, incentives are given to the seller in case the pre defined performance targets are met or exceeded. The performance targets & the financial incentives are decided before the start of the work. In order to safeguard seller's interest, price ceiling is also decided. Any cost above the ceiling is borne by the seller. These contracts motivate sellers to try and get the incentives by way of over performing. One of the example for this type of contract can be - the seller will be given additional 5% of the total price if the required software product is delivered 2 weeks earlier than the specified scheduled date.
Fixed Price with Economic Price Adjustment Contracts (FP - EPA) - These type of contracts are usually signed where the project duration is spanning over the years. This safeguards the interest of both buyer & seller against any external conditions beyond their control e.g. inflation rate, currency exchange rate fluctuation in case of outsourced projects.

Cost Reimbursable Contracts - These type of contracts are aimed at de-risking the sellers from cost point of view when the scope of work is not clearly known at the start and can change as the work progresses. In such contracts, sellers are paid the actual cost incurred to accomplish the work along with seller's profit. In these type of contracts, buyer is at a higher risk as the total cost is not known at the start of the work.

As per PMBOK Guide 4th Edition, there are three types of cost reimbursable contracts -

Cost Plus Fixed Fee Contracts (CPFF) - In these contracts, the seller is reimbursed the actual cost of performing the work and a fixed fee. This fixed fee is calculated as a percentage of the initial estimated cost. Fixed fee does not change with actual cost.
Cost Plus Incentive Fee Contracts (CPIF) - In these contracts, the seller is reimbursed the actual cost of performing the work & the incentive fee. This fee is based upon the performance of the seller. Performance is determined based on the pre-defined performance targets.
Cost Plus Award Fee Contracts (CPAF) - In this type of contract, all the cost of performing the work is reimbursed plus the incentive (award) is given to seller based upon its performance. The point to note here is that - subjective evaluation is done for seller's performance.
Cost Plus Fee (CPF) Or Cost Plus Percentage of Cost (CPPC) - In this type of contract, seller is paid the actual cost of completing the work plus a fee. This fee is calculated as a percentage of actual cost of completing the work. Percentage is pre-determined but the fee will vary with the actual cost.

Time & Material Contracts (T&M) - These type of contracts are mix of cost-reimbursable and fixed price contracts. Generally, the project durations are longer, scope of work is not clearly known at the start. It resembles cost-reimbursable in a way because the actual cost is not known in advance and resembles fixed price in the sense that unit rate for the labor and/or material is agreed upon at the start of the work.

Tips for Critical Path, Total Float & Free Float

I would like to start the topics which can bring more fruits with little scope of doubts. If a little attention is paid on these topics, there are very less chances of ambiguity. Yes, you have guessed it right, I will concentrate on the topics with numerical problems.

Today I will talk about the above topics in the subject of the post. Numerical problems are not lengthy and the calculations involved are very simple.

Critical Path - This is the longest duration path in the network diagram but the shortest possible time to complete the project. I am assuming here that you have already prepared the network diagrams and know its basic concepts. Once you have the network diagram ready, look at the each possible path from start to finish, calculate the duration of each path, the path with the longest duration is the critical path. It is possible to have more than one critical paths in a project. More the critical paths riskier the project.

Let's look at an example. Click on the below image to enlarge.

There are three paths -
1. Start-A-C-D-F-H-End = 11 days
2. Start-A-C-E-H-End = 8 days
3. Start-B-G-I-End = 12 days

Path 3 (Start-B-G-I-End) shown in Red is the critical path as this has the longest duration.

Path 1 (Start-A-C-D-F-H-End) is near critical path. A project manager not only should watch out for the critical path but also should concentrate upon the near critical path as this has the potential to become a critical path if not managed well.

Free Float - This is the time by which an activity can be delayed without delaying the early start of its successor activity.

Free float of an activity = (ES of the next activity - EF of that activity) - 1
(Note: -1 is there if you are considering the 1st day of the project as 1 but if you consider the 1st day of the project as 0th day, -1 will be omitted)

Total Float - This is the total time by which an activity can be delayed without delaying the scheduled end date of the project.

Total float of an activity = (LF - EF) of that activity OR (LS-ES) of that activity

Unless specifically asked for free float in questions consider float=total float.

Activities on the critical path have ZERO float.

In the above diagram,

Free Float for activity F = ES of H - EF of F - 1 = 11-10-1 = 0
Total Float for activity F = (LS - ES) of F OR (LF - EF) of F= 11-10 = 1

Free Float for activity E = ES of H - EF of E - 1 = 11-7-1 = 3
Total Float for activity E = (LS - ES) of E OR (LF - EF) of E = 11-7 = 4

Important Topics for PMP exam - Part 3

Delegation is one of the important topics and features regularly in PMP exam. I will try to throw some light on this topic today.

What is delegation?
This is a process of distributing the work (authority) to the individuals working on the project without getting away from the responsibility. When the work is delegated, it is expected that the person accepting the work is reliable and will be held accountable for the end results of the assignments. However, the final responsibility still lies with the project manager.

Delegation is not about dumping the work or passing the buck. It should be noted that when the work is being delegated the right authority to complete that work is also delegated but a control is maintained.

Why Delegate?
Vijay Verma, the author of "The Human Aspects of Project Management: Organizing Projects for Success" says -

"Effective delegation is essential in a project environment because of tight schedules and scarce resources. It is important to delegate work in order to increase effectiveness and efficiency in managing a project, reducing the crisis atmosphere. Delegated tasks provide stimulus and opportunities to project team members, improving their participation and interest in the project and possibly opening new horizons for them. In addition, delegation creates more free time for the project manager to work on the most important and critical tasks, as well as, simply, more time to think. Creative thinking by the project manager and interested, challenged project team members helps to avoid the "one-person band" syndrome."

The different aspects to consider while delegating are - to motivate the team, to boost up their morale, to provide them with the challenges, to create successors. Delegation is not about relieving your workload but to allow employees grow professionally. Effective delegation is used to benefit both yourself and the team you are working with.

Following points should be kept in mind while delegating -

What should be delegated - Not every task a project manager does should be (can be) delegated. Project manager must evaluate the risks before delegating the tasks. The manager should delegate the tasks to free up his time to concentrate on priority activities - routines tasks can be delegated, technical tasks requiring expertise can be delegated, future roadmap planning should not be delegated, key team member selection should not be delegated.
Clarity of the results - As a manager you must establish the end results out of those tasks. The means to achieve the end results should be left for the individual to decide. Emphasize the goals not the processes or procedures. If for some reason, specific method has to be adopted, it should be informed right at the start of the assignment.
Defining the responsibility - You as a manager should determine employee's level of responsibility and ensure employee understands this as well.
Delegating the authority - Major failures in task delegation happens due to lack of authority delegation. Task delegation is done but authority delegation does not happen. Hence, for every small decision employee runs to the supervisor for the approval. Authority required for successful accomplishments of the tasks should also be delegated.
Establishing the timelines - A clear and agreed upon timeline must be published and milestones should be monitored in project progress reviews.
Support & feedback - It encourages the employee taking up the tasks if timely feedback is provided alongwith the continuous support. If required, training should also be provided to achieve the set goals.

For further reading, please refer to "The Human Aspects of Project Management: Organizing Projects for Success" by Vijay Verma (to read this requires PMI membership). Others can buy this book here.

Also visit:
Important Topics for PMP exam - Part 1
Important Topics for PMP exam - Part 2

PMBOK Guide 4th Edition Sample Questions

Here are some sample questions based on PMBOK Guide 4th edition. Answers and more links are at the end of the post.

Q 1 - Procurement audits are conducted during -

A. Administer Procurement
B. Close Procurement
C. Monitor & Control Risks
D. Perform Quality Assurance

Q 2 - Which of the following is NOT a tool for Define Scope?

A. Product Analysis
B. Alternative Identification
C. Stakeholder Analysis
D. Facilitated workshops

Q 3 - All of the following are Group Decision Making Techniques EXCEPT -

A. Unanimity
B. Negotiating
C. Plurality
D. Dictatorship

Q 4 - You have been assigned the project manager of a project whose earlier project manager has left the organization without proper knowledge transfer. To understand the complete scope of project, you will look at -

A. WBS
B. Project Management Plan
C. Communication Management Plan
D. Performance Reports

Q 5 - All of the following are tools & techniques of Sequence Activities EXCEPT -

A. Precedence Diagramming Method
B. Applying Leads & Lags
C. Arrow Diagramming Method
D. Dependency Determination

Q 6 - Money spent on the project activities during the project to avoid failures is -

A. Cost of Non-conformance
B. Cost of Conformance
C. Failure Cost
D. Cost of Poor Quality

Q 7 - Five stages of team development are -

A. Forming, Storming, Norming, Performing, Adjourning
B. Forming, Norming, Storming, Performing, Adjourning
C. Forming, Norming, Performing, Storming, Adjourning
D. Norming, Forming, Storming, Performing, Adjourning

Q 8 - You have entered into a fixed price contract with a seller but with an understanding that contract cost may change due to currency exchange rate fluctuation. What type of contract is this -

A. FFP
B. FPIF
C. FP-EPA
D. CPAF

Q 9 - You have released an advertisement in a leading newspaper to call for the sellers of a product that is needed to complete your project. Which process are you performing now -

A. Plan Procurement
B. Administer Procurement
C. Outsource Procurement
D. Conduct Procurement

Q 10 - You are the project manager for a software development project. There are 70% chances of making company $240,000 and 30% chances of costing the company $130,000 by doing the project in-house. What's EMV of the doing the project in-house?

A. $168,000
B. $39,000
C. $129,000
D. $207,000

For more numerical and formula related sample questions visit this post. Before attempting those questions, you may want to visit PMP Formulas at a glance.

Answers:

Q 1 - B - Procurement audit is a tool & technique of Close Procurement. PMBOK Guide 4th edition, P343, Sec 12.4.2.1

Q 2 - C - Stakeholder analysis was a tool for Scope definition in PMBOK Guide 3rd edition. This has now become part of Facilitated Workshops, where stakeholder's needs are understood.

Q 3 - B - PMBOK Guide 4th edition, P108, Sec 5.1.2.5

Q 4 - A - PMBOK Guide 4th edition, P121, Sec 5.3.3.1

Q 5 - C - Arrow Diagramming Method (ADM) was tool & technique for Activity Sequencing in PMBOK Guide 3rd edition.

Q 6 - B - PMBOK Guide 4th edition P195, Sec 8.1.2.2

Q 7 - A - PMBOK Guide 4th edition P233, Sec 9.3.2.3

Q 8 - C - PMBOK Guide 4th edition P323, Sec 12.1.2.3

Q 9 - D - PMBOK Guide 4th edition P332, Sec 12.2.2.5

Q 10 - C - $240,000*0.7 - $130,000*0.3 = $129,000

Here are the links for more practice questions -

Fore more sample questions, visit:

PMI Membership Benefits

I have seen many people with this dilemma - shall I take PMI membership or shall I apply for the exam as non-member? Is it worth the money? The plain and simple answer is 'YES' - it is definitely worth the money. If you plan to appear for the PMP certification, you will in fact end up saving money if you become PMI member and then apply for the certification exam. Listed below are some of the PMI membership benefits -

Discount on PMP certification exam - When you apply for PMP certification exam as a PMI member the fee is US $405. PMI membership fee is US $129. Total cost becomes US $534. If you apply for PMP exam as non-member, the fee is US $555. There is a direct saving of US $21. It does not require any rocket science to see the benefit of becoming a PMI member.

Free Access to eReads - As a PMI member you have access to more than 500 books on project management. Along with your knowledge improvement, these books help you in preparing for PMP exam. And, you have access to these books 24x7 free of cost.

Career Development Services - As member you can advertise your resume and have access to their jobs database. You also have access to career coaching services.

Networking - You get a chance to interact with 250,000 global fellow community members by way of participating in online discussions, surveys, news. Once you are a PMI member, you can join your local PMI chapter and participate in various events organized by the local chapters and meet the other members in person to know the trends in the profession. These events can fetch you PDUs (after you have cleared the certification) which will help you in continuing your certification.

Access to various publications - As PMI member you get free subscription to PMI Community post, PMI Today (newsletter), PM network (magazine), Project Management Journal and PMI leadership in Project Management. You also get free access to latest edition of PMBOK Guide.

Others - Besides above benefits, you also get access to Project management best practices, opportunities to impact the advancement of the project management profession. Also, you can join the SIGs (Special Interest Groups) and participate in the events organized by these groups. It can fetch you PDUs and help in PMP credentials continuation.

Hope this answers and helps clear your dilemma.

Why should I do PMP certification?

It is not that life is going to change dramatically (read: money starts pouring in) or you will start receiving job offers a plenty if you complete the certification. Also, it is not that if you do not do the certification you are going to loose your job (thankfully, there are no such mandates as of now). Projects are being managed and completed today without certification and will continue to be completed successfully.

But at the same time, over the last decade or so, this has carved a niche and has attained a global recognition among the world corporates. People with PMI certification are marked differently and are placed in a separate category. It has earned a distinction of being prestigious and is considered a benchmark in the industry.

Glance over the below points and then you can decide for yourself, is it worth spending so much money and shall I take this plunge?

Top 5 reasons for getting PMP certification -

1. Knowledge Acquisition - There are not too many formal courses of such repute which will impart you with a formal knowledge of all areas in Project Management. Most of the time, one learns by way of sharing others' knowledge or on the job. This course requires a great deal of study and getting the certification highlights your knowledge of project management processes.

2. More Career Opportunities - Due to its widespread recognition, more & more companies are looking for project managers who are different and the benchmark is PMP certification. Also, imagine a situation of tie between two candidates for a job position, the candidate with the certification will have an edge over the other and you do not want to be that other candidate.

3. Sense of achievement & self-confidence - Believe it or not, after putting in so much of efforts when you see the "Congratulations!" message appear on your screen after the test, it does give you an ecstatic feeling and your confidence gets a real high.

4. Better Salary - Based on different surveys, it is proven that PMP certified project managers get paid more (approx 15-20% more) than the non-PMP similarly qualified managers.

5. Recognition in community & among peers - By completing this certification your name gets added to the most prestigious database of certified professionals in the project management community and you start commanding a different status among your peers also.

What do you say now, are you ready to take the challenge?

Memory Aids - PMBOK 4th Edition - Part 2

Project Human Resource Management Overview

9.1 Develop Human Resource Plan - NOO

N - Networking
O - Organization charts & position descriptions
O - Organizational theory

9.2 Acquire Project Team - Present NAV

P - Pre-assignment
N - Negotiation
A - Acquisition
V - Virtual team

9.3 Develop Project Team - Ground rules In Training & Team-building Reduce Controversies
9.4 Manage Project Team - PIO Card for Indians

Project Communications Management Overview
Communication methods is tool & technique in all the communication management processes except identify stakeholders.

10.1 Identify Stakeholders - Expert System

E - Expert judgement
S - Stakeholder analysis

10.2 Plan communications - Communication methods + Requirement Traceability Matrix

R - Requirement analysis (Communication)
T - Technology (Communication)
M - Models (Communication)

10.3 Distribute Information - Communication method + Information distribution tools
10.4 Manage Stakeholder Expectations - Communication method + Instant Messenger

I - Interpersonal skills
M - Management skills

10.5 Report Performance - Communication method + Report for Variance & Forecasting

R - Reporting system
V - Variance analysis
F - Forecasting methods

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 1

Memory Aids - PMBOK 4th Edition - Part 1

One of the changes done in PMBOK 4th edition is that all the processes names are changed to reflect the verb-noun format i.e. earlier if the process name was scope control, it is now changed to control scope, earlier if the process name was Human Resource Planning it is now changed to Develop Human Resource Plan. For more changes in PMBOK Guide 4th edition read this.

Below are some tips to memorize Tools & Techniques for PMBOK Guide 4th edition processes.

Project Time Management Overview

6.1 Define Activities - DRTE - Defence Research Telecommunication Establishments (a part of Canadian Defence Research Board)

D - Decomposition
R - Rolling Wave Planning
T - Templates
E - Expert Judgement

6.2 Sequence Activities - PADS

P - Precedence diagramming method
A - Applying leads & lags
D - Dependency determination
S - Schedule network templates

6.3 Estimate Activity Resources - BEAPP

B - Bottom up estimating
E - Expert judgement
A - Alternatives analysis
P - Published estimating data
P - Project management software

6.4 Estimate Activity Durations - TAPER

T - Three point estimates
A - Analogous estimating
P - Parametric estimating
E - Expert judgement
R - Reserve Analysis

6.5 Develop Schedule - SCC WARSS or Schedule may Change With Stakkeholder's Approved Scope Change Request
6.6 Control Schedule - VPP WARSS

Project Quality Management Overview

8.1 Plan Quality - CCB Decides Strategy For Changes
8.2 Perform Quality Assurance - PQ
8.3 Perform quality control - Sensors Help In detecting Fire And Cause Remote Sirens to Play Continously

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 2

PMBOK 4th Edition download

PMBOK Guide 4th Edition is available for download at PMI site. This comes free of cost to PMI members as a PMI membership benefit. Use your username to login to PMI site and it is available for download at the main page. This guide is password protected, use your PMI password to open this pdf file. This guide comes with your name & PMI Member ID printed in the footer of each page.

Important Topics for PMP exam - Part 2

Organizational Theories

Besides conflict resolution techniques, another important topic is organizational theories. These theories also draw a fair amount of questions in the exam. Let's look at these one by one.

1. Maslow's Hierarchy of needs -Maslow has defined 5 levels of hierarchical needs. According to this theory one strives, contributes, uses the skills & abilities to fulfill the needs as per this hierarchy. When the needs belonging to a level in the hierarchy are taken care of, one moves on to fulfill the next level of needs before one reaches the last level of self-actualization (the full realization of one's potential) in the hierarchy.

Five layers of needs (bottom-up), as per Maslow, are :

Physiological - The bare necessities to survive - it includes - air, water, food, shelter, clothes

Safety - Includes safety and security - security at work, stability in life.

Social - Love, affection, social circle

Esteem - Self respect, appreciation,

Self-actualization - This is the epitome - and here people start realizing their potential and strive for fulfillment by way of personal growth, knowledge attainment.

2. Herzberg's hygiene theory of motivation- Factors leading to dissatisfaction include relationship at work (with your boss & peers), working conditions, salary & organization policy. Herzberg termed these factors as hygiene factors and defined that these factors do not improve motivation but help avoid dissatisfaction. It is considered that to avoid dissatisfaction these things should be taken care of. Factors that help in motivation include recognition, work content, growth, responsibilities.

For further reference, read this article.

3. Expectancy Theory - This theory states that people "in expectation of positive reults" are motivated and put in their best efforts to achieve the goals. e.g. if an individual feels that she will be rewarded if the goal is achieved, that reward becomes the motivating agent and act as a catalyst in improving the performance.

4. Theory X & Theory Y - Douglas McGregor postulated these two theories.

Theory X states that an average individual is not interested in work and always tries to avoid it, does not have any ambition, does not want to take on any responsibility, does not care for organizational goals. These individuals only work for money and security. In order to get any work done from these individuals, they constantly need punishment, close supervision and tight controls.

Theory Y states that employees are self motivated and self directed. For them work is as important as other activities like play & rest in their lives. People take on responsibilities on their own. People align their goals with the organizational goals and need limited supervision.

For further reference, read this article.

Also visit:
Important Topics for PMP exam - Part 1
Important Topics for PMP exam - Part 3

Important Topics for PMP Exam - Part 1

Conflict Resolution Techniques

This is one of the very important topics for the PMP exam. Quite a few questions are there in the exam on this topic.

In the project management parlance, following 5 techniques are used by the project managers to resolve any conflict.

Confrontation - This is the best technique, if any project manager is able to apply this in a conflict situation. This is a problem-solving method in which a project manager is able to resolve the problem itself and both the parties (in conflict) are happy. This is a win-win situation for both the parties.

Compromising - This is a technique in which one or both the parties (in conflict) sacrifice (give up) something. Negotiations take place to arrive at the solution. Both the parties achieve some degree of satisfaction. This is a loose-loose situation.

Smoothing - In this technique, areas of commonalities (agreements) are emphasized and areas of conflicts (disagreements) are de-emphasized. It is projected as if there is no conflict at all. This is a temporary solution and the possibility of resurfacing the conflict is very high.

Forcing - When the power is used to impose upon one's point of view. In this technique, the needs and concerns of the other party are ignored. This leads to win-loose situation where one party wins at the expense of the other party

Avoiding - Also called withdrawing, in this technique one party withdraws from the situation or, when the issue is postponed without trying to arrive at a solution. This is also a temporary solution as the problem and the conflict both continue.

Some other material on conflict resolution technique is here.

Also visit:
Important Topics for PMP Exam - Part 2
Important Topics for PMP Exam - Part 3

My PMP sample questions

Q 1 - At the end of 3 months in a 6 months long project EV is $14,000, PV is $15,000, AC is $17,500. Total budget for the project is $30,000. At the end of 3 months, project is:

A. Ahead of schedule and under budget
B. Behind schedule and over budget
C. Behind schedule and under budget
D. Ahead of schedule and over budget

Q 2 - A project has a total budget of $600,000. As of data date a project shows ACWP as $350,000, BCWP as $400,000 and BCWS as $425,000. Project is running -

A. Ahead of schedule with SPI = 1.06
B. Ahead of schedule with SPI = 1.14
C. Behind schedule with SPI = 0.94
D. Insufficient data to calculate SPI

Q 3 - In the above question, project is running -

A. Over budget with CPI = 0.94
B. Under Budget with CPI = 1.14
C. Under budget with CPI = 1.21
D. Insufficient data to calculate CPI

Q 4 - There are 3 projects to be chosen from. Project A has NPV of $680,000 with a payback period of 6 months, Project B has NPV of $600,000 with a payback period of 3 months and Project C has NPV of $725,000 with a payback period of 12 months. Based on this data, which project should be chosen -

A. Project A
B. Project B
C. Project C
D. Can not be determined with this data

Q 5 - There are 3 projects to be chosen from. Project A has NPV of $32,500, Project B has NPV of $40,000 and Project C has NPV of $45,000. Project C is chosen. The opportunity cost of project C is -

A. $32,500
B. $72,500
C. $45,000
D. $40,000

Answers:

Q1 - B. SPI = EV / PV = 14000/15000 = 0.93 (which is less than 1), hence project is behind schedule. CPI = EV/AC = 14000/17500=0.8 (which is less than 1), hence project is over budget.

Q2 - C. SPI = EV/PV = BCWP/BCWS = 400000/425000=0.94 (which is less than 1), hence project is behind schedule with SPI = 0.94

Q3 - B. CPI = EV / AC = BCWP / ACWP = 400000/350000=1.14 (which is greater than 1), hence project is under budget with CPI = 1.14

Q4 - C. Project C will be chosen as this has the highest NPV.

Q5 - D. Opportunity cost is the cost of next best opportunity.

Here are the links for more practice questions -

For more sample questions visit:

FAQs

What is the eligibility criteria?

The eligibility criteria for appearing for PMP is as :

Diploma or equivalent + 5 years of project management experience + 35 hours of project management training

Bachelor's degree or equivalent + 3 years of project management experience + 35 hours of project management training

What is examination fee?

Examination fee is:

If you are a PMI member -

fee for CBT (computer based online) exam is US $405,

fee for PBT (paper bsased) exam is US $250

If you are not a PMI member -
fee for CBT (computer based online) exam is US $555,
fee for PBT (paper bsased) exam is US $400

How much time does it take to process the application?

Once the application is submitted on-line, PMI takes around 5 business days to process and review the application. Once the application is reviewed and approved you can immediately apply for the exam through Prometric center. You have one year after the application is approved to apply for the PMP certification exam.

Application process for PBT is much longer.

Will my application get audited? What is the audit process?

Applications are selected at random for verification and audit purpose. Hence, it is not known in advance if the application will be audited. If your application is selected for audit, verification process is initiated. You have to clear the verification process and then apply for the exam. Verification process involves providing evidence for your academic qualification, your professional experience (you provide reference names while filling up the appliction form, they need to verify your professional experience in case of audit)

In case, for any reason, if application is rejected after verification, processing fee of US $100 is deducted and remaining amount is refunded.

What is the format of exam?

There are 200 questions. Format of the exam is multiple choice. 4 choices are given for each question. One of the choice is the correct or the best answer for that question. Time limit for the exam is 4 hrs. There are no specifed breaks, but you are free to take as many as you want, but YOUR TIMER DOES NOT STOP. There is no negative marking. No marks are deducted for wrong answers. Out of 200 questions, only 175 are used for calculating the score. Remaining 25 questions are pre-test unscored questions and one does not know which are those 25. Hence, for all practical purposes one has to concentrate on all 200 questions.

Can I reappear for the exam, if I fail to clear in first attempt?

Yes, you can. Within one year, you are eligible to take the exam three times. For each reappear, you have to pay re-examination fee (US $275 for PMI members and US $375 for non-PMI members).

What is the passing score for the exam?

No one knows. PMI provides the scorecard which only mentions Pass or Fail along with your proficiency level (Proficient, Moderately Proficient or Below Proficient) in each Process Group. But, as the word goes by, one should get minimum 106 questions right out of 175. This is one of the old data which is available as of today but can not be taken as a criteria for pass or fail.

Why should I do PMP certification?

Please visit my post Top 5 reasons for PMP certification for the details.

What are the benefits of becoming PMI member?

Please visit my post Top 5 benefits for PMI membership for details.

How long do I need to wait to get my PMP results?

For computer based test (CBT), you will know your results immediately after completing the test at Prometric center. Prometric center will print out your result and give it to you. Besides mentioning Overall Pass or Fail, this will also indicate your proficiency level in each of the domain. In addition to getting this result by Prometric, you will be able to see your result on the online certification system within 7-10 days. PMI sends you your certificate within 4-6 weeks.

For Paper based test (PBT), you will be able to access your result online within 6-8 weeks of examniation date.

PMP Formulas at a glance

Here is the list of PMP formulas at one place. Click on the image below for full size.

Tips for ITTO - Part - 3

7. Project Communications Management -

Communication Planning - Carbon Copy - Communication requirement analysis, Comunications technology
Information Distribution - ILIC - I Love Indian Curry - Information gathering & retrieval system, Lessons learned process, Information distribution methods, Communications skills
Performance Reporting - SCIPT - Script without R - Status review meetings, Cost reporting systems, Information presentation tools, Performance information gathering and compilation, Time reporting systems
Manage Stakeholders - I C - I see or Integrated Circuit - Issue logs, Communication methods

8. Project Risk Management

Risk Identification - Dangerous ACID - Documentation reviews, Assumption analysis, Checklist analysis, Information gathering techniques, Diagramming techniques
Quantitative risk analysis - DQ - Data Quest - Data gathering & representation techniques, Quantitative risk analysis & modeling techniques

9. Project Procurement Management -

Plan purchases & Acquisitions - EMC - Essential Maintenance Contract - Expert judgement, Make-or-buy analysis, Contract types
Plan Contracting - SE - Start to End - Standard forms, Expert judgement
Request Seller Response - BAD - Bidder conferences, Advertising, Develop qualified seller list
Select Sellers - only With Sufficient Information Contractor Should Engage in Procurement - Weighting system, Screening system, Independent estimates, Contract negotiation, Seller rating system, Expert judgement, Proposal evaluation techniques
Contract Administration - BCCI is Responsible for Power Packed IPL - Buyer conducted performance review, Contract change control system, Claims administration, Inspections & audits, Records management system, Performance reporting, Payment system, Information technology
Contract Closure - PR - Public Relations - Procurement audits, Records management system

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 1
Tips for memorizing ITTO (PMBOK 4th Edition) - Part 2

Tips for ITTO - Part - 2

4. Project Cost Management -

Cost estimating - Daily PVR Cinema is A Boring Plan - Determine resource cost rates, Project management software, Vendor bid analysis, Reserve analysis, Cost of quality, Analogous estimating, Bottom up estimating, Parametric estimating

Cost budgeting - CRPF - an indian police battalion - Cost aggregation, Reserve analysis, Parametric estimating, Funding limit reconciliation

Cost control - Very Poor Performance in PMP exam Causes Failure - Variance management, Performance measurement analysis, Project performance reviews, Project management software, Cost change control system, Forecasting

5. Project Quality Management -

Quality Planning - D Comes After B & C - Design of experiments, Cost-benefit analysis, Additional quality planning tools, Benchmarking, Cost of quality

Perform Quality Assurance - PQ - Process Analysis, Quality audits

Perform Quality Control - Sensors Help In Detecting Fire & Cause Remote Sirens to Continously Play - Scatter diagram, Histogram, Inspection, Defect repair review, Flowcharting, Cause & effect diagram, Run chart, Statistical sampling, Control charts, Pareto chart

6. Project Human Resource Management

Human Resource Planning - NOO - Networking, Organizational theory, Organization charts & position descriptions

Acquire project team - Present NAV - Pre-assignment, Negotiation, Acquisition, Virtual teams

Develop Project Team - Ground rules in Training & Team-building Generally Reduces Controversies - Ground rules, Training, Team building activities, General management skills, Recognition & rewards, Co-location

Manage Project Team - COPI-er - Conflict management, Observation & conversation, Project performance appraisal, Issue log

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 1

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 2

Tips for ITTO - Part - 1

1. Project Integration Management -

Tools & Technique (T&T) - All the 7 processes in this knowledge area have Project Management methodology & Project management information system. Expert judgement is present in all the processes EXCEPT Direct & Manage project execution. Develop project charter has additional T&T - Project selection method and Monitor & control project work has additional T&T - Earned value technique.

2. Project Scope Management -

Scope Definition T&T - PAES - Famous Indian tennis player - Product analysis, Alternatives identification, Expert judgement, Stakeholder analysis

Scope Control T&T - VCR-C - Variance Analysis, Change control system, Replanning, Configuration management system

3. Project Time Management -

Activity Definition T&T - PERT-D - Planning component, Expert judgement, Rolling wave planning, Templates, Decomposition

Activity Sequencing T&T - SAPAD - Food in south indian language - Schedule network templates, Arrow diagramming method, Precedence diagramming method, Applying leads & lags, Dependency determination

Activity Resource Estimating T&T - BEAP-P - Bottom up estimating, Expert judgement, Alternatives analysis, Published estimating data, Project management software

Activity Duration estimating T&T - TRAP Ends - Three point estimates, Reserve analysis, Analogous estimating, Parametric estimating, Expert judgement

Schedule Development - Project Schedule may Change With Agreed & Approved Stakeholder Scope Change Request - Project management software, Schedule network analysis, Critical path method, What-if scenario analysis, Applying calendars, Adjusting leads & lags, Schedule compression, Schedule model, Critical chain method, Resource leveling

Schedule Control T&T - PSPSPV

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 1

Tips for memorizing ITTO (PMBOK 4th Edition) - Part 2

My Lessons Learnt (LL)

When I took up the task of completing the PMP in early 2009 (End of January 2009 to be precise), I considered it to be just like any other certification and thought this can be completed with ease. But, as I took the first step of completing the 36 hours training (requirement from PMI to appear for the certification), I realised I am getting into an activity which is going to eat into my several weekends and will require me to take time out of my family life. One of the motivation to go ahead was that PMI decided to move onto the PMBOK 4th edition from 30th June 2009 and I had done all my preparation with PMBOK 3rd edition. Even though there are not too many changes in 4th edition, I needed some thing to keep me going in a timebound manner. And, here I was studying regularly for 3-3.5 hrs daily and 10-11 hrs over the weekend for approx 2 months. Finally, I was able to finish my studies when I appeared for the test on 10th-Jun-2009 and I did take a sigh of relief when I saw the "Congratulation!" message appearing on the screen.

Along the journey, I thought I will also contribute to the community once I am able to clear my exam and here I am sharing my experience.

1. PMBOK, PMBOK & PMBOK - One needs to understand the PMBOK in & out. People say - it is a dry book and acts as a sleeping pill, but I found it to be well written with good examples. I studied it for three times. Do not cram, but understand the concepts behind each process. The initial chapters (Project management framework, Project Integration management) are very important and quite a lot of questions are asked in the exam from these topics. Once you understand each process, you will start appreciating PMBOK more. It is good if one can remember all the ITTO (not mandatory but some questions are straight on these)

2. Reference Books - Just the PMBOK is not sufficient, one needs to refer to other books. Some topics are not explained in details in PMBOK (like leadership styles, conflict resolution techniques, NPV formulae, motivational theories etc.) but are a very regular features in the exams with quite a many questions on these topics. The best book is Rita Mulcahy's PMP Exam Prep, Sixth Edition. This book has explained each and every topic very nicely. Another book which has been very helpful is Kim Heldman's Project Management Professional Study Guide. These two books along with PMBOK should do the trick. There is another book O'REILLY's Head First PMP This book is little different and can be a very good starting point (This is the first book I read) and starts building your rhythm. I studied Rita's book twice and once I read Kim Heldman's book.

3. Practice tests - One of the most important part of the preparation is practice tests. I did take 3 practice tests from pmstudy and these are very close to actual test. I consistently scored 75% in all the tests. Do as many tests as possible. Take at least 3-4 full 4 hrs tests. This builds up your stamina to concentrate and sit for 4 hours. Questions given at the end of each chapter of the reference books mentioned above are very good. One should complete these questions while reading each chapter and can return to these questions for the 2nd time also. Some useful links which provide mock tests & full lenght tests -

http://www.pmstudy.com/ - very good site and this comes very close to PMI exam. One full 4 hrs test is free for 1-day. It's worth buying another at least couple of more full length tests.
http://www.passpm.com/ - another good site for full length free self-evaluation test
http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm - site for self assessment test. A little tough questions. One may want to try and attempt at the start to get little push for motivation.
http://www.preparepm.com/ - provides mock-exams
http://www.headfirstlabs.com/PMP/free_exam/HeadFirstPMP_PracticePMPExam.pdf - Full length test of 200 questions

4. Discussion Forums - It helps to join some discussion forums. One gets a feeling of community. People share their experiences and one can learn from their experiences. Also, these forums can help when one is stuck with some problem and is looking to verify the solution, answer. Some good forums are -

http://www.pmhub.net/ - very good forum for any PMP related dicussions
http://forums.oreilly.com/category/73/Head-First-PMP/

5. Exam - Just relax before the exam day.

Browse through to your self made notes. One very good resource for study notes is http://pmhub.net/files/PMHUB_Study_Notes_V6/PMHUB-SNV6_%20Prad_Raj%20Rani_2.doc. This gives a very good summary.
Reach the examination center at least 1/2 an hour before the test. Carry at least 3 valid / original id proof. For some strange reason, the person at the center did not believe that one of the Ids I was carrying is original Id (he thought it to be a xerox copy), luckily I had another valid Id and that saved me.
Questions in the exam are not too lengthy, very well written with no ambiguity (many sites do put some ambiguous questions in their practice tests and that makes one very nervous). There is enough time to complete 200 questions.
Do not spend too much time on a single question.
Do read the question carefully (phrases like EXCEPT, FIRST, NOT TRUE can change your answer).
Do not be overconfident. You are never sure unless you see "Congratulations!" appear on your screen.

PMP Study

Library

Blog Contents

PMP Books & Reference Material

Contract Types

Tips for Critical Path, Total Float & Free Float

More Sample Questions (PMBOK 4th Edition)

Important Topics for PMP exam - Part 3

PMBOK Guide 4th Edition Sample Questions

PMI Membership Benefits

Why should I do PMP certification?

Memory Aids - PMBOK 4th Edition - Part 2

Memory Aids - PMBOK 4th Edition - Part 1

PMBOK 4th Edition download

Important Topics for PMP exam - Part 2

Important Topics for PMP Exam - Part 1

My PMP sample questions

FAQs

PMP Formulas at a glance

Tips for ITTO - Part - 3

Tips for ITTO - Part - 2

Tips for ITTO - Part - 1

My Lessons Learnt (LL)

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Discussion Forums

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Free Test Sites

Discussion Forums

Non - PMP Resources

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