PMP – PMBOK5 – Learning ITTO to Pass the PMP test

A. Memorize the 47 processes, learn how ITTO works for each process.

B. Build your ITTO flash cards early in your learning process.
* Organize them so that you can see its pattern (e.g. paste them on a wall somewhere.)

C. Take PMP pre-tests, your weak processes will be areas for ITTO study.

D. Use an ITTO apps from Android or Apple so that you can practice anywhere (or everywhere), anytime (or everytime).

* by Richard Kraneis

Quick Test (20Qs) – Project Scope Management

1. _____ refer(s) to all the work involved in creating the products of the project and the processes used to create them.

     a. Deliverables
     b. Milestones
     c. Product Development
     d. Scope
 
2.Which tool or technique for collecting requirements is often the most expensive and time consuming?
     a. Surveys
     b. Observation
     c. Interviews
     d. Focus Groups
 
3. A _____ is a deliverable-oriented grouping of the work involved in a project that defines its total scope. 
     a. Work Package
     b. WBS
     c. Scope Statement
     d. WBS Dictionary
 
4. What approach to developing a WBS involves writing down or drawing ideas in a nonlinear format? 
     a. Mind mapping
     b. Top-down
     c. Bottom-up
     d. Analogy
 
5. Assume that you have a project with major categories called planning, analysis, design and testing. What level of the WBS would these items fall under?
     a. 3
     b. 0
     c. 2
     d. 1
 
6. Which of the following is not a best practice that can help in avoiding scope problems on IT projects?
     a. Follow good project management processes
     b. Use off the shelf hardware and software whenever possible
     c. Keep the scope realistic
     d. Don’t involve too many users in scope management
 
7. Why would a large company terminate a large project after spending $170 million USD on it?
     a. The company found better technology
     b. The scope could be too much to handle
     c. The company decided to outsource the work
     d. The government requirement that prompted the project was repealed
 
8. Scope _____ is often achieved by a customer inspection and then sign-off on key deliverables. 
     a. acceptance
     b. completion
     c. close-out
     d. validation
 
9. Which of the following is not a suggestion for improving user input?
     a. Co-locate users with developers
     b. Have users on the project team
     c. Develop a good project selection process for IT projects
     d. Only have meetings as needed, not on a regular basis
 
10. Project management software helps you develop a _____, which serves as a basis for creating Gantt charts, assigning resources, and allocating costs. 
     a. project plan
     b. schedule
     c. WBS
     d. deliverable
 
11. Going down a level in a WBS _____. 
     a. Results in a lesser degree of accuracy
     b. Results in a greater degree of accuracy
     c. Is only needed on projects over $1,000,000
     d. Allows the project manager to better develop the project charter
 
12. Who benefits from a WBS?
     a. The project manager and the customer
     b. The project manager
     c. The customer
     d. Neither project manager nor customer
 
13. A WBS dictionary does not _____.
     a. Designate the staff assigned
     b. Include the budget for the item
     c. Define the technical terms used in the project
     d. Identify the schedule dates for the item
 
14. At what stage of scope management do you develop a WBS?
     a. Definition
     b. Initiation
     c. Verification
     d. It is part of the project charter
 
15. What is “gold plating”?
     a. “Polishing” the project to get it down to the bare minimum
     b. Including enhancements that are not necessary to accomplish the objective of the project
     c. Part of the scope verification process
     d. Needed to keep the project on track
 
16. If you are approached by the customer and asked to make a change in the scope, you should _____.
     a. Defer the decision to your boss
     b. Inform the customer of the scope change procedure
     c. Make sure the customer understands the impact and proceed if they do
     d. Assign a specialist to handle the change
 
17. Scope verification _____. 
     a. Is not really a phase of scope management
     b. Assures the “correctness” of the result
     c. Should only be done at the final phase of the project
     d. Assures the “acceptance” of the result
 
18. The project chapter _____.
     a. Authorizes the project manager to use resources
     b. Is developed by the project team
     c. Includes a detailed WBS
     d. Is required before scope initiation can begin
 
19. Which of the following is an example of “constrained optimization”?
     a. Decision tree analysis
     b. Cost/benefit analysis
     c. Linear programming
     d. RPN analysis
 
20. The scope management plan is developed _____. 
     a. During scope planning
     b. During scope change control
     c. After the WBS is complete
     d. During scope initiation
 
21. Which forms the basis of the project plan?
     a. The risk analysis
     b. The project scope
     c. The product scope
     d. Scope verification
 
22. What is the objective of scope verification?
     a. The customer accepts the phase or project
     b. The project team assesses the quality of work
     c. The customer recognizes the quality of work
     d. The auditors sign off on the project
 
23. Why is a standard format for a WBS desirable?
     a. It avoids wasted time developing the structure of the exercise
     b. It can be used to develop a project charter
     c. All projects can be decomposed to the same level of detail
     d. It allows effective communication concerning the WBS level you are discussing
 
24. Which of the following would be found in a project charter?
     a. Detailed estimates
     b. The business case for the project
     c. Staffing plans
     d. Procurement plans
 
25. A senior manager external to the project should _____.
     a. Develop the project charter
     b. Develop the project budget
     c. Develop the project staffing plan
     d. Develop the project schedule
 

Project Management Framework: Program & Portfolio Management

* Programs

  • Collection of related projects
  • Controls are implemented and managed in a coordinated way
  • Collective benefits are realised
  • Each project has a project manager
  • Projects share resources and depends on the outcomes of other projects

* Portfolios 

  • Collection of programs and projects
  • Projects meet a specific business goal or objective
  • Includes weighing the value of each project against the portfolios strategic objective
  • Ensures efficient use of resources

Project Management Framework: Project Management Process Framework

 

Project Management Process Groups

 

Project Management Process Groups

  • Initiating process group authorises the project
  • Planning process group plans the course of action to achieve objectives
  • Executing process group uses the resources to carry out project tasks
  • Monitoring process group measures progress to identify variances
  • Closing process group formalises product acceptance and closure
  • Concept of PLAN-DO-CHECK-ACT cycle
  • Determine what processes within the process groups are applicable
  • The Process Groups are not Project Phases
  • The result of one process becomes input to another

Process Groups Interaction

Process Groups Interaction

 

 

 

This diagram depicts how the Process Group interact:

  • The yellow and green light represents the monitoring and controlling processes. 
  • The monitoring and controlling process is ongoing and runs parallel to the other process groups throughout the length of the project. 

Initiating Process Group

  • Conduct cost-benefit analysis
  • Determine and define the business needs and the project scope
  • Know the project boundaries and constraints
  • Identify high level risks
  • Understand the required project organisation structure
  • Estimate budget and resource requirements
  • Assign a project manager
  • Obtain the project charter approval
  • Formally authorise to start a new project or phase

Planning Process Group

  • Determine how to plan and develop the project management plan
  • Develop the project requirements in detail and agree the final scope
  • Determine the required project activities and their sequencing
  • Develop schedule using estimated resources and costs
  • Agree what quality standards will be met by the project and how
  • Define how project staffing will be done
  • Establish the communication requirements and how it will be fulfilled
  • Identify what can go wrong and the plans to deal with them
  • Document what products or services will be acquired from outside the project
  • Gain formal approval and buy-in from everybody involved in the project

Executing Process Group

  • Execute activities in the project plan
  • Procure required project resources
  • Complete work packages
  • Document lesson learnt
  • Implement approved changes, corrective and preventive actions
  • Ensure processes are followed
  • Hold team building activities and boost morale and effeciency
  • Manage resource allocation and utilization
  • Hold progress review meetings and distribute progress reports
  • Keep everyone focused on the project goals

Monitoring & Control Process Group

  • Measure project performance using the documented technique in the plan
  • Identify variances and recommend corrective actions to get back on track
  • Approve changes, defect repair, corrective and preventive actions
  • Resolve conflicts and issues
  • Manage changes to scope, time and cost
  • Perform impact analysis to approve or reject changes
  • Obtain formal acceptance of deliverables from the customer
  • Monitor the status of risks and identify new risks have emerged
  • Measure team member performance

Closing Process Group

  • Confirm all project requirements are met
  • Obtain formal acceptance of products from the customer
  • Hand over the completed deliverables to the operations team
  • Compile lesson learnt
  • Measure customer satisfaction
  • Archive project data and information for future reference
  • Release resources

PMP: Professional Responsibility

Note: Ethics and Professional Responsibility has been removed from PMBOK Guide 5th edition. However, related questions may still come out in exam. Thus, is good to know what’s is involved. It includes:

  • Covers legal, ethical and professional behaviour of a PMP®
  • A PMP® must follow the Project Management Institute Code of Ethics and Professional
  • Conduct. 
  • The responsibilities includes:
    • Doing the right things
    • Making good choices
    • Keep learning and getting better
    • Respecting other’s culture

Project Management Framework: PMO – Project Management Office

What is PMO?

  • Centralized and coordinated management of projects
  • Key stakeholder and decision maker
  • Primary functions of PMO:
  • Manage shared resources
  • Maintain project management best practices and standards
  • Policies, procedures, templates, etc.
  • Coordinated communication
  • Coaching, mentoring, training, oversight, and monitoring
  • Governance organization

Types of PMO:

  Functional Organization Weak Matrix Organization Balanced Matrix Organization Strong Matrix Organization Projectized Organization
PM’s Title Expediter Expediter / Coordinator Project Manager Project Manager Project Manager
Decision Making Power Functional Manager Functional Manager plays a major role, but PM will make decisions. PM and the Functional Manager will have equal power. Project Manager Project Manager
Resources From within a Dept. Project members are from different departments Project members are from different departments Project members are from different departments Project based only
Resource Allocation As needed Only 20% will be assigned to the projects About 50% will be assigned to the projects About 80% will be assigned to the projects About 100% will be assigned to the projects
Resources Reports to Functional Manager Functional Manger Two manager (FM and PM) Project Manager Project Manager
PM Reports to Functional Manager Functional Manager Functional manager and his/her senior manager Company Senior Manager Company Senior Manager / higher authority
After Project Completion Team go back to their Dept. (home) Team go back to their Dept. (home) Team go back to their Dept. (home) Team go back to their Dept. (home) No home – move to different project or get laid off

Advantages & Disadvantages of different Organisation Types

Org. Type Advantages Disadvantages
Matrix Highly visible project objectives No cost effective because of extra administrative personnel
Matrix Better Project Manager control over resources More than ONE boss for project teams
Matrix Better coordination More complex to monitor and control
Matrix  Team members maintain “a home” Higher potential for conflict and duplication of effort and functional managers have different priorities
Functional Team members report to one supervisor and clearly defined career paths No career path in Project Management
Functional Easier management specialists People place more emphasis on their functional specialty to the determent of the project
Projectized Efficient project organization No “Home” when project is completed
Projectized More effective communication than functional Duplication of facilities and job functions
Projectized  Loyalty to the project Lack of professionalism in disciplines and less efficient use of resources

Project Management Framework: Project Selection Method

Overall

  • Mathematical Approach (Constrained Optimization Methods)
    • Linear Programming
    • Integer Programming
    • Dynamic Programming
    • Multi-Objective Programming
  • Cooperative Approach (Benefit Measurement Method)
    • Peer review
    • Murder Boards (panel that tries to poke holes in your argument)
    • Economic models
    • Scoring Models
    • Benefit-Cost Analysis
    • Payback period
    • Discounted cash flows
    • Net Present Value
    • Internal Rate of Return (IRR)

Definition and Sample

1. Benefit-Cost Analysis
Compares the project benefit to the costs to derive a ratio from which a decision can be made.
Ex: If a project generates $125,000 in profits and costs $50,000, the benefit-cost ratio would be 2.5 (also written as 5:2)

2. Payback Period
Number of periods to pay back a project’s cost.
Ex: if a project cost $1 million and will generate revenue of $100,000 per year, then the payback period would be 10 years.

3. Discounted Cash Flows
Calculates in today’s (discounted) terms what the value of a project would be given cash inflows and/or outflows over a period of time. 

4. Net Present Value (NPV)
A formula that calculates the value today of a future cash flow. 
Ex: If you receive a future cash flow in 3 years of $1,157.62, what would that be worth today if the interest rate is 5%?
PV = FV / (1+i)n
PV = 1157.62 / (1+0.05)3
PV = $1000
Important: Always choose projects with the biggest positive NPV, reject negative NPV. 

5. Internal Rate of Return (IRR)
The discounted interest rate when NPV equals zero. 
Always choose the project with the highest IRR.
Assumes that cash flows are reinvested at the IRR value. 

 

Example / Case Scenario

1. A project costs $10,000 today and will return $2,500 per year for 5 years. Assume your required return on investment is 10%. Should you do the project? 
Benefit-Cost Ratio
(5 x $2,500) / $10,000 = 1.25 or 5:4
Payback Period
$10,000 / $2,500 = 4 years
Net Present Value
NPV p = Sum of [Future Cash Flows / (1 + i) n]
-$10,000 + [$2,500 / (1.10)1] + [$2,500 / (1.10)2] + [$2,500 / (1.10)3] + [$2,500 / (1.10)4] + [$2,500 / (1.10)5] = -$523.03
IRR
The value of I where NPV equals zero = 7.93%

 

Other Terminology

  • Opportunity Costs: the opportunity given up by choosing another project
  • Sunk Cost: costs spent to date, these costs are already spent
  • Law of Diminishing Returns: adding more resources doesn’t proportionately increase productivity
  • Working Capital: current assents minus current liabilities
  • Depreciation: straight-line (same amount each year), accelerated (ex. Double-declining balance and sum of years digits)
  • Assumptions: something that is believed to be true or something that is taken for granted. *Needs to be continually evaluated throughout the project
  • Constraints: a factor that limits the project team’s options; any restriction placed on the project.