PMP Exam Preparation Course Overview

Project Management Professional
(PMP)
Exam Preparation Course
Eng: HUSSAM ELHAW

PMI : PGMP - PMP SP RMP
IBTA : CBP EXCUTIVE MASTER
1 Eng: HUSSAM ELHAW 20/9/2014

COLLEGE DEGREE
Min. 3years / 36 months experiences .
4500 hours in pm .
35 hours of formal education .
High school diploma, associates degree, or the global

equivalent
Min. 5years / 60 months experiences .
7500 hours in pm .
35 hours of formal education .

Format of PMP exam
175 are
scored, 25 106 Questions
Only
are correct will test
200 Pass
research out of knowledge,
MCQs or
questions 175 i.e. application &
Fail
and not 61% analysis
scored

Format of PMP exam
15 minutes
Books not Mobiles not
4 hours familiarizat
allowed allowed
ion

introduction
Eng: HUSSAM ELHAW

What is a project?
A project is a temporary endeavor undertaken
to create a unique product, service, or result.
Temporary
has a definite beginning and a definite end, not
ongoing efforts.
Ceases when objectives have been attained.
Team disbanded upon completion.

What is a project?
Unique:
the products or services are different in some way
from other products or services.
The presence of repetitive element does not change
the fundamental uniqueness of the project work.
Progressively Elaborated:
Progressively means proceeding in steps containing
steady increments.
Elaborated means worked out with care and detail;
developed thoroughly.

What is a Project ?
A Project is a temporary endeavor undertaken to create a

unique product, service, or result.
The end is reached when :

the projects objectives have been achieved
Or when the project is terminated because :
its objectives will not or cannot be met
the need for the project no longer exists
Temporary usually means that the project is temporary, not the deliverable.

What is Project Management?
The application of knowledge, skills, tools, and techniques to project
activities in order to meet the project requirements.
Managing a project typically includes, but is not limited to:

Identifying requirements
Addressing needs, concerns, and
expectations of the stakeholders
Communications
Managing stakeholders
Balancing the competing

9 project constraints
Eng: HUSSAM ELHAW 20/9/2014
Project Constraints :
limiting factors that affect the execution of a project,
program, portfolio, or process.
triple constraint
PMP constraint
Relationships Among
Portfolio Management, Program Management, Project Management,
and Organizational Project Management
Organizational Project Management (OPM)
RELATIONSHIPS PORTOFOLIO
MANAGEMENT
AMONG :
PROGRAMS
MANAGEMENT
PROJECT
MANAGEMENT
Project Management Context

Programs and Program Management
A Program is a group of related projects.
Management is coordinated because:
they may use the same resources,
the results of one project feed into another, or
they are parts of a larger "project that has been
broken down to smaller projects".
ADVANTAGES
Decreased risk
Economies of Scale
Improved Management

Portfolios and Portfolio Management
A Portfolio is a collection of projects or programs
and other work that are grouped together to
facilitate effective management of that work to
meet strategic business objectives.
The projects or programs in the portfolio may not

necessarily be interdependent or directly related.

Relationships Among
Portfolio Management, Program Management, Project Management,
and Organizational Project Management
Organizational Project Management (OPM) :

OPM is :
a strategy execution framework utilizing project, program,
and portfolio management as well as organizational enabling
practices to consistently and predictably deliver organizational
strategy producing better performance, better results, and a
sustainable competitive advantage.

Comparative Overview of Project, Program , and Portfolio
Management

Projects and Strategic Planning
Projects are often utilized as a means of directly or indirectly achieving objectives
within an organizations strategic plan :
Eng: HUSSAM ELHAW
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Project Management Office (PMO)
An organizational entity that centralizes and
coordinates the management of projects.
Responsibility of a PMO can range:

from providing project management support functions
to actually being responsible for the direct management of a project.

Functions of a PMO
A PMO performs a number of functions, for
example:
Managing shared resources across projects.
Project Management Process/Methodology: Develop
and implement a consistent and standardized
processes.
Coaching, mentoring, training and oversight.
Developing and managing project policies, procedures,
templates and other shared documentation
(Organizational Process Assets).
Monitoring compliance with PM standards, policies,
procedures and templates.

Project Management Office (PMO)
Home for project managers: In some cases, maintain a
centralized office from which project managers are loaned
out to work on projects.
Project management software tools: Select and maintain
project management tools for use by employees. Also
manage the Project Management Knowledge base.
Portfolio management: Establish a staff of program managers
who can manage multiple projects that are related, such as
infrastructure, technologies, desktop applications and so on,
and allocate resources accordingly.

Authority of PMO
Manage the interdependencies between projects
Help provide resources
Terminate projects
Help gather lessons learned and make them available
to other projects
Provide templates
Provide guidance
Provide enterprise project management software
Be more heavily involved during project initiating than
later in the project.

Types of PMO structures
Supportive. Provide a consultative role to projects by supplying templates,
best practices, training, access to information and lessons learned from other
projects.
This type of PMO serves as a project repository.
The degree of control provided by the PMO is low.
Controlling. Provide support and require compliance through various

means.
Compliance may involve adopting project management frameworks or
methodologies, using specific templates, forms and tools, or conformance to
governance.
The degree of control provided by the PMO is moderate.
Directive. Directive PMOs take control of the projects by directly managing

the projects.
The degree of control provided by the PMO is high.

Differences between role of
Project Managers and PMO
Project Manager PMO
specified project Manages major program scope
objectives changes .
Optimizes the use of shared

Controls the assigned project organizational resources across all
resources . projects.
Manages the methodologies ,

Manages the constraints . standards among projects at the
enterprise level.

Relationship Between Project Management, Operations
Management, and Organizational Strategy
Operations and Project Management:
Similarities between project and operations

Both performed by people even 1 person.
Both are constrained by resources.
Both are planned, executed and controlled.
Both are done for a purpose and have interrelated activities.
Difference between projects and operations

Operations are ongoing and repetitive.
Projects are temporary and create unique products.
They have different management techniques

Relationship Between Project Management, Operations
Management, and Organizational Strategy
Operations and Project Management:
Projects can intersect with operations at various points during the

product life cycle, such as:
At each closeout phase;
When developing a new product, upgrading a product, or expanding outputs;
While improving operations or the product development process; or
Until the end of the product life cycle.
Business Value
Business value is :
The entire value of the business.
The total sum of all tangible and intangible elements.
Examples of tangible elements include :
monetary assets, fixtures, stockholder equity, and utility.
Examples of intangible elements include :
good will, brand recognition, public benefit, and trademarks.
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Eng: HUSSAM ELHAW
the role of Project Manager
The role of a project manager is distinct from a functional

manager or operations manager.
Functional manager is focused on providing

management oversight for a functional or a business unit
(such as a department like HR)
Operations managers are responsible for ensuring that

business operations are efficient.
He runs the day-to-day operations of an organizations .

the role of Project Manager
The effective project management requires that the
project manager posses the following characteristics :
Knowledge Refers to what the project manager knows about

project management.
PerformanceRefers to what the project manager is able to do or

accomplish while applying his or her project management
knowledge.
PersonalRefers to how the project manager behaves when

performing the project or related activity.

ORGANIZATIONAL INFLUENCES
AND PROJECT LIFE CYCLE

Organizational Influences on Project Management
1. Organizational Cultures and Styles :
Cultures and styles are typically known as cultural norms.
The norms include a common knowledge regarding to approach getting the work
to be done .
Such as:
established approaches to initiating and planning projects,
the means considered acceptable for getting the work done, and
recognized authorities who make or influence decisions.
These cultures can be observed by noting such things as :

Shared visions, mission, values, beliefs, and expectations;
Regulations, policies, methods, and procedures;
Motivation and reward systems;
Risk tolerance;
View of leadership, hierarchy, and authority relationships;
Code of conduct, work ethic, and work hours; and
Operating environments.

2. Organizational Communications
Project management success in an organization is highly

dependent on an effective organizational communication style.
Organizational communications capabilities have great influence on

how projects are conducted.

3. Organizational Structures :
From the perspective of structure,
organizations fall into three categories:

Functional Organization
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Functional Organization
The organization is grouped by specialty / functions
Each employee has one clear supervisor
Projects generally occur within a single department (silo)
Each department does its project work independently, coordination will be

routed through departmental heads
Team members complete project work in addition to normal department

work
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Projectized Organization

Projectized Organization
The entire company is organized by projects.
The project manager has control of projects.
Employees are assigned and report to a project manager.
Employees complete only project work and when its over they
don't have HOME.
Communication generally occurs only within the project.
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Weak Matrix Organization
The project manager's role in a weak matrix might be more of :

Project Expediter
Staff assistant and communication coordinator.
No power, cannot take decisions.
Project Coordinator
Similar to Project expediter but has some power to take decisions, and reporting
to higher-level manager Eng: HUSSAM ELHAW
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Balanced Matrix Organization

Strong Matrix

Matrix Organization
Two Bosses: Team members reports to Project Manager and
Functional Manager
Employees do project work in addition to normal departmental work
Weak matrix: Power rests with functional manager, and project manager
plays a role of expeditor or coordinator.
Balanced matrix: Power is shared between project manager and

functional manager
Strong matrix: Power rests with project manager

Eng: HUSSAM ELHAW
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Advantages & Disadvantages
Functional
Advantages Disadvantages
Clear career paths in More than one boss for
specialization areas project team members
Team members report to Resource allocation is

one supervisor challenging
Easier specialist Potential for conflict

management between functional and
project managers

Matrix
Improved project manager More than one boss for
control over resources project team members
Project
Resource allocation is
objectives are supported in challenging
the organization
Potential for conflict
More support from between functional and
functional organization project managers
Projectized
Efficient project Lack of professionalism in

organization specialization areas
Project loyalty No home when projects

are completed
Simplified communications
Duplication of facilities and
job functions
Composite Organization
An organization may manage most of its projects in a strong matrix, but allow small projects to be
managed by functional departments.
4. Organizational Process Assets
Every organization keeps a database of all the information
and records of the previous executed projects and these
information are stored in a central repository called :
Organizational Process Assets.

Organizational process assets may be grouped into two

categories:
(1)processes and procedures,

(2) corporate knowledge base.



5. Enterprise Environmental Factors (EEF)
Refer to :
conditions not under the control of the project team,
that influence, constrain, or direct the project.
Internal External
Enterprise environmental factors are considered inputs to most planning

processes, may :
enhance or constrain project management options, and
may have a positive or negative influence on the outcome.



Project management information system :

The PMIS includes:
The Configuration Management System
Identifies and documents the functional and physical characteristics of a
product or component ,
Controls any changes to such characteristics ,
The Change Control System
The change control system is a collection of formal documented
procedures that define how project deliverables and documentation are
controlled, changed, and approved ,
The PMIS is usually an automated system, although it can also be manual.

Work authorization systems.

It is subsystem of the overall project management system.
It is a collection of formal documented procedures that
defines :
How project work will be authorized to ensure
the work is done by the identified organization, at the
right time, and in the proper sequence.

Project Stakeholders
The project management team must :
identify stakeholders and manage their influences .

Project Stakeholders
The Relationship Between Stakeholders and the Project

Key Stakeholders
Sponsor Person or group that provides the financial
resources for the project
Portfolio Managers/Portfolio Review Managers responsible for the high-level governance
Board of a collection of projects or programs
Program Managers Managers responsible for managing related projects

in a coordinated way to obtain benefits and control
not available from managing them individually
Project Management Office It has direct or indirect responsibility for the outcome
of the project
Project Managers Manages the Project
Project team members Group performing the projects work
Functional (Department/Unit) Managers Key individuals playing a management role within a
functional area of the business
Operations Management Individuals who have a management role in a core
business area
Key Stakeholders
Influencers Due to an individual's position can
influence positively or negatively
Sellers/Business Partners External companies that enter into a

contract
Customer Purchases the product or service
User Uses the product or services

Performing Organization Whose employees are most directly
involved in doing the projects work

Project Team
The project team includes the project manager and the
group of individuals who act together in performing the work of
the project to achieve its objectives.
Project teams include roles such as:

Project management staff.
Project staff.
Supporting experts.
User or Customer Representatives.
Sellers. also called vendors, suppliers, or contractors.
Business partner members.
Business partners.
Composition of Project Teams
The following are examples of basic project team
compositions:
Dedicated.
All or a majority of the project team members are assigned
to work full-time on the project.
often seen in projectized organizations.
Part-Time.
often seen in functional organizations.
Matrix organizations use both dedicated and part-time

project teams.
The Project Life Cycle
All projects can be mapped to the following generic life
cycle structure :
Starting the project,
Organizing and preparing,
Carrying out the project work, and
Closing the project.

Characteristics of The Project Life Cycle

Characteristics of The Project Life Cycle

Project Phases
A project may be divided into any number of phases.

A project phase is :
a collection of logically related project activities that culminated
in the completion of one or more deliverables.
A deliverable is a product or service produced or provided as part of a project.

Project Phases

Project Phases
In early phases of a project life cycle:
Resource needs are usually lowest
The level of uncertainty (risk) is highest
Project stakeholders have the greatest opportunity to
influence the project
In middle phases of a project life cycle:
The certainty of completing a project improves
More resources are needed
The final phase of a project life cycle focuses on:
Ensuring that project requirements were met
The sponsor approves completion of the project

Phase Completion
You will recognize phase completion because each phase
has a specific deliverable, or multiple deliverables, that
marks the end of the phase.
deliverable is an output that must be produced, reviewed,

and approved to bring the phase or project to completion.
Deliverables are tangible and can be measured and easily
proved.
A Guide to the PMBOK states that phase ending reviews are also
known by a new other names: Phase Exits, Phase Gates, or Kill
Points.

Handoffs
Project phases evolve through the life cycle in a series of phases
/sequences called handoffs, or technical transfers.
The end of one phase sequence may mark the beginning of the
next.
The completion of one phase does not automatically

signals the beginning of next phase.

Typical Project Cost and Staffing Level
Across the Project Life Cycle

Typical Construction Life Cycle
Full Operation
100%
Installation
Substantially
complete
Percentage Complete
Major
Contracts
Let
Project
GO
decision
Feasibility Planning & Production Turnover and

70 Designing
Eng: HUSSAM ELHAW Start-up 20/9/2014
Phase-to-Phase Relationships
The two basic types of phase-to-phase
relationships :
Sequential relationships:
PHASE ONE PHASE TOW PHASE THREE PHASE FOUR
Overlapping relationships :
PHASE ONE PHASE TOW PHASE FOUR
PHASE THREE
Eng: HUSSAM ELHAW
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Project Lifecycle Concepts :
PMI has identified three distinct lifecycle concepts :
Predictive (Plandriven projects )
Iterative and Incremental
(Change-driven projects)
Adaptive

Project Lifecycle Concepts :
Predictive
(Fully plan-driven)
Sometime referred as Iterative & Adaptive Agile
(waterfall or traditional Incremental Change driven,
life cycles) approach.
product and Scope are clear Detailed scope is defined

for rapidly changing environment
and determined early only at each iteration
Nature of work is different For risky, large and complex Scope is decomposed into prioritized
from phase to phase projects requirements (product backlog)
When partial delivery (or After each iteration, deliverables are

When Product is required in
one deliverable) provides reviewed and customer feedback
full to have value
value Obtained

Project management process

Process
A Process is:
a set of interrelated actions and activities that are
performed to achieve a pre-specified set of products,
results, or services.
Each process consists of three elements:

input, tools and techniques , output.
Project Management is accomplished through

processes.

Process
Project Processes are performed by Project Team .
Project Processes generally fall into one of two
major categories:
Project Management Process :
Ensure the effective flow of the project throughout its
existence .
Product-Oriented Process :
Specify and create the projects product .

Interaction Among Project Management Processes
Plan-do-check-act cycle was defined by Shewhart
and modified by Deming.
Initiating = Start the cycle

Planning = Plan
Executing = Do
Monitoring & Controlling = Check and Act
Closing = Ends the Cycle
Common Project Management Process Interactions
The processes frequently overlap during the life of the project.

Identifying the Project Management Process Groups
The five Process Groups are:

Initiating Process Group. Defines and authorizes the project or a project
phase.
Planning Process Group. Defines and refines objectives, and plans the
course of action required to attain the objectives and scope that the project
was undertaken to address.
Executing Process Group. Integrates people and other resources to carry
out the project management plan for the project.
Monitoring and Controlling Process Group. Regularly measures and
monitors progress to identify variances from the project management plan so
that corrective action can be taken when necessary to meet project objectives.
Closing Process Group. Formalizes acceptance of the product, service or
result and brings the project or a project phase to an orderly end.

Tailoring
The project manager and project team
are responsible for determining which
processes within each process group
are appropriate for the project on
which youre working.
This is called tailoring.

Process Groups interaction
If the project is divided into phases, the Process Groups interact
within each phase.

Initiating Process Group

Initiating Process Group
Occurs at :
the beginning of the project and
the beginning of each project phase for large projects.
The main purpose of initiating is :

to authorize a project to begin or continue.
This process group grants the approval to :

commit the organizations resources to working on the project or phase
authorizes the project manager to begin working on the project.
If not already assigned, the project manager will be selected.

Project Selection methods
There are generally two categories of selection
methods:
Constrained optimization methods (also known as
mathematical approach )
Benefit measurement methods (also known as

comparative approach ).

Project Selection methods :
Constrained optimization methods (also known as
mathematical approach )
For the exam, all you need to understand about mathematical
models is that the following kinds of algorithms:
Linear
Nonlinear
Dynamic
Integer
Multiple objective programming

Benefit measurement methods (also known as
comparative approach ).
These methods include :
Comparative approaches such as :
cost-benefit analysis, scoring models, Murder board,
Peer review
Benefit contribution methods that include :
various cash flow techniques and Economic models.

Benefit measurement methods (also known as comparative approach ).
Comparative approaches :
Cost-Benefit Analysis (Benefit Cost Ratio BCR )
it compares the cost to produce the product, service, or result

of the project
to the benefit that the organization will receive as a result of
executing the project.
This is the value obtained by : benefit / cost.

Scoring Models or weighted scoring model

Murder board
a panel of people who try to shoot down a new project idea .
This is a committee of questioners.
Peer review

Benefit contribution methods
involve a variety of cash flow analysis techniques,
including :
payback period,
discounted cash flows,
net present value,
internal rate of return.

payback period
Is the length of time it takes the company to recoup the initial costs of
producing the product, service, or result of the project.
In general, shorter payback period is preferred while comparing

two projects.

Discounted Cash Flows
FVN PV1 i
N
the future value (FV)

present value (PV)
number of time periods (N)
the interest rate (i)

Discounted Cash Flows
Present Value
Since FV = PV(1 + i)n.
PV = FV / (1+i)n.
Discounting is the process of translating a future value or a

set of future cash flows into a present value.

Net Present Value ( NPV )
NPV =
the present value of the total benefits (income or revenue)
minus
the costs over many time periods.
If the NPV calculation is greater than zero, accept the project.
If the NPV calculation is less than zero, reject the project.

Internal Return Rate (IRR).
It is a complicated formula and should be performed on a
financial calculator or computer.
IRR is :
the discount rate when the present value of the cash
inflows equals the original investment.
the greater the value for IRR, the more beneficial the
project is.

feasibility study
Some organizations will require a feasibility study prior to making a
final decision about starting the project.
Feasibility studies are undertaken for several reasons.

to determine whether the project is a viable project.
to determine the probability of the project succeeding.
Feasibility studies can also examine the viability of the product, service, or
result of the project.
To evaluate technical issues related to the project
To determine whether the technology proposed is feasible , reliable, and
easily assimilated into the existing technology structure
Feasibility studies might be conducted as separate projects, as

subprojects, or as the first phase of a project.

Cost Concepts :
Opportunity Cost
The opportunity given up by selecting one project over
another.
Sunk Costs
Expended costs.

Cost Concepts :
Law of Diminishing Returns
After a certain point, adding more input will not produce a proportional increase
in productivity.
Working Capital
Current assets minus current liabilities, or the amount of money the company
has available to invest, including investment in projects
Depreciation
Large assets (Equipment) lose value over time
1. Straight line depreciation: (same amount every year)
2. Accelerated (faster than straight line)

Project Integration Management
processes
Think about integration as :
balancing all the processes in
the knowledge areas
with each other.

Project Integration Management
processes
Project Integration Management includes the processes

and activities to :
identify, define, combine, unify , and coordinate
the various processes and project management
activities within the Project Management Process
Groups.

Develop Project Charter
Develop Project Charter is :
the process of developing a document that :
formally authorizes the existence of a
project .
formally authorizes a project or the next phase of a project, to begin.
provides the project manager with the authority to apply

organizational resources to project activities.

Projects are authorized by someone external the project .
such as a :
sponsor, program or project management office (PMO) staff person, or a
portfolio governing body chairperson or authorized representative.
They well either create the project charter
Or , delegate that to the project manager .
The Initiator's signature on the project charter authorizes the

project .
The approved project charter formally initiates the project.



2. Facilitation Techniques
Brainstorming,
conflict resolution,
problem solving, and
meeting management

A project charter contains :
Project purpose or justification
Measurable project objectives and related success criteria
High-level requirements
Assumptions and constraints,
High-level project description and boundaries,
High-level risks
Summary milestone schedule
Summary budget
Stakeholder list
Project approval requirements (i.e., what constitutes project
success, who decides the project is successful, and who signs off on
the project),
Assigned project manger , responsibility and authority level
Name and authority of the sponsor or the person(s) authorizing the
project charter

Eng: HUSSAM ELHAW
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Identify Stakeholders
Identify Stakeholders is :
the process of identifying the people, groups, or
organizations that could impact or be impacted by a decision, activity,
or outcome of the project, analyzing and documenting relevant
information regarding their interests, involvement, interdependencies,
influence, and potential impact on project success.

Identify Stakeholders

1. Stakeholder Analysis :
Is a process of systematically gathering and analyzing
quantitative and qualitative information to determine whose
interests should be taken into account throughout the
project.
Stakeholder analysis generally follows the steps :

1. Identify all potential project stakeholders and relevant
information,
2. Analyze the potential impact or support each stakeholder could

generate, and classify them so as to define an approach
strategy.
3. Assess how key stakeholders are likely to react or respond in

various situations,in order to plan how to influence them to
enhance their support Eng:
andHUSSAM
mitigate
ELHAW
potential negative impacts.
112 20/9/2014
1. Stakeholder Analysis :

1. Stakeholder Register :
The key items that should be considered for the register
are:
Stakeholders name, title, company,
department/business unit, and contact information
The list of people reporting to the stakeholder
The person the stakeholder reports to
The stakeholders general interest in the project
Any areas of particular interest the stakeholder has in
any specific project components
The project information needs of the stakeholder
The preferred methods and frequency of communication

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Project Management Professional

Eng: HUSSAM ELHAW

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High school diploma, associates degree, or the global

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Eng: HUSSAM ELHAW

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A Project is a temporary endeavor undertaken to create a

The end is reached when :

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Managing a project typically includes, but is not limited to:

Balancing the competing

Organizational Project Management (OPM)

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The projects or programs in the portfolio may not

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Organizational Project Management (OPM) :

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Responsibility of a PMO can range:

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Controlling. Provide support and require compliance through various

Directive. Directive PMOs take control of the projects by directly managing

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Optimizes the use of shared

Manages the methodologies ,

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Similarities between project and operations

Difference between projects and operations

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Projects can intersect with operations at various points during the

The role of a project manager is distinct from a functional

Functional manager is focused on providing

Operations managers are responsible for ensuring that

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Knowledge Refers to what the project manager knows about

PerformanceRefers to what the project manager is able to do or

PersonalRefers to how the project manager behaves when

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These cultures can be observed by noting such things as :

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Project management success in an organization is highly

Organizational communications capabilities have great influence on

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Eng: HUSSAM ELHAW

Each employee has one clear supervisor

Projects generally occur within a single department (silo)

Each department does its project work independently, coordination will be

Team members complete project work in addition to normal department

Eng: HUSSAM ELHAW

35 Eng: HUSSAM ELHAW 20/9/2014

The project manager has control of projects.

Employees are assigned and report to a project manager.