PMP in Depth: Project Management Professional Study Guide for the PMP Exam

592 Pages·2009·5.68 MB·English

by  Paul Sanghera

PMP EXAM
®
IN DEPTH,
SECOND EDITION:
PROJECT MANAGEMENT PROFESSIONAL STUDY GUIDE FOR THE PMP®EXAM
Dr. Paul Sanghera, PMP
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Project Management Professional Study
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1 2 3 4 5 6 7 11 10 09
To life
Whose every day is a project
That I run from time’s shoulders.
To my friends,
the key stakeholders:
Gurmail Kandola, John Serri, and Kulwinder
Baldev Khullar, Ruth Gordon, and Bhupinder
Stanley Wong and Srilatha are a few to name.
With friends, I can see clearly
Through storm and rain.
Friends without whom
Every path is just a trail of dust.
With whom I’m like the first man
Walking on the planet Earth.
Acknowledgments
E
ach time I get a book published,I re-learn a lesson that transforming an idea into a fin-
ished book takes a project (it produces a unique product—that is,the book—and it has a
beginning and an end) and a project team.As they say (well,if they don’t anymore,they should),
first things first.Let me begin by thanking Mitzi Koontz for initiating this project.With two
thumbs up, thanks to Cathleen Small for managing this project from the planning stage
through the executing stage,the monitoring/controlling stage,and all the way to the closing
stage.
It’s my pleasure to acknowledge the hard work of other members of the team as well: Bill
Hartman for layout,Sandy Doell for proofreading,and Kelly Talbot for indexing.My special
thanks to Paul Gneco,the technical editor of this book,for carefully reviewing a number of
chapters and offering valuable feedback.
In some ways,writing this book is an expression of the project manager and educator inside
me.I thank some great minds from whom I directly or indirectly learned about management
during my journey in the computer industry from Novell to Dream Logic:Chuck Castleton
at Novell,Delon Dotson at Netscape and MP3.com,Kate Peterson at Weborder,and Dr.John
Serri at Dream Logic.I also thank my colleagues and seniors in the field of education for help-
ing me in so many ways to become a better educator.Here are a few to mention:Dr.Gerald
Pauler (Brooks College),Professor David Hayes (San Jose State University),Professor Michael
Burke (San Jose State University),and Dr.John Serri (University of Phoenix).
Last,but not least,my appreciation (along with my heart) goes to my wife,Renee,and my son,
Adam,for not only peacefully coexisting with my projects,but also for supporting them.
About the Author
O
ne of the world’s leading experts in project management,Dr.Paul Sangherais a manager,
an educator,a technologist,and an entrepreneur and has more than 15 years of diverse pro-
ject management experience in the computer industry from Netscape to MP3 and at research
labs from Cornell to CERN.Having worked in various roles,including director of project man-
agement,director of software development,software developer,trainer,and scientist,he has a
broad view of project management.Expertise in multiple application areas,including physics,
computer science, RFID, biotechnology, and nanotechnology, has helped him to master the
global principles of project management that apply to all application areas.Dr.Sanghera has
several industry certifications,including PMP,CAPM,Project+,Network+,Linux+,SCJP,and
SCBCD,and he has contributed to building world-class technologies,such as Netscape Com-
municator and Novell’s NDS.As an engineering manager,he has been at the ground floor of
several startups and has been a lecturer at San Jose State University and Brooks College.
He has authored or co-authored more than 100 technical papers published in well-reputed
European and American research journals.Dr.Sanghera is the best-selling author of several
books on science,technology,and project management.He has a master’s degree in Computer
Science from Cornell University and a Ph.D.in Physics from Carleton University.He lives in
Silicon Valley,where he runs an information company,Infonential Inc.,that specializes in pro-
ject management and emerging technologies.
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv
PART I: INITIATING THE PROJECT
Chapter 1 Project Management Framework . . . . . . . . . . . . . . . . . . . 3
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Managing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Understanding a Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Distinguishing Projects from Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Understanding Progressive Elaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Understanding a Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Understanding the Project Lifecycle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Understanding Project Management Knowledge Areas. . . . . . . . . . . . . . . 13
Introducing the Project Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Identifying Project Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Identifying the Stakeholder Within:Project Manager. . . . . . . . . . . . . . . . 23
Organizational Influences on Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Understanding the Organizational Culture . . . . . . . . . . . . . . . . . . . . . . . . 25
Understanding the Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . 27
Identifying Environmental Factors and Process Assets . . . . . . . . . . . . . . . 31
Triangular Relationship:Project,Program,and Portfolio. . . . . . . . . . . . . . . . . 34
Some Advanced Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Probability-Related Concepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Global Project Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Baseline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Project Management Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
vi Contents
Big Picture of Project Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Chapter 2 Initiating the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Initiating a Project:Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Origins of Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Understanding Project Selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Benefit Measurement Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Constrained Optimization Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Expert Judgment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Developing a Project Charter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Identifying the Project Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Input to Identifying Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Tools and Techniques for Identifying Stakeholders . . . . . . . . . . . . . . . . . . 64
Output of Identifying Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Stakeholder Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Stakeholder Management Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Obtaining Project Charter Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
PART II: PLANNING THE PROJECT
Chapter 3 Planning the Project Scope . . . . . . . . . . . . . . . . . . . . . . 77
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Planning the Project:Big Picture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Elements of Project Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Developing the Project Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . 82
Managing Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Developing the Project Scope Management Plan . . . . . . . . . . . . . . . . . . . 84
Project Scope Management:Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Contents vii
Collecting Requirements for the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Tools and Techniques for Collecting Requirements. . . . . . . . . . . . . . . . . . 88
Output of Collecting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Defining the Project Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Input to Scope Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Tools and Techniques for Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . 93
Output of Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Creating a Work Breakdown Structure (WBS) . . . . . . . . . . . . . . . . . . . . . . . . 96
Decomposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Output of Creating WBS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Before and After the WBS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Chapter 4 Planning for Project Schedule and Communication. . . . 109
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
The Long and Winding Road to the Project Schedule . . . . . . . . . . . . . . . . . 110
Defining Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Input to Defining Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Tools and Techniques for Defining Activities. . . . . . . . . . . . . . . . . . . . . . 114
Output of Defining Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Sequencing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Tools and Techniques for Sequencing Activities. . . . . . . . . . . . . . . . . . . . 117
Output of Sequencing Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Estimating Activity Resource Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 120
Input to Activity Resource Estimating. . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Tools and Techniques for Activity Resource Estimating . . . . . . . . . . . . . 121
Output of Activity Resource Estimating . . . . . . . . . . . . . . . . . . . . . . . . . 122
Estimating Activity Duration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Input to Activity Duration Estimating. . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Tools and Techniques for Activity Duration Estimating . . . . . . . . . . . . . 124
Output of Activity Duration Estimating . . . . . . . . . . . . . . . . . . . . . . . . . 126
Developing the Project Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Input to Schedule Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Tools and Techniques for Schedule Development . . . . . . . . . . . . . . . . . . 128
Output of the Schedule Development Process. . . . . . . . . . . . . . . . . . . . . 133
viii Contents
Managing Project Communication:Big Picture. . . . . . . . . . . . . . . . . . . . . . . 136
Planning Project Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Tools and Techniques for Communication Planning. . . . . . . . . . . . . . . . 138
Output of Communication Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Chapter 5 Planning for Project Resources . . . . . . . . . . . . . . . . . . 155
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Planning for Resources:Big Picture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Developing the Human Resource Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Input to Human Resource Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Tools and Techniques for Human Resource Planning. . . . . . . . . . . . . . . 160
Output of Human Resource Planning:The Human Resource Plan . . . . 163
Estimating Costs and Determining Budget. . . . . . . . . . . . . . . . . . . . . . . . . . 165
Estimating Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Determining Project Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Procuring the Project Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Planning for Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Make-or-Buy Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Determining Contract Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Procurement Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Chapter 6 Planning Quality and Risk Management. . . . . . . . . . . . 183
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Managing Quality:Big Picture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Planning Quality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Input to Quality Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Tools and Techniques Used for Quality Planning . . . . . . . . . . . . . . . . . . 189
Output of Quality Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Managing Risks:The Big Picture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Planning Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Developing the Risk Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . . 194
Risk Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Contents ix
Identifying Risks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Input to Risk Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Tools and Techniques for Risk Identification. . . . . . . . . . . . . . . . . . . . . . 200
The Risk Register:The Output of Risk Identification. . . . . . . . . . . . . . . 202
Analyzing Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Performing Qualitative Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
Performing Quantitative Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Planning Risk Response. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Input to Risk Response Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Tools and Techniques for Risk Response Planning . . . . . . . . . . . . . . . . . 214
Output of Risk Response Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
The Big Picture of Quality and Risk Management . . . . . . . . . . . . . . . . . . . . 219
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
PART III: EXECUTING THE PROJECT
Chapter 7 Managing Project Work. . . . . . . . . . . . . . . . . . . . . . . . 233
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Executing a Project:Big Picture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Directing and Managing Project Execution. . . . . . . . . . . . . . . . . . . . . . . . . . 236
Input to Directing and Managing Project Execution. . . . . . . . . . . . . . . . 237
Tools and Techniques for Directing and Managing Project Execution . . 238
Output of Directing and Managing Project Execution . . . . . . . . . . . . . . 239
Performing Quality Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Input to Performing Quality Assurance. . . . . . . . . . . . . . . . . . . . . . . . . . 242
Tools and Techniques for Performing Quality Assurance. . . . . . . . . . . . . 243
Output of Performing Quality Assurance. . . . . . . . . . . . . . . . . . . . . . . . . 244
Conducting Procurements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
Input to Conducting Procurements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
Tools and Techniques for Conducting Procurements. . . . . . . . . . . . . . . . 249
Output of Conducting Procurements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Key Terms and Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Review Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256