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Refer to Acrobat's online Help (Help > Plug-In Help > Using Acrobat Search) for more information. www.sybex.com Click here to begin using your Sybex Electronic Book! Search Navigate through the book by clicking on the headings that appear in the left panel; the corresponding page from the book displays in the right panel. San Francisco • London PMP ® : Project Management Professional Study Guide Kim Heldman Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Associate Publisher: Neil Edde Acquisitions and Developmental Editor: Elizabeth Hurley Editor: Ronn Jost Production Editor: Kylie Johnston Technical Editors: Claudia M. Baca, Patti Jansen Book Designer: Bill Gibson Graphic Illustrator: Tony Jonick Electronic Publishing Specialist: Judy Fung Proofreaders: Dave Nash, Laurie O’Connell, Yariv Rabinovitch, Nancy Riddiough Indexer: Nancy Guenther CD Coordinator: Dan Mummert CD Technician: Kevin Ly Cover Designer: Archer Design Cover Illustrator/Photographer: Natural Selection Copyright © 2002 SYBEX Inc., 1151 Marina Village Parkway, Alameda, CA 94501. World rights reserved. No part of this publication may be stored in a retrieval system, transmitted, or reproduced in any way, including but not limited to photo- copy, photograph, magnetic, or other record, without the prior agreement and written permission of the publisher. Library of Congress Card Number: 2002100063 ISBN: 0-7821-4106-4 SYBEX and the SYBEX logo are either registered trademarks or trademarks of SYBEX Inc. in the United States and/or other countries. Screen reproductions produced with FullShot 99. FullShot 99 © 1991-1999 Inbit Incorporated. 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TRADEMARKS: SYBEX has attempted throughout this book to distinguish proprietary trademarks from descriptive terms by following the capitalization style used by the manufacturer. The author and publisher have made their best efforts to prepare this book, and the content is based upon final release soft- ware whenever possible. Portions of the manuscript may be based upon pre-release versions supplied by software manu- facturer(s). The author and the publisher make no representation or warranties of any kind with regard to the completeness or accuracy of the contents herein and accept no liability of any kind including but not limited to performance, merchant- ability, fitness for any particular purpose, or any losses or damages of any kind caused or alleged to be caused directly or indirectly from this book. Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com To Our Valued Readers: Sybex ® is excited to be publishing the PMP: Project Management Professional Study Guide , the first of its kind for the increasingly critical business area of project management. The “soft skills” covered are certainly different from the technical topics one usually finds in Sybex ® Study Guides, but the rele- vance of such skills to the world of IT and beyond will be immediately evident to all who peruse this invaluable book. Just as the Project Management Institute is committed to establishing measurable standards for certi- fying project management professionals, Sybex is committed to providing those professionals with the skills and knowledge needed to meet those standards. Our author and editors have worked hard to ensure that this PMP: Project Management Professional Study Guide is comprehensive, in-depth, and pedagogically sound. We’re confident that this book will meet and exceed the demanding standards of the certification marketplace and help you, the PMP exam candidate, succeed in your endeavors. Good luck in pursuit of your PMP certification! Neil Edde Associate Publisher—Certification Sybex, Inc. Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Software License Agreement: Terms and Conditions The media and/or any online materials accompanying this book that are available now or in the future contain pro- grams and/or text files (the “Software”) to be used in connec- tion with the book. SYBEX hereby grants to you a license to use the Software, subject to the terms that follow. Your pur- chase, acceptance, or use of the Software will constitute your acceptance of such terms. The Software compilation is the property of SYBEX unless oth- erwise indicated and is protected by copyright to SYBEX or other copyright owner(s) as indicated in the media files (the “Owner(s)”). 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Copyright laws apply to both share- ware and ordinary commercial software, and the copyright Owner(s) retains all rights. If you try a shareware program and continue using it, you are expected to register it. Indi- vidual programs differ on details of trial periods, registra- tion, and payment. Please observe the requirements stated in appropriate files. Copy Protection The Software in whole or in part may or may not be copy- protected or encrypted. However, in all cases, reselling or redistributing these files without authorization is expressly forbidden except as specifically provided for by the Owner(s) therein. Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com To BB for your ever continuing encouragement and support. —Kim Heldman Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Acknowledgments T hank you to the terrific team at Sybex for their dedication, encour- agement, and diligence in producing this book. Thanks especially to Kylie Johnston, production editor, for answering all my questions. I cannot say enough good things about my great experiences working with the team at Sybex. They are all wonderful. And thanks to all the rest of the behind-the- scenes team including Judy Fung, Tony Jonick, Kevin Ly, Dan Mummert, Dave Nash, Laurie O’Connell, Yariv Rabinovitch, and Nancy Riddiough. A very special thank you to Elizabeth Hurley for taking a chance on this book and for giving me the opportunity to write it. Elizabeth, you’re the best! Thank you to Ronn Jost for the excellent editing job and for never losing patience with me when I accidentally changed official titles and terms through- out the manuscript. He kept me straight and caught anomalies I never would have seen. Thanks as well to the technical editors, Claudia Baca and Patti Jansen, for their sharp eye and good suggestions. None of this would have been possible without the continued sugges- tions, support, and encouragement from my best friend in the whole world, BB. Thanks to Bob and Terri for your prayers—they’re always coveted and pulled me through when I had doubts. Thanks to Jill and John for your cheerleading behind the scenes and to mom and dad for giving me the love of reading. And thanks also to Jason, Leah, Noelle, Amanda, Matt, Kate, and Juliette for understanding my limited availability and for your encour- agement and enthusiasm. Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Introduction T his book was designed for anyone thinking of taking the Project Man- agement Professional (PMP ® ) exam sponsored by the Project Management Institute (PMI ® ). This certification is growing in popularity and demand in all areas of business. PMI has experienced explosive growth in membership over the last few years, and more organizations are recognizing the importance of PMP certification. This book assumes you have knowledge of general project management practices, but not necessarily specific Guide to the Project Management Body of Knowledge (PMBOK) practices. It’s written so that you can skim through areas you are already familiar with, picking up the specific Guide to the PMBOK terminology where needed to pass the exam. Those of you with no formal training in project management but lots of experience will find the project management processes and techniques defined in such a way that you’ll recognize things you’ve always done and be able to identify them with Guide to the PMBOK process names or methodologies. PMI offers the most recognized certification in the field of project man- agement, and this book deals exclusively with their procedures and meth- ods. There are many methods of project management, each with its own terminology, tools, and procedures. If you are familiar with another organ- ized project management methodology, don’t assume you already know the Guide to the PMBOK processes. I strongly recommend you learn all of the processes—their key inputs, tools and techniques, and outputs. Take time to memorize the Key Terms found at the end of every chapter as well. Sometimes just understanding the definition of a term will help you answer a question. It might be that you’ve always done that particular thing or used the methodology described but called it by another name. Know the name of each process and its primary purpose. An Exam Essentials section appears at the end of every chapter to high- light the topics you’ll most likely find on the exam and help you focus on the most important material covered in the chapter so that you’ll have a solid understanding of those concepts. However, it isn’t possible to predict what questions will be covered on your particular exam, so be sure to study every- thing in the chapter. Like the exam itself, this study guide is organized in terms of process groups and the natural sequence of events a project goes through in its life Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com xx Introduction cycle. By contrast, other study guides organize their material by knowledge area—human resource management, communications management, and so on—and it can be confusing when studying for the exam to map the pro- cesses in each knowledge area to process groups. Review Questions are provided at the end of every chapter. You can use these to gauge your understanding of the subject matter before reading the chapter and to point out the areas where you need to concentrate your study time. If you can answer at least 80 percent of the Review Questions, you can probably feel comfortable moving on to the next chapter. If you can’t answer that many correctly, reread the chapter, or the section that seems to be giving you trouble, and try the questions again. Don’t rely on studying the Review Questions exclusively as your study method. The questions you’ll see on the exam will be different than the questions presented in the book. There are 200 randomly generated ques- tions on the PMP exam, so it isn’t possible to cover every potential exam question in the Review Questions section of each chapter. Make sure you understand the concepts behind the material presented in each chapter and memorize all the formulas as well. What Is the PMP Certification? PMI was founded in 1969 and first started offering the Project Management Professional certification exam in 1984. They are accredited as an American National Standards Institute (ANSI) standards developer and also have the distinction of being the first organization to have their certification program attain International Organization for Standardization (ISO) 9001 recognition. PMI boasts a worldwide membership of 86,000, with members from 125 different countries. Local PMI chapters meet regularly and allow project man- agers to exchange information and learn about new tools and techniques of project management or new ways to use established techniques. I encourage you to join a local chapter and get to know other professionals in your field. PMI is the leader in project management practices and is the most widely recognized organization and certification in the field. PMI strives to main- tain and promote standards and ethics in this field and offers publications, training, seminars, chapters, special interest groups, and colleges to further the project management discipline. Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Introduction xxi Why Become PMP Certified? The following benefits are associated with becoming PMP certified:  It demonstrates proof of professional achievement.  It increases your marketability.  It provides greater opportunity for advancement in your field.  It raises customer confidence in you and your company’s services. Demonstrates Proof of Professional Achievement PMP certification is a rigorous process that documents your achievements in the field of project management. The exam tests your knowledge of the dis- ciplined approaches, methodologies, and project management practices as described in the Guide to the PMBOK published by the Project Management Institute. You are required to have several years of experience in project manage- ment before sitting for the exam, as well as 35 hours of formal project man- agement education. Your certification assures employers and customers that you are well grounded in project management practices and disciplines. It shows that you’ve got the hands-on experience, as well as a mastery of the processes and disciplines, to manage projects effectively and motivate teams to produce successful results. Increases Your Marketability Many industries are realizing the importance of project management and its role in the organization. They are also seeing that simply proclaiming a head technician to be “project manager” does not make it so. Project management, just like engineering, information technology, and a host of other trades, has its own specific qualifications and skills. Certification tells potential employers you’ve got the skills, experience, and knowledge to drive successful projects and ultimately improve the company’s bottom line. Certification will always make you stand out over the competition. If you are certified and are competing against a project manager without certifica- tion, chances are you will come out as the top pick. As a hiring manager, all things being equal, I will always opt for the candidate who has certification over the candidate who doesn’t have it. Certification tells potential employ- ers you have gone the extra mile. You’ve spent time studying techniques and methods as well as employing them in practice. It shows dedication to your Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com [...]... adhere to as a PMP A Project Management Policy and Ethics Guide B Project Management Professional Standards and Ethics C Project Management Code of Professional Ethics D Project Management Professional Code of Professional Conduct 59 You are the project manger for Xylophone Phonics They produce children’s software programs that teach basic reading and math skills You are ready to assign project roles, responsibilities,... because its payback period is two months shorter than Project Picnic’s B Project Fish’n for Chips because the costs on Project Picnic are unknown C Project Picnic because Project Fish’n for Chips’ payback period is four months longer than Project Picnic’s D Project Picnic because Project Fish’n for Chips’ payback period is two months longer than Project Picnic’s Copyright ©2002 SYBEX, Inc., Alameda,... description, strategic plan, project selection criteria, and historical information are considered: A Inputs to the project Planning process B Inputs to the project Overview process C Inputs to the project Initiation process D Inputs to the project Execution process 53 What are decision models? A Project selection criteria B Project selection methods C Project selection committees D Project resource and budget... acknowledge the project sponsor B To recognize and acknowledge the existence of the project and commit organizational resources to the project C To acknowledge the existence of the project team, project man- ager, and project sponsor D To describe the selection methods used to choose this project over its competitors 19 Which performance measurement tells us what the projected total cost of the project will... working on the scope management plan What is the purpose of the scope management plan? A It describes and documents a scope baseline to help make future project decisions B It decomposes project deliverables C It describes how project scope changes will be incorporated into the project and how project scope will be managed D It describes how cost and time estimates can be composed for project scope changes... information to project participants B Perform audits to verify the project results against the project requirements C Formalize project completion and disseminate this information to project participants D Perform post-implementation audits to document project successes and failures Copyright ©2002 SYBEX, Inc., Alameda, CA www.sybex.com Assessment Test xxxiii 18 What is the purpose of the project charter?... to study for the exam This book is unique in that it walks you through the project processes from beginning to end, just as projects are performed in practice You will benefit from reading this book by learning specific Guide to the PMBOK processes and techniques coupled with real-life scenarios that describe how project managers in different situations handle problems and the various issues all project. .. the Cost Budgeting process to determine the project s baseline B You have completed the Project Plan Development process and established a project baseline to measure future project performance against C You have completed the Cost Estimating process and now need to complete the Project Plan Development process to establish a project baseline to measure future project performance against D You have completed... Project A because the cost to implement is cheaper than Project B B Project A because the potential benefits plus the future operating costs are less in value than the same calculation for Project B C Project B because the potential benefits minus the implementation and future operating costs are greater in value than the same calculation for Project A D Project B because the potential benefits minus the... and expert judgement 48 You are a project manager for Swirling Seas Cruises food division You’re considering two different projects regarding food services on the cruise lines The initial cost of Project Fish’n for Chips will be $800,000 with expected cash inflows of $300,000 per quarter Project Picnic’s payback period is six months Which project should you recommend? A Project Fish’n for Chips because . photo- copy, photograph, magnetic, or other record, without the prior agreement and written permission of the publisher. Library of Congress Card Number: 200 2 100 063 ISBN: 0- 7 82 1-4 10 6-4 SYBEX. panel. San Francisco • London PMP ® : Project Management Professional Study Guide Kim Heldman Copyright © 200 2 SYBEX, Inc., Alameda, CA www .sybex. com Associate Publisher: Neil Edde Acquisitions. America 10 9 8 7 6 5 4 3 2 1 Copyright © 200 2 SYBEX, Inc., Alameda, CA www .sybex. com To Our Valued Readers: Sybex ® is excited to be publishing the PMP: Project Management Professional Study