Obviously, you want to pass your Project Management Professional (PMP) or Certified Associate in Project Management (CAPM) exam on the first attempt. Why bother sitting for an exam if you know you’re not prepared? In this appendix, you’ll find the details you must know to pass the exam. These facts won’t be everything you need to know to pass the PMP or CAPM exam, but you can bet you won’t pass the exam if you don’t know the critical information contained in this appendix.
Tips to Pass the Exam
For starters, don’t think of this process as preparing to take an exam—think of it as “preparing to pass an exam.” Anyone can prepare to take an exam: just show up. Preparing to pass the PMP and the CAPM exam requires project management experience, diligence, and a commitment to study.
Days Before the Exam
In the days leading up to your scheduled exam, here are some basics you should do to prepare yourself for success:
• Get some moderate exercise. Find time to go for a jog, lift weights, take a swim, or do whatever workout routine works best for you.
• Eat smart and healthy. If you eat healthy food, you’ll feel good and feel better about yourself. Be certain to drink plenty of water, and don’t overdo the caffeine.
• Get your sleep. A well-rested brain is a sharp brain. You don’t want to sit for your exam feeling tired, sluggish, and worn out.
• Time your study sessions. Don’t overdo your study sessions—long, crash-study sessions aren’t that profitable. In addition, try to study at the same time every day, at the time your exam is scheduled.
Create Your Own Answer Key
If you could take one page of notes into the exam, what information would you like on this one-page document? Of course, you absolutely cannot take any notes or reference materials into the exam area. However, if you can create and memorize one sheet of notes, you absolutely may re-create this once you’re seated in the exam area.
Practice creating a reference sheet so you can immediately, and legally, re-create this document once your exam has begun. You’ll be supplied with several sheets of blank paper and a couple of pencils. Once your exam process begins, re-create your reference sheet. The following are key pieces of information you’d be wise to include on your reference sheet (you’ll find all of this key information in this appendix):
• Activities within each process group
• Estimating formulas
• Communication formula
• Normal distribution values
• Earned value management formulas
• Project management theories
Testing Tips
The questions on the PMP and CAPM exams aren’t always direct and easy; they may offer a few red herrings, and some people have reported that they found taking the exam like reading War and Peace. But there are some practical, exam-passing tips. For starters, you may face questions that state, “All of the following are correct options, except for which one?” The question wants you to find the incorrect option or the option that would not be appropriate for the scenario described. You’re looking for the answer that doesn’t fit with the others listed. Be sure to understand what the question is asking for. It’s easy to focus on the scenario presented in a question and then see a suitable option for that scenario in the answer. However, if the question is asking you to identify an option that is not suitable, then you just missed the question. Carefully read the question to understand what is expected for an answer.
Here’s a tip that can work with many of the questions: Identify what the question wants for an answer, and then look for an option that doesn’t belong with the other possible answers. In other words, find the answer that doesn’t fit with the other three options. Find the “odd man out.” Here’s an example:
EVM is used during the ____________________.
A. Controlling activities of the project
B. Executing activities of the project
C. Closing activities of the project
D. Entire project
Notice how options A, B, and C are exclusive? If you choose A, the controlling phase, it implies that earned value management (EVM) is not used anywhere else in the project. The odd man out here is D, the entire project; it’s considered the “odd” choice because, by itself, it is not an actual process group. Of course, this tip won’t work with every question—but it’s handy to keep in mind.
For some answer choices, it may seem like two of the four options are both possible correct answers. However, because you may choose only one answer, you must discern which one is the best choice. Within the question, there will usually be some hint describing the progress of the project, the requirements of the stakeholders, or some other clue that can help you determine which answer is the best one for the question.
Answer Every Question—Once
The PMP exam has 200 questions, while the CAPM exam has 150 questions. You need to answer every question. Do not leave any question blank, even if you don’t know the answer to the question. A blank answer is a wrong answer. As you move through the exam and you find questions that stump you, use the “mark question” option in the exam software, choose an answer you suspect may be correct, and then move on. When you have answered all of the questions, you are given the option to review your marked answers.
Some questions in the exam may prompt your memory to come up with answers to questions you have marked for review. However, resist the temptation to review those questions you’ve already answered with confidence and haven’t marked. More often than not, your first instinct is the correct choice. When you completed the exams at the end of each chapter, did you change correct answers to wrong answers? If you did it in practice, you’ll likely do it on the actual exam.
Use the Process of Elimination
When you’re stumped on a question, use the process of elimination. For each question, there’ll be four choices. On your scratch paper, write down “ABCD.” If you can safely rule out “A,” cross it out of the ABCD you’ve written on your paper. Now focus on which of the other answers won’t work. If you determine that “C” won’t work, cross it off your list. Now you’ve got a 50-50 chance of finding the correct choice.
If you cannot determine which answer is best, “B” or “D” in this instance, here’s the best approach:
1. Choose an answer in the exam (no blank answers, remember).
2. Mark the question in the exam software for later review.
3. Circle the “ABCD” on your scratch paper, jot any relevant notes, and then write the question number next to the notes.
4. During the review, or from a later question, you may realize which choice is the better of the two answers. Return to the question and confirm that the best answer is selected.
Everything You Must Know
As promised, this section covers all of the information you must know going into the exam. It’s highly recommended that you create a method to recall this information. Here goes.
The 47 Project Management Processes
You’ll need to know the 47 project management processes and what each process accomplishes in the project. Here’s a quick rundown of each process group and their processes:
Initiating the Project
There are just two processes to know for project initiation:
• Develop the project charter
• Identify the project stakeholder
Planning the Project
There are 24 processes to know for project planning:
• Develop project management plan
• Plan scope management
• Collect requirements
• Define scope
• Create WBS
• Plan schedule management
• Define activities
• Sequence activities
• Estimate activity resources
• Estimate activity durations
• Develop schedule
• Plan cost management
• Estimate costs
• Determine budget
• Plan quality management
• Plan HR management
• Plan communications management
• Plan risk management
• Identify risk
• Perform qualitative risk analysis
• Perform a quantitative risk analysis
• Plan risk responses
• Plan procurement management
• Plan stakeholder management
Executing the Project
There are eight executing processes:
• Direct and manage project work
• Perform quality assurance
• Acquire the project team
• Develop the project team
• Manage project team
• Manage communications
• Conduct procurements
• Manage stakeholder engagement
Monitoring and Controlling the Project
There are 11 monitoring and controlling processes:
• Monitor and control the project work
• Perform integrated change control
• Validate scope
• Control scope
• Control schedule
• Control costs
• Control quality
• Control communications
• Control risks
• Control procurements
• Control stakeholder engagement
Closing the Project
There are just two closing processes:
• Close project or phase
• Close procurements
Earned Value Management Formulas
For EVM formulas, the following five rules should be remembered:
1. Always start with EV.
2. Variance means subtraction.
3. Index means division.
4. Less than 1 is bad in an index, greater than 1 is good (with the exception of TCPI).
5. Negative is bad in a variance; positive is good.
The formulas for earned value analysis can be calculated manually or through project management software during your projects. For the exam, you’ll want to memorize these formulas. Table A-1 shows a summary of all the formulas, as well as a sample, albeit goofy, mnemonic device.
Quick Project Management Facts
This section has some quick facts you should know at a glance. Hold on—this moves pretty fast.
Table B-1 A Summary of the Most Common EVM Formulas
Organizational Structures
Organizational structures are relevant to the project manager’s authority. A project manager has authority from weakest to highest in the following order:
• Functional
• Weak matrix
• Balanced matrix
• Strong matrix
• Projectized
Work Breakdown Structure (WBS) Facts
The WBS is the big picture of the project deliverables. It is not the activities that will create the project, but the components that the project will create. The WBS helps the project team and the project manager create accurate cost and time estimates. It also helps the project team and the project manager create an accurate activity list. The WBS is an input to five project management activities:
• Define activities
• Estimate costs
• Determine budget
• Identify risks
• Perform qualitative risk analysis
Project Scope Facts
Projects are temporary endeavors to create a unique product or service. They are selected by one of two methods:
• Benefit measurement methods These include scoring models, benefit/cost ratios, and economic models.
• Constrained optimization models These include mathematical models based on linear, integer, and dynamic programming. (You probably won’t see constrained optimization on the CAPM exam.)
The project scope defines all of the required work, and only the required work, to complete the project. Scope management is the process of ensuring that the project work is within scope and protecting the project from scope creep. The scope baseline, which includes the WBS and the WBS dictionary, is the baseline for all future project decisions because it justifies the business need of the project. There are two types of scope:
• Product scope Defines the attributes of the product or service the project is creating
• Project scope Defines the required work of the project to create the product
Scope validation is the process completed at the end of each phase and of each project to confirm that the project has met the requirements. It leads to formal acceptance of the project deliverable.
Project Time Facts
Time can be a project constraint. Effective time management is the scheduling and sequencing of activities in the best order to ensure that the project completes successfully and in a reasonable amount of time. These are some key terms related to time management:
• Lag Waiting between activities.
• Lead Activities come closer together and even overlap.
• Free float The amount of time an activity can be delayed without delaying the next scheduled activity’s early start date.
• Total float The amount of time an activity can be delayed without delaying the project’s finish date.
• Float Sometimes called slack—a perfectly acceptable synonym.
• Duration May be abbreviated as “du.” For example, du=8d means the duration is eight days. Duration is the amount of work periods required to complete an estimated activity.
There are three types of dependencies between activities:
• Mandatory This hard logic requires a specific sequence between activities.
• Discretionary This soft logic prefers a sequence between activities.
• External Due to conditions outside of the project, such as those created by vendors, the sequence must happen in a given order.
There are three types of precedence between activities that you should know for the exam:
• Finish to start (FS) The predecessor activity must finish before the successor activity can start.
• Finish to finish (FF) The predecessor activity must finish before the successor activity can finish.
• Start to start (SS) The predecessor activity must start before the successor activity can start.
Project Cost Facts
There are several methods of providing project estimates:
• Bottom-up Project costs start at zero, each component in the WBS is estimated for costs, and then the “grand total” is calculated. This method takes the longest to complete, but provides the most accurate estimate.
• Analogous Project costs are based on a similar project. This is a form of expert judgment, but it is also a top-down estimating approach, so it is less accurate than a bottom-up estimate.
• Parametric modeling Price is based on cost per unit. Examples include cost per metric ton, cost per yard, and cost per hour.
There are four types of costs attributed to a project:
• Variable costs The costs are dependent on other variables. For example, the cost of a food-catered event depends on how many people register to attend the event.
• Fixed costs The cost remains constant throughout the project. For example, a rented piece of equipment has the same fee each month even if it is used more in some months than in others.
• Direct costs The cost is directly attributed to an individual project and cannot be shared with other projects (for example, airfare to attend project meetings, hotel expenses, and leased equipment that is used only on the current project).
• Indirect costs These are the costs of doing business. Examples include rent, phone, and utilities.
Quality Management Facts
The cost of quality is the money spent investing in training, in meeting requirements for safety and other laws and regulations, and in taking steps to ensure quality acceptance. You might see the cost of quality as the cost of conformance. The cost of nonconformance, sometimes called the cost of poor quality, is the cost associated with rework, downtime, lost sales, and waste of materials.
Some common quality management charts and methods include the following:
• Ishikawa diagrams (also called fishbone or cause-and-effect diagrams) are used to find causes and effects that contribute to a problem.
• Flowcharts show the relationship between components and the flow of a process through a system.
• Pareto diagrams identify project problems and their frequencies. These are based on the 80/20 rule: 80 percent of project problems stem from 20 percent of the work.
• Control charts plot out the result of samplings to determine if projects are “in control” or “out of control.”
• Just-in-time ordering reduces the cost of inventory, but requires additional quality because materials would not be readily available if mistakes occurred.
Human Resource Facts
There are several human resource theories that the CAPM and PMP candidate should be familiar with on the exams. They include the following:
• Maslow’s Hierarchy of Needs There are five layers of needs for all humans: physiological, safety, social needs (such as love and friendship), esteem, and the crowning jewel, self-actualization.
• Herzberg’s Theory of Motivation There are two catalysts for workers: hygiene agents and motivating agents.
• Hygiene agents These do nothing to motivate, but their absence demotivates workers. Hygiene agents are the expectations all workers have: job security, a paycheck, clean and safe working conditions, a sense of belonging, civil working relationships, and other basic attributes associated with employment.
• Motivating agents These are the elements that motivate people to excel. They include responsibility, appreciation of work, recognition, opportunity to excel, education, and other opportunities associated with work besides financial rewards.
• McGregor’s Theory of X and Y This theory states that “X” people are lazy, don’t want to work, and need to be micromanaged. “Y” people are self-led, motivated, and can accomplish things on their own.
• Ouchi’s Theory Z This theory holds that workers are motivated by a sense of commitment, opportunity, and advancement. People will work if they are challenged and motivated. Think participative management.
• McClelland’s Theory of Needs Also known as the Three Needs Theory, because there are just three needs for each individual: need for achievement, need for affiliation, or the need for power.
• Vroom’s Expectancy Theory People will behave based on what they expect as a result of their behavior. In other words, people will work in relation to the expected reward.
Communication Facts
Communicating is the most important skill for the project manager. With that in mind, here are some key facts on communications:
• Communication channels formula: N(N – 1)/2. N represents the number of stakeholders. For example, if you have ten stakeholders, the formula would read 10(10 – 1)/2, or 45 communication channels. Pay special attention to questions wanting to know how many additional communication channels you have based on added stakeholders. For example, if you have 25 stakeholders on your project and have recently added five team members, how many additional communication channels do you now have? You’ll have to calculate the original number of communication channels: 25(25 – 1)/2 = 300 and then calculate the new number with the added team members: 30(30 – 1)/2 = 435 and, finally, subtract the difference between the two: 435 – 300 = 135, which is the number of additional communication channels.
• Fifty-five percent of communication is nonverbal; an additional 30 percent is paralingual.
• Effective listening is the ability to watch the speaker’s body language, interpret paralingual clues, and decipher facial expressions. Following the message, effective listening has the listener asking questions to achieve clarity and offering feedback.
• Active listening requires receivers of the message to offer cues, such as nodding the head to indicate that they are listening. It also requires receivers to repeat the message, ask questions, and continue the discussion if clarification is needed.
• Communication can be hindered by trendy phrases, jargon, and extremely pessimistic comments. In addition, other communication barriers include noise, hostility, cultural differences, and technical interruptions. Noise is defined as anything that interferes with the transmission and/or the receipt of a communication.
Risk Management Facts
Risks are unplanned events that can have positive or negative effects on the projects. Most risks are seen as threats to the project’s success—but not all risks are bad. For example, let’s say there is a 20 percent probability that a project will realize a discount in shipping, which will save the project $15,000. If this risk happens, the project will save money; if the risk doesn’t happen, the project will have to spend the $15,000. Risks should be identified as early as possible in the planning process. A person’s willingness to accept risk is the utility function (also called the utility theory or risk tolerance level). The Delphi Technique can be used to build consensus on project risks.
The only output of the risk planning process is the risk management plan. There are two broad types of risks:
• Business risk The loss of time and finances (where a downside and upside exist). Business risk is often referred to as speculative risk.
• Pure risk The loss of life, injury, and theft (where only a downside exists). Pure risk is often referred to as insurable risk.
Negative risks can be responded to using one of four methods:
• Avoidance Avoid the risk by planning a different technique to remove the risk from the project.
• Mitigation Reduce the probability or impact of the risk.
• Transference The risk is not eliminated, but the responsibility and ownership of the risk is transferred to another party (for example, through insurance).
• Acceptance The risk’s probability or impact may be small enough that the risk can be accepted, or the project team is not capable of mitigating the probability of a risk, such as a hurricane.
Positive risks can also be responded to using one of four methods:
• Exploiting The organization can take advantage of the benefits a positive risk will create.
• Sharing A project or organization can partner with another entity through joint ventures or teaming agreements to share a positive risk event.
• Enhancing The project manager tries to make the positive risk event happen in the project by enhancing the conditions for the positive risk event to come true and increasing the positive impact should the risk event come true.
• Acceptance The project manager can also accept positive risks.
Risks are ranked and scored to assess their probability and impact on the project:
• Qualitative analysis This approach qualifies the risks for further analysis.
• Quantitative analysis This method assigns numeric values to probability and impact. This approach calculates a risk factor (or exposure) in dollars or time.
• Cardinal scale A numeric ranking.
• Ordinal scale A word ranking (high, medium, low).
Procurement Facts
A statement of work (SOW) is provided to the potential sellers so they can create accurate bids, quotes, and proposals for the buyer. A bidder conference may be held so sellers can query the buyer on the product or service to be procured.
A contract is a formal agreement, preferably written, between a buyer and seller. To be valid, a contract must have:
• An offer
• Acceptance
• Consideration
• A legal purpose
• Capacity to enter into a contract
On the CAPM exam, procurement questions are usually from the buyer’s point of view. All requirements the seller is to complete should be clearly written in the contract. Requirements of both parties must be met, or legal proceedings may follow. Contract types include the following:
• Cost-reimbursable contracts require the buyer to assume the risk of cost overruns.
• Fixed-price contracts require the seller to assume the risk of cost overruns.
• Time and materials contracts are good for smaller assignments, but can impose cost overrun risks to the buyer if the contract between the buyer and seller does not include a not-to-exceed clause. This clause, commonly called an NTE clause, puts a cap on the maximum amount for the contract time and materials.
• A purchase order is a unilateral form of contract. It is an example of a fixed price contract.
• A letter of intent is not a contract, but shows the intent of the buyer to purchase from a specific seller.
Stakeholder Management Facts
Stakeholder management used to be tucked into project communications, but it’s so important that it’s now its own knowledge area in the PMBOK Guide. Stakeholder management is still closely related to communications management, but it’s more than just communicating with stakeholders. You’ll complete four processes as part of stakeholder management:
• Identify stakeholders Part of project initiation.
• Plan stakeholder management Part of the planning process group (obviously).
• Manage stakeholder engagement This is an executing process group.
• Control stakeholder engagement Part of the monitoring and controlling process group.
Stakeholder identification is one of the first processes you’ll do in a project. You need to identify the stakeholders to ensure you’re including all of the right people in the project planning. Once you’ve identified a stakeholder, you’ll record their information in the stakeholder register. There’s a three-step approach to stakeholder management:
• Identify stakeholders as early as possible in the project.
• Identify the project impact and support of each stakeholder.
• Plan how to influence the stakeholders.
You’ll need to know about the stakeholder classification models for your PMI examination. These are grids to plot out stakeholder power, influence, and interest in the project. Here are four common models:
• Power/interest grid How much power/interest do the stakeholders have?
• Power/influence grid How much power/influence do the stakeholders have?
• Influence/impact grid How much influence (involvement of decisions) and impact on project change do the stakeholders have?
• Salience model Classifies stakeholders based on power, urgency, and legitimacy for the project.
A Letter to You
My goal for you is to pass your exam. As I teach my PMP Boot Camp for different organizations around the globe, I’m struck by one similarity among the most excited course participants: These people want to pass their exam. Sure, project management is not the most exciting topic, but the individuals are excited about passing their exam. I hope you feel the same way. I believe that your odds of passing the PMP or the CAPM are like most things in life; you’re going to get out of it only what you put into it. I challenge you to become excited, happy, and eager to pass the exam.
Here are ten final tips for passing your PMP or CAPM examination:
• Prepare to pass the exam, not just take it.
• If you haven’t done so already, schedule your exam. Having a deadline makes that exam even more of a reality.
• If you haven’t done so already, create a clutter-free area for studying.
• Study in regular intervals right up to the day before your examination.
• Repetition is the mother of learning. If you don’t know the formula, repeat it and repeat it. And then repeat it again.
• Create your own flashcards from the terms and glossary in this book.
• Always answer the exam questions according to how the Project Management Institute (PMI) expects something done, not how you’d do it at your organization.
• Practice creating the one page of notes you’ll create at the start of your exam.
• Create a significant reward for yourself as an incentive to pass the exam.
• Make a commitment to pass.
If you’re stumped on something I’ve written in this book, or if you’d like to share your PMP or CAPM success story, drop me a line at [email protected]. Finally, I won’t wish you good luck on your PMP or CAPM exam—luck is for the ill-prepared. If you follow the strategies I’ve outlined in this book and apply yourself, I am certain you’ll pass the exam.
All my best,
Joseph Phillips, PMP, Project+, CTT+