Project Management Professional-Chương mở đầu

viii ContentsActivity Definition 46Activity Sequencing 47Activity on Arrow Diagramming 48Precedence Diagramming Method PDM 49Logical Relationships 50 Finish-Start Relationship FS 50 Star

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Preparing for the Project Management

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Preparing for the Project Management

American Management Association

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certification marks registered in the United States and other nations;

‘‘PMBOK’’, ‘‘PM Network’’, and ‘‘PMI Today’’ are trademarks

registered in the United States and other nations; and ‘‘Project

Management Journal’’ and ‘‘Building professionalism in project

management’’ are trademarks of the Project Management Institute, Inc Library of Congress-Cataloging-in-Publication Data

Newell, Michael W., 1945–

Preparing for the project management professional (PMP) certification exam / Michael W Newell.—2nd ed.

p cm.

Includes bibliographical references and index.

ISBN 0-8144-7172-2 (pbk.: alk paper)

1 Project management—Examinations, questions, etc I Title HD69.P75 N49 2002

658.4 ⬘04⬘076—dc21 2002010223

 2002 Michael W Newell.

All rights reserved.

Printed in the United States of America.

This publication may not be reproduced,

stored in a retrieval system,

or transmitted in whole or in part,

in any form or by any means, electronic,

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without the prior written permission of AMACOM,

a division of American Management Association,

1601 Broadway, New York, NY 10019.

Printing number

10 9 8 7 6 5 4 3 2 1

This book is dedicated to my wife, Saralee, who corrects my spelling and puts up with all my foolishness.

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The Projectized Organization 7 The Traditional Organization 9 The Matrix Organization 10

The Project Office 12How the Project Manager Makes Projects Successful 13The Project Life Cycle 14Project Processes 14

Initiation of the Project 17

Project Charter 17 Constraints and Assumptions 18 Who Are Those Stakeholders? 18 Cost and Its Relationship to Price 19 Overbid or Underbid: Which Is Better for Your Company? 20

Getting to the Scope Baseline 23Work Breakdown Structure 25Systems Approach to Work Breakdown Structure 28

Additional Project Breakdown Structures 30

Change Management 30Project Justifications 31

The Break Even Chart 32 Problems with Break Even Charts 33 Average Rate of Return on Investment 34 Present Value of Money 34 Internal Rate of Return on Investment 39

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viii Contents

Activity Definition 46Activity Sequencing 47Activity on Arrow Diagramming 48Precedence Diagramming Method (PDM) 49Logical Relationships 50

Finish-Start Relationship (FS) 50 Start-Start Relationship (SS) 52 Finish-Finish Relationship (FF) 53 Start-Finish Relationship (SF) 53 Leads and Lags 54

Diagramming Relationships 55

Project Start and Project Finish Events 55 Logical Precedence Diagram 56

Activity Durations 56 Building the Network Diagram 57 Buffering the Schedule 63

Reverse Resource Allocation Scheduling 67

Critical Path Method (CPM) 67Program Evaluation and Review Technique (PERT) 68Monte Carlo Simulation 73

The Simulation 74 Output from the Monte Carlo Simulation 75

Why We Need Cost Management 77Project Life Cycle and Project Cost 78Using the Work Breakdown Structure 78Cost Estimating 79

Types of Estimates 80

Top Down Estimates 80 Bottom Up Estimates 80 Analogous Estimates 80 Parametric Estimates 81 Definitive Estimates 81

ix Contents

Earned Value Reporting 85

Cumulative Reporting 85 Earned Value Parameters 86 Difficulties in Data Collection 87 Reporting Work Complete 89

Calculated Values for Earned Value Reports 90

Financial Measures 94

Return on Sales 97 Return on Assets 98 Economic Value Added 99

Project Manager Roles and Responsibilities 104Strong Matrix, Weak Matrix, and Balanced Matrix 106

Strong Matrix 106 Weak Matrix 106 Balanced Matrix 108 Making Matrix Management Work 109 Personnel and Personal Evaluations 109

Importance of Motivation 110

Industrial Revolution 110 Scientific Management 111 Learning Curve Theory 111 Depression Era 112 World War II 112 Post–World War II 112

Motivational Ideas 112

Procedures versus Motivation 113 Expectancy Theory 113 Maslow’s Hierarchy of Needs Theory 115 Hertzberg’s Motivation/Hygiene Theory 117

x Contents

Supervisory Style and Delegation 118 Job and Work Design 118

Job Enlargement 119 Job Enrichment 120 Quality Circles 121

Forms of Power 121

Coercive Power and Reward Power 121 Legitimate Power 122 Referent Power 122 Expert Power 123 Representative Power 123

Managing Meetings Effectively 129

Before the Meeting 129 Beginning the Meeting 129

When to Do Risk Management 133The Risk Process 133Risk Management Planning 133Risk Identification 134

Documentation Reviews 135 Brainstorming 135 Delphi Technique 135 Nominal Group Technique 136 Crawford Slip 137 Expert Interviews 137 Checklists 138

Diagramming Techniques 138 Recording of Risks Identified 138

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xi Contents

Risk Assessment 140

Risk Tolerance 141 Risk Probability 143

The Addition Rule 145 The Multiplication Rule 147

Risk Impact 149 Expected Value 150 Decision Trees 151

Risk Quantification 155

Comparative Ranking 157 Grouping the Risks 157 Affinity Programming 158

Risk Response Planning 158

Risk Strategies 159 Avoidance 159

Contracting 160 Acceptance 160 Mitigation 161 Risk Opportunities 161

Budgeting for Risk 162Risk Monitoring and Control 162

Quality Planning 166Quality Assurance 167Cost of Quality 167

Costs of Prevention 168 Costs of Defects 168 Deming’s Fourteen Points 169

Quality Control 169Sampling Inspection 170

Acceptable Quality Level (AQL) 171 Buyer’s Risk and Seller’s Risk 171

Other Quality Control Techniques 172

Flowcharts and Diagrams 172 Cause and Effect Diagrams 172 Pareto Charts 172 Control Charts 175 Checklists 178

Requirement Process 183 Requisition Process 184 Solicitation Process 185 Award Process 185 Contract Process 185

Contract Types 185

Fixed Price Contract 186

Firm Fixed Price Contract 186 Fixed Price Plus Economic Adjustment Contract 187 Fixed Price Plus Incentive Contract 188

Cost Plus Contract 188

Cost Plus Fixed Fee Contract 189 Cost Plus Award Fee Contract 190 Cost Plus Incentive Fee Contract 190

Procurement Management 190

Commodities 190 Unique Products and Services 191 Forward Buying 192 Blanket Orders 192 Split Orders 193

Understanding 197

xiii Contents

Barriers to Communications 198

Distorted Perceptions 198 Distrusted Sources 198 Transmission Errors 198

Improving Communications 199

Make the Message Relevant for the Receiver 199 Reduce the Message to Its Simplest Terms 199 Organize the Message into a Series of Stages 199 Repeat the Key Points 199

Verbal and Written Communications 200Formal and Informal Communications 201

Formal Communications 201 Informal Communications 201

Improving Listening 202

Don’t Interrupt 202 Put the Speaker at Ease 204 Appear Interested 204 Cut Out Distractions 204 Periodically Sum Up What Was Said 204

Circular Networks 205 Chain Networks 205 The Wheel 205 Free and Open Communications 206

Management by Walking Around 207Performance Reviews 209

Code of Professional Conduct 216

Domain 1: Initiating the Project 219Domain 2: Planning the Project 220

xiv Contents

Domain 3: Executing the Project 221Domain 4: Controlling the Project 222Domain 5: Closing the Project 222Domain 6: Professional Responsibility 223Types of Questions on the Exam 224Taking the Exam 225Use of Practice Questions 226The Application for PMP Certification 228The Education Qualification 229

This book has been written to help those preparing for the Project

Man-agement Professional Examination It is intended to cover all of thematerial that the Project Management Institute (PMI) considers im-portant enough to be included in the exam This book has been revised toreflect the changes in the Project Management Professional Examination put

into effect as of March 2002 and reflects the Guide to the Project Management

Body of Knowledge , 2000 edition.

I have been working in the field of project management for the pasttwenty-five years and was managing projects long before that and long beforethere was a methodology called project management Once I became aware

of the work that PMI was doing in this area and started to consider projectmanagement as a profession and a disciplined methodology, it became clear

to me what had gone wrong with some of my projects in the past

From that point on I began applying the tools and techniques of projectmanagement, and slowly the unification and completeness of the methodol-ogy became clear Project management works as a unified body of knowl-edge, but all of the tools and techniques depend on one another to succeed.You cannot do a good job of cost estimating if you have not developed agood set of requirements and deliverables for the project any more than youcan produce a good schedule without taking the time necessary to developgood estimates of the task durations

If project management is practiced using the methodology outlined

in this book and the Project Management Institute’s Guide to the Project

Management Body of Knowledge, you will become a good project manager.

Learning project management is more than studying a book or even a group

of books Project management must also be learned in the field with ence and exposure to real responsibility on real projects The Project Man-agement Professional (PMP) certification is designed to certify projectmanagers who meet the criteria for both knowledge and experience To qual-ify for certification you must have both PMI requires that you have at least4,500 hours of experience if you have a bachelor’s degree Some of thisexperience must extend past more than the last three years but not morethan past the last six years There is a criterion for people not holding a

experi-xv

xvi Preparing for the Project Management Professional Certification Exam

bachelor’s degree as well This requires more experience hours, 7,500, butallows them to be over a five-year period and not exceeding eight years

In addition, as of the end of March 2002, there is a new requirement

of 35 hours of project management education This requirement is really notvery difficult to fulfill, since there is no time limit and the training can beprovided by practically anyone

I have not included the forms for applying for the certification in thisbook since they are fairly changeable and can be easily downloaded fromthe Project Management Institute’s Internet site at http://www.pmi.org/certification/

This book is intended to cover the subject matter of the PMP exam.Since the PMP exam is a comprehensive examination of your knowledge ofproject management tools and techniques, the book is also comprehensive

Every answer to every question on the PMP examination is not in this book.

Nor is it in any other book PMI is constantly changing the examination.They are continually introducing new questions and replacing questions thathave been around for some time I do the best job I can to keep aware of thenature of the examination and pass this information on to you

My philosophy is that no one should be able to pass the PMP examwithout having an extremely good working knowledge of the practice ofproject management In this book I have tried to explain the nature of proj-ect management, how all of the tools and techniques relate to one another,and how it all goes together to make a unified methodology that can be used

to successfully manage projects

I hope that this book will help you prepare for the Project ManagementProfessional certification and that you will embark on a long and prosperouscareer in project management

I would appreciate your comments My e-mail address is:

Mnewell@PSMconsult.com

Preparing for the Project Management

Certification Exam

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Project management is quickly becoming the method of management

for more and more industries Projects are being done for everythingfrom building the largest skyscrapers to planning the smallest wed-ding Many large companies now have a stated policy to manage their entirecompany using project management methods We hope to encourage theuse of project management in all businesses with this book, and we hope to

encourage and help project managers learn more about the Guide to the

Project Management Body of Knowledge (PMBOK) and pass the ProjectManagement Professional (PMP) examination

If the professional organization for project managers, the Project agement Institute (PMI), has been instrumental in promoting project man-agement, we should be able to get some idea of the growth of projectmanagement by looking at the growth of the membership in this organiza-tion Founded in 1969, PMI has now been in existence more than thirtyyears When I joined PMI in 1989 they boasted of having about five thou-sand members and a thousand Project Management Professionals (PMPs).Since 1989 the organization has experienced fantastic growth This year,

Man-2002, as we enter a new century and a new millennium, PMI’s membership

is ninety thousand, and the number of PMPs is thirty-seven thousand Thesenumbers represent a growth greater than even PMI had anticipated

Of course, all project managers and those working in the project agement profession are not members of PMI, just as all people practicingany profession do not join a professional organization If the growth of PMI

man-is any indication of the growth in the project management profession itself,then it can easily be said that the profession is growing by great leaps.PMI has done much for the growth of project management as a profes-sion It has set the standards for the body of knowledge that makes up theproject management profession In 2001 PMI received ISO 9001 recogni-tion for its PMP certification program from the International Organizationfor Standardization (ISO) This indicates that PMI’s program for certifyingindividuals as PMPs meets the highest international quality standards Ac-

See copyright page for full registration information.

1

2 Preparing for the Project Management Professional Certification Exam

cording to the ISO, a standard is a ‘‘document approved by a recognizedbody, that provides, for common and repeated use, rules, guidelines, or char-acteristics for products, processes, or services with which compliance is notmandatory.’’

In addition PMI was able to obtain American National Standards

Insti-tute (ANSI) recognition for the Guide to the PMBOK This certification

makes this guide the standard document for project management edge

knowl-Other factors have contributed to the growth of the profession as well.The body of knowledge that comprises project management contains veryfew tools and techniques that were not around before we started calling thework of doing projects ‘‘project management.’’ Gantt charts have beenaround for nearly a hundred years, PERT analysis was a tool invented in the1950s, and concepts of teamwork and participative management have beenaround for that long as well What project management as a profession does

is draw these tools together into a homogeneous whole and forge them into

a new tool that produces reliable results in the management of projects

What Is Project Management Anyway?

The Guide to the PMBOK defines project management as follows: ‘‘Project

Management is the application of knowledge, skills, and techniques to ect activities in order to meet or exceed stakeholder needs and expectationsfrom a project.’’ So project management is using a set of tools and techniques

proj-to manage projects But it isn’t fair proj-to use the words you are defining as thedefinition We had better first talk about what a project is and then see if wecan come up with something better

‘‘A project is a temporary endeavor undertaken to provide a unique

product or service.’’ That is the definition from the Guide to the PMBOK The word temporary means that any project done must have a beginning and

an end A project must have some sort of definite beginning and some sort ofdefinite end A project generally begins when some sort of official documentproclaims the project to have an official life This document usually createssome means of collecting the cost and expenses of the project The end ofthe project is usually when all of the project goals have been met and all ofthe work of the project has been accomplished Some projects will end whenfor various reasons it has been decided to abandon the project or stop work

on it This is generally because the goals of the project cannot be practicallyachieved

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