00 - BINDER (Sin Quizes Ni Preguntas Abiertas)

Cert Prep: Project Management Professional (PMP)® (2018)
with Sandra Mitchell
AC Actual costs
BAC Budget at completion
BCA Benefit/cost analysis
BCR Benefit-cost ratio
BIM Building information model
CCB Change control board
CCM Critical chain method
Change Change requests
COQ Cost of quality
CPAF Cost plus award fee
CPFF Cost plus fixed fee
CPI Cost performance index
CPIF Cost plus incentive fee
CPM Critical path method
CV Cost variance
EAC Estimate at completion
EEFs Enterprise environmental factors
EI Emotional intelligence
EMV Expected monetary value
ETC Estimate to completion
EV Earned value
EVM Earned value management
Cert Prep: Project Management Professional (PMP)® (2018) with Sandra Mitchell
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FF Finish-to-finish
FFP Firm fixed price
FPEPA Fixed price with economic price adjustments
FPIF Fixed price incentive fee
FS Finish to start
IRR Internal rate of return
IT Information technology
MOU Memorandum of understanding
NPV Net present value
OBS Organizational breakdown structure
OPAs Organizational process assets
PBP Payback period
PDCA Plan-Do-Check-Act
PDM Precedence diagramming method
PMI Project Management Institute
PMIS Project management information system
PMO Project management office
PV Planned value
RACI Responsible, accountable, consult, and inform
RAM Responsibility assignment matrix
RBS Resource or risk breakdown structure
RCA Root cause analysis
RFI Request for information
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RFP Request for proposal
RFQ Request for quotation
ROI Return on investment
ROM Rough order of magnitude
SF Start-to-finish
SIPOC Suppliers, inputs, process, outputs and customers
SME Subject matter experts
SOW Statement of work
SPI Schedule performance index
SS Start-to-start
SV Schedule variance
SWOT Strengths, weaknesses, opportunities, and threats
T&M Time and materials
TCPI To-complete performance index
The Plan Project management plan
TOR Terms of reference
VAC Variance at completion
VAC Variance at completion
VOC Voice of the customer
WBS Work breakdown structure
WPD Work performance data
WPI Work performance information
WPR Work performance reports
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Common Inputs, Tools and Techniques and Outputs

Throughout this PMP® Exam Prep course, you’ll see common inputs, tools and techniques, and outputs.
They’ve been collected in this document so you have them all in one place. Instead of repeating them in
the videos, they’re listed here for your reference. Studying these will help you understand the material
better.
Common Inputs
You’ll notice for many of the processes that the following items will be common inputs. It’s important to be
familiar with them, as you’ll see them over and over again in the material we’re covering.
1
Enterprise environmental factors (EEFs): Conditions not under the control of the project team that
influence, constrain, or direct the project. Examples of EEFs:
• Internal
• Organizational culture, structure, and governance
• Geographic distribution of facilities or resources
• Infrastructure
• Information technology software
• Resource availability
• Employee capability
• External
• Marketplace conditions
• Social and cultural influences and issues
• Legal restrictions
• Commercial database
• Academic research
• Government or industry standards
• Financial considerations
• Physical environmental elements
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2
Organizational process assets (OPAs): Plans, processes, policies, procedures, and knowledge bases
specific to and used by the performing organization. Examples include:
• Project document templates
• Previous project documents, such as project plans, schedules, and budgets
• Lessons learned
• Risk data
• Earned value data
• Historical information
• Document repositories for configuration management, financial data, issue and defect
management, and metrics
3
Project management plan: The document that describes how the project will be executed, monitored,
and controlled and closed.
Project documents: These are any documents generated in support of the project, other than the project
management plan.
Business documents: The business case and benefits management plan.
3
Project charter: A document issued by the project initiator or sponsor that formally authorizes the
existence of a project and provides the project manager with the authority to apply organizational
resources to project activities.
3
Agreements: Any document or communication that defines the initial intentions of a project. This
can take the form of a contract, memorandum of understanding (MOU), letters of agreement, verbal
agreements, email, etc.
3
Work performance data: The raw observations and measurements identified during activities being
performed to carry out the project work.
3
Work performance information: The performance data collected from the controlling processes,
analyzed in comparison with project management plan components, project documents, and other work
performance information.
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3
Work performance reports: The physical or electronic representation of work performance information
compiled in project documents, intended to generate decisions, actions, or awareness.
3
Lessons learned register: A project document used to record knowledge gained during a project so that
it can be used in the current project and entered into the lessons learned repository.
Common Tools and Techniques

3
Data gathering: Techniques used to collect data and information from a variety of sources.
3
Data analysis: Techniques used to organize, assess, and evaluate data and information.
3
Data representation: Graphic representations or other methods used to convey data and information.
3
Expert judgment: Judgment provided based upon expertise in an application area, knowledge area,
discipline, industry, etc., as appropriate for the activity being performed. Any group or person with
specialized education, knowledge, skill, experience, or training may provide this expertise.
4
Decision making: These are techniques used to select a course of action from different alternatives.
There are several methods of reaching a group decision, such as:
• Unanimity: A decision that is reached whereby everyone agrees to a single course of action.
• Majority: A decision is reached with support obtained from more than 50% of the members of the
group.
• Plurality: A decision that is reached whereby the largest block in a group decides, even if a majority
is not achieved. This method is generally used when the number of options nominated is more than
two.
• Autocratic: One individual takes responsibility for making the decision for the group.
• Multicriteria decision analysis: A technique that uses a decision matrix to provide a systematic
analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to
evaluate and rank many ideas.
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Meetings: Play an important role in these processes and is a common tool or technique you’ll see often.
The preference is to have everyone collocated, in the same room, but meetings may be held virtually too.
3
Project management information system (PMIS): An information system consisting of the tools and
techniques used to gather, integrate, and disseminate the outputs of project management processes. This
is also considered an enterprise environmental factor.
3
Interpersonal and team skills: Skills used to effectively lead and interact with team members and other
stakeholders.
Common Outputs
Work performance data, information. and reports are often common inputs and outputs so it’s important
to understand the flow of each of these items.
First you start out with work performance data. This is the raw data you collect on your project. The
raw data isn’t very useful until you analyze it and convert it to work performance information. With work
performance information, you see how your project is performing, for example, if your project is on
schedule, if it’s on budget, and how many change requests have been processed.
You then take the work performance information and put it into a work performance report. This level of
information can then be presented to your stakeholders or sponsor and even be put in dashboards for the
team to view. So it goes like this: data, then information. and finally, reports.
• 3Change requests: A formal proposal to modify any document, deliverable or baseline.
• Project management plan updates and other project documents updates: Anytime there is a
change to the project, you’ll need to go back and review the project management plan and other
project documents to see if they need to be revised.
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Now that you know the common inputs, tools and techniques, and outputs to the 49 processes, I
recommend you visit this handout often to get a firm understanding of what they are and how they fit into
each process.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®
1
Guide) – Sixth Edition, Project Management Institute, Inc., 2017, Pages 38–39.
2
Guide) – Sixth Edition, Project Management Institute, Inc., 2017, Pages 39–40.
3
These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project
Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc.,
2017.
4
Guide) – Sixth Edition, Project Management Institute, Inc., 2017, Page 144.
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Study Tips: Project Management Overview

Understand the characteristics of a project. You’ll be asked to identify projects and the difference
between projects and operations.
Know the relationship between projects, programs, and portfolios.
Know and study the processes, but first understand the process groups and how they relate to each
other: initiating, planning, executing, monitoring and controlling, and closing.
Understand the relationship between project management and organizational strategy.
The business value of a project is a key element you should understand for the exam. Know the types
of benefits, including tangible and intangible, and the processes to determine and attain business
value realization.
Understand the roles of and relationship between the project manager and a functional manager.
Know the various organizational influences and how they can positively or negatively impact projects.
Organizational process assets and enterprise environmental factors are common inputs to most of the
processes. Be sure to know what they are and how they can impact the project.
Know and understand the different organizational structures and how they affect the authority and
influence of the project manager.
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Project Creation Factors

In Figure 1-2, Project Initiation Context, from the PMBOK® Guide, we discussed the four reasons projects
are initiated.
Now, study this table, which provides more detail about each of the factors or triggers that will drive the
need for a new project.
1
Table 1-1. Examples of Factors that lead to the Creation of a Project
Think about the projects you’ve worked on or are currently working on. Were any of them driven by the
factors described in this table?
1
Guide) – Sixth Edition, Project Management Institute Inc., 2017, Table 1-1, Page 9.
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Comparison of Portfolios, Programs and Projects

Study this table to see the comparisons between projects, programs, and portfolios. You can see how
each differs in the project life cycle.
Guide) – Sixth Edition, Project Management Institute Inc., 2017, Table 1-2, Page 13.
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Study Tips: Project and Development Life Cycle

Know what the key components of the PMBOK® Guide are and how they relate to successful project
completion.
Understand what a project life cycle is versus the development life cycle.
Know the differences between predictive, iterative, incremental, and adaptive life cycles.
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Initiating Process Group Overview
Process Inputs Tools & Techniques Outputs
Develop Project 1. Business documents 1. Expert judgment 1. Project charter

Charter 2. Agreements 2. Data gathering 2. Assumption log
3. Enterprise 3. Interpersonal and
environmental factors team skills
4. Organizational 4. Meetings
process assets
Identify Stakeholders 1. Project charter 1. Expert judgment 1. Stakeholder register

2. Business documents 2. Data gathering 2. Change requests
3. Project management 3. Data analysis 3. Project management
plan 4. Data representation plan updates
4. Project documents 5. Meetings 4. Project documents
5. Agreements updates
6. Enterprise
environmental factors
7. Organizational process
assets
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Planning Process Group Overview
Develop Project 1. Project charter 1. Expert judgment 1. Project management plan

Management Plan 2. Outputs from other 2. Data gathering
processes
• Brainstorming
3. Enterprise • Checklists
environmental factors • Focus groups
4. Organizational process • Interviews
assets 3. Interpersonal and
team skills
• Conflict management
• Facilitation
• Meeting management
4. Meetings
Plan Scope 1. Project charter 1. Expert judgment 1. Scope management plan

Management 2. Project management plan 2. Data analysis 2. Requirements
3. Enterprise environmental 3. Meetings management plan
factors
assets
Collect 1. Project charter 1. Expert judgment 1. Requirements

Requirements 2. Project management plan 2. Data gathering documentation
3. Project documents 3. Data analysis 2. Requirements traceability

matrix
4. Business documents 4. Decision making
5. Agreements 5. Data representation
6. Enterprise environmental 6. Interpersonal and team
factors skills
7. Organizational process 7. Context diagrams
assets 8. Prototypes
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Define Scope 1. Project charter 1. Expert judgment 1. Project scope statement
2. Project management plan 2. Data analysis 2. Project documents
updates
3. Project documents 3. Decision making
factors skills
5. Organizational process 5. Product analysis
assets
Create WBS 1. Project management plan 1. Expert judgment 1. Scope baseline

2. Project documents 2. Decomposition 2. Project documents updates
3. Enterprise environmental
factors
assets
Plan Schedule 1. Project charter 1. Expert judgment 1. Schedule management plan

Management 2. Project management plan 2. Data analysis
3. Enterprise environmental 3. Meetings
factors
assets
Define Activities 1. Project management plan 1. Expert judgment 1. Activity list

2. Enterprise environmental 2. Decomposition 2. Activity attributes
factors 3. Rolling wave planning 3. Milestone list
3. Organizational process 4. Meetings 4. Change requests
assets
5. Project management
plan updates
Sequence 1. Project management plan 1. Precedence diagramming 1. Project schedule network

Activities 2. Project documents method (PDM) diagrams
2. Enterprise environmental 2. Dependency 2. Project documents updates

factors determination and
integration
assets 3. Leads and lags
information system
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Estimate Activity 1. Project management plan 1. Expert judgment 1. Duration estimates
Durations 2. Project documents 2. Analogous estimating 2. Basis of estimates
3. Enterprise environmental 3. Parametric estimating 3. Project documents
factors updates
4. Three-point estimating
4. Organizational process 5. Bottom-up estimating
assets
6. Data analysis
7. Decision making
8. Meetings
Develop 1. Project management plan 1. Schedule network analysis 1. Schedule baseline

Schedule 2. Project documents 2. Critical path method 2. Project schedule
3. Agreements 3. Resource optimization 3. Schedule data
3. Enterprise environmental 4. Data analysis 4. Project calendars
factors 5. Leads and lags 5. Change requests
4. Organizational process 6. Schedule compression 6. Project management plan
assets updates
information system 7. Project documents updates
8. Agile release planning
Plan Cost 1. Project charter 1. Expert judgment 1. Cost management plan

3. Enterprise environmental 3. Meetings
factors
assets
Estimate Costs 1. Project management plan 1. Expert judgment 1. Cost estimates

2. Project documents 2. Analogous estimating 2. Basis of estimates
3. Enterprise environmental 3. Parametric estimating 3. Project documents updates
factors 4. Bottom-up estimating
4. Organizational process 5. Three-point estimating
assets
6. Data analysis
information system
8. Decision making
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Determine 1. Project management plan 1. Expert judgment 1. Cost baseline
Budget 2. Project documents 2. Cost aggregation 2. Project funding
requirements
3. Business documents 3. Data analysis
3. Project documents updates
4. Agreements 4. Historical information review
5. Enterprise environmental 5. Funding limit reconciliation
factors 6. Financing
assets
Plan Quality 1. Project charter 1. Expert judgment 1. Quality management plan

Management 2. Project management plan 2. Data gathering 2. Quality metrics
3. Project documents 3. Data analysis 3. Project management plan
4. Enterprise environmental 4. Decision making updates
factors 5. Data representation 4. Project documents updates
5. Organizational process 6. Test and inspection
assets planning
7. Meetings
Plan Resource 1. Project charter 1. Expert judgment 1. Resource management plan

Management 2. Project management plan 2. Data representation 2. Team charter
3. Enterprise environmental 3. Organizational theory 3. Project documents updates
factors 4. Meetings
assets
Estimate Activity 1. Project management plan 1. Expert judgment 1. Resource requirements

Resources 2. Project documents 2. Analogous estimating 2. Basis of estimates
3. Enterprise environmental 3. Parametric estimating 3. Resource breakdown
factors 4. Bottom-up estimating structure
4. Organizational process 5. Data analysis 4. Project documents updates
assets
information system
7. Meetings
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Plan 1. Project charter 1. Expert judgment 1. Communications
Communications 2. Project management plan 2. Communication management plan
Management requirements analysis 2. Project management plan
3. Project documents
updates
4. Enterprise environmental 3. Communication technology
3. Project documents updates
factors 4. Communication models
5. Organizational process 5. Communication methods
assets 6. Interpersonal and team
skills
7. Data representation
8. Meetings
Plan Risk 1. Project charter 1. Expert judgment 1. Risk management plan

3. Project documents 3. Meetings
factors
assets
Identify Risks 1. Project management plan 1. Expert judgment 1. Risk register

2. Project documents 2. Data gathering 2. Risk report
3. Agreements 3. Data analysis 3. Project documents updates
4. Procurement documentation 4. Interpersonal and team
5. Enterprise environmental skills
factors 5. Prompt lists
6. Organizational process 6. Meetings
assets
Perform 1. Project management plan 1. Expert judgment 1. Project documents updates

Qualitative Risk 2. Project documents 2. Data gathering
Analysis
3. Enterprise environmental 3. Data analysis
factors 4. Interpersonal and team
4. Organizational process skills
assets 5. Risk categorization
6. Data representation
7. Meetings
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Perform 1. Project management plan 1. Expert judgment 1. Project documents updates
Quantitative Risk 2. Project documents 2. Data gathering
Analysis
factors skills
4. Organizational process 4. Representations of
assets uncertainty
5. Data analysis
Plan Risk 1. Project management plan 1. Expert judgment 1. Change requests

Responses 2. Project documents 2. Data gathering 2. Project management plan
3. Enterprise environmental 3. Interpersonal and team updates
factors skills 3. Project documents updates
4. Organizational process 4. Strategies for threats
assets 5. Strategies for
opportunities
6. Contingent response
strategies
7. Strategies for overall
project risk
8. Data analysis
9. Decision making
Plan Stakeholder 1. Project charter 1. Expert judgment 1. Stakeholder engagement

Engagement 2. Project management plan 2. Data gathering plan
3. Project documents 3. Data analysis

4. Agreements 4. Decision making
5. Enterprise environmental 5. Data representation
factors 6. Meetings
assets
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Executing Process Group Overview
Direct and Manage 1. Project management plan 1. Expert judgment 1. Deliverables

Project Work 2. Project documents 2. Project management 2. Work performance data
3. Approved change information system 3. Issue log
requests 3. Meetings 4. Change requests
4. Enterprise 5. Project management
environmental factors plan updates
5. Organizational 6. Project documents
process assets updates
assets updates
Manage Project 1. Project management 1. Expert judgment 1. Lessons learned register

Knowledge plan 2. Knowledge management 2. Project management
2. Project documents 3. Information management plan updates
3. Deliverables 4. Interpersonal and team 3. Organizational process
4. Enterprise skills assets updates
environmental factors
assets
Manage Quality 1. Project management plan 1. Data gathering 1. Quality reports

2. Project documents 2. Data analysis 2. Test and evaluation
3. Organizational process 3. Decision making documents
assets 4. Data representation 3. Change requests
5. Audits 4. Project management

plan updates
6. Design for X
7. Problem solving
updates
8. Quality improvement
methods
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Acquire Resources 1. Project management plan 1. Decision making 1. Physical resource
2. Project documents 2. Interpersonal and team assignments
skills 2. Project team assignments
factors 3. Pre-assignment 3. Resource calendars
4. Organizational process 4. Virtual teams 4. Change requests

assets 5. Project management
plan updates
updates
factors updates
assets updates
Develop Project 1. Project management plan 1. Colocation 1. Team performance

Team 2. Project documents 2. Virtual teams assessments
3. Enterprise environmental 3. Communication 2. Change requests

factors technology 3. Project management
4. Organizational process 4. Interpersonal and team plan updates
assets skills 4. Project documents
5. Recognition and rewards updates
6. Training 5. Enterprise environmental

factors updates
7. Individual and team
assessments 6. Organizational process
assets updates
8. Meetings
Manage Team 1. Project management plan 1. Interpersonal and team 1. Change requests
2. Project documents skills 2. Project management
3. Work performance reports 2. Project management plan updates
information system 3. Project documents
4. Team performance
assessments updates
5. Enterprise environmental 4. Enterprise environmental

factors factors updates
assets
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Manage 1. Project management plan 1. Communication 1. Project communications
Communications 2. Project documents technology 2. Project management
plan updates
3. Work performance reports 2. Communication methods
4. Enterprise environmental 3. Communication skills
updates
factors 4. Project management
information system 4. Organizational process
assets updates
assets 5. Project reporting
6. Interpersonal and team
skills
7. Meetings
Implement Risk 1. Project management plan 1. Expert judgment 1. Change requests

Responses 2. Project documents 2. Interpersonal and team 2. Project documents
3. Organizational process skills updates
assets 3. Project management
information system
Conduct 1. Project management plan 1. Expert judgment 1. Selected sellers

Procurements 2. Project documents 2. Advertising 2. Agreements
3. Procurement 3. Bidder conferences 3. Change requests
documentation 4. Data analysis 4. Project management
4. Seller proposals 5. Interpersonal and plan updates
5. Enterprise environmental team skills 5. Project documents
factors updates
6. Organizational process 6. Organizational process
assets assets updates
Manage Stakeholder 1. Project management plan 1. Expert judgment 1. Change requests

Engagement 2. Project documents 2. Communication skills 2. Project management
3. Enterprise environmental 3. Interpersonal and team plan updates
factors skills 3. Project documents
4. Organizational process 4. Ground rules updates
assets 5. Meetings
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Monitoring and Controlling Process Group Overview
Monitor and Control 1. Project management plan 1. Expert judgment 1. Work performance reports
Project Work 2. Project documents 2. Data analysis 2. Change requests
3. Work performance 4. Decision making 3. Project management
information 5. Meetings plan updates
4. Agreements 4. Project documents
5. Enterprise environmental updates
factors
assets
Perform Integrated 1. Project management plan 1. Expert judgment 1. Approved change requests
Change Control 2. Project documents 2. Change control tools 2. Project management plan
3. Work performance 3. Data analysis updates
reports 4. Decision making 3. Project document
4. Change requests updates
5. Meetings
factors
assets
Validate Scope 1. Project management plan 1. Inspection 1. Accepted deliverables

2. Project documents 2. Decision making 2. Work performance
3. Verified deliverables information
4. Work performance data 3. Change requests

updates
Control Scope 1. Project management plan 1. Data analysis 1. Work performance

2. Project documents information
3. Work performance data 2. Change requests
4. Organizational process 3. Project management plan
assets updates
updates
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Control Schedule 1. Project management plan 1. Data analysis 1. Work performance
2. Project documents 2. Critical path method information
3. Work performance data 3. Project management 2. Schedule forecasts
4. Organizational process information system 3. Change requests

assets 4. Resource optimization 4. Project management plan
5. Leads and lags updates
6. Schedule compression 5. Project documents

updates
Control Costs 1. Project management plan 1. Expert judgment 1. Work performance

2. Project documents 2. Data analysis information
3. Project funding 3. To-complete 2. Cost forecasts
requirements performance index (TCPI) 3. Change requests
4. Work performance data 4. Project management 4. Project management plan
5. Organizational process information system updates
assets 5. Project documents
updates
Control Quality 1. Project management plan 1. Data gathering 1. Quality control

2. Project documents 2. Data analysis measurements
3. Approved change 3. Inspection 2. Verified deliverables

requests 4. Testing/product 3. Work performance
4. Deliverables evaluations information
5. Work performance data 5. Data representation 4. Change requests
6. Enterprise environmental 6. Meetings 5. Project management plan

factors updates
7. Organizational process 6. Project documents

assets updates
Control Resources 1. Project management plan 1. Data analysis 1. Work performance

2. Project documents 2. Problem solving information
3. Work performance data 3. Interpersonal and team 2. Change requests
4. Agreements skills 3. Project management plan

4. Project management updates
assets information system 4. Project documents
updates
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Monitor 1. Project management plan 1. Expert judgment 1. Work performance
Communications 2. Project documents 2. Project management information
3. Work performance reports information system 2. Change requests
4. Enterprise environmental 3. Data representation 3. Project management plan
factors 4. Interpersonal and team updates
5. Organizational process skills 4. Project documents
assets 5. Meetings updates
Monitor Risks 1. Project management plan 1. Data analysis 1. Work performance

2. Project documents 2. Audits information
3. Work performance data 3. Meetings 2. Change requests
4. Work performance 3. Project management plan

reports updates
updates
assets updates
Control Procurements 1. Project management plan 1. Expert judgment 1. Closed procurements

2. Project documents 2. Claims administration 2. Work performance
3. Agreements 3. Data analysis information
4. Procurement 4. Inspection 3. Procurement

documentation documentation updates
5. Audits
5. Approved change 4. Change requests
requests 5. Project management
6. Work performance data plan updates
7. Enterprise environmental 6. Project documents

factors updates
8. Organizational process 7. Organizational process

assets assets updates
Monitor Stakeholder 1. Project management plan 1. Data analysis 1. Work performance

Engagement 2. Project documents 2. Decision making information
3. Work performance data 3. Data representation 2. Change requests
4. Enterprise environmental 4. Communication skills 3. Project management plan

factors updates
5. Interpersonal and team
5. Organizational process skills 4. Project documents
assets updates
6. Meetings
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Closing Process Group Overview
Close Project or 1. Project charter 1. Expert judgment 1. Project documents

Phase 2. Project management plan 2. Data analysis updates
3. Project documents 3. Meetings 2. Final product, service, or

result transition
4. Accepted deliverables
3. Final report
5. Business documents
6. Agreements
assets updates
7. Procurement
documentation
assets
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Project Management Process Group and Knowledge Area Mapping
Process Group
Knowledge
Monitoring and
Areas Initiating Process Planning Process Executing Process Closing Process
Controlling
Group Group Group Group
Process Group
Project • Develop Project • Develop Project • Direct and • Monitor and • Close Project
Integration Charter Management Manage Project Control Project or Phase
Management Plan Work Work
• Manage project • Perform
knowledge Integrated
Change Control
Project Scope • Plan Scope • Validate Scope

Management Management • Control Scope
• Collect
Requirements
• Define Scope
• Create WBS
Project • Plan Schedule • Control Schedule

Schedule Management
Management • Define Activities
• Sequence
Activities
• Estimate Activity
Durations
• Develop
Schedule
Project Cost • Plan Cost • Control Costs

Management Management
• Estimate Costs
• Determine
Budget
Project • Plan Quality • Manage Quality • Control Quality

Quality Management
Management
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Project • Plan Resource • Acquire • Control
Resource Management Resources Resources
Management • Estimate Activity • Develop Team
Resources • Manage Team
Project • Plan • Manage • Monitor

Communications Communications Communications Communications
Management
Management
Project Risk • Plan Risk • Implement Risk • Monitor Risks

Management Management Responses
• Identify Risks
• Perform
Qualitative
Risk Analysis
• Perform
Quantitative
Risk Analysis
• Plan Risk
Responses
Project • Plan • Conduct • Control

Procurement Procurement Procurements Procurements
Management Management
Project • Identify • Plan Stakeholder • Manage • Monitor

Stakeholder Stakeholders Engagement Stakeholder Stakeholder
Management Engagement Engagement
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Study Tips: Project Management Business Documents

Know the difference between a business case and the benefits management plan.
Understand which documents are developed in each of the project life cycle phases.
At a high level, know what comprises a business case.
Know the key elements that go into the benefits management plan.
Understand how the project charter formally authorizes the project and gives the project manager the
authority to use resources.
Know that the project management plan provides details on how the project will be managed,
executed, monitored, and controlled.
Understand the different ways to measure project success.
Know the difference between work performance data, work performance information, and work
performance reports in order to answer questions on the exam.
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Study Tips: Project Environments

Organizational process assets and enterprise environmental factors are common inputs to most of the
processes. Be sure to know what they are and how they can impact the project.
For enterprise environmental factors, understand what are considered internal and external factors.
Know that organizational process assets come from inside the company; examples include processes,
policies, procedures, and organizational knowledge databases.
Understand what an organizational system is and the factors that create it.
Have a firm understanding of the different organizational structure types and the level of authority the
project manager has for each.
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Study Tips: Project Manager Role

Know the difference between the roles of a project manager, a functional manager, and an operations
manager.
Understand the project manager’s sphere of influence.
Know the difference between managing and leading.
Be able to recognize the different leadership styles used to manage projects.
Understand the PMI Talent Triangle®.
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Study Tips: Project Integration Management

The integration knowledge area is the glue that keeps the whole project together. Know how changes
are incorporated into each process.
Understand the project charter, including who is required to sign off on it and what authority it gives
the project manager.
Know the documents that make up the project management plan. Think of your own projects and the
information that is needed before the project starts.
Understand how changes are requested, validated, implemented, and documented.
Know how to determine if a project has been officially closed.
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Project Selection Methods

There are several project selection methods you can use as tools for selecting a project and for including
in your business case.
These aren’t included in the PMBOK® Guide, but you may be asked about them on the PMP® exam. It’s a
good idea to become familiar with each of these methods.
You don’t need to learn how to calculate these, except for ROIC, which I’ll cover below.
Know that with these methods, the bigger the value, the better:
Benefit Cost Ratio (BCR) You don’t need to know the 3.5:1
formula, just that the highest
ratio is better.
Economic Value Add (EVA) You don’t need to know the $22,000
number is better.
Internal Rate of Return (IRR) You don’t need to know the 16.8%
percentage is better.
Present Value (PV) You don’t need to know the $33,300

number is better.
Net Present Value (NPV) The same as PV, except you $40,000
factor in costs.
Return of Investment (ROI) You don’t need to know the $60,000 or 8%

number or percentage is better.
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Return on Invested Capital You need to know how to Company A invested $10,300 in
(ROIC) calculate the formula for this a project that generated $4,000
method. in revenue in its first year. It has
operational costs of $1,000 and
a tax liability of $800.
Net Income after Tax ÷ Invested
Capital $4,000-$1,000-$800=$2,200.
The biggest percentage $2,200/$10,300=21%. The

project is returning 21% annually
on what it invested.
In these methods, smaller is always better:
Opportunity Costs Project A benefit is $5,000,000.

Project B benefit is $2,000,000.
If you choose Project A, the
opportunity lost for Project B is
$2,000,000.
Payback Period How long it takes to recoup your 2 years vs. 4 years—2 years is
investment better.
It’s important to be familiar with these project selection methods as you may be asked about them on the
exam. Remember, they aren’t in the PMBOK® Guide, so studying them here is a good idea.
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Study Tips: Project Scope Management

Understand how to determine what is and what is not included in the scope of a project.
Know that gold plating is never allowed on a project.
Know the various tools and techniques that can be used to collect requirements. Imagine your own
projects and how you work with stakeholders and team members to get this information.
Know how to create a work breakdown structure (WBS) and how to identify the work packages
for your project.
1 of 1
Collect Requirements Tools and Techniques

The following tools and techniques are important to recognize and understand since you may be asked
about them on the exam. Be able to recognize them and choose their definitions. One or more of these
tools and techniques may be used in collecting requirements. It’s best to understand your audience to
see which of these works best.
• Data Gathering
• Brainstorming: A technique to get an exhaustive list of requirements.
• 1
Interviews: A formal or informal approach to elicit information from stakeholders by
talking to them directly.
• 1
Focus groups: An elicitation technique that brings together prequalified stakeholders
and subject matter experts to learn about their expectations and attitudes about a
proposed product, service, or result.
• 1
Questionnaires and surveys: A written set of questions designed to quickly collect
information from a large number of respondents.
• 1
Benchmarking: The comparison of actual or planned practices, such as processes and
practices, to those of comparable organizations to identify best practices, generate
ideas for improvement, and provide a basis for measuring performance.
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• Data Analysis
• 1
Document analysis: An elicitation technique that analyzes existing documentation and
identifies information relevant to the requirements.
• Decision Making
• 1
Voting: A method used to make decisions based on unanimity, majority, and plurality.
• Autocratic decision making
• 1
Multicriteria decision analysis: A systematic approach for setting criteria like
requirements and resources.
• Data Representation
• 1
Affinity diagrams: A technique that allows large numbers of ideas to be classified into
groups for review and analysis.
• 1
Mind-mapping: A technique used to consolidate ideas created through individual
brainstorming sessions into a single map to reflect commonality and differences in
understanding and to generate new ideas.
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• Interpersonal and Team Skills
• 1
Nominal group technique: A technique that enhances brainstorming with a voting
process used to rank the most useful ideas for further brainstorming or for prioritization.
• Facilitation workshops: A technique that gets people together to discuss the project so
everyone has an understanding of the project objectives.
• Observation/conversation: Talking with team members to gather information to update

stakeholders. Plus, observing team interactions allows the project manager to address
team issues.
• 1
Context diagrams: A visual depiction of the product scope showing a business system (process,
equipment, computer system, etc.), and how people and other systems (actors) interact with it.
• 1
Prototypes: A method of obtaining early feedback on requirements by providing a working model
of the expected product before actually building it.
1
These definitions are taken from the Glossary of Project Management Institute, A Guide to the
Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017.
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Requirements Traceability Matrix Example
Project Name New Document Management System
Cost Center PM0125
Project Description Implementing a new document management system to replace an outdated system
"Requirements
ID Requester Dept. "Business Need" WBS ID Testing Status Comments
Description"
001 John Smith Document Control Add a drop- This ensures 3.2 Testing In progress Test scripts are
down list for that the proper being written for
the department department this step.
names and names and
numbers. numbers are
entered into the
system.
002 Susie Simon End User Do a keyword Keyword searches 1.2 Keyword search On hold System is currently
search of all enable quicker should bring up unable to search
documents in searches for identified files, all file types.
the document documents. regardless of type.
management
system, regardless
of type.
003 Patricia Maxwell Validation Install password The system should 6.7 Enter password Not started
login. only be accessed screen pops up.
by authorized
personnel for
security reasons.
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Network Diagramming, Example 1:
Activity Preceding Activities Duration in Days

A Start 9
B A, C 3
C Start 13
D C 9
E D 2
F E 10
G F 11
H B, G 3
1. Which path is the critical path and what is its duration?

2. What is the slack/float for activity B?
3. Which path has the longest slack?
4. What is the slack of the path in question 3?
5. If activity B slips from 3 days to 6 days, what is the critical path?
6. With the duration adjustment in question 5, what is the new slack of activity B?
Network Diagramming, Example 2:
Activity Preceding Activities Duration in Days

A Start 8
B A 4
C A 10
D B, C 2
E D 2
F D 2
G D 3
H E, F, G 2
I H 1
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2. What is the slack/float for activity F?
3. What is the slack/float for activity B?
4. If activity E now takes 4 instead of 2, how has the critical path changed?
5. Based on the information in question 4, what is the new critical path and what is its duration?
Network Diagram 1 Example Answers
Start-A-B-H-Finish = 15
Start-C-B-H-Finish = 19
Start-C-D-E-F-G-H-Finish = 48 (CP)

A-B-H=15
C-B-H=19
C-D-E-F-G-H=48 (CP)
2. What is the slack/float for activity B? 29

3. Which path has the longest slack? A-B-H
4. What is the slack of the path in question 3? 33
5. If Activity B slips from 3 days to 6 days, what is the critical path? Critical path stays the same.
6. With the duration adjustment in question 5, what is the new slack of activity B? 26
2 of 3
Network Diagram 2 Example Answers

A-B-D-E-H-I=19 + 2 =21
A-B-D-F-H-I=19
A-B-D-G-H-I=20
A-C-D-E-H-I=25 + 2 =27
A-C-D-F-H-I=25
A-C-D-E-H-I=26 (CP)
2. What is the slack/float for activity F? 1
3. What is the slack/float for activity B? 6
4. If activity E now takes 4 instead of 2, how has the critical path changed?
Critical path changes to A-C-D-E-H-I. It is now 27 days.
5. Based on the information in question 4, what is the new critical path and what is its duration?
A-C-D-E-H-I=27
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Study Tips: Project Schedule Management

Know how to sequence activities by creating network diagrams. Practice the network diagram
problems included in this course. If you don’t normally create network diagrams for your projects,
practice with a project that you’re familiar with.
Understand the process of creating the project schedule, including the options for compressing the
schedule if needed.
Know the critical chain and critical path methods and practice solving problems using these methods
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Sequence Activities: Tools and Techniques

The first tool and technique in the sequence activities process is the 1precedence diagramming method
(PDM), which is a technique used for constructing a schedule model in which activities are represented
by nodes (boxes) and are graphically linked by one or more logical relationships or dependencies
(arrows) to show the sequence in which the activities are to be performed. 1Activity-on-node (AON) is one
method of representing a precedence diagram. While creating the AON network diagram, four types of
dependencies or logical relationships are used:
• 1 Finish-to-start (FS): A logical relationship where a successor activity cannot start until a predecessor
has finished. For example, a car needs to finish being washed before you can start to dry it.
• 1 Finish-to-finish (FF): A successor activity can’t finish until a predecessor activity has finished. For
example, writing a book needs to finish before you can finish editing it.
• 1 Start-to-start (SS): A logical relationship in which a successor activity cannot start until a predecessor
activity has started. For example, level concrete can’t start until pour foundation begins.
• 1 Start-to-finish (SF): A successor activity can’t finish until a predecessor activity has started. For
example, a security guard on morning shift has to start before the night shift guard can finish.
This figure shows you what each of the different relationships/dependencies look like in a network diagram:
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The most used relationships/dependencies are finish-to-start, finish-to-finish, and start-to-start. Start-to-
finish is a relationship/dependency that’s used, but not very often.
Activity on arrow (AOA) is another type of precedence diagram, but it isn’t used as often as the PDM.
AOA is not described in the PMBOK® Guide, but you may see AOA on the exam, so it’s important to
know what it is.
Each of the project’s activities are shown on the diagram as arrows with the description written on the
arrow, not in the boxes as in the PDM. The arrows represent the activities along with the relationship. The
numbers in the circles represent the durations of each activity. It’s known for only using the finish-to-start
relationship and puts in “dummy” activities to show only relationships. You can easily identify the dummy
activities because the relationship is drawn as a dotted line. Here is an example of what an AOA diagram
looks like:
Activity on Arrow (AOA) Diagram
1 B 2
A C
Start D 3 E 5 F Finish
G I
4 H 6
9 activities and 2 dummy activities
The second tool and technique is dependency determination, which describes the type of dependencies
for your network diagram:
• Mandatory: These are dependencies that are legally or contractually required or inherent in the
1
nature of the work. They often involve physical limitations, such as on a construction project, where
it is impossible to erect the superstructure until after the foundation has been built. Mandatory
dependencies are sometimes referred to as hard logic or hard dependencies. Mandatory
dependencies are identified during the sequencing of activities.
• Discretionary: These dependencies are sometimes referred to as preferred logic, preferential logic,
1
or soft logic. Discretionary dependencies are established based on knowledge of best practices
within a particular application area or some unusual aspect of the project where a specific sequence
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is desired, even though there may be other acceptable sequences. For example, you may prefer
to have all the house painting done before installing carpet, but if the schedule is tight, you may
choose to paint in parallel with laying carpet.
• 3 Internal: These are dependencies that involve a precedence relationship between project activities
and are generally inside the project team’s control. For example, if a device has to be built before it
can be tested, this is an internal mandatory dependency.
• External: These dependencies involve a relationship between project activities and non-project
1
activities. They are usually outside the project team’s control. For example, installed electrical wiring
in a house needs to be inspected by county inspectors before the walls can be built around them.
The third tool and technique is leads and lags.

• Lead: The amount of time whereby a successor activity can be advanced with respect to a
1
predecessor activity. For example, you may decide to edit a document before it is completed. This
could potentially save time in the project by starting the editing earlier. The time is usually shown as
a negative value when using scheduling software.
• 1 Lag: The amount of time whereby a successor activity will be delayed with respect to a predecessor
activity. For example, you have to wait for concrete to dry before you can start building on it.
This figure shows additional examples of what lead and lag might look like in a schedule.
The final tool and technique is the 1project management information system (PMIS). The PMIS includes
scheduling software tools, which have the capability to help plan, organize, and adjust the sequence of
the activities; insert the logical relationships and lead and lag values; and differentiate the different types
of dependencies.
1
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge,
(PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017.
2
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017, Fig. 6-9, Page 190.
3
Institute Inc., 2017, Fig. Page 192.
4
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Estimate Activity Durations: Tools and Techniques
There are several tools that can be used to help in estimating activity durations. Each is different from
the other and depending on the accuracy needed for the estimates, one may be used over another or in
combination.
1
Analogous estimating is also known as top-down estimating and is based on another similar project
in the organization. It’s important to note that when comparing to another project, it has to be apples
to apples for the best estimates.
• This type of estimate is usually quick and easy and is made by management or a subject matter
expert familiar with the activity or project.
• It may not be as accurate as other types of estimating, like bottom- up.

1
Parametric estimating is an estimating technique in which an algorithm is used to calculate cost or
duration based on historical data and project parameters.
• It’s best used for activities that are linear. For example, if a team paves 1 mile of road per hour,
then it stands to reason 10 miles would be paved in 10 hours.
• This type of estimating is not good for activities that are unknown or haven’t been done
previously.
Bottom-up estimating is the most accurate of the estimates and is when an estimate is applied
to each activity, starting from the bottom and working its way to the top. The estimates are then
aggregated up for a total duration. This process can be time consuming, but it’s more accurate.
Three-point estimating is also called program evaluation and review technique (PERT) and is where
you use the following three data points to make an estimate.
• Pessimistic: worst-case scenario
• Realistic: most likely
• Optimistic: best-case scenario

There are two ways of calculating three-point estimates. Each depends on the level of accuracy needed:
Beta distribution is more accurate and puts a weight on the realistic value to come up with a more
accurate estimate. Let’s say a team member gives you the following estimates for completing an
activity: realistically 5 days, optimistically 2 days, and pessimistically 8 days.
You then apply this formula to calculate the estimate: P+(4)R+O/6.
• 8+(4)5+2/6 = 8+20+2/6 = 30/6 = 5 days is the estimate for this activity.
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Triangular distribution uses the same three points and the formula is much easier to use, but it’s not
as accurate; P+R+O/3.
• 8+5+2/3 = 15/3 = 5 days is the estimate for this activity.
In this particular example, the values happen to be the same, but that won’t always be the case. Let’s
look at the following example:
• Beta: 15+(4)7+3/6 = 46/6 = 7.67 days
• Triangular: 15+7+3/3 = 25/3 = 8.33 days
The values are different by a little less than a day. If you have a project where you need more accurate
estimates, then you probably want to choose the beta distribution formula.
Tip: If you see the picture of a triangular distribution on the exam, it’s easy to remember which one it
is, it has three points and looks like a triangle. Here’s a picture of what the two look like:
Beta Distribution Triangular Distribution
Another important formula to calculate is standard deviation for PERT analysis. The standard
deviation formula is Pessimistic– Optimistic/6.
• 8-2/6 = 6/6 = 1 standard deviation from the estimate
• For the beta calculation, 5 days +/- 1 day
Tip: A good way to always remember the order of the PERT three-point estimate formula is to think of the
word PRO. Just remember the R is multiplied by 4. By the time you finish practicing these formulas, you’ll
be a PRO: Pessimistic, Realistic(4) + Optimistic. See if that works for you.
1
2 of 2
Develop Schedule Tools and Techniques

1
Critical path method (CPM) is a method used to estimate the minimum project duration and
determine the amount of scheduling flexibility on the logical network paths within the schedule. This
method calculates the early start, early finish, late start, and late finish dates for all activities without
regard for any resource limitations by performing a forward and backward pass analysis through the
schedule network.
The following figure is an example of the critical path method, which shows the critical path (CP) and the
forward and backward passes. This next section is long, but I want to make sure I explain it well enough
for you to understand the methods without question. I’ll explain critical path first, and then forward/
backward passes.
Critical Path
First, in order to calculate the critical path, you have to identify all the paths in the schedule. In this
example, the first path is Start-A-B-D-Finish and the second is Start-A-C-D-Finish. Once you have the
paths, you then add up the durations for each path, for example:
Start-A-B-D-Finish = 5+5+15 = 25
Start-A-C-D-Finish = 5+10+15 = 30
The CP is the longest path; therefore, path Start-A-C-D-Finish = 5+10+15 = 30 is the critical path.
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Forward Pass
The forward pass is done to capture the early start (ES) (upper-left box) and early finish (EF) (upper-right
box) durations for each activity. In order to calculate the forward pass, there’s a formula to remember: Early
start (ES) + Duration – 1.
Follow the example below as I go through the forward pass with you using the top boxes for each activity.
Start with activity A. In the top-left box, there is a number 1. This represents the beginning of the first day
of the project. (You can only count a single day once; that’s why we subtract 1 in the formula.) You take 1
plus the duration (top-middle box), which is 5 and then subtract 1, which equals 5. It looks like this: 1+5-
1=5. The 5 represents the end of the day on day 5.
Tip: Since this is the first activity in the project, the ES will always = 1 and the EF will = the duration, in this
case, 5. (I hope that made sense.)
Let’s go through the rest of the activities. Next, since the end of the day for activity A was 5, the next
activity, activity B, starts the morning of day 6. So, the ES for activity B is 6. If you apply the formula, it
looks like this: 6+5-1 = 10.
Now, here’s where it gets tricky. You’ll notice that activities B and C feed into activity D. To figure out the
ES for activity D, you need to take the largest EF from activities B and C and move that forward to activity
D. That means we need to complete activity C first.
For activity C, since the end of the day for activity A was 5, the morning of activity C will be 6. So, the ES
for activity C is 6. If you apply the formula, it looks like this: 6+10-1 = 15.
So, if you take the largest EF number from activities B (10) and C (15), it will be 15.
Let’s finish with activity D. Since the EF is 15, the ES for activity D will be 16. It’ll be 16+15-1 = 30 days.
That is the end of the forward pass for this example. You’ll see that we have all the ESs and EFs for each
activity. You might also notice that the EF equals the critical path (30). That’s one way you can double-
check you’ve done the forward pass correctly. Now, let’s do the backward pass.
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Backward Pass
The backward pass is done to capture the late start (LS) (lower-left box) and late finish (LF) (lower-right box)
durations for each activity. In order to calculate the backward pass, there’s a formula to remember: Late finish
(LF) - Duration + 1.
Since we are working backward, you need to add the day back in so we add 1 in the formula.
Follow the example below as I go through the backward pass with you using the bottom boxes for each activity.
Using the same example, let’s work backward starting with activity D. Since the EF from the forward pass was
30, we’ll start with that number when calculating the backward pass.
Using the formula on activity D, LF-Dur+1, it looks like this: 30-15+1=16. You may have noticed that the ES/LS
and EF/LF are the same numbers; this indicates this activity is on the critical path.
You then move onto activity B. Since the first day of activity D was 16, the last day for activity B would be 15—
you always subtract one day when moving backward. Applying the formula, it looks like this:
15-5+1 =11. You’ll notice that the ES/LS and EF/LF are not the same numbers; this indicates they are not on the
critical path.
Now, here’s another tricky part. You’ll notice that activity A has two successors going into it, activities B and
C. To figure out the LF for activity A, you need to take the smallest LS from activities B and C and move that
backward to activity A. That means we need to complete activity C first.
For activity C, the formula would look like this: 15-10+1 = 6. Now you have the LS for activities B (11) and C (6).
Since the smallest LS number is 6, you use this for activity A.
Applying the formula to activity A looks like this: 5-5+1 = 1. Again, you may have noticed that the ES/LS and
EF/LF are the same numbers; this indicates this activity is on the critical path.
Tip: When you complete the backward pass, you’ll notice that, in this case (activity A), the ES and LS are both
the number 1. If you’ve calculated the backward pass correctly, this should always equal one.
Tip: As you complete the forward and backward pass, you’ll notice that for each of the activities on the critical
path, the ES/LS and EF/LF will be the same number; for example, activity C has 6/6 and 15/15. This is another
way to double-check that you’ve calculated the forward and backward pass correctly. Also, each of the activities
that are on the critical path will have a float equal to 0.
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1
Float: Schedule flexibility is measured by the amount of time that an activity can be delayed or
extended from its early start date without delaying the project finish date or violating a schedule
constraint, and is termed total float. The critical path is typically characterized by 0 total float. To
calculate float for each activity, use the following formula LS-ES or LF-EF. Using the same example
network diagram, let’s calculate the float for each activity:
• Activity A: 1-1=0
• Activity B: 11-6=5
• Activity C: 6-6=0
• Activity D: 16-16=0
You’ll notice that activities A, C, and D all have 0 float. They are all on the critical path and critical path items
have 0 float. Which means, there is no wiggle room for these activities. If one or more of these activities is
delayed, the project will be delayed. It’s a day-for-day delay.
Activity B has 5 days of float, which means it can be delayed by up to 5 days before it affects the successor
activity (activity D) and the critical path.
You may be presented with a diagram like the one below on the exam and be asked to figure out the
duration or LF, where the question mark is. If you have three corners, you can figure out the fourth.
To figure out the duration, you would take 25 – 2 + 1 = 24. Therefore, duration is 24. You can double-check by
taking 2 + 24 – 1 = 25.
Once you have duration, you can figure out LF by taking LS + duration – 1 or 7 + 24 – 1 = 30. LF = 30. Another
easier way to calculate LF would be to figure out the float first by taking ES from LS, 7 – 2= 5. Then add 5 to EF,
25 + 5 = 30.
You can double-check the float by subtracting ES from LS, 7 – 2 = 5, or EF from LF, 30 – 25 = 5.
ES EF 2 25
A A
LS LF 7 ?
Now that we’ve covered the critical path method, let’s move onto the critical chain method.
1
Critical chain method (CCM) is a schedule method that allows the project team to place buffers on
any project schedule path to account for limited resources and project uncertainties. What this means
is that the schedule is built by estimating each activity aggressively. For example, an activity may be
estimated at realistically at 5 days, but optimistically at 2. The 2 days go into the schedule and the
remaining 3 days go into the buffer. The extra time is taken from each activity and put at the end of
the schedule as a buffer. The project is managed to the aggressive schedule, only using the buffer,
if needed.
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Resource optimization techniques adjust the schedule due to demand and supply of resources.
• 1 Resource leveling is a technique in which start and finish dates are adjusted based on resource
constraints with the goal of balancing demand for resources with the available supply. Resource
leveling can sometimes cause the critical path to change, usually to increase.
The following figure shows an example of resource leveling. You can see that Sue was over committed
on day one, so activities B and C were moved out so Sue could still complete the work. It’s important
to see if this type of maneuvering changes the critical path.
• 1 Resource smoothing is a technique that adjusts the activities of a schedule such that the
requirements for resources on the project do not exceed certain predefined resource limits.
This technique does not affect the critical path. An example of resource smoothing may look
like this:
• Tammy is scheduled to work the following hours:

– 30 hours, first week
– 10 hours, second week
– 20 hours, third week
• With resource smoothing it looks like this:

– 20 hours, first week
– 20 hours, second week
– 20 hours, third week
– It’s the same amount of hours for the three weeks, but it’s smoothed out so the resource
doesn’t go over predefined limits per week.
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1
2
3
6 of 6
Earned Value Examples
Example 1: You have a construction project to be completed in 12 months and the total cost of the project
is $100,000 USD. Six months have passed and you’ve spent $60,000 and the schedule says that 50% of the
work should be completed. Upon closer review you find that only 40% of the work has been completed.
Formula Answer
Budgeted at Completion Total cost/budget of project
Planned Value Planned % complete x BAC
Earned Value Actual % complete x BAC
Actual Cost Actual cost spent to date
Cost Variance EV - AC
Schedule Variance EV - PV
Cost Performance Index EV / AC
Schedule Performance Index EV / PV
Estimated at Completion BAC / CPI
Estimated to Completion EAC - AC
Variance at Completion BAC - EAC
To-Complete Performance Index (BAC - EV)/(BAC - AC)

BAC = Budget at completion
AC = Actual cost to date
EV = Earned value
PV = Planned value
Example 2: You have a project to install 10 hair dryers in a salon. The cost per hair dryer is $2,750 and the
project will last 10 weeks. At week 5, six hair dryers were installed and you’ve spent $15,500.
Formula Answer
Budgeted at Completion Total cost/budget of project
Planned Value Planned % complete x BAC
Earned Value Actual % complete x BAC
Actual Cost Actual cost spent to date
Cost Variance EV - AC
Schedule Variance EV - PV
Cost Performance Index EV / AC
Schedule Performance Index EV / PV
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Estimated at Completion BAC / CPI
Estimated to Completion EAC - AC
Variance at Completion BAC - EAC
To-Complete Performance Index (BAC - EV)/(BAC - AC)
Earned Value Examples

Example 1: You have a construction project to be completed in 12 months and the total cost of the
project is $100,000 USD. Six months have passed and you’ve spent $60,000 and the schedule says that
50% of the work should be completed. Upon closer review you find that only 40% of the work has been
completed.
Formula Answer
Budgeted at Completion Total cost/budget of project $100,000
Planned Value Planned % complete x BAC $50,000
Earned Value Actual % complete x BAC $40,000
Actual Cost Actual cost spent to date $60,000
Cost Variance EV - AC -$20,000
Schedule Variance EV - PV -$10,000
Cost Performance Index EV / AC 0.66 or 0.67
Schedule Performance Index EV / PV 0.8
Estimated at Completion BAC / CPI $149,253.73
Estimated to Completion EAC - AC $89,253.73
Variance at Completion BAC - EAC -$49,253.73
To-Complete Performance Index (BAC - EV)/(BAC - AC) 1.5
Example 2: You have a project to install 10 hair dryers in a salon. The cost per hair dryer is $2,750 and the
project will last 10 weeks. At week 5, 6 hair dryers were installed and you’ve spent $15,500.
Formula Answer
Budgeted at Completion Total cost/budget of project $27,500
Planned Value Planned % complete x BAC $13,750
Earned Value Actual % complete x BAC $16,500
Actual Cost Actual cost spent to date $15,500
Cost Variance EV - AC $1,000
Schedule Variance EV - PV $2,750
Cost Performance Index EV / AC 1.06
Schedule Performance Index EV / PV 1.2
Estimated at Completion BAC / CPI $25,943.39
Estimated to Completion EAC - AC $10,443.39
Variance at Completion BAC - EAC $15,56.61
To-Complete Performance Index (BAC - EV)/(BAC - A C) 0.916 or 0.92
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Study Tips: Project Cost Management

Understand the possible tools and techniques that may be used for estimating costs and determining
the budget. Imagine your own projects and the techniques that you use. Refer to the Estimate Costs
handout for more details on practicing the estimating tools.
Know how to calculate costs using earned value management. Many exam takers write down the
earned value formulas on their “brain dump” for reference during the exam. Memorize these formulas,
know how to use them, and most importantly, the logic behind the calculations.
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Estimate Costs Tools and Techniques

Here are a few terms you’ll need to understand for this process. These aren’t really covered in the
PMBOK® Guide, but you may be asked questions about these on the exam.
Fixed costs are costs that are constant throughout the life of the project. An example of a fixed cost
would be monthly rent.
Variable costs are costs that vary depending on the amount of resources used on the project. For
example, if you rent a piece of equipment for the project, but you decide you need more.
Direct costs are costs that are billed directly to your project. For example, buying equipment just for
the project.
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Indirect costs are costs that can’t be directly traced to a specific project and therefore will be
accumulated and allocated equitable over multiple projects. For example, electricity or water for the
building.
Life cycle costing looks at the total cost of the project from building it to transferring it to the owner
through its life. If a project is creating a new database the cost will include building the database, the cost
of maintaining it while it’s still in use and then the cost of dismantling it when it retires or is replaced.
Sunk costs are costs that have already been spent during the project. Don’t include sunk costs when
making future decisions about project costs.
There are several tools that can be used to help in estimating costs. Each is different from the other and
depending on the accuracy needed for the estimates, one may be used over another or in combination.
Analogous estimating is also known as top-down estimating and is based on another similar project in
the organization. It’s important to note that when comparing to another project, it has to be apples to
apples for the best estimates.
• This type of estimate is usually quick and easy and is made by management or a subject matter
expert familiar with the activity or project.
• It may not be as accurate as other types of estimating, like bottom- up.

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Parametric estimating is an estimating technique in which an algorithm is used to calculate cost or
duration based on historical data and project parameters.
• It’s best used for activities that are linear. For example, if a team paves 1 mile of road per hour and
it costs $1,000, then it stands to reason 10 miles would be paved in 10 hours and cost $10,000.
• This type of estimating is not good for activities that are unknown or haven’t been done previously.
Bottom-up estimating is the most accurate of the estimates and is when an estimate is applied to each
activity, starting from the bottom and working its way to the top. The estimates are then aggregated up
for a total cost. This process can be time consuming, but it’s more accurate.
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Three-point estimating is also called program evaluation and review technique (PERT) and is where
you use three data points to make an estimate. The three points are as follows:
• Pessimistic: worst-case scenario
• Realistic: most likely
• Optimistic: best-case scenario
There are two ways of calculating three-point estimates. Each depends on the level of accuracy needed:
Beta distribution is more accurate and puts a weight on the realistic value to come up with a more
accurate estimate. Let’s say a team member gives you the following estimates for the cost of an
activity: realistically $50, optimistically 20, and pessimistically $80.
You then apply this formula to calculate the estimate: P+(4)R+O/6.
• 80+(4)50+20/6 = 80+200+20/6 = 300/6 = $50 is the estimate for this activity.
Triangular distribution uses the same three points and the formula is much easier to use, but it’s not
as accurate: P+R+O/3.
• 80+50+20/3 = 150/3 = $50 is the estimate for this activity.
In this particular example the values happen to be the same, but that won’t always be the case. Let’s
look at the following example:
Beta: 15+(4)7+3/6 = $7.67
Triangular: 15+7+3/3 = $8.33
The values are different by less than a dollar. If you have a project where you need more accurate
estimates, then you probably want to choose the beta distribution formula.
Another important formula to calculate is standard deviation for PERT analysis. The standard deviation
formula is Pessimistic - Optimistic/6.
• $80-$20/6 = $60/6 = $10 standard deviation from the estimate
• For the beta calculation, $50 days +/- $10
Tip: A good way to remember the order of the PERT three-point estimate formula is to think of the word
PRO. Just remember the R is multiplied by 4. By the time you finish practicing these formulas you’ll be a
PRO: Pessimistic, Realistic(4) and Optimistic.
The PMBOK® Guide briefly mentions a range of possible estimates but doesn’t go into much detail.
There are five ranges of estimates to cover because you may see a question on the exam about them.
Rough order of magnitude: +75% to 100% to -25% to -50%
Conceptual: +50% to -30%
Preliminary: +30% to -20%
Definitive: +20% to -15%
Control: +15% to -10%
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As you move down the list, the order of magnitude decreases. The more information you know about your
project and project costs, the tighter the estimate.
For example, if you’re working on a project that is new to the organization and not much is known, at the
beginning of the project the rough order of magnitude estimate of +100% to -50% may be appropriate
until you gain more information.
If you are building a single-story house and it’s the same for every house on the block, the estimate may
be +15% to -10% as you have the costs down pat.
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Control Costs: Tools and Techniques
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Earned value management is a methodology that combines scope, schedule, and resource
measurements to assess project performance and progress. Using earned value management helps
the team understand whether they are on target for costs or schedule per the project plan. It compares
planned vs. actuals. It uses the cost, scope and schedule baselines to form the performance baseline,
which helps the project management team assess and measure project performance and progress.
Let’s go into more detail about each of the earned value formulas and what each one is used for and how
to remember them. Consider starting to practice a “brain dump sheet,” where you write down all the
formulas and other information you need to remember for the exam. Make sure you practice writing down
each formula name and the actual formula, until it becomes rote memory.
Here are some definitions in earned value management:
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Budget at completion (BAC): The total budget for the project or the sum of all budgets established
for the work to be performed.
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Planned value (PV): The value of the work you plan on completing during a specific period of time in
the project schedule. Or it’s the authorized budget assigned to scheduled work.
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Earned value (EV): The value of work that’s actually been performed or completed. Or it’s a measure
of work performed expressed in terms of the budget authorized for work.
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Actual cost (AC): The actual money spent on the project at a given point in time. Or it’s the realized
cost incurred for the work performed on an activity during a specific time period.
Tip: In order to calculate the earned value formulas, you only need to get values for each of the items
above. Once you have the four values above, you can calculate any of the EV formulas. It’s just a matter of
plugging in the values and solving the formula.
Variances from the approved baseline are measured with the following:
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Schedule variance (SV): The difference between the work you planned to do and what you actually
did (planned vs. actuals) at a specific point in time. It’s a measure of schedule performance expressed
as the difference between the earned value and the planned value. It is the amount by which the
project is ahead or behind the planned delivery date, at a given point in time.
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Cost variance (CV): The difference between the costs you planned to spend and what you actually
spent (planned vs. actuals) at a specific point in time. It’s the amount of budget deficit or surplus at a
given point in time, expressed as the difference between earned value and actual cost.
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Schedule performance index (SPI): Measures the efficiency of the work put into the project at a
specific point in time. It’s a measure of schedule efficiency expressed as a ratio of earned value to
planned value. It measures how well the project team is using its time.
PMP® Certification Exam Preparation with Sandra Mitchell

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Cost performance index (CPI): Measures the efficiency of the money spent on the project at a
specific point in time. It’s a measure of cost efficiency of budgeted resources, expressed as a ratio
of earned value to actual cost. It’s considered the most critical EVM metric and measures the cost
efficiency of the work completed.
There are a few values used for forecasting:

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Estimate at completion (EAC): Based on project performance, the cost at the end of the project may
be more or less than what was budgeted (BAC). EAC will tell you the cost estimate based on how the
team is performing now. The expected total cost of completing all work expressed as the sum of the
actual cost to date and the estimate to complete.
1
Estimate to completion (ETC): Takes into consideration what you’ve spent to date, then evaluates
team performance, and then provides a cost of how much the remaining work will cost to complete.
The expected cost to finish all the remaining project work.
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Variance at completion (VAC): Calculates the difference between the BAC and what you expect
to spend (EAC). A projection of the amount of budget deficit or surplus, expressed as the difference
between the budget at completion and the estimate at completion.
The final earned value forecast looks at how the project needs to handle cost performance to meet
original goals:
1
To-complete performance index (TCPI) Measure of the cost performance that is required to be achieved
with the remaining resources in order to meet a specified management goal, expressed as a ratio of the
cost to finish the outstanding work to the remaining budget.
1These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge,
(PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013.

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In this table, you’ll see each earned value term, abbreviation, formula, and description.
Term Abbrev Formula Description
Budgeted at BAC The sum of all budgets established The total budget originally
Completion for the work to be performed allocated for this project
Actual Cost AC The realized cost incurred for the The total costs spent during a
work performed on an activity specific period of time
during a specific period of time
Earned Value EV EV=Actual % Complete x BAC The planned value of all the work
completed (earned) to a point in
time
Planned PV PV=Planned % Complete x BAC The value of the work planned to

Value be completed to a point in time
Cost Variance CV CV=EV-AC The difference between the value

of work completed to a point in
time, and the actual costs to the
same point in time
Schedule SV SV=EV-PV The difference between the work

Variance completed to a point in time, and
the work planned to be completed
at the same point in time
Cost CPI CPI=EV/AC <1=bad Measures the cost efficiency of

Performance 1=on track budgeted resources at a specific
Index >1=good point in time
Schedule SPI SPI=EV/PV <1=bad Measures the schedule efficiency

Performance 1=on track at a specific point in time
Index >1=good
Estimate at EAC EAC=BAC/CPIC The expected total cost of

Completion completing all work
Estimate to ETC ETC=EAC-AC The expected cost to finish all the

Completion remaining project work
Variance at VAC VAC=BAC-EAC The estimated difference in cost at

Completion the completion of the project

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Term Abbrev Formula Description
To-Complete TCPIc TCPIc=(BAC-EV)/(BAC-AC) The efficiency that must be

Performance maintained in order to complete
or
Index on plan
(BAC-EV)/remaining funding
<1 is good is this case because you

have the space to spend more
Next, I’ve provided an example that you can use to practice applying these formulas. The first thing you
want to do is calculate the first four values: BAC, AC, EV, and PV.
Example: You have a project to install 10 hair dryers in a salon. The cost per hair dryer is $2,750 and the
project will last 10 weeks. At week 5, six hair dryers were installed and you’ve spent $15,500.
Budgeted at Completion $27,500
Actual Cost $15,500
Earned Value Actual % Complete x BAC $16,500
Planned Value Planned % Complete x BAC $13,750
Cost Variance EV-AC $1,000
Schedule Variance EV-PV $2,750
Cost Performance Index EV/AC 1.06
Schedule Performance Index EV/PV 1.2
Estimate at Completion EAC=BAC/CPI $25,943.39
Estimate to Completion ETC=EAC-AC $10,443.39
Variance at Completion VAC=BAC-EAC $1,556.61
To-Complete Performance Index (BAC-EV)/(BAC-AC) 0.91666

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BAC: To calculate BAC, just take 10 dryers times the cost per hair dryer ($2,750): 10(2,750)=$27,500.
AC: The next value to get is the AC, which is stated as “you’ve spent $15,500.”
EV: Now let’s calculate EV. You do this by taking Actual % Complete x BAC. To calculate the actual %
complete, take the number of hair dryers installed (6) and divide by the total number of hair dryers to
install (10): 6/10=.60. Then apply the formula: .60 x $27,500=$16,500. This is the value you’ve earned at
this point in the project.
PV: Now let’s calculate PV. You do this by taking Planned % Complete x BAC. To calculate the planned %
complete, take the number of hair dryers that were supposed to be installed by week 5 (5) and divide by
the total number of hair dryers to install (10): 5/10=.50. Then apply the formula: .50 x $27,500=$13,750.
This is the planned value at this point in the project.
Now you have all the values needed to complete the rest of the equations! Let’s move on to the rest of
the formulas.
CV: Calculated by taking EV-AC: 16,500-15,500=$1,000. Notice that this is a positive number. This is
good because you’ve spent less money than what you planned to spend at this point in the project.
SV: Calculated by taking EV-PV: 16,500-13,750=$2,750. Notice that this is a positive number. This is good
because you’ve installed more hair dryers than what you planned at this point in the project.
Tip: For any CV or SV value:
• >$1 is good as you’re getting more value out of your money or time.
• <$1 is bad as you’re getting less value out of your money or time.
• =$1 you’re right on target with costs and time.

CPI: Calculated by taking EV/AC: 16,500/15,500=1.06. This is good. What this means is that for every
$1.00 spent, you are getting $1.06 worth of value. You are getting more for your dollar.
SPI: Calculated by taking EV/PV: 16,500/13,750=1.2. This is good. What this means is that for every 1 hour
worked, you are getting 1.2 hours worth of work done. You are getting more for your time.
Tip: For any CPI or SPI index value:
• >1 is good as you’re getting more value out of your money or time.
• <1 is bad as you’re getting less value out of your money or time.
• =1 you’re right on target with costs and time.

The following formulas are used for forecasting:
EAC: Calculated by BAC/CPI: 27,500/1.06=$25,943.39. This means if the project continues performing, as
it is now, that the total cost of the project at completion will be $25,943.39. This is great news because the
BAC was set at $27,500. The sponsor will pay less than planned for the project.
ETC: Calculated by EAC-AC: 25,943.39-15,500=$10,443.39. What this does is looks at what you’ve
already spent (AC) and what you estimate to spend at completion (EAC) and, subtracts them so you end
up with an amount you’ll spend from now until the end of the project.

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VAC: Calculated by BAC-EAC: 27,500-25,943.39=$1,556.61. This tells you the difference between what
was budgeted (BAC) and what you’ll actually spend on the project (EAC).
TCPI: Calculated by (BAC-EV)/(BAC-AC) (original budget) or (BAC-EV)/(EAC-AC) (current forecast).
(27,500-16,500)/(27,500-15,500)=11,000/12,000=0.91666. This is good. The amount of effort to complete
the project on plan is less than 1. The project team doesn’t have to work as hard to complete the project
per plan. They may even finish early if they choose to.
Tip: This calculation is the exception when it comes to the indices. You want this number to be =/-1
because this measures the amount of effort needed to achieve the schedule or financial goals. Let’s say
the value was 2. This means the project team would have to put in twice the effort to complete the project
on plan.
• >1 is bad.
• <1 is good.
• =1 you’re right on target.

Tip: Here’s a way that might help you remember these four formulas. First, put them in alphabetical order
by pairs: CV, SV, CPI, SPI.
CV=EV-AC
SV=EV-PV
CPI=EV/AC
SPI=EV/PV
• Notice that they each start with EV.
• The first two are minus, minus.
• The second two are divide, divide.
• In alphabetical order, AC (costs) comes before PV (schedule). So it’s AC, PV, AC, PV. When you
practice writing these, do it in order vertically:
Formula 1st step 2nd step 3rd step 4th step 5th step
CV=EV-AC CV EV - AC
SV=EV-PV SV EV - PV
CPI=EV/AC CPI EV / AC
SPI=EV/PV SPI EV / PV
Tip: Also, there’s somewhat of a pattern with these three formulas that might help you remember them
when you practice for your dump sheet. First, put them in alphabetical order.

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EAC=BAC/CPI
ETC=EAC-AC
VAC=BAC-EAC
Next, if you look at them like it’s a tic-tac-toe board, notice how EAC starts in the upper-left corner, then
goes to the middle and then to the bottom-right corner.
Then BAC is on the top and the bottom. Remember to divide, then minus, minus. The last two you just
need to remember, no tricks: CPI and then AC. This helped me; maybe it’ll help you too!

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Study Tips: Project Quality Management

Quality management tools and terms are often difficult for many exam takers and are not covered in
detail in the PMBOK® Guide. If you’re not familiar with the tools or terms, you may want to memorize
them and write them on a “brain dump sheet” to use as reference during the exam.
See the additional handouts for the “Project Quality Management” chapter for more information on
each of these tools and terms.
Understand the difference between manage quality and control quality.
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Plan Quality Management Tools and Techniques Handout

When you think of quality, what do you think it is? Is it building a quality product? Or maybe making sure
your customer is satisfied? Or is it someone else’s problem to deal with? Well, 1quality, simply put, is to
minimize variations in products and to deliver results that meet defined requirements. It’s important to
recognize and consider the following when thinking about quality:
• Customer satisfaction: Understanding the customer’s requirements and making sure they are met is
key to quality.
• Prevention over inspection: It used to be that companies “fixed” the product after it was
completed, doing a lot of rework. It’s now all about being proactive and saving money in the long
run, by implementing quality processes from the start.
• Continuous improvement: To go along with prevention over inspection, it’s important to build in
continuous improvement into projects and processes. All processes, regardless of how well they run,
can be improved.
• Management responsibility: As stated before, quality is the responsibility of the project manager,
but it’s also management’s responsibility to provide the resources needed to implement quality
processes and maintain them.
• Mutually beneficial partnership with suppliers: In companies I’ve worked for, we really worked
with our suppliers to raise their quality standards. We proved to them that implementing a quality
system would benefit us, them, and their other customers. If they provided a good quality product,
then we were likely to continue business with them and recommend them to others.
• Cost of quality (COQ): This can include (1) the cost of not implementing quality processes. for
example, rejects, rework, cost of extra resources to rebuild or rework the product, and returns, or (2)
the cost of building in quality processes from the beginning, leading to fewer returns, rejects
or rework.
• Quality vs. grad: Quality looks at how a set of inherent characteristics fulfills requirements. For
example, the product is 4 inches by 6 inches and the grade is a category assigned to deliverables
that have the same functionality but different technical characteristics, like a Timex versus a Rolex
watch. The Timex may not be made of high-grade materials, but it’s high quality because it works
when you need it to and doesn’t break down.
Tools and Techniques Used for Quality Management

• Cost-benefit analysis looks at the cost of implementing quality processes. If the cost is more than the
benefit, then it doesn’t make sense to implement it. If the benefit outweighs the cost, then implement
it. The benefits may include acceptance of the product, less rework, and overall cost savings.
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• 1 Cost of quality includes all costs incurred over the life of the product by investment in preventing
nonconformance to requirements, appraising the product or service for conformance to
requirements, and failing to meet requirements (rework).
o Here is a chart showing what the COQ might look like for a company that does and doesn’t
take the time to implement quality processes:
120
100
Reduced
80 Cost
Failures
60
Inspection
40 Planning
20
0
Cost of Poor Quality Cost of Quality
The left bar shows the cost of poor quality. With very little planning, there’s more inspection and a lot
of failures, which costs the organization more money. The bar on the right shows that with more upfront
planning, along with inspection, the rate of failures is less and the cost savings are huge.
Here’s a figure showing details about the cost of quality and the cost of nonconformance:
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There are several data representation techniques. Let’s take a look at each of them.
3
• Flowcharts, also known as process maps, are used to show the flow of a process, from start to finish.
Creating them helps to identify gaps in a process or steps that may create quality problems.
• Logical data model is a visual representation of an organization’s data, described in business language.
Customers Addresses
First Name Street
Last Name City
Date of Birth State
Phone Number Zip Code
Email
Customer
Addresses
Customer Name
Customer Address
• Matrix diagrams use the relationships between factors to help with decision making.
Customer
Product 1 Product 2 Product 3 Product 4
Prioritization
Feature 1 O P P O
Feature 2
P P O O
Feature 3
P P P P
Feature 4 O O P P
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• Mind mapping uses diagrams to show relationships between objects or to organize information.
Sub-Topic Sub-Topic
Sub-Topic
Sub-Topic
There are actually many quality tools and techniques, but these are the ones you’ll be tested on.
1
These definitions are taken from the Glossary of Project Management Institute,
A Guide to the Project Management Body of Knowledge, (PMBOK® Guide)
– Sixth Edition, Project Management Institute Inc., 2017.
2
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition,
Project Management Institute Inc., 2017, Fig. 8-5, Page 283.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project
3
Management Institute, Inc., 2013, Figure 8-7, Page 239.
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Plan Quality Management Additional Terms and Definitions Handout

Now, I’d like to include some additional information that’s not covered in detail in the PMBOK® Guide, but
may be asked on the exam.
I’ll start with several quality processes that would be good to recognize if you see them.
Edward Deming’s total quality management states that everyone in the company contributes to total
quality management, meaning everyone is responsible and is able to make a difference, regardless of their
position in the company.
Walter Shewhart and Edward Deming’s Plan, Do, Check, Act is an iterative process often used to
control processes and products and also used in continuous improvement.
Kaizen’s continuous improvement involves continuously improving processes, even if the change is
relatively small.
Joseph Juran is best known for the 80/20 rule and is also known for Juran’s Trilogy: quality planning,
quality control, and quality improvement.
Philip Crosby is known for the concepts of zero defects, doing it right the first time, and the costs of poor
quality.
ISO 9000 is a standard for quality where organizations document their processes and follow those
processes.
Six sigma is used for process improvements, working to achieve high-quality standards with few defects.
For example:
• 1 sigma: 68.25% of data points fall within 1 standard deviation (SD) from the mean
• 2 sigma: 95.46%
• 3 sigma: 99.73%
• 6 sigma: 99.99966%
• You only need to know the percentages for sigma’s 1,2,3, and 6 for the exam.
The chart below shows each of the sigmas, the defects per million, and the percentages of defects.
Sigma Level Defects per Million Defects Percentage

1 691,462 69%
2 308,538 31%
3 66,807 6.7%
4 6,210 0.62%
5 233 0.023%
6 3.4 0.00034%
7 0.019 0.0000019%
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Standard deviation is how the data are scattered around the mean. This chart shows the normal bell-
shaped curve with standard deviations, up to 6 sigma.
Just-in-time manufacturing means inventory is no longer kept on the premises. The inventory or material
is brought in right before it’s needed. Since there aren’t any spare parts, the focus is on quality.
Here are some additional terms you should be familiar with for the exam:
Statistical independence is when the outcome of two events are not related or linked to each other. For
example, if you roll a die and get a 2, the chance of you getting a 2 on the second roll is independent of
the first roll.
Mutually exclusive means two events can’t happen at the same time. For example, if I’m walking down
the street and make a left at the corner, I can’t also make a right at the same time.
Gold plating is when you give the customer more than what they’ve asked for. For example, extra
functionality or extra scope.
• Tip: According to the PMI®, gold plating is a no-no and is never permitted in a project. If you see a
question pertaining to gold plating, just know that it is never acceptable.
Special causes vs. common causes refer to variances in testing results. There are two separate causes for
these variances, special and common:
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• Common causes are the ones you expect and are predictable in a process. For example, on a
control chart, you expect to see random variances between data points, within control limits.
• Special causes are causes that are generally considered unusual and preventable, but aren’t
predictable. For example, on a control chart, a data point out of control limits is considered a
special cause.
Prevention vs. inspection: It’s better to prevent defects from happening by building in quality processes
than to inspect for quality after the fact.
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Manage Quality: Tools and Techniques

One of the tools and techniques for the manage quality process is data representation, with six diagrams
in total. Let’s take a look at each of them.
• 1Affinity diagrams graphically show the details of an idea or potential causes of defects—commonly
used in mind mapping.
• 2 Cause-and-effect diagrams are also known as fishbone or Ishikawa diagrams. and may be written
any of these three ways on the exam. This diagram is used to get to the root cause of a problem,
with the main problem being placed at the head of the fish. The question “why?” is asked until the
root cause is found. Each fishbone may be a “cause” of the problem.
• 2 Flowcharts, also known as process maps, are used to show the flow of a process, from start to
finish. Creating them helps to identify gaps in a process or steps that may create quality problems.
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• 2 Histograms are bar charts that provide a visual representation of collected data. For example, a
histogram may show multiple columns with the number of defects per month for a process.
• 3 Matrix diagrams seek to show the strength of relationships among factors, causes, and objectives
that exist between the rows and columns that form the matrix.
• Scatter diagrams are graphical and show the relationship between two variables.
2
1

2

3
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of
Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017.
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Control Quality: Tools and Techniques

Let’s take a look at some of the tools and techniques in this process.
• 1 Cause-and-effect diagrams are also known as fishbone or Ishikawa diagrams, and may be written
any of these ways on the exam. This diagram is used to get to the root cause of a problem, with
the main problem being placed at the head of the fish. The question “why?” is asked until the root
cause is found. Each fishbone may be a “cause” of the problem.
• 1 Histograms are bar charts that provide a visual representation of collected data. For example, a
histogram may show multiple columns with the number of defects per month for a process.
• Control charts are used to determine whether a process is in control. As seen in the graphic below,
there are upper and lower customer specification limits. The customer states that if the product falls
within these specifications, it’s acceptable.
o You’ll also see that there is an upper (UCL) and lower (LCL) control limit. You always
want to make sure you’re in control of the process and your specifications fall within the
customer’s specifications; typically three standard deviations from the mean.
o Each of the data points is plotted and checked to see if it’s in specification. If not, the
process needs to be investigated and corrected.
o There’s also a rule of thumb that if there are seven data points above or below the mean
(called the rule of seven), then the process needs to be checked to see if it’s going awry,
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even though the data points are in specification. A normal distribution of data falls
above and below the mean and not typically all above or below, so once you see seven in a
row above or below the mean, the process needs to be checked.
o Tip: This is a favorite question on the exam so be aware of the rule of seven.
• Scatter diagrams are graphical and show the relationship between two variables.
1
• Checksheets or tally sheets may be useful in gathering data. Checksheets are used to organize
1
facts in a manner that will facilitate the effective collection of useful data about a potential quality
problem. For example, you may tally every time a mistake happens in a process or you’ve identified
a missing ingredient.
2 of 3
• Checklists provide a list of steps to be performed.
Travel Checklist
Passport
Sunscreen
Money
Camera
Toiletries
1 Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 8-7, Page 239.
2These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of
3 of 3
Study Tips: Project Resource Management

Know the components that make up the resource management plan. Think of your own project teams
to help relate how you acquire the resources and interact with the team throughout the project.
Developing your project team is an important concept for the exam. Refer to the handout for this
chapter since some of the concepts are not included in the PMBOK® Guide.
If you’re not familiar with the motivational theories, you may want to memorize them and write them
on your “brain dump sheet” to use as reference during the exam.
Understand the ways to resolve conflict on your project team. Imagine using these techniques on your
own team.
1 of 1
Develop Project Team Tools and Techniques Handout

This handout was generated to provide additional detail about some of the tools and techniques in this
chapter. Some are in the PMBOK® Guide, while others aren’t. You may see several questions on the exam
about this material, so pay special attention to the information provided and be able to recognize it on
the exam.
Team-Building Activities
Bruce Tuckman’s ladder of team development said that each team goes through five stages of
development:
1. Forming is when the team is just coming together as a team.
2. Storming is when there are disagreements or arguments as teams learn to work together.
3. Norming is when the team starts working better together and forms good relationships.
4. Performing is when the team becomes more efficient like a well-oiled machine.
5. Adjourning is when the project is completed and the team is disbanded.
Teams can go through all five of these stages, or may even skip some. The stages may start again when
someone new joins the team.
Motivational Theories
There are several theories of motivation that you may see on the exam. Be aware of each theory and who
invented it.
Maslow’s Hierarchy of Needs

Abraham Maslow’s theory is that people aren’t able to work at their full potential unless their basic needs
are met. If their basic needs aren’t met, like food, water, warmth, and rest, then they won’t be motivated
to perform well. Once the basic needs are met, then the person moves on to the next level. Each level
needs to be met before moving to the next. The highest level is self-actualization; reaching one’s full
potential.
1 of 4
Self-Actualization
achieving one’s
full potential
Esteem
feeling of accomplishment,
recognition
Belongingness
intimate relationships, friends
Safety
freedom from fear, security
Physiological Needs
food, water, warmth, rest
2 of 4
McGregor’s Theory X and Theory Y
Douglas McGregor believed that employees fit into one of two different categories.
Each theory is based on the environment and its needs. Neither one is preferred over the other.
Theory X
• Dislike or avoid work
• Must be controlled
• Avoid responsibility
• Are lazy
• Must be forced or coerced to work
Theory Y
• Like work
• Exercise self-direction
• Seek responsibility
• Want to achieve
• Work without supervision
Fiedler’s Contingency Theory

Fred Fiedler developed the contingency theory based on his belief that a leader’s effectiveness is
contingent upon the situation. A leader can either be task oriented or relationship oriented. The
effectiveness of one over the other is dependent on the situation and the individual.
Herzberg’s Hygiene Theory

Frederick Herzberg’s hygiene theory has nothing to do with personal hygiene, as the name might lead you
to believe. Herzberg’s theory is similar to Maslow’s in that having the hygiene factors doesn’t necessarily
lead to satisfaction, but the lack thereof, will lead to dissatisfaction. Also, the presence of the motivating
factors may lead to motivation, but not without the hygiene factors.
Hygiene Factors Leading to Dissatisfaction Motivational Factors Leading to Satisfaction
Company policy Achievement
Supervision Recognition
Relationship with boss Work itself
Work conditions Responsibility
Salary Advancement
3 of 4
Relationship with peers Growth
Vroom’s Expectancy Theory

Victor Vroom developed the expectancy theory and stated that people behave in a certain way based on
what they expect the result will be. For example, people will work toward a goal if they think the goal or
reward is achievable.
McClelland’s Needs Theory

David McClelland believed that each person has one of three main driving motivators: the need for
achievement, power, or affiliation.
Need for Achievement (nACH) Need for Power (nPow) Need for Affiliation (nAff)
Drive to excel Want to control others Create friendships
Achieve in relation to a set of standards Need to get things done Develop good relationships
Strive to succeed Desire to influence and teach Avoid conflict
Desire feedback

Motivational theories are a favorite on the exam, so it’s important to be aware of all these theories
because you may see them on the exam.
4 of 4
Study Tips: Project Communications Management

Communication is a key aspect of project management. You’ll need to know the different ways of
communicating for the exam and be able to identify the type of communication.
Know how to calculate the communication channels. See the example video explaining how to solve
these problems.
1 of 1
Plan Communications Management: Tools and Techniques

The first tool is 1communication requirements analysis, which is an analytical technique to determine the
information needs of the project stakeholders. This is done through:
• Stakeholder register
• Communication channels
• Organizational charts
• Project organization and stakeholder responsibility, relationships, and interdependencies
• Internal and external information needs
• Legal requirements
• Development approach
This next one is a favorite for the exam. It’s also important for the project manager to be aware of the
number of communication channels for the project.
There is a simple formula for figuring out the number of communication channels: n(n-1)/2, where n is the
number of stakeholders.
For example, a project with 5 stakeholders would look like this: 5(5-1)/2=5(4)/2= 20/2=10 communication
channels.
Understanding how many communication channels there are helps the project manager determine how
many stakeholders to communicate with, how to communicate with them, how much detail to use, how
often to communicate, and who will send the communication.
Tip: When reading a question about communication channels, remember if it reads like this:
• A project with 15 stakeholders—the project manager is already included in the stakeholder count.
The total number of stakeholders would be 15.
• A project manager has a team of 15—the project manager isn’t included in the stakeholder count
but needs to be included. The total number of stakeholders would be 16 (team of 15 + PM=16).
The next tool is 2communication technology, a set of specific methods used to transfer information among
project stakeholders. Factors that affect the choice of communication technology include:
• Urgency and need for information
• Availability and reliability of technology
• Ease of use
• Project environment
• Sensitivity and confidentiality of the information
1 of 3
Another tool is called 3communication models, which represents the communication process between a
sender and a receiver. This is another favorite for the exam. You’ll need to understand the communication
models. Let’s discuss the basic communication model, which has three components:
• The sender encodes the message.
• The sender transmits the message.
• The receiver decodes the message.
The next model is an interactive model, which is similar to the basic model, but has more components.
Let’s take a look at what the model looks like in the following figure.
1. On the left is the 4sender, who has four responsibilities:
2. Encoding the message
3. Selecting the type of communication method (medium)
4. Transmitting the message
5. Confirming with the receiver the message was understood
On the right side is the 4receiver, who has three responsibilities:
1. Decoding the message
2. Acknowledging the message was received
3. Providing feedback or responding that the message was understood
You’ll notice in the following figure that there is “noise” in the middle where the message is being
transmitted. Noise may come from physical noise like office noises or equipment or from cultural noise
like language differences. That’s why it’s important to make sure the person receiving the message fully
understands what the message is and replies with their understanding.
2 of 3
The fourth tool is called 6communication methods, which is used to transfer information among project
stakeholders. Several communication methods are important to recognize for the exam, including:
• Interactive is when multiple parties communicate directly with each other. Examples might be phone
calls or instant messaging.
• Push communication is when communications are sent directly to the stakeholders. This might be
through emails, voicemails, or letters.
• Pull communication is when the information is posted somewhere, like the company intranet.
Stakeholders then “pull” that information when they are ready to review it. This is really good when the
communication needs to go to large numbers of people.
There are different approaches to consider when thinking of communications:
• Interpersonal: information exchanged between individuals, generally face-to-face
• Small group: groups of three to six people
• Public: a single person addressing a group of people
• Mass: usually no relationship between the speaker and large groups of people
• Networks and social computing
The project manager needs to analyze each of these methods to see which is best to communicate to
stakeholders. The project manager may use all of them depending on the information that needs to be
disseminated.
You may also see the following communication types on the exam:
• Active listening is where the sender and receiver take actions to make sure the message is understood.
• Effective listening is when the receiver gives the sender his or her full attention and observes verbal
and nonverbal cues and provides feedback.
• Feedback can be conveyed by nodding, eye contact, hand gestures, acknowledging comments, and
asking questions.
• Nonverbal is conveyed by body language, eye movement, and silence.
• Paralingual is done by listening to the pitch of a person’s voice.
1
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of
2
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide)– Sixth Edition, Project
Management Institute, Inc., 2017, Pages 370–371.
3
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project
Management Institute, Inc., 2017, Page 371.
4
Management Institute, Inc., 2017, Pages 371–372.
5
6
Management Institute, Inc., 2017, Pages 374.
3 of 3
Communication Channels Questions

1. On your current construction project the project manager is working with 7 other stakeholders --two
new stakeholders join the project. How many new channels have been added?
a. 17 channels
b. 24 channels
c. 28 channels
d. 45 channels
Solution
The number of communication channels = n(n-1)/2, where n = number of stakeholders.
For this question, the project manager is working with 7 other stakeholders. You add the PM to the
team and that equates to 8 stakeholders.
The number of communication channels = 8(7)/2 = 56/2 = 28 channels.
Two new stakeholders join. Now there are 10 stakeholders.
The number of communication channels = 10(9)/2= 90/2= 45 channels.
We started with 28 channels with 8 people and now have 45 channels for 10 people.
Subtract 28 from 45 and you get 17. That means 17 new channels were added.
2. A project team has 9 members. How many communication channels are there?
a. 10
b. 28
c. 36
d. 45
Solution
This question is also fairly straightforward. Since it’s stating the “project team” has 9 members, the
project manager is included in the total number of team members. So, you just plug in the number
into the equation.
3. You are managing an engineering project and 10 senior engineers are reporting to you. Your
sponsor has asked you to add a team member. You hired 2 more senior engineers. How many
communication channels will be added by this hiring?
a. 21
b. 23
c. 55
d. 78
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Solution
For this question, the project manager is working with 10 engineers. You add the PM to the team
and that equates to 11. The total project team size is now 11.
Two new senior engineers were added. Now there are 13 team members.
We started with 55 channels with 11 people and now have 78 channels for 13 people.
Subtract 55 from 78 and you get 23. That means 23 new channels were added.
4. There are 23 stakeholders. What is the number of total potential communication channels in this
project?
a. 231
b. 253
c. 276
d. 506
Solution
This question is straightforward. You know you have 23 stakeholders so just plug that number into
the equation.
5. A project team has 9 members. How many communication channels are there?
a. 10
b. 28
c. 36
d. 45
Solution
This question is also fairly straightforward. Since it’s stating the “project team” has 9 members, the
project manager is included in the total number of team members. So, you just plug in the number
into the equation.
The number of communication channels = 9(8)/2=72/2 = 36 channels.
2 of 2
Study Tips: Project Risk Management

Understand the importance of risk management, especially if you don’t formally have a risk
management plan for your own projects.
Know the different diagramming techniques that can be used to identify risks.
Know the different tools and techniques used to perform quantitative risk analysis.
Understand the options for risk responses for both positive and negative risks. You’ve probably used
many or all of these strategies on your own projects, and they are popular questions on the exam.
1 of 1
Decision Tree Analysis

The decision tree is looking to answer the question: Should we build a new plant or upgrade the
existing one?
Each path determines the expected monetary value (EMV) for each choice. In this case, upgrading the
plant has a higher EMV of $46M. Let’s break this down so you see how to get the numbers in the figure.
There are multiple steps for each path. I’ll walk you through the Build New Plant path first and then
Upgrade Plant to get the EMVs for both.
Path 1: Build New Plant

This will cost $120M (initial investment). There is a 60% chance the new plant will generate a reward
of $200M with a strong demand and a 40% chance it will generate a reward of $90M with a weak
demand. To understand the impact of building a new plant, let’s calculate the numbers for each
probability.
For strong demand: Take the reward ($200M) and subtract the initial investment ($120M), which looks like
this: $200M - $120M = $80M.
For weak demand: Take the reward ($90M) and subtract the initial investment ($120M), which looks like
this: $90M - $120M = -$30M (notice this is a negative number).
Calculate the EMV: Take the outcome of strong demand ($80M) and multiply it by its probability (.60).
Then take the outcome of weak demand (-$30M) and multiply it by its probability (.40) and add them
together.
EMV = .60 ($80M) + .40 (-$30M) = $48,000,000 + -$12,000,000 = $36M
Path 2: Upgrade Plant

This will be a $50M investment. There is a 60% chance the new plant will generate a reward of $120M
with a strong demand and a 40% chance it will generate a reward of $60M with a weak demand. To
understand the impact of upgrading the plant, let’s calculate the numbers for each probability.
For strong demand: Take the reward ($120M) and subtract the initial investment ($50M), which looks like
this: $120M - $50M = $70M.
For weak demand: Take the reward ($60M) and subtract the initial investment ($50M), which looks like
this: $60M - $50M = $10M.
Calculate the EMV: Take the outcome of strong demand ($70M) and multiply it by its probability (.60).
Then take the outcome of weak demand ($10M) and multiply it by its probability (.40) and add them
together.
EMV = .60 ($70M) + .40 ($10M) = $42,000,000 + $4,000,000 = $46M
1 of 2
Deciding Which Path to Take
Take the larger value of the two, which is $46M from Upgrade Plant. This is the best course or path to
take because it produces the highest EMV for the company.
This path also has the lowest risk because it helps to avoid the loss of $30M in the worst-case scenario
(Build New Plant weak demand).
1
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide)
– Sixth Edition, Project Management Institute Inc., 2017, Fig. 11-5, Page 435.
2 of 2
Procurement Study Guide
PMI philosophy: Procurement management should be formal. “Good fences make good neighbors.”
Fixed Price (Lump Sum) When: Scope is thoroughly defined.
Firm Fixed Price (FFP) Fixed price for all work. Risk with: Seller
Fixed Price Incentive Fee (FPIF) Cost with an incentive fee up to a fixed ceiling price. Risk with: Seller
Incentive fee for early completion or delivery at target cost.
For contracts where owner needs to have the work done

timely or within a set budget.
Fixed Price Economic Price Adjustment Fixed price with stipulation for fluctuation-based economic Risk with: Seller
(FP-EPA) factor such as interest rates, currency exchange, etc.
For longer term contracts where market forces make pricing

difficult, e.g. fuel costs, steel.
Cost Reimbursable When: Scope is defined with variable means and methods.
Cost Plus Fixed Fee (CPFF) Buyer pays actual costs; seller receives fixed fee on costs. Risk with: Buyer
The fixed fee is the profit.
However, the percentage profit reduces if the seller’s costs

increase.
Taking Charge of Your Career with Christine DiDonato
1 of 2
Cost Plus Incentive Fee (CPIF) Buyer pays actual costs. Seller gets fee for meeting a target Risk with: Buyer and seller
specified in the contract.
However, buyer still pays costs, profit (fee) may or may not
be earned.
Time and Materials (T&M) When: Scope is not defined or is uncertain, generally used Risk with: Buyer
for professional services.
Point of total assumption (PTA): In cases where contract includes price ceiling (PMI associates with FPIF).
Target cost of work by seller is $71,000.

Target price of work to seller is $75,000.
Contract ceiling to seller is $84,000.
Incentive terms are buyer 75% and seller 25%.
PTA = Target cost + (Ceiling price – target price) / buyer’s % of cost overrun
= $71,000 + ($84,000 - $75,000) / 0.75 = $83,000
Calculate the point seller is responsible for all future costs and soon begins to lose money.
Taking Charge of Your Career with Christine DiDonato
2 of 2
Study Tips: Project Procurement Management

Know the types of contracts and when they are used in projects. Refer to the Procurement Study
Guide and Plan Procurement Management Terms and Definitions handouts for details on each type of
contract.
Understand that procurements are closed in this process and what that entails.
1 of 1
Plan Procurement Management: Terms and Definitions

When it comes to contracts, there are two procurement roles to be aware of:
• The buyer is the party purchasing a product, service or result.
• The seller is the party providing the product, service or result.
In order to have a strong grasp of the procurements process, an understanding of the different contract
types is essential. It’s also important to understand who bears the risk with each contract type.
• 1
Fixed-price contracts: Agreements that set the fee that will be paid for a defined scope of work,
regardless of the cost or effort to deliver it. This type of contract is good when the scope of work is
known and is best for the buyer. The seller bears all the risk with this type of contract because, if it
takes longer to complete the work or costs more than predicted, the seller still only gets paid the
fixed price.
• 2
Firm fixed price contracts (FFP): When the buyer pays the seller a set amount (as
defined by the contract), regardless of the seller’s costs.
• 2
Fixed price incentive fee (FPIF): When the buyer pays the seller a set amount (as
defined by the contract), and the seller can earn an additional amount if the seller meets
predefined performance, cost, or schedule criteria. An example might be that the buyer
agrees to pay the seller an additional $2,000 if the seller completes the predefined work
a week early.
• 2
Fixed price with economic price adjustment (FP-EPA): Provides a special provision
allowing for predefined final adjustments to the contract price due to changed
conditions, such as inflation changes or cost increases (or decreases) for specific
commodities. For example, the cost of fuel, steel, or interest rates.
1 of 3
• 1
Cost-reimbursable contract: A contract involving payment to the seller for the seller’s actual costs,
plus a fee typically representing seller’s profit. This type is often used when the scope of work is
likely to change during the execution of the contract. Cost-reimbursable contracts often include
incentive clauses where, if the seller meets or exceeds selected project objectives, such as schedule
targets or total cost, then the seller receives, from the buyer, an incentive or bonus payment.
• 3
Cost plus fixed fee (CPFF): When the buyer reimburses the seller for the seller’s
allowable costs (allowable costs are defined by the contract), plus a fixed amount of
profit (fee). This type of contract is best for the seller, especially if the scope isn’t well
defined, as the buyer pays for cost overruns. The buyer bears the risks.
• 3
Cost plus incentive fee (CPIF): Where the buyer reimburses the seller’s allowable
costs (allowable costs are defined by the contract), and the seller earns a profit if it
meets defined performance criteria. For example, if there are cost savings or the work is
completed early. The Buyer and Seller both bear the risks.
• 3
Cost plus award fee (CPAF): Involves payments to the seller for all legitimate actual
costs incurred for completed work, plus an award fee representing seller profit. This
type of contract is based on the seller meeting broad subjective performance criteria. It
is not subject to appeals.
• Time and materials contracts (T&M): Also known as time and means, are a hybrid type of contract
with both cost-reimbursable and fixed-price. This is where the seller charges for both time and cost
of materials to complete the defined work. The buyer bears the risk in these types of contracts. This
contract type is best for the seller. Typically, these are contracts where the statement of work is not
well defined.
Point of total assumption is another term that may be asked about on the exam. There are several types
of contracts where the risks are shared between the buyer and the seller. Point of total assumption is used
especially in fixed-price incentive fee contracts.
2 of 3
A formula is used to calculate the point in which the seller takes on 100% of all cost overruns. The formula:
Target cost + (ceiling price – target price) / Buyer’s % share of cost overruns
Here’s an example:
Target cost of the project: $2,000,000

Target profit for seller: $200,000
Target price: $2,200,000 (Target cost + Profit for seller)
Ceiling price: $2,300,000 (the maximum the buyer will pay)
Share ratio: 80% buyer–20% seller for over-runs
PTA = $2,000,000 + ($2,300,000 – $2,200,000) / .80 = $2,000,000 + $100,000 /.80 =
$2,000,000 + $125,000 = $2,125,000
This is the point at which the seller would take on 100% of any cost overruns. There is a risk at this point
for the buyer as the seller may not have incentive to finish the project earlier because of the cost overruns.
It’s best to keep track of the project costs through earned value to track if/when the project costs are
reaching this point to avoid adding undue risks.
1
2
Institute, Inc., 2017, Page 471.
3
Institute, Inc., 2017, Page 472.
3 of 3
Study Tips: Project Stakeholder Management

Managing stakeholders is an important aspect of project management. If you don’t normally have a
formal process for working with stakeholders on your project, pay special attention to the tools and
techniques for this section.
You should know the various ways to identify, communicate, and manage the expectations of
stakeholders.
1 of 1

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Cert Prep: Project Management Professional (PMP)® (2018)

with Sandra Mitchell

BAC Budget at completion

BCA Benefit/cost analysis

BCR Benefit-cost ratio

BIM Building information model

CCB Change control board

CCM Critical chain method

Change Change requests

COQ Cost of quality

CPAF Cost plus award fee

CPFF Cost plus fixed fee

CPI Cost performance index

CPIF Cost plus incentive fee

CPM Critical path method

EAC Estimate at completion

EEFs Enterprise environmental factors

EMV Expected monetary value

ETC Estimate to completion

EVM Earned value management

FFP Firm fixed price

FPEPA Fixed price with economic price adjustments

FPIF Fixed price incentive fee

IRR Internal rate of return

MOU Memorandum of understanding

NPV Net present value

OBS Organizational breakdown structure

OPAs Organizational process assets

PBP Payback period

PDM Precedence diagramming method

PMI Project Management Institute

PMIS Project management information system

PMO Project management office

RACI Responsible, accountable, consult, and inform

RAM Responsibility assignment matrix

RBS Resource or risk breakdown structure

RCA Root cause analysis

RFI Request for information

RFQ Request for quotation

ROI Return on investment

ROM Rough order of magnitude

SIPOC Suppliers, inputs, process, outputs and customers

SME Subject matter experts

SOW Statement of work

SPI Schedule performance index

SWOT Strengths, weaknesses, opportunities, and threats

T&M Time and materials

TCPI To-complete performance index

The Plan Project management plan

TOR Terms of reference

VAC Variance at completion

VAC Variance at completion

VOC Voice of the customer

WBS Work breakdown structure

WPD Work performance data

WPI Work performance information

WPR Work performance reports

Common Inputs, Tools and Techniques and Outputs

• Organizational culture, structure, and governance

• Geographic distribution of facilities or resources

• Information technology software

• Social and cultural influences and issues

• Government or industry standards