PMP Project Management Professional Exam Study Guide 2021 Exam Update

Prepare for PMP certification exam success with this fully updated and comprehensive study guide

This study guide serves as a comprehensive resource for those who plan on taking the Project Management Professional (PMP) certification exam administered by PMI. The book helps you prepare for the exam, and it will continue to serve project managers as an on-the-job reference book.

The PMP Project Management Professional Exam Study Guide, Tenth Edition is fully updated to include recent changes to the exam. New content covers the integral role that Agile and other iterative practices have in project management. Updates also address the pivotal responsibilities of the project manager and the skill sets required for this position. The study guide was written to reflect the Project Management Process and Procedures found in the revised A Guide to the Project Management Body of Knowledge -- PMBOK® Guide, 6th Edition.

Well-known author and expert Kim Heldman, PMP, helps to prepare you for the exam with in-depth coverage of topics, concepts, and key terms. Learn more about the three main domain areas of people, process, and business environment, plus the predictive, agile, and hybrid approaches to project management.This guide is an effective learning aid that will take your understanding to the next level.

• Provides comprehensive material, covering the complete exam outline
• Lists chapter objectives and offers detailed discussions of these objectives
• Reflects differences in project management environments and approaches
• Effectively presents real world scenarios, project application sidebars, and chapter review questions

You’ll also connect to a beneficial, on-the-go resource: an interactive online learning environment and test bank. This environment includes an assessment test, chapter tests, practice exams, electronic flashcards, and a glossary of key terms. A thorough review is the best prep for a challenging certification exam. So, get ready with this essential PMP study guide.

ABOUT THE AUTHOR

KIM HELDMAN, PMP^®, is Senior Manager, IT/Chief Information Officer for the Regional Transportation District in Denver, Colorado, where she oversees an IT portfolio of projects that range from those small in scope and budget to multimillion-dollar, multiyear projects. Kim has more than 25 years of experience in IT project management, resource planning, budgeting, project prioritization, and strategic and tactical planning. Most of the real-world scenarios in this Study Guide are based on her actual experiences on the job. Visit her website at www.kimheldman.com.

Introduction xix

Assessment Test xxix

Answers to Assessment Test xlix

Chapter 1 Building the Foundation 1

Establishing the Foundation 3

Projects vs. Operations 4

Project Characteristics 6

What Is Project Management? 7

Programs 8

Portfolios 8

Organizational Project Management 11

Project Management Offices 11

Understanding How Projects Come About 13

Needs and Demands and Other Factors That Lead to Project Creation 14

Skills Every Good Project Manager Needs 17

Technical Project Management Skills 18

Business Management and Strategic Skills 18

Communication Skills 19

Organizational and Planning Skills 19

Conflict Management Skills 20

Negotiation and Influencing Skills 20

Leadership Skills 21

Team-Building and Motivating Skills 21

Role of a Project Manager 22

Understanding Project Management Process Groups 22

Determining a Project Methodology or Approach 28

Life Cycle Categories 29

Predictive Life Cycle Methodology 30

Agile Methodologies 33

Hybrid 38

Project Life Cycles 38

Understanding How This Applies to Your Next Project 39

Summary 40

Exam Essentials 41

Review Questions 43

Chapter 2 Assessing Project Needs 49

Exploring the Project Management Knowledge Areas 51

Project Integration Management 53

Project Scope Management 56

Project Schedule Management 57

Project Cost Management 58

Project Quality Management 59

Project Resource Management 59

Project Communications Management 60

Project Risk Management 62

Project Procurement Management 62

Project Stakeholder Management 63

Assessing Project Viability 64

Using Project Selection Methods 65

Assessing Project Needs and Creating the Project Charter 73

Enterprise Environmental Factors 78

Organizational Process Assets 78

Tools and Techniques 81

Formalizing and Publishing the Project Charter 82

Pulling the Project Charter Together 83

Key Stakeholders 84

Project Charter Sign-Off 87

Maintaining Project Artifacts 88

Introducing the Kitchen Heaven Project Case Study 89

Understanding How This Applies to Your Next Project 93

Summary 94

Exam Essentials 96

Review Questions 98

Chapter 3 Delivering Business Value 103

Understanding Organizational Structures 106

Functional Organizations 108

Project-Oriented Organizations 112

Matrix Organizations 114

Other Organizational Structures 118

PMO 118

PMO in an Agile Environment 119

Project-Based Organizations 121

Influences of Organizational Structure on Agile Methodologies 122

Identifying Stakeholders 123

Discovering Stakeholders 124

Stakeholder Analysis 126

Categorizing Stakeholders 127

Stakeholder Register 134

Stakeholders on an Agile Project 135

Six Sigma Adaptive Methodology 137

Delivering Business Value 140

Business Value Network 142

Assessing Business Value 143

Delivering Business Value Incrementally 145

Examining Business Value 147

Subdividing Project Tasks 148

Understanding How This Applies to Your Next Project 151

Summary 152

Exam Essentials 153

Review Questions 155

Chapter 4 Developing the Project Scope 161

Developing the Project Management Plan 164

Project Complexity 168

Data Gathering and Interpersonal Skills 168

Documenting the Project Management Plan 169

Documenting the Project Management Plan Using a

Predictive Methodology 172

Plan Scope Management 173

Alternatives Analysis 175

Documenting the Scope Management Plan 177

Documenting the Requirements Management Plan 178

Collecting Requirements 178

Gathering Documents for the Collect Requirements Process 180

Gathering and Documenting Requirements 185

Finalizing Requirements 189

Defining Scope 192

Writing the Project Scope Statement 194

Managing the Product Backlog 199

Creating the Work Breakdown Structure 201

Decomposing the Deliverables 202

Constructing the WBS 203

Backlog 211

Finalizing the WBS 212

Understanding How This Applies to Your Next Project 216

Summary 218

Exam Essentials 219

Review Questions 221

Chapter 5 Creating the Project Schedule 229

Creating the Schedule Management Plan 232

Defining Activities 233

Creating the Activity List 234

Breaking Down User Stories 235

Understanding the Sequence Activities Process 237

Precedence Diagramming and Leads and Lags 238

Project Management Information System 243

Project Schedule Network Diagrams 243

Estimating Activity Resources 244

How to Estimate Activity Resources 245

Documenting Resource Requirements 246

Estimating Resources in an Adaptive Methodology 247

Estimating Activity Durations 247

Project Calendars and Other Considerations 248

Estimating Techniques 249

Duration Estimates 253

Estimating Activity Durations Using Adaptive

Methodologies 255

Developing the Project Schedule 257

Gather Documents to Assist in Developing the Schedule 257

Developing the Project Schedule 258

Project Schedule and the Schedule Baseline 272

Using a Kanban Board and Scrum Board 277

Scrum Board 279

Combining Techniques 280

Agile Release Planning 281

Applying Process Groups in an Agile Approach 281

Understanding How This Applies to Your Next Project 286

Summary 287

Exam Essentials 289

Review Questions 291

Chapter 6 Developing the Project Budget and Engaging Stakeholders 297

Creating the Cost Management Plan 300

Performing Plan Cost Management 301

Creating the Cost Management Plan 302

Estimating Costs 303

Estimating Techniques 307

Estimating Costs for an Agile Project 308

Creating the Cost Estimates 309

Establishing the Cost Baseline 311

Techniques for Developing the Project Budget 313

Developing the Cost Baseline 314

Understanding Stakeholders 318

Analyzing Stakeholders 319

Stakeholder Engagement Plan 320

Mentoring Stakeholders 321

Engaging Stakeholders in an Adaptive Methodology 322

Communicating the Plan 323

Planning Communications 324

Determining Communication Needs 325

Documenting the Communications Management Plan 331

Communicating on an Agile Team 333

A Closer Look at Adaptive Methodologies 335

Other Methodologies 340

Combining Methodologies 345

Understanding How This Applies to Your Next Project 348

Summary 349

Exam Essentials 351

Review Questions 353

Chapter 7 Identifying Project Risks 359

Understanding Risk 361

Creating the Risk Management Plan 362

Risk Attitude 363

Conducting Risk Meetings 364

Documenting the Risk Management Plan 366

Identifying Potential Risks 372

Data Gathering and Data Analysis Techniques for Identifying Risks 374

Documenting the Risk Register 378

Identifying Risks Using an Agile Approach 380

Analyzing Risks Using Qualitative Techniques 381

Performing Qualitative Risk Analysis 382

Ranking Risks in the Risk Register 390

Quantifying Risk 391

Performing Quantitative Risk Analysis 392

Updating the Risk Report 397

Developing a Risk Response Plan 398

Strategies for Creating Risk Responses 399

Documenting the Risk Responses Plan 404

Assessing Risks Using an Agile Approach 407

Planning for Project Compliance 409

Understanding How This Applies to Your Next Project 413

Summary 414

Exam Essentials 415

Review Questions 417

Chapter 8 Planning and Procuring Resources 423

Procurement Planning 425

Gathering Documents for the Procurement Management Plan 427

Source Selection Criteria 433

Procurement Management Plan 435

Procurements in an Agile Environment 442

Developing the Resource Management Plan 445

Understanding Enterprise Environmental Factors 446

Using Data Representation Techniques for Plan Resource Management 448

Documenting the Resource Management Plan 451

Resources on an Agile Project 455

Quality Planning 456

Preparing for Quality 457

Developing the Quality Management Plan 458

Documenting the Quality Management Plan 466

Quality Planning for Agile Projects 468

Project Planning Using Agile Methodologies 469

Bringing It All Together 470

Choosing a Life Cycle Methodology 473

Understanding How This Applies to Your Next Project 480

Summary 481

Exam Essentials 482

Review Questions 485

Chapter 9 Developing the Project Team 491

Directing and Managing Project Work 494

Direct and Manage Project Work Inputs 496

Project Management Information System 499

Deliverables and Work Performance Data 499

Directing Project Work on Agile Projects 504

Executing Practices for Delivering Project Work 508

Acquiring the Project Team and Project Resources 510

The Resource Management Plan 510

Techniques for Acquiring Resources 511

Project Team Assignments 515

Developing the Project Team 517

Generational Diversity 518

Tools and Techniques to Develop the Team 520

Developing Agile Teams 536

Team Performance Assessments 539

Managing Project Teams 543

Emotional Intelligence and Other Tools for Managing Teams 543

Lessons Learned Managing Teams 545

Understanding How This Applies to Your Next Project 547

Summary 548

Exam Essentials 550

Review Questions 552

Chapter 10 Sharing Information 559

Implementing Risk Responses 563

Conducting Procurements 563

Evaluating Proposals 564

Creating Procurement Agreements 571

Conducting Procurements on Agile Projects 573

Laying Out Quality Assurance Procedures 574

Managing Quality with Data and Audits 575

Quality Reports and Test and Evaluation Documents 580

Conducting Quality Assessments on an Agile Project 581

Managing Project Knowledge 582

Knowledge Management 583

Information Management 583

Managing Project Artifacts 583

Managing Project Information 584

Communication and Conflict Resolution Skills 585

Project Communications and Elements of Communicating 594

Communicating on Agile Projects 596

Managing Stakeholder Engagement 597

Observing and Conversing 598

Agile Frameworks 599

Agile Methodologies or Frameworks 600

Scaling Frameworks 601

Understanding How This Applies to Your Next Project 606

Summary 607

Exam Essentials 608

Review Questions 611

Chapter 11 Measuring and Controlling Project Performance 619

Monitoring and Controlling Project Work 624

Forecasting Methods 625

Work Performance Reports 626

Controlling Procurements 627

Procurement Documents and Approved Change Requests 629

Monitoring Vendor Performance 631

Closing Out Procurements 632

Monitoring Communications 636

Documents to Help Monitor Communications 637

Monitoring Communications with Meetings 637

Work Performance Information 639

Performing Integrated Change Control 642

How Change Occurs 643

Change Control Concerns 644

Configuration Control 645

Change Control System 646

Approved Change Requests 650

Changes in the Business Environment 651

Monitoring Stakeholder Engagement 654

Controlling Resources 654

Utilizing Control Quality Techniques 655

Control Quality Tools and Techniques 656

Verifying Deliverables 664

Monitoring and Controlling Risk 664

Monitor Risks Analysis and Meetings 666

Monitor Risks Updates 667

Monitoring Project Management Integrations 668

Understanding How This Applies to Your Next Project 671

Summary 672

Exam Essentials 674

Review Questions 676

Chapter 12 Controlling Work Results and Closing Out the Project 683

Controlling Cost Changes 686

Earned Value Analysis 687

Variance Analysis 689

Trend Analysis 692

To-Complete Performance Index 697

Earned Value Measures on Agile Projects 700

Monitoring and Controlling Schedule Changes 702

Burndown and Burnup Charts 703

Performance Reviews 705

Changes to the Schedule 706

Validating Project Scope 707

Controlling Scope 708

Measuring Work Results on Agile Projects 710

Formulating Project Closeout 713

Characteristics of Closing 713

Project Endings 714

Closing Out the Project 717

Administrative Closure Procedures 718

Regression Analysis 719

Close Project or Phase Final Report 719

Closing Out the Procurements 723

Closing Out an Agile Project 724

Celebrate! 725

Releasing Project Team Members 725

Balancing Stakeholders’ Interests at Project Close 725

Competing Needs 726

Dealing with Issues and Problems 727

Balancing Constraints 727

Professional Responsibility 727

Responsibility 728

Respect 731

Fairness 734

Honesty 737

Role Delineation Study 739

Applying Professional Knowledge 739

Project Management Knowledge 740

Education Providers 740

Industry Knowledge 740

Understanding How This Applies to Your Next Project 746

Summary 748

Exam Essentials 750

Review Questions 752

Appendices 757

Appendix A Answers to Review Questions 759

Chapter 1: Building the Foundation 760

Chapter 2: Assessing Project Needs 761

Chapter 3: Delivering Business Value 763

Chapter 4: Developing the Project Scope 765

Chapter 5: Creating the Project Schedule 767

Chapter 6: Developing the Project Budget and Engaging Stakeholders 768

Chapter 7: Identifying Project Risks 770

Chapter 8: Planning and Procuring Resources 771

Chapter 9: Developing the Project Team 773

Chapter 10: Sharing Information 775

Chapter 11: Measuring and Controlling Project Performance 776

Chapter 12: Controlling Work Results and Closing Out the Project 778

Appendix B Process Inputs and Outputs 781

Initiating Processes 782

Planning Processes 784

Executing Processes 807

Monitoring and Controlling Processes 821

Closing Processes 836

Index 839

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