4PM.com 3547 S. Ivanhoe St Denver, CO United States often as you need them. No limits.

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`

102 CAPM® Exam Preparation

Main Page

Instructor-led Online

Training from Anywhere

Course Summary

Detailed Syllabus

Textbook Sample

Course Webpage

You will be prepared to pass the Certified Associate in Project Management (CAPM) exam with our online

course. You will receive individual instruction from a PMP-certified project manager. You can earn your CAPM

certification by studying from anywhere at a schedule you control. The CAPM certification exam is difficult,

covering hundreds of concepts, tools and techniques. We will help you learn each and every one of them. You

and your personal instructor will plan the course in a phone conversation when you begin the course. You’ll

discuss your learning style and your instructor will tailor our materials to fit the way you learn. You’ll get

coaching and individual feedback from your instructor on each of the 36 or more practice exams you will take.

How You Work With Your Instructor

You will have phone conversations and private video conferences

with your instructor whenever you wish. There is no limit. Your

instructor will review your practice exams, identify changes that may

be needed in your study techniques and thoroughly explain all the

concepts or techniques you need to master to pass the CAPM exam.

You will study with world-class materials by Dick Billows PMP. You’ll

watch high definition videos, read our new CAPM textbook which

describes all the PMBOK 5th edition tools and techniques and

shows you real-life examples of how to use them. You can also

access our database of hundreds of articles and samples that

illustrate every technique you need to know to pass the exam.

CAPM Passing Guarantee

We guarantee our work on our CAPM prep course. 95% of our

students pass on their first try but if you don’t, your instructor will

work with you until you pass. Examine the materials and see why

our course has no equal; online or in a classroom.

4PM.com

3547 S. Ivanhoe St

Denver, CO 80237

United States

800-942-4323

www.4pm.com

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Launch your

project manager

career

Earn an

internationally

recognized

certification to

get that

BECOME A CAPM®

CERTIFIED

Main Page

promotion or

higher-paying

position

ASSOCIATE IN PROJECT MANAGEMENT

Learning Materials

33 3-page Textbook

42 Video Lectures 24/7

Videos of PMs in Action

Process Flowcharts

100s of Tool Write-ups

24 – 35 Practice Exams

We are a PMI Global Registered

Education Provider (R.E.P.) and our

CAPM Exam Prep course fulfills the

education requirement.

This is the only course you need to pass the CAPM exam -

guaranteed

Training with a

PMP-certified Instructor

Our CAPM Exam Prep course will

prepare you to pass the CAPM exam;

we guarantee it. Your instructor

works with you, one-to-one, until

you pass the CAPM exam.

Working With Your

Instructor

You will work individually with your

PMP-certified instructor

-

e-mail questions to your instructor

and get a response within 24 hours

-

telephone and video conferences as

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often as you need them. No limits.

Your instructor grades each exam and

gives you feedback that includes the

correct answers with explanations.

They provide coaching on any areas

you need to re-study.

Online Boot Camp

You have a 4-day comprehensive

review with your instructor immediately

before your test date. You’ll do full-size

CAPM exam simulations that are

practice tests focusing on every area

covered in the exam. You have a video

conferences with your instructor as

needed. There is also a phone call from

your instructor the night before your

CAPM exam to give you test-taking

tips and techniques.

4PM.com

3547 S. Ivanhoe St Denver, CO 80237 United

States

800-942-4323

www.4pm.com

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`

Fulfill the Education

Requirement

_{on every process group, knowledge}

Practice answering tricky questions

area, tool and technique

Main Page

Gain an International

Credential From PMI

MASTER PM BEST PRACTICES

Passing Guaranteed

COURSE OUTLINE

PERSONAL INSTRUCTION

SPECIFICATIONS

-Foundations

-Communications

-Scope

-Time

-Cost

-Human Resources

-Quality

-Procurement

-Risk

-Integration

-Professionalism

-Comprehensive Final Review

You have textbook reading, online

lectures, videos and CAPM practice

exams. You have regular progress

p

h

o

n

e

c

a

l

s

a

n

d

v

i

d

e

o

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r instructor.

The best way to pass the

CAPM exam the first time is

with a course tailored to your

schedule and learning style.

Your instructor, who is a PMP,

works directly and privately

with you, answering your

questions by phone or email

within 24 hours. You can have

as many phone calls as you

wish.

When you take one of the 24-

35 practice exams (depending

on how many you need), your

instructor sends you written

feedback with the correct

answers and explanations of

why they are correct.

For Beginning PMs

50 Hours of Work

Use a PC, Mac or iPad

Study When You Want

Study From Anywhere

Take up to 1 Year

PMI Registered

Education Provider

#1147

Earns 50 Contact Hours

4PM.com

3547 S. Ivanhoe St Denver, CO 80237 800-942-4323 www.4pm.com

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1

102 CAPM® Exam Prep Course 2013

Prep Course

Syllabus

Passing the CAPM® Exam the First Time

Content Delivery System for Individual CAPM Exam Training

You and your instructor will work together in our content delivery system that will allow your instructor to tailor the course to your needs, assignment by assignment. You’ll have video conferences with your instructor on a regular basis plus phone calls and email exchanges whenever you wish. There’s no limit to these contacts. You and your instructor will begin with a private conference and use the results of your initial assessment to gauge where you need more work and where your project management knowledge is complete. That custom tailoring process will continue through the course. Your instructor will assess each of the practice exams you submit, identify weaknesses and select specific materials from our Learning Topics to address them.

Planning Your Personalized Course with Your Instructor

During your initial call with your instructor, you'll plan the pace of your studies and identify any deadlines you want to hit. Take a look at the “passing zone” in the graphic above. You'll see that we recommend you study between 4 hours a week (18 weeks to finish) and 18 hours per week (4 weeks to finish). Each process group requires approximately 9 hours of work. How intensely you study is, of course, your decision. But your odds of passing the CAPM exam the first time are highest when you stay within the “passing zone." You will determine a schedule that fits your unique situation and you can change it if things change. Long gaps in your studies reduce your odds of passing the CAPM exam the first time. Over 97% of our students pass the exam on their first try. The students who do not pass typically have a long gap in their studies.

Try to schedule your studies so you can finish the course and sit for the exam within 7 days. Once PMI has approved your application for the exam, you and your instructor will work on a comprehensive final review during the 4 days immediately before you sit for the CAPM exam. You must successfully complete all course assignments and take the CAPM exam

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1

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2

We are a PMI Registered Education Provider (R.E.P.). This course has been approved by PMI for 50 hours, fulfilling the education requirement for the CAPM exam.

Adapting the Course to Your Learning Style

During the planning phone call, your instructor will discuss your strengths and weakness based on the pre-course assessment test you’ll take. They will also ask you about your preferred learning style. Think about whether you are a visual learner, where diagrams and flow charts are a big help, or a logical learner where reading a text is the way you prefer to learn new material. Based on the assessment and your discussion, you and you instructor will plan how you should use the following learning materials to tailor the course to your learning style:

1. Electronic textbook (e-book) Project Manager’s KnowledgeBase, 11th _{Edition. You}

have reading assignments for each project process. You can print selected pages and sections or search the full textbook for key terms. The textbook is password protected and our Student Services staff will send you an e-mail with the book and password to download and open it. It is for your use alone, in part and in whole, and cannot be copied. The individual textbook reading assignments for each project process are also linked from your course website.

2. Lecture videos. These videos are approximately one hour for each process group and

contain lectures with illustrations of the key inputs, outputs, tools and techniques for that process. They are available 24/7 and you may watch them as many times as you wish from your PC, iPad, iPhone or Android.

3. Project manager in action videos. These show a project manager and team

members actually working through the PMI best practices in project management. They are organized by the work of the process group you are studying.

4. Multiple-choice practice exams. You take online mini-CAPM exams focused on one

process group. These practice questions are like the real CAPM exam questions but there are only 40 to 70 questions per exam for each process group. When you submit the exam, it is sent directly to your instructor for review and grading. They will send you written feedback within 24 hours and identify learning topics for you based on your results. You must score at least 90% on the practice exam or your instructor will ask you to re-take that exam. Alternatively, they may send you a link to another practice exam for that process group. You will continue taking these practice exams until you achieve 90% or higher.

Personalized Interaction with Your Instructor

You’ll work 1-to-1 with your instructor who holds a CAPM certification. They will guide you through this exam preparation course and answer all your questions. So whenever you have a question, you can either e-mail your instructor or request a private phone conference so the two of you can discuss your issues.

Your instructor will review each of your practice exams, grade it, explain concepts you missed and suggest areas of additional study to improve your scores. You will receive their written feedback within 24 hours of our receipt of your exam. After you score 90% on your multiple choice practice exam(s) for that process group, your instructor will advise you to most on to the material for the next process group.

Your Personal Scorecard

While your instructor will keep track of each of your scores, you may want to track your progress against the plan you set.

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3

Process group Target

date Completed Reading Watched Video Lectures 1st Practice Exam Score 2nd Practice Exam Score CAPM Framework Initiating Management Plans Project Plans Executing Monitoring and Controlling Closing Professionalism and Ethics Submit Application to

PMI After your instructor sends you feedback that you have successfully completed Professionalism and Ethics, you submit your application online to PMI and claim 50 education hours for completing your 4PM.com CAPM Prep course.

Knowledge Areas Review the reading and lecture videos of the project management tasks

organized by the PMBOK, 5th edition knowledge areas: scope, schedule, cost, quality, human resources, communication, procurement, risk and integration.

Schedule Exam Receive PMI’s approval to take the CAPM exam & set your date. Allow 4 days

for the comprehensive review.

Comprehensive

Review The comprehensive review begins 4 days prior to your CAPM test date. Your instructor will send you specific instructions for the comprehensive review once you set your CAPM test date.

1. CAPM® Framework

Your reading and lectures will cover the framework of information used in all of the project management process groups that follow.

1. Reading: Read the Framework chapter in your textbook or on your course website. We

recommend taking written notes.

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4

information in the lectures to your notes.

3. PM in Action Videos: There are no PM in Action videos in this first process group.

4. Practice Exams: Take the Framework multiple-choice practice exam inline by clicking

the button below the lecture. It will be sent directly to your instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Framework multiple-choice exam.

5. Learning Topics: Your instructor will send you explanations for the multiple-choice

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Framework knowledge.

2. Initiating Process Group

In this process group, you’ll learn about the best practices for initiating a new project. These include the business case, defining the high-level scope, identifying stakeholders and risks, then developing and presenting the project charter.

1. Reading: Read the Initiating chapter in your textbook or on your course website. We

2. Lecture: Watch the Initiating lecture videos on your course website. Add the new

information to your notes.

3. PM in Action Videos: Watch these videos from the link below the lecture.

4. Practice Exams: Take the Initiating multiple-choice practice exam by clicking the

button below the lecture. Complete the exam and it will be sent directly to your

instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Initiating multiple-choice exam.

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Initiating process group knowledge.

3. Management Plans Process Group

In this process group, we will cover the management plans for each component in the project from scope, to budget, to schedule and more.

1. Reading: Read the Management Plans chapter in your textbook or on your course

website. We recommend taking written notes.

2. Lecture: Watch the Management Plans lecture videos on your course website. Add the

new information to your notes.

3. PM in Action Videos: Watch these videos from the link below the lecture.

4. Practice Exams: Take the Management Plans multiple-choice practice exam by

clicking the button below the lecture. Complete the exam and it will be sent directly to your instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Management Plans multiple-choice exam.

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questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Management Plans process group knowledge.

6. Mid-course phone call: When you have completed the Management Plans process

group, you and your instructor will have a mid-course call to discuss your progress to date and your application for the CAPM exam. You cannot submit the application until you’ve received your instructor’s feedback that you have successfully completed the Professionalism and Ethics process group.

4. Project Planning Process Group

In this process group, we will cover the planning techniques used to create the scope statement, schedule, budget and risk management.

1. Reading: Read the Planning section in your textbook or on your course website. We

2. Lecture: Watch the Planning lecture videos for this section on your course website.

Add the new information to your notes.

3. PM in Action Videos: Watch the videos that are linked below the lecture video.

4. Practice Exams: Take the Planning multiple-choice practice exam by clicking the

instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Planning multiple-choice exam.

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Planning process group knowledge.

5. Executing Process Group

In this process group, we’ll cover the executing processes, including obtaining and managing resources, executing the project plan, performing quality assurance, implementing change control and maximizing team performance.

1. Reading: Read the Executing section in your textbook or on your course website. We

2. Lecture: Watch the Executing lecture videos on your course website. Add the new

3. PM in Action Videos: Watch the videos that are linked below the lecture.

4. Practice Exams: Take the Executing multiple-choice practice exam by clicking the

instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Executing multiple-choice exam.

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Executing process group knowledge.

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6. Monitoring and Controlling Process Group

In this process group, we’ll cover the Monitoring and Controlling processes, which happen in parallel with the Executing processes. These processes include measuring project

performance, managing changes, performing quality control, controlling the scope, schedule, cost, and communicating status, and performance information to stakeholders.

1. Reading: Read the Monitoring and Controlling section in your textbook or on your

course website. We recommend taking written notes.

2. Lecture: Watch the Monitoring and Controlling lecture videos your course website. Add

the new information to your notes.

4. Practice Exams: Take the Monitoring and Controlling multiple-choice practice exam by

clicking the button below the lecture. Complete the exam and it will be sent directly to your instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Monitoring and Controlling multiple-choice exam.

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Monitoring and Controlling process group knowledge.

7. Closing Process Group

In this process group, we’ll cover the seven processes to properly close out a project, including verifying scope acceptance, transferring ownership of deliverables, financial, legal and administrative closure, distributing the final project report, collating lessons learned, archiving project information and measuring customer satisfaction.

1. Reading: Read the Closing section in your textbook or on your course website. We

2. Lecture: Watch the Closing lecture videos on your course website. Add the new

5. Practice Exams: Take the Closing multiple-choice practice exam by clicking the button

below the lecture. Complete the exam and it will be sent directly to your instructor. They will grade it, send you written explanations for the correct answers and additional

feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Closing multiple- choice exam

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Monitoring and Controlling process group knowledge.

8. Professionalism & Ethics

1. Reading: Read the Professionalism and Ethics chapter in your textbook or on your

course website. We recommend taking written notes.

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2. Lecture: Watch the lecture videos “Who is Bound by the Code” through “Honesty” on

your course website under the “Lecture” section. Add the new information to your notes.

5. Practice Exams: Take the Professionalism and Ethics multiple-choice practice exam by

clicking the button below the lecture. Complete the exam and it will be sent directly to your instructor. They will grade it, send you written explanations for the correct answers and additional feedback within 24 hours. If you do not achieve 90% on the first try, your instructor will suggest studying additional learning topics and ask you to re-take this exam. If you achieved 90%, your instructor will send you the link to the second Professionalism and Ethics multiple-choice exam.

questions and, based on our test scores, they may send you links to additional learning topics to strengthen your Professionalism and Ethics process group knowledge.

6. Submit Your CAPM Application: When you receive your instructor’s feedback that you have successfully completed the Professionalism and Ethics process group, you may submit your CAPM application to PMI. Do it online and you should receive a reply within 3 to 5 business days.

9. PMBOK, 5

th

_{edition Knowledge Areas}

The PMBOK, 5th _{edition organizes the project management processes you have just}

completed studying by knowledge areas. They are scope, schedule, cost, quality, human resources, communication, procurement, risk and integration. While you wait for PMI to approve your CAPM application, complete the reading and lectures for this knowledge area section.

1. Reading: Read the Knowledge Areas on your course website. We recommend taking

written notes.

2. Lecture: Watch the lecture videos “Scope management” through “Integration

management” on your course website under the “Lecture” section. Add the new information to your notes.

3. Approved Application: Let your instructor know when PMI has approved your

application and you have scheduled your CAPM exam date.

10. Comprehensive Review

When PMI has approved your application and you have scheduled your CAPM exam, you and your instructor will lay out a 4-day plan for completing the comprehensive review and exams immediately before you sit for the CAPM exam. Your instructor will coach you through this final review and call you the day before your exam with test-taking tips, what to expect at the test center, words of encouragement and answers to any last minute questions.

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Published by The Hampton Group, Inc. 3547 South Ivanhoe St.

Denver, Colorado 80237 (303)756-4247

www.4pm.com

Other books Published by 4PM.com Essentials of Project Management

Advanced Project Management Techniques Program & Portfolio Management

Managing Information Technology Projects Construction Project Management

Managing Healthcare Projects

The Hampton Group, Inc. is a Project Management Institute (PMI®) Global Registered Education Provider (R.E.P.). The Hampton Group, Inc. is committed to enhancing the ongoing professional development of PMI® members, PMI®-certified

professionals and other project management

stakeholders through appropriate project management learning activities and products. As a PMI® R.E.P., The Hampton Group Inc., has agreed to abide by PMI®-established operational and educational guidelines and is subject to random audits for quality assurance purposes.

Microsoft is a registered trademark and Project ®and Windows® are trademarks of Microsoft Corporation. Screen shots reprinted with permission from Microsoft Corporation. All other product names and services identified throughout this book are trademarks or registered trademarks of their

respective companies. They are used throughout this book in editorial fashion only and for the benefit of such companies. No such uses, or the use of any trade name, is intended to convey endorsement or other affiliation with the book.

ISBN 978-1-9385614-3-6

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2

T

ABLE OF

C

ONTENTS

Introduction & Organization... 5

Framework of Project Management ... 7

What is a Project? ... 7

Project Management: The Cast, the Roles and the Script ... 7

One Size Does Not Fit All ... 9

Trade-offs ... 9

Professionalism and Social Responsibility ... 9

Portfolios, Programs, Phases & Sub-projects ... 9

Project Roles ... 10

Organizational Context ... 12

Project & Product Lifecycles ... 14

The Process Groups of Project Management ... 16

Initiating ... 16

Planning ... 16

Executing ... 16

Monitoring and Controlling ... 16

Closing ... 16

The Knowledge Areas of Project Management ... 17

Integration Management ... 17

Scope Management ... 17

Schedule Management ... 17

Cost Management ... 18

Quality Management Knowledge Area ... 18

Human Resources Management ... 18

Communications Management ... 18

Risk Management ... 19

Procurement Management ... 19

Stakeholder Management ... 19

Professionalism & Social Responsibility ... 19

What the Heck are EEF and OPA? ... 19

Enterprise Environmental Factors (EEF) ... 20

Organizational Process Assets (OPA) ... 20

Three Project Management Examples ... 20

Initiating ... 23

Statement of Work ... 24

Business Case ... 25

Identify Stakeholders 13.1 ... 26

3 Project Examples of Identify Stakeholders ... 28

High-level Scope ... 34

High-level Risks ... 35

Develop Project Charter 4.1 ... 36

3 Project Examples of Develop Project Charter ... 38

Charter Approval Meeting ... 44

Planning ... 45

Develop Project Management Plan 4.2 ... 46

3 Project Examples of Develop Project Management Plan ...48

Plan Scope Management. 5.1 ... 56

3 Project Examples of Plan Scope Management ... 57

Plan Schedule Management 6.1 ... 62

3 Project Examples of Plan Schedule Management ... 63

Plan Cost Management 7.1 ... 68

3 Project Examples of Plan Cost Management ... 69

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2

3 Project Examples Plan Human Resource Management ... 75

Plan Stakeholder Management 13.2 ... 82

3 Project Examples Plan Stakeholder Management ... 84

Plan Communications Management 10.1 ... 88

3 Project Examples of Plan Communications Management ..89

Plan Risk Management 11.1 ... 94

3 Project Examples of Plan Risk Management ... 95

Plan Quality Management 8.1 ... 100

3 Project Examples Plan Quality Management ... 102

Plan Procurement Management 12.1 ... 110

3 Project Examples of Plan Procurement Management ... 112

Project Management Plan Summary ... 124

Scope Planning Processes ... 125

Scope Planning Processes... 125

Collect Requirements 5.2 ... 126

3 Project Examples of Collect Requirements ... 128

Define Scope5.3... 134

3 Project Examples of Define Scope ... 136

Create WBS 5.4 ... 143

3 Project Examples of Create WBS ... 145

Project Planning: Scheduling Processes ... 153

Define Activities 6.2 ... 154

3 Project Examples of Define Activities ... 155

Sequence Activities 6.3 ... 161

3 Project Examples of Sequence Activities ... 163

Estimate Activity Resources 6.4 ... 168

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2

Estimate Activity Durations 6.5 ... 176

3 Project Examples of Estimate Activity Durations ... 177

Develop Schedule 6.6 ... 185

3 Project Examples of Develop Schedule ... 186

Cost Management 7.1 ... 194

Cost Tools Used in Many Tasks ... 194

Estimate Costs 7.2 ... 197

3 Project Examples of Estimate Costs ... 199

Determine Budget 7.3 ... 206

3 Project Examples of Determine Budget ... 207

Risk Planning Processes 11.1 ... 214

Identify Risks 11.2 ... 215

3 Project Examples of Identify Risks ... 217

Perform Qualitative Risk Analysis 11.3 ... 223

3 Project Examples of Qualitative Risk Analysis ... 224

Perform Quantitative Risk Analysis 11.4 ... 231

3 Project Examples of Quantitative Risk Analysis ... 233

Plan Risk Responses 11.5 ... 240

3 Project Examples of Plan Risk Responses... 242

Plan Approval Meeting ... 247

Executing ... 251

Direct and Manage Project Work 4.3 ... 253

3 Project Examples of Direct and Manage Project Work ... 255

Acquire Project Team 9.2 ... 261

3 Project Examples of Acquire Project Team ... 262

Conduct Procurements 12.2 ... 268

3 Project Examples of Conduct Procurements ... 270

Develop Project Team 9.3 ... 276

3 Project Examples of Develop Project Team ... 277

Perform Quality Assurance 8.2 ... 282

Three Examples of Perform Quality Assurance ... 283

Manage Project Team 9.4 ... 288

3 Project Examples of Manage Project Team ... 290

Manage Stakeholder Engagement 13.3 ... 294

3 Project Examples of Manage Stakeholder Engagement .. 295

Manage Communications 10.2 ... 300

3 Project Examples of Manage Communications ... 301

Monitoring & Controlling ... 306

Monitor and Control Project Work 4.4 ... 307

3 Project Examples of Monitor and Control Project Work .. 309

Perform Integrated Change Control 4.5... 315

3 Project Examples of Perform Integrated Change Control 321 Validate Scope 5.5 ... 331

3 Project Examples of Validate Scope ... 332

Closing ... 337

Close Procurements 12.4 ... 338

3 Project Examples of Close Procurements ... 339

4.6 Close Project or Phase ... 343

3 Project Examples of Close Project ... 344

6.1Professionalism & Social Responsibility ... 348

Ensure Integrity and Professionalism ... 349

Project Examples of Professionalism and Social Responsibility ... 351

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2 About the AUTHOR ... 358

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Project Manager’s KnowledgeBase  Introduction & Organization 

 Quality Management

INTRODUCTION & ORGANIZATION

This is the 11th edition of the Project Manager’s

KnowledgeBase, which we have entirely rewritten to align with the PMBOK 5th Edition and the new PMI exams that are effective in July 2013. Over the years, this book has achieved its goal of helping our readers master the following:

The knowledge needed to pass the PMI® certification exams The best practices in project management.

We do this by showing you these techniques from two perspectives.

Process Groups organize the tools and techniques chronologically:

 Initiating Process Group

 Planning Process Group

 Executing Process Group

 Monitoring and Controlling Process Group

 Closing Process Group

The Knowledge Areas are groups of tools and techniques with related purposes that flow throughout the lifecycle:

 Integration Management

 Scope Management

 Schedule Management

 Cost Management

 Procurement Management

 Human Resource Management

 Communication Management

 Risk Management

 Stakeholder Management

 Professionalism and Social Responsibility

I have organized this textbook to make passing the exam take as little time as possible. So, I will present information in the sequence you will follow to do a project (process groups). However, we will also keep the Knowledge Areas together so you can learn the sequence of tasks in a Knowledge Area, like Risk management.

To avoid having a book that was over 1,000 pages, we have created a Digital Knowledgebase on our PMI® exam prep web site. There you can drill down for more information and study the knowledge in different ways to suit your learning style.

1. Visual learners will find very large diagrams of the tasks with videos explaining them.

2. Flow chart learners will find charts of every process group, Knowledge Area and task.

3. “Show me an example” learners will see hundreds of samples of Gantt charts, human resource plans, scope statements, Monte Carlo simulations, Earned Value reports, etc.

I trust you will find the book of great value in passing the PMI certification exams and in your career as a professional project manager.

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Project Manager’s KnowledgeBase  Introduction & Organization  Statement of Work As always, I need to express my thanks to those who help

make each edition of this book a success. “Mustang Sally” Mitsch, CAPM, has once again nit-picked my work to near perfection. Leslie, “the FIST” Schiefelbein, PMP, has edited the bejesus out my every word and thought. Together they have not missed a shingle one of my mistakes.

Best Regards,

Dick Billows, PMP, GCA April 30, 2013

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Project Manager’s KnowledgeBase  Framework of Project Management 

FRAMEWORK OF PROJECT

MANAGEMENT

In this first section of the book, we’ll move through the lifecycle of a project covering all the key ideas. We’ll begin by reviewing some of the key ideas that we’ll use in all the Process Groups that follow. We also want to accomplish three other things: Get a big picture view of the processes we will study in much greater detail later

Understand some of the best practice ideas that permeate all the details

Begin to learn the PMI language of project management, which is most likely different from what you use in your organization. This chapter is not an exhaustive explanation of the big picture, that’s why several hundred pages follow this chapter.

What is a Project?

Projects are very different from the other components of the modern organization. Projects are temporary endeavors regardless of their size or scope. All projects have a special purpose and a specific start and end point and that

differentiates a project from operations that go on continuously. Projects reach their end in three ways:

The project’s planned outcome is met

The project’s outcome will never be met and the organization terminates it

The original need for the project no longer exists and the organization terminates the project.

A second characteristic of a project is that it creates a unique deliverable, which may be a product, service or some other result. No two projects are alike. For example, we might be constructing a chain of fast food hamburger restaurants that will serve identical food. But the fact that we will be working with different team members, in varying locations and for different owners makes each of these projects unique. A third characteristic of a project is that the project

management team plans it iteratively; they plan it allowing interaction between the components. For example, a project manager might produce a draft of a schedule and then go to work on the project budget. To optimize the budget, the PM may need to change the schedule and modify the risk

management plan. PMI® calls this progressive elaboration of the plan. Project managers are constantly working, checking and revising their plans.

Project Management: The Cast, the Roles

and the Script

Project management is not the efforts of one individual. There is a cast of people that can include one or more project managers and associate project managers, who, along with executives and professionals, make up the project management team. As well, projects have sponsors whose role includes initiating the project, defining it and securing organizational approval to expend resources on it. The project management team works with the other members of the project team who do the project’s work. Both interact with project stakeholders who are people affected by the project including; executives, managers, employees, and even vendors.

Together these people write the script for the project, setting objectives, identifying project requirements and then

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Project Manager’s KnowledgeBase: FrameWork

converting those requirements into a verifiable scope and a project management plan that they then execute. Throughout the project’s life, the project management team works with the project team and stakeholders to deliver the project’s objective and its products.

Effective project management requires experience in managing projects as well as a wide range of learned skills and

techniques. In addition to the PM’s skills and experience, an equally important determinant of project success is the organization’s processes for project management and the availability of data and information from previous projects including lessons learned documentation about these previous projects.

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ONE SIZE DOES NOT FIT ALL

Project managers know the best practices and design each project’s management plan with a suitable mix of techniques for that project. One set of techniques does not “fit” all projects. The PM designs the project management process using expert judgment as well as understanding of each project’s unique characteristics. Then the PM decides the extent to which he/she will apply the PMBOK® (Project Management Body of Knowledge) processes to achieve the desired project results. For example, all projects should have some degree of risk management. So the PM determines if risk management warrants a few hours or a month’s worth of work. As well, the PM needs to decide whether the assessment of risk should be strictly qualitative and fast or if he/she should use more sophisticated quantitative techniques to assess

probabilities and the impact of a risk event. In making these judgments, the PM is obviously guided by the organization’s policies and the sponsor’s preferences.

Trade-offs

Project management also requires a PM to manage the tradeoffs between what’s called the triple constraint (even though there are six dimensions) of cost, time, scope, quality, resources and risk. The triple constraint is like a tug-of-war. If the sponsor changes any one of the dimensions, it will affect at least one of the other five constraints. For example, if we decrease the scope of the project we may also decrease the project’s cost, duration and resources. Increasing the quality dimension can increase duration and cost. On larger more sophisticated projects, the PM may analyze tradeoffs with sophisticated financial or mathematical tools. The PM conducts tradeoff analysis on smaller projects too but much more informally.

Professionalism and Social Responsibility

The PMBOK® includes one paragraph on professionalism; however, it is a major topic on the PMP® certification exam and to a lesser extent on the CAPM® exam. The project manager and project management team have an ethical responsibility to all stakeholders to conduct themselves according the tenets of the profession. There is a more detailed description of

professionalism, social responsibility and ethics in the last chapter of this book. But the big picture view is that PMI® has developed a rigorous set of standards for project managers’ conduct with tough enforcement standards.

Portfolios, Programs, Phases & Sub-

projects

There are many ways to combine or subdivide projects. As we think about the project landscape in an organization, the dividing line is more than a little blurry. Organizations use programs to combine the management of a number of projects that have a common purpose. For example, an organization may have a program to improve their quality of service. The program may involve individual quality improvement projects in the billing, customer service and sales departments to improve the customers’ experience.

Project portfolios are a bundle of programs and projects but they do not necessarily have a common purpose. Instead, an executive may take responsibility for a portfolio of information systems projects or construction projects that affect many different parts of the organization but which all use the same resources.

Finally, within these programs and portfolios, an organization may choose to subdivide a project into sub-projects. The sub- projects may be specific components of the larger effort that the organization contracts out to other organizations. For example, on a customer service project, the performing

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organization may contract with an outside organization to survey their customers or complete test marketing. Organizations that want greater control over a project may choose to divide it into phases or sub-phases. Each phase or sub-phase produces a deliverable that management examines and formally accepts before the next phase begins. This level of control over the project allows management to track the project and its progress to ensure it is delivering what it should. Not all organizations follow this rigid step-by-step approach. If time is of the essence, some organizations will start work on the next phase of the project prior to formal acceptance of the prior phase’s deliverable. This approach creates a higher level of risk but it can save time. For instance, a software firm may start work on testing a piece of software before receiving final signoff on the coding. If the coding has any bugs that require re-work, the testing will need to start over, wasting time and money. However, if there are no bugs, the firm has actually saved time by fast tracking the testing and not waiting for formal acceptance of the coding.

Best Practices & the Real World

To pass the PMI® certification exams you need to understand the way of managing projects in a very idealistic world compared to the way most organizations do projects and the way most PMs do their work. In fact, the most important thing to learn in preparing for the exam is PMI®’s definition of the right way to manage projects. That correct way includes not just using the techniques and tools but also adopting PMI®’s attitudes about solving problems that may not be possible in your organization. Learning that PMI® attitude is the key to answering the Example questions where you must decide the right thing to do. You must answer each question according to how PMI® says we should do things, not how you do them in

your organization. You may disagree with PMI®’s way but if you want their certification, you must learn it.

Project Roles

Let’s expand on the brief descriptions of the project roles introduced earlier. PMI® defines a number of roles for people working on projects. The decision-making, range of action and participation in the project management process is different for each role.

Stakeholders

The broadest role is that of project stakeholder and this

category includes all the others. A stakeholder is any individual or organization that the project will affect, positively or

negatively. Stakeholders should be involved in the Initiating, Planning, Executing, Monitoring & Controlling and Closing functions of the project. This is another area where the PMI® world probably differs from yours. Many PMs try to minimize the number of people involved in project planning, thinking that will let them better control the project scope. Unfortunately, the opposite happens. Stakeholders excluded from planning always seem to spring up and add features or new

requirements right at the end of the project. Those late changes often cost hundreds of times what the same

requirement would have cost if it had been added during the planning phase. Therefore, PMI® encourages project managers to actively search for stakeholders early in the project and it is a best practice.

Project stakeholders can include: performing organization

sponsor

senior management functional management

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project team members

project management team members

project manager

project management office (PMO)

customers

users

vendors

suppliers

consultants

We also include employees not directly related to the project but who, due to their standing within the organization, have the ability to exert influence over the project.

The PMI® way of doing things requires project managers to reach out, identify and bring into the project decision-making processes a very broad cross section of stakeholders. The stakeholders should be involved in the definition of the project scope, the major deliverables and many of the decisions made in later tasks.

As noted above, many project managers try to keep the number of people that are involved in the project planning as small as possible. They also try to insulate the project team and its planning process from outside influences and avoid conflicting opinions. However, the PMI® view is very different. It clearly identifies the need to engage stakeholders in project initiation and planning because that is the only way we can uncover all the requirements of the project.

Project Sponsors

In the PMI® world, the project sponsor or initiator is

responsible for providing funding for the project and issuing the project charter. On internal projects (those done within the performing organization), the project sponsor also may create

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project through the organization’s approval process. That approval requires that the sponsor detail the benefits the project will deliver and justify the costs of the project, often in a business case. When the sponsor secures organizational approval, that executive issues the project charter

appointing the project manager and defining, among other things, the criteria for success. On consulting or client projects, the statement of work comes from the client or customer, possibly with an RFP (Request for Proposal) or contract.

The charter gives the PM organizational approval to use resources. This is another area where the PMBOK® process probably differs from your experience. You may see

sponsors who just dump a problem or opportunity into a PM’s lap and then walk away after naming a completion date. PMI® is correct in stating that is the wrong way to do things.

Project Team Members

In the PMI® world, project team members do the work of the project and many project team members actively participate in detailing the project plan and completing their work packages. They may also be involved in risk

management, procurement and quality, for example. Team members may also be a part of the project management team and become involved in activities ranging from integration to change control.

Project Manager

It is the project manager’s and project management team’s responsibility to integrate all of these roles and ensure that they mesh, allowing successful completion of the project. The project manager’s role calls on a wide range of skills, including interpersonal, leadership and general

management skills in addition to knowing project

management techniques. Those project management skills are:

Leadership Communication

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Negotiation

Resolution of problems Influencing the organization

Purchasing

Contracting

Accounting and finance

Information technology Marketing

Sales

Manufacturing and distribution

Commercial law, local laws and legal traditions

Human Resources

Safety regulations

Supply chain management

As you work through this book, you will notice many other ways in which the PMI® world varies from the way in which your organization manages projects. In order to pass the PMI® certification exams, you will need to remember to answer each question according to the PMI® world rather than your own experience.

Project Management Team

With all that work to do, the project manager often invites stakeholders, team members, functional managers and executives to assist in the management of the project. Participation like this not only spreads the work but also increases buy-in and support. The project management team can work on scope, risk, scheduling, budgeting, procurement, quality, human resources and communications, to name a few.

Organizational Context

Projects occur within organizations and their structures, processes and cultures affect projects and their teams. The organizational form influences how projects begin, how decisions are made, how resources are shared, how line managers perceive project managers and the overall rate of project success. Both in practice and for the certification exams, you need to understand the different organization types. More than half your exam questions will be Example questions and the kind of organization the PM is “in” often determines the correct course of action to take on an issue.

Functional Organizations

Functional organizations have their structures designed around technical specialties like marketing, sales, manufacturing, facilities, customer service, engineering and accounting. These organizations are the most frequently encountered type and the barriers between these functional “silos” make it tough on project managers. Getting a project done that crosses functional lines often requires begging and whining for resources. In functional organizations project managers have little or no authority and must “borrow” people from functional departments. That requires that the PM negotiate for resources with the functional managers.

These extra steps are necessary because functional organizations operate with a strong chain of command

philosophy that each employee should report to one boss. This means that an employee communicates with their boss, who communicates with the boss’s boss, all the way up the chain of command. The lines of communication usually follow the chain of command and are simple, but also quite rigid. Functional managers want to retain all of the formal authority over their employees and must often be convinced to loan them to a project. People loaned to a project often feel that the project is a distraction from their “real job” where they get raises and promotions.

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In these organizations, turf wars and lack of cooperation between functional departments make communication difficult. In these organizations, decision makers often choose to perform projects within one functional unit because reaching out to borrow resources and communicate across functional lines is so difficult.

Functional organizations try to improve their project

performance by adding two other roles to the structure. Project expediters may assist functional managers in coordinating projects. However, these project expediters have no decision- making authority and focus mainly on communication, following up on tasks and deliveries of equipment. Functional

organizations may also employ project coordinators, who usually are in staff positions reporting to senior managers who have many projects underway at the same time. They often have some decision-making authority but do not have the responsibilities of project managers in the areas of making assignments, analyzing change requests and reporting status.

Matrix Organizations

Another organizational form is the matrix organization, which comes in three varieties (weak, balanced, strong). There are still departments for functions like accounting and marketing but these departments share resources across department lines routinely. The difference between the three types is the amount of power and influence of project managers versus functional managers. But in all three types, people are more accepting of sharing departmental resources with projects than in functional organizations. In all three matrix types,

employees work for more than one boss. However, the degree of sharing affects a project manager's level of authority, power and influence.

The weak matrix organization is quite similar to a functional organization with the project manager having a bit more power and influence but still being weaker than the functional

manager. Borrowing resources can be a bit easier than in a functional organization. However, a project manager's authority is very limited in comparison to the functional

managers. Therefore, the PM must still plead and beg for resources and hope that the project sponsor has enough clout to secure resources for the project.

In a balanced matrix organization, the project manager and functional managers have relatively equal power and authority and the negotiation for borrowing resources is on even terms. Because the power is even, the level of conflict is at a peak and communications are at their most difficult. That may seem odd until you remember that people are unlikely to have conflict with a person who has more power than they do.

In a strong matrix, the project manager has more power than the functional managers and has a much easier time acquiring resources and managing the project budget. All three types of matrix organizations have more complex communication processes and more conflict than the functional organization.

Projectized Organizations

The projectized organization transforms the project manager from a flunky begging for resources to a person managing a project that the organization treats as if it were a department. In the projectized organization, the project and its manager have their own dedicated employees and a budget. They have the same status as all the functional departments. The project manager is the organizational superior of the people working on the project team and does their performance reviews, develops their professional skills and manages their daily work

assignments.

The projectized organizational form is desirable from a project management point of view because the PM has almost full authority over the resources with full availability. However, projectized organizations have certain disadvantages. First, projectized organizations may hinder employees’ development in their technical specialties because they don’t associate regularly with people possessing the same specialized skills. Second, when the project is completed, the project organization disappears and it is not unusual for team members to have

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some uncertainty about their next assignment. This can adversely affect morale and performance.

Organizations carve out projectized sub-units for long-term projects that require considerable employee development such as learning a new technology. We see the projectized

organizational form in professional firms (like accounting, consulting and engineering) and in technical departments that primarily do projects, such as information systems

departments.

To summarize what we have covered, think of the project manager’s power and influence as a continuum. On the left hand extreme, there is the functional organization where the PM’s power and influence is zero. As we move across the continuum into matrix organizations, the PM’s power grows and grows until it peaks in the projectized organization.

Organizational Continuum

Composite Organization - A Mix of All Three

Few organizations are purely functional, matrix or projectized. The larger the organization, the greater the chance that the organization has sub-divisions that are organized by different types; this is called a composite organization. For example, in a large organization the manufacturing division might follow strict functional lines with production, engineering and inventory control departments staffed with specialists. On the other hand, for research and development the organization might use a more fluid matrix structure to facilitate the sharing of skills on projects and new products. To go even further, for an upcoming new product, the organization might assemble the project team as a separate department to ensure that needed resources are available from several functional areas, with this

projectized organization disbanding when the project is done. This product department would have its own budget and dedicated team.

Project Management Office: PMO

Organizations, regardless of their form, may utilize a project management office (PMO) to facilitate the projects that are taking place. Different organizations use different names for the PMO; it may be called the project office, program office or program management office. We can have PMOs in functional or matrix organizations but we see them regularly in

projectized and strong matrix organizations. They are less likely in weak matrix and functional organizations. For

example, a consulting firm has a real need to coordinate project activities because almost all employees work on multiple

projects and new client projects may start each week. That combination creates the need to closely track projects and to set priorities for resource allocation.

The PMO serves other important functions and there are several styles of PMOs. Some distribute project information and may provide software and training for project managers and team members. Other project offices integrate the project

information, enforce a common project methodology and help executives make priority and resource allocation decisions. In still others, the organization’s project managers work in the PMO and are assigned to manage projects by the PMO. In organizations with even stronger PMOs, they may assist the management committee in approving or rejecting proposed projects.

Project & Product Lifecycles

The PMBOK® talks about a number of different lifecycles. Products like a new cell phone have a product lifecycle that may start with research and development, move to testing,

manufacturing, marketing and then end with product

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require a project. The organization may have a project lifecycle it uses to build manufacturing facilities as required by the third phase of the product lifecycle above. That project lifecycle may start with design, followed by land acquisition, construction, and assembly line start-up.

Some organizations may have one lifecycle that they apply to all projects.

Alternatively, an organization may have several lifecycles and it may allow the project manager and team to select the one that is most appropriate for each project.

While lifecycles can vary widely, all lifecycles cover: The work that needs to be completed Each phase’s deliverable and approval criteria The people involved.

There are also several features common to most project lifecycles. Most lifecycles require the fewest team members and resources at the beginning and end of the lifecycle. Project costs also follow the same bell-curve because the project is most costly in the middle of the project lifecycle. Risk is highest at the beginning of the lifecycle and decreases

throughout the project phases. Stakeholder influence over the project requirements is also greatest at the beginning of the lifecycle and decreases through the phases. However, the cost of adding requirements rises as we move through the lifecycle.

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THE PROCESS GROUPS OF

PROJECT MANAGEMENT

As we mentioned above, a project manager selects the

appropriate project management tasks and techniques for each project from an inventory of best practices. Those best

practices are organized into 5 Process Groups, 11 Knowledge Areas and 47 processes.

The project lifecycle is broken into 5 process groups:

Initiating

It has 2 processes and gets things started by the sponsor securing project authorization from the organization.

Monitoring and Controlling

It has 11 processes and here we ensure that execution is going according to plan and correct things if it is not.

When the deliverables have all been produced, we bring the project to an end.

Closing

It has 2 processes and it is where we put the data away for use on future projects and assess how we did in lessons learned.

Planning

It has 24 processes and is the busiest process group because we make all the decisions about how we’re going to do things on the project.

When the project management plan is approved, we launch the project and have two process groups that happen at the same time:

Executing

It has 8 processes and it is here that we do the work of the project, consume most of the resources and produce the deliverables.

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THE KNOWLEDGE AREAS OF

PROJECT MANAGEMENT

Those 47 processes in project management can also be organized into 10 Knowledge Areas (11 if we include Professionalism, as we will).

Integration Management

It has 6 processes and the common purpose of tying together everything else that happens.

 Develop Project Charter (Initiating Process Group)

 Develop Project Management Plan (Planning Process Group)

 Direct and Manage Project Work (Executing Process Group)

 Monitor and Control Project Work (Monitoring and

Controlling Process Group)

 Perform Integrated Change Control (Monitoring and Controlling Process Group)

 Close Project or Phase (Closing Process Group)

Scope Management

It has 6 processes with the purpose of defining what result the project should produce and then watching to ensure it does produce that result.

 Plan Scope Management (Planning Process Group)

 Collect Requirements (Planning Process Group)

 Define Scope (Planning Process Group)

 Create WBS (Planning Process Group)

 Validate Scope (Monitoring and Controlling Process Group)

 Control Scope (Monitoring and Controlling Process Group)

Schedule Management

It has 7 processes and the purpose is defining and then tracking the schedule for delivering the project’s scope.

 Plan Schedule Management (Planning Process Group)

 Define Activities (Planning Process Group)

 Sequence Activities (Planning Process Group)

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 Estimate Activity Durations (Planning Process Group)

 Develop Schedule (Planning Process Group)

 Control Schedule (Monitoring and Controlling Process Group)

Cost Management

It has 4 processes with the purpose of establishing a budget for delivering the project’s scope and then tracking actual costs and comparing them to the budget.

 Plan Cost Management (Planning Process Group)

 Estimate Costs (Planning Process Group)

 Determine Budget (Planning Process Group)

 Control Costs (Monitoring and Controlling Process Group)

Quality Management Knowledge Area

It has 3 processes that share the purpose of establishing the criteria and specifications that the project’s deliverables must meet and then tracking actual performance and improving the process of producing those deliverables.

 Plan Quality Management (Planning Process Group)

 Perform Quality Assurance (Executing Process Group)

 Control Quality (Monitoring and Controlling Process Group)

Human Resources Management

It has 4 processes for identifying, managing and developing the members of the project team.

 Plan Human Resource Management (Planning Process Group)

 Acquire Project Team (Executing Process Group)

 Develop Project Team (Executing Process Group)

 Manage Project Team (Executing Process Group)

Communications Management

It has 3 processes for the planning of project related

communications, managing the communications and monitoring communications to make sure they are sufficient.

 Plan Communications Management (Planning Process Group)

 Manage Communications (Executing Process Group)

 Control Communications (Monitoring and Controlling Process Group)

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102 CAPM® Exam Preparation

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Contents

Course Summary

Detailed Syllabus

Textbook Sample

Course Webpage

You will be prepared to pass the Certified Associate in Project Management (CAPM) exam with our online

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covering hundreds of concepts, tools and techniques. We will help you learn each and every one of them. You

and your personal instructor will plan the course in a phone conversation when you begin the course. You’ll

discuss your learning style and your instructor will tailor our materials to fit the way you learn. You’ll get

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How You Work With Your Instructor

You will have phone conversations and private video conferences

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concepts or techniques you need to master to pass the CAPM exam.

You will study with world-class materials by Dick Billows PMP. You’ll

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_{on every process group, knowledge}