The critical path is A->B->E->F. Activity G has a float of 2 days.

1. PMP & CAPM
Exam Preparation
February 5, 2013

2. Sessions
1. About the exam
2. Integration & Scope Management
3. Time & Cost Management
4. Quality & HR Management
5. Communication & Risk
Management
6. Procurement Management

3. Last Session Key point
• Project Integration Management
– Develop Project Charter
– Develop Project Management Plan
– Direct and Manage Project Execution
– Manage and Control Project Work
– Perform Integrated Change Control
– Close Project or Phase

4. Last Session Key point – cont’d
• Project Scope Management
– Collect Requirements
– Define Scope
– Create WBS
– Verify Scope
– Control Scope

5. Project Time Management

6. Project Time Management
• Define Activities

7. Project Time Management
• Define Activities – I
– Scope baseline (project scope statement, WBS,
WBS Dictionary)
– EEF
– OPA

8. Project Time Management
• Define Activities – TT
– Decomposition
• Subdividing the project work packages into smaller,
more manageable components called activities
– Rolling wave planning
• A form of progressive elaboration (near term work
activities are defined in detail leaving the future work
planned in high level detail)
– Templates
– Expert judgment

9. Project Time Management
• Define Activities – O
– Activity list
– Activity attributes
• Extended description of activity list
• Show association with each activity
• Usually composed of Activity ID, WBS ID, Activity Name,
Activity Codes, Description, Leads, Lags, Resource
Requirements, etc
– Milestone list
• Significant point of event and its importance
(mandatory/optional)

10. Project Time Management
• Sequence Activities

11. Project Time Management
• Sequence Activities – I
– Activity list
– Activity attributes
– Milestone list
– Project scope statement (esp. product
characteristics)
– OPA

12. Project Time Management
• Sequence Activities – TT
– Precedence Diagramming Method (PDM)
• Used in Critical Path Methodology (CPM) to construct
project network diagram
• Also called Activity On Node (AON)

13. Project Time Management
• Sequence Activities – TT (cont’d)
– Precedence Diagramming Method (PDM)

14. Project Time Management
• Sequence Activities – TT (cont’d)
– Dependency Determination
• Mandatory dependencies
– Contractually required / inherent in nature of the work
– Dependencies often involves physical limitations
– Also called / referred as “Hard Logic”
• Discretionary dependencies
– Also called / referred as “Preferred Logic” or “Soft Logic”
– Established based on best practices (although many
sequences options are acceptable)
– Can create subjective total float values
– Is subject to review / modification / removal when fast-
tracking method is employed

15. Project Time Management
• Sequence Activities – TT (cont’d)
– Dependency Determination
• External dependencies
– Usually caused by non-project activities / activities outside the
project
– E.g.: development of housing construction is dependent to
material delivery
– E.g.: software patching is dependent to the patch availability /
purchasing confirmation

16. Project Time Management
• Sequence Activities – TT (cont’d)
– Applying Leads and Lags

17. Project Time Management
• Sequence Activities – TT (cont’d)
– Schedule Network Templates

18. Project Time Management
• Sequence Activities – O
– Project schedule network diagrams
– PD U (e.g.: activity list, attributes, risk register)

19. Project Time Management
• Estimate Activity Resources

20. Project Time Management
• Estimate Activity Resources – I
– Activity list
– Activity resources
– Resource calendars
• Availability, capabilities, skills
– EEF
– OPA

21. Project Time Management
• Estimate Activity Resources – TT
– Expert judgment
– Alternative analysis
• Level of resource
• Resources’ skills / capabilities
• Size and type of machines / tools
• Make-or-buy decision
– Published estimating data
• Rates based on geographical location
• Delivery rates

22. Project Time Management
• Estimate Activity Resources – TT (cont’d)
– Bottom-Up Estimating
• Used when activities cannot be estimated with a
reasonable degree of confidence
• Uses aggregation/grouping of several activities
– Project Management Software

23. Project Time Management
• Estimate Activity Resources – O
– Activity Resources Requirements
– Resource Breakdown Structure
– PD U

24. Project Time Management
• Estimate Activity Durations

25. Project Time Management
• Estimate Activity Durations – I
– Activity list
– Activity attributes
– Activity resource requirements
– Resource calendars
– Project scope statement (existing conditions,
information’s availability, reporting periods,
contractual pre-assignment)
– EEF
– OPA

26. Project Time Management
• Estimate Activity Durations – TT
– Expert judgment
– Analogous estimating
• Uses historical information (the actual duration of
previous, similar projects)
• Timeless, costless, accurate-less
• Usually used when there is limited detail / information
about the project

27. Project Time Management
• Estimate Activity Durations – TT (cont’d)
– Parametric estimating
• Uses statistical relationship between historical
information and other variables such as cost, budget,
and duration
• A quantitative method (using multiplication)
• Relatively higher in accuracy (depending on the
underlying data used for estimation)

28. Project Time Management
• Estimate Activity Durations – TT (cont’d)
– Three-Point Estimates

29. Project Time Management
• Estimate Activity Durations – TT (cont’d)
– Reserve analysis
• Inclusion of the actual durations
• Usually called contingency reserves / time reserves /
buffers
• Is subject to be used / reduced / eliminated
• Must be documented in schedule information

30. Project Time Management
• Estimate Activity Durations – O
– Activity duration estimates
– PD U

31. Project Time Management
• Develop Schedule

32. Project Time Management
• Develop Schedule – I
– Activity list
– Activity attributes
– Project schedule network diagrams
– Activity resource requirements
– Resource calendars
– Activity duration estimates
– Project scope statement (might have certain
constraints / assumptions that impact schedule
development)

33. Project Time Management
• Develop Schedule – I (cont’d)
– EEF
– OPA

34. Project Time Management
• Develop Schedule – TT
– Schedule network analysis
– Critical path method
• Calculates early start, early finish, late start, and late
finish dates for each activities with disregard to any
resource limitations by performing forward and
backward pass analysis through the schedule network
• Have ZERO float and usually the longest path in the
network diagram
• Might be more than 1 critical path in any given network
diagram

35. Project Time Management
• Develop Schedule – TT (cont’d)
– Critical path method
• Produces “free float”: a certain time length which an
activity can be delayed without delaying the early date
of its immediate successor activity within the network
path

36. Project Time Management
• Develop Schedule – TT (cont’d)
– Critical path method

37. Project Time Management
• Develop Schedule – TT (cont’d)
– Critical path method

38. Project Time Management
• Develop Schedule – TT (cont’d)
– Critical chain method
• Accounts resource limitation
• Also called “Resource-Constrained Critical Path”
– Resource leveling
• Used AFTER critical path method
• Used when shared or critical resources are only
available at certain times, in limited quantities, or to
keep resource usage at constant level
• Used when resources are over-allocated
• Can cause change to original critical path

39. Project Time Management
• Develop Schedule – TT (cont’d)
– What-If scenario analysis

40. Project Time Management
• Develop Schedule – TT (cont’d)
– Applying Leads and Lags
– Schedule compression
• Crashing
– Approve overtime
– Add more resources
– Only work if additional of resources can shorten the duration
– May increase cost and/or risk
• Fast tracking
– Perform work in parallel (when default in sequential)
– May increase risk of rework
– Only work if overlapped activities can shorten duration

41. Project Time Management
• Develop Schedule – TT (cont’d)
– Scheduling tool

42. Project Time Management
• Develop Schedule – O
– Project schedule
• Milestone charts
• Bar charts
• Project schedule network diagrams
– Schedule baseline
– Schedule data (resource requirements, alternative
schedules, contingency reserves, etc)
– PD U

43. Project Time Management
• Control Schedule

44. Project Time Management
• Control Schedule – I
– PMP
– Project schedule
– WPI
– OPA

45. Project Time Management
• Control Schedule – TT
– Performance reviews
• Earned value management is applied
• Difference between buffer needed and the buffer
remaining can determine whether corrective action is
necessary
– Variance analysis
– Project management software
– Resource leveling

46. Project Time Management
• Control Schedule – TT (cont’d)
– What-If scenario analysis
– Adjusting leads and lags
– Schedule compression
– Scheduling tool

47. Project Time Management
• Control Schedule – O
– Work performance measurements
– OPA U
– CR
– PMP U
• Schedule baseline
• Schedule management plan
• Cost baseline
– PD U

48. Project Cost Management

49. Project Cost Management
• Estimate Cost

50. Project Cost Management
• Estimate Cost – I
– Scope baseline
– Project schedule
– HR Plan
– Risk Register
– EEF
– OPA

51. Project Cost Management
• Estimate Cost – TT
– Expert judgment
– Analogous estimating
– Parametric estimating
– Bottom-up estimating
– Three-point estimates
– Reserve analysis
– Cost of Quality

52. Project Cost Management
• Estimate Cost – TT
– Project management estimating software
– Vendor bid analysis

53. Project Cost Management
• Estimate Cost – O
– Activity cost estimates
• Labor, material, equipment, services, etc
– Basis of estimates
• Documentation of basis of the estimate, assumptions,
constraints, confidence level, etc
– PD U

54. Project Cost Management
• Determine Budget

55. Project Cost Management
• Determine Budget – I
– Activity cost estimates
– Basis of estimates
– Scope baseline
– Project schedule
– Resource calendars
– Contracts
– OPA

56. Project Cost Management
• Determine Budget – TT
– Cost aggregation
• Accumulated component cost (usually from WBS)
– Reserve analysis
– Expert judgment
– Historical relationship (used in analogous and
parametric estimation)
– Funding limit reconciliation

57. Project Cost Management
• Determine Budget – O
– Cost performance baseline

58. Project Cost Management
• Determine Budget – O (cont’d)
– Project funding requirement
– PD U

59. Project Cost Management
• Control Cost

60. Project Cost Management
• Control Cost – I
– PMP
• Cost performance baseline
• Cost management plan
– Project funding requirements
– WPI
– OPA

61. Project Cost Management
• Control Cost – TT
– Earned value management (EVM)
• PV, EV, AC
• CV= (EV-AC) and SV= (EV-PV)
• CPI= (EV/AC) and SPI= (EV/PV)

62. Project Cost Management
• Control Cost – TT (cont’d)
– Forecasting (link to formula)
• Estimate At Completion (EAC)
• Estimate To Complete (ETC)
• To-Complete Performance Index (TCPI)
– Performance reviews
• Trend analysis (improving / deteriorating)
• Earned value performance (baseline vs. actual)

63. Project Cost Management
• Control Cost – TT (cont’d)
– Variance analysis
– Project management software

64. Project Cost Management
• Control Cost – O
– Work performance measurements
– Budget forecasts
– OPA U
– CR
– PMP U
• Cost performance baseline
• Cost management plan
– PD U
• Cost estimates

65. Sample Questions
1. Which of the following is not an input item
to the Define Activities process?
A. The WBS
B. The activity duration
C. The project scope statement
D. The WBS dictionary

66. Sample Questions
2. Why should you monitor the activities on the critical path
more closely?
A. Because each activity on the critical path has a zero float
time and thereby poses a schedule risk.
B. Because the activities on the critical path need to be
performed before the activities on other paths.
C. Because the activities on the critical path are critical to the
organization’s strategy.
D. Because the activities on noncritical paths depend upon the
activities on the critical path.

67. Sample Questions
3. You estimate the duration of an activity as five days
because an expert told you that it took five days to
complete a similar activity in a previous project.
Which of the following methods have you used for
your activity duration estimate?
A. Parametric estimating
B. Expert judgment
C. Analogous estimating
D. Delphi technique

68. Sample Questions
4. You have developed the schedule for your project, and you’ve called the
kickoff meeting. A team member who is responsible for an activity
comes to you and tells you that the activity cannot be performed within
the allocated time because some pieces were left out during activity
definition. The revised estimate will add two more days to the activity
duration, but the activity is not on the critical path. Which of the
following actions will you take?
A. Go to the team member’s functional manager and find out whether the
team member’s estimate is correct.
B. Accept the new estimate but do not change the schedule.
C. Accept the new estimate and update the schedule accordingly.
D. Put the new estimate through the integrated change control process.

69. Sample Questions
5. The amount of time by which an activity can
be delayed without changing the project
finish date is called:
A. Float time
B. Lag time
C. Grace time
D. Activity gradient

70. Sample Questions
6. Which of the following is the most
commonly used network diagramming
method?
A. Critical path method (CPM)
B. Critical chain method (CCM)
C. Precedence diagramming method (PDM)
D. Arrow diagramming method (ADM)

71. Sample Questions
7. What is the crashing technique used for?
A. Network diagramming
B. Duration compression
C. Cost reduction
D. Activity sequencing

72. Sample Questions
8. Which of the following is a true statement
about the critical path?
A. Each activity on the critical path has zero
float time.
B. It controls the project finish date.
C. It controls the project start date.
D. It is the shortest sequence in the network
diagram.

73. Sample Questions
9. In your research project on tourism, you must
collect data before the tourist season ends because
the project involves interviewing tourists. The data-
collection activity has which of the following kinds
of dependency?
A. Mandatory
B. External
C. Internal
D. Discretionary

74. Sample Questions
10. You know from a network diagram that Activity B
cannot start until Activity A is finished. Which of the
following are true?
A. Activities A and B have a start-to-finish
dependency.
B. Activities A and B have a finish-to-start
dependency.
C. Activity B has a mandatory dependency on Activity
A.
D. Activities A and B are on a critical path.

75. Sample Questions
11. You are the project manager of a project that is running behind
schedule. The project sponsor is very unhappy at the new finish date
that you proposed, but he has accepted it. However, you also requested
extra funds to support the extended time of work, and the sponsor has
refused to supply more funds and is threatening to cancel the project if
you cannot finish the project within the planned budget. What are your
options?
A. Crashing
B. Fast tracking
C. Asking the executive management for a new sponsor
D. Speaking with the customer directly without involving the sponsor to see
whether the customer can increase the budget

76. Sample Questions
12. Consider the following network diagram. Which of the following is the
critical path?

77. Sample Questions
13. What is the float for Activity G?
A. 3
B. 2
C. 1
D. 0

78. Sample Questions
14. What is the length of the critical path in the network diagram?
A. 20
B. 21
C. 22
D. 31

79. Sample Questions
15. You use a three-point estimate for activity duration
estimating. An activity has a duration of 9 days for an
optimistic scenario, 18 days for a pessimistic scenario, and
12 days for the most likely scenario. Which of the following
will you take as the duration estimate for this activity if you
use the PERT analysis?
A. 13 days
B. 12.5 days
C. 12 days
D. 18 days

80. Sample Questions
16. Which of the following processes will you perform
first?
A. Plan Procurements
B. Determine Budget
C. Estimate Costs
D. Develop Schedule

81. Sample Questions
17. Your supervisor has asked you to put some contingency
reserve into your project plans. Which of the following is not
true about contingency reserve?
A. These are the funds and not the time.
B. These are not included in the cost baseline.
C. These are included in the budget.
D. These are not used in earned value measurements.

82. Sample Questions
18. You are a project manager at a company that is a seller for
another company. You are conducting a weekly and
presenting that the project has CPI = 1.3 and SPI = 1.8
What does it mean for the project?
A. Behind schedule and under cost
B. Ahead of schedule and over budget
C. Behind schedule and over budget
D. Ahead of schedule and under budget

83. Sample Questions
19. Ron Collins is the project manager for a biotechnology
company. He is outsourcing a part of the project to a foreign
company for over 3 months when he is called for a steering
committee meeting because of cost irregularities. Ron
notices that many charges are made to the project budget
without his approval. What should Ron calculate?
A. CV
B. SPI
C. SV
D. CPI

84. Sample Questions
20. Management has asked you to produce a chart
that depicts the resource needs for all the activities
in the project. Which of the following charts is
management referring to?
A. The project organizational chart
B. The WBS
C. The roles and responsibilities chart
D. The responsibility assignment matrix

85. Sample Questions
21. Which of the following is not an output of the
Determine Budget process?
A. Cost performance baseline
B. Project funding requirements
C. Project schedule
D. Project document updates

86. Sample Questions
22. Which of the following is a true statement about
the estimate cost process?
A. It is created by the human resources department.
B. It is a tool for team development.
C. It is created by the project manager with help from
project team to produce output of the cost
management planning efforts.
D. It is provided by the project sponsor.

87. Sample Questions
23. You are in the process of developing the cost
baseline for your project. What is the name of this
process?
A. Determine Budget
B. Develop Cost Baseline
C. Estimate Costs
D. Develop Budget

88. Sample Questions
24. Your project is in the planning stage. You first want
to make the cost estimates for the planned project
activities, and then you want to aggregate those
costs. Which process will you perform first?
A. Determine Budget
B. Develop Human Resource Plan
C. Estimate Costs
D. Develop Budget