PMP Project Management Professional Exam Review Guide.pdf

79582ffirs.indd 26/15/09 2:37:35 PMPMPProject Management Professional ExamReview Guide79582ffirs.indd 16/15/09 2:37:34 PM79582ffirs.indd 26/15/09 2:37:35 PMPMPProject Management Professional ExamReview GuideKim HeldmanVanina Mangano79582ffirs.indd 36/15/09 2:37:39 PMAcquisitions Editor:Jeff KellumDevelopment Editor:Mary Ellen SchutzTechnical Editor:Terri WagnerProduction Editor:Dassi ZeidelCopy Editor:Liz WelchEditorial Manager:Pete GaughanProduction Manager:Tim TateVice President and Executive Group Publisher:Richard SwadleyVice President and Publisher:Neil EddeMedia Project Manager 1:Laura Moss-HollisterMedia Associate Producer:Shawn PatrickMedia Quality Assurance:Marilyn HummelBook Designer:Judy Fung and Bill GibsonCompositor:Craig Woods,Happenstance Type-O-RamaProofreader:Kathy Pope,Word One New YorkIndexer:Robert SwansonProject Coordinator,Cover:Lynsey StanfordCover Designer:Ryan SneedCopyright 2009 by Wiley Publishing,Inc.,Indianapolis,IndianaPublished simultaneously in CanadaISBN:978-0-470-47958-2No part of this publication may be reproduced,stored in a retrieval system or transmitted in any form or by any means,electronic,mechanical,photocopying,recording,scanning or otherwise,except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act,without either the prior written permission of the Publisher,or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center,222 Rosewood Drive,Danvers,MA 01923,(978)750-8400,fax(978)646-8600.Requests to the Publisher for permission should be addressed to the Permissions Department,John Wiley&Sons,Inc.,111 River Street,Hoboken,NJ 07030,(201)748-6011,fax(201)748-6008,or online at http:/ of Liability/Disclaimer of Warranty:The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties,including without limitation warranties of fitness for a particular purpose.No warranty may be created or extended by sales or promotional materials.The advice and strategies contained herein may not be suitable for every situation.This work is sold with the understanding that the publisher is not engaged in rendering legal,accounting,or other professional services.If professional assistance is required,the services of a competent professional person should be sought.Neither the publisher nor the author shall be liable for damages arising herefrom.The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make.Further,readers should be aware that Internet Web sites listed in this work may have changed or disap-peared between when this work was written and when it is read.For general information on our other products and services or to obtain technical support,please contact our Cus-tomer Care Department within the U.S.at(877)762-2974,outside the U.S.at(317)572-3993 or fax(317)572-4002.Wiley also publishes its books in a variety of electronic formats.Some content that appears in print may not be avail-able in electronic books.Library of Congress Cataloging-in-Publication Data Heldman,Kim.PMP:project management professional exam review guide/Kim Heldman,Vanina Mangano.1st ed.p.cm.ISBN 978-0-470-47958-2(paper/cd-rom)1.Project managementExaminations,questions,etc.I.Mangano,Vanina.II.Guide to the project management body of knowledge(PMBOK guide)III.Title.HD69.P75H446 2009 658.404076dc22 2009017144TRADEMARKS:Wiley,the Wiley logo,and the Sybex logo are trademarks or registered trademarks of John Wiley&Sons,Inc.and/or its affiliates,in the United States and other countries,and may not be used without written per-mission.PMI,CAMP,PMP,and PMBOK are trademarks or registered trademarks of Project Management Institute,Inc.All other trademarks are the property of their respective owners.Wiley Publishing,Inc.,is not associated with any product or vendor mentioned in this book.10 9 8 7 6 5 4 3 2 179582ffirs.indd 46/15/09 2:37:39 PMDisclaimer:This eBook does not include ancillary media that was packaged with the printed version of the book.Dear Reader,Thank you for choosing PMP:Project Management Professional Exam Review Guide.This book is part of a family of premium-quality Sybex books,all of which are written by outstanding authors who combine practical experience with a gift for teaching.Sybex was founded in 1976.More than 30 years later,were still committed to producing consistently exceptional books.With each of our titles,were working hard to set a new standard for the industry.From the paper we print on,to the authors we work with,our goal is to bring you the best books available.I hope you see all that reflected in these pages.Id be very interested to hear your comments and get your feedback on how were doing.Feel free to let me know what you think about this or any other Sybex book by sending me an email at .If you think youve found a technical error in this book,please visit http:/.Customer feed-back is critical to our efforts at Sybex.Best regards,Neil Edde Vice President and Publisher Sybex,an Imprint of Wiley 79582ffirs.indd 56/15/09 2:37:40 PMTo BB,my forever love Kim HeldmanTo Al Smith,Jr.,whose support and encouragement have given me the ability to do greater things Vanina Mangano79582ffirs.indd 66/15/09 2:37:40 PMAcknowledgmentsId like to thank Vanina for an outstanding job writing this book.She was a lifesaver and bore the brunt of the work.I enjoyed seeing how she gave the content a fresh face and her illustrations are terrific.(Dont tell her,but I may borrow a few of them for future reference.)It was a pleasure to work with Vanina.She was a real trooper through some of the rough starts and stops we had deciding what the content should look like.I hope we have the opportunity to work together again in the future.I also echo Vaninas thanks to Jeff Kellum,acquisitions editor.This book,and the boxed set,was his brainchild.I always enjoy the opportunity to work with Jeff and all the great staff at Sybex.I also want to thank Neil Edde,vice president,for taking that leap of faith on a crazy project management study guide idea way back when.Thanks,Neil.Mary Ellen Schutz,developmental editor,is simply the best.She is terrific to work with,and I appreciate her endurance through the bumpy spots we encountered.Mary Ellen is a true professional and is excellent at what she does.I have had the great pleasure of working with her in the past and hope to work with her again on future projects.Thanks to Terri Wagner,technical editor,for her help on this project.Terri is the president of Mentor Source,Inc.,and conducts training classes all over the globe.Her perspective on the content and what she hears in real-life classroom situations helped us to make the content relevant and clear.A very big thanks goes to all of the instructors who use my books in their classrooms.I appreciate you choosing Sybex,Inc.,and my books to help your students master PMP concepts.Thank you also to all of the readers who choose this book to help them study for the PMP exam.Kim HeldmanTo start,thank you to the team at Sybex who devoted a great deal of effort toward making this review guide come together successfully.It is incredible to see the amount of teamwork and effort that goes into the making of a book.The process is certainly thorough,and there are many people not named here who were key to producing a solid product.Once again,thanks to all of you!Id like to thank Kim Heldman for the opportunity of working together on this book.It was wonderful to see that your live personality is just as dynamic,warm,and welcoming as your written voice.I had a blast getting to know your work in such a detailed way,and I am a bigger fan than ever!Thank you to Jeff Kellum,our acquisitions editor,who saw the value of this book,and whose great and supportive personality always comes through the phone and email.I appreci-ate you welcoming me to the Sybex family,and it was a sincere pleasure working with you.A tremendous thank you to Mary Ellen Schutz,developmental editor,who is truly a“Gentle Editor,”as her email signature says.You were instrumental in the making of this book and have a patience and method of being that we all strive for!You are extremely good at what you do.It was wonderful having an opportunity to work with you.79582ffirs.indd 76/15/09 2:37:40 PMviii AcknowledgmentsThank you to Terri Wagner,technical editor,whose sharp eyes made sure that we were on the ball.You were instrumental in making sure that the information was accurate and clearly communicated,and your knowledge of the field is very clear.A special thanks to the individuals who are such a big part of my life,and who have always impacted me in a magnificent way.This includes my family:Nicolas Mangano,Marysil Man-gano,Nicolas Mangano,Jr.,Carina Moncrief and her husband Jonathan Moncrief,and my beautiful niecesyou mean everything to me!Thank you to Al Smith,Jr.,my partner in all things,who is supportive and an inspiration to meI enjoy all of our adventures and accom-plishments together!And finally,thank you to Roshoud Brown,who always encouraged me to write and inspired me with his own words.Vanina ManganoWe both would like to thank Liz Welch,copyeditor,who made sure grammar and spell-ing were picture perfect;Kathy Pope,proofreader for catching those last little“oops”;and Dassi Zeidel,production editor,who made sure everything flowed through the pro-duction process.Thanks also to our compositor,Craig Woods,and the indexer,Robert Swanson.The book couldnt happen without them.The Authors79582ffirs.indd 86/15/09 2:37:40 PMAbout the AuthorsKim Heldman,MBA,PMP,is the deputy enterprise architect for the state of Colorado and the chief information officer for the Colorado Department of Transportation.Kim is responsible for managing projects with IT components ranging from small in scope and budget to multimillion-dollar,multiyear projects.She has more than 19 years experience in IT project management.Kim has served in a senior leadership role for over 11 years and is regarded as a strategic visionary with an innate ability to collaborate with diverse groups and organizations,instill hope,improve morale,and lead her teams in achieving goals they never thought possible.Kim has extensive experience in the government sector managing projects of various size and scope.Currently,Kim is working with the Governors Office of Information Technology,assisting in the oversight of one of the largest projects ever undertaken in the state of Colorado.In addition to her project management experience,Kim also has experience managing application development,web development,network operations,infrastructure,security,and customer service teams.Kim is the author of the PMP Project Management Professional Study Guide,5th Edition published by Sybex,Inc.Thousands of people worldwide have used the Study Guide in prepa-ration for the PMP Exam.Kim is also the author of Project Management JumpStart,2nd Edition;Project Managers Spotlight on Risk Management;and co-author of Excel 2007 for Project Managers,all from Sybex.Kim has also published several articles and is currently working on a leadership book.Kim continues to write on project management best practices and leadership topics,and she speaks frequently at conferences and events.You can contact Kim at Kim.H.She personally answers all her email.Vanina Mangano is an Executive Member of Never Limited LLC,which owns a portfolio of companies,including its most recent project:The PM Instructors.The PM Instructors specializes in PMI certification exam preparation material and training.Through The PM Instructors,Vanina has authored courseware material within the subject of project management,including the most recent release:PMI Risk Management Professional Exam Preparation.Over the past decade,Vanina has specialized in working with and founding start-up companies,ranging from overseas technology-driven companies to recreation and fitness.Her experience largely focuses on the areas of project management,operations,and busi-ness analysis.Prior to her current role,Vanina served as the VP of Business Development for BHNET Software Solutions,focusing in the onshore/offshore outsourcing model within the Asian and European countries.79582ffirs.indd 96/15/09 2:37:40 PMx About the AuthorsAs part of her contribution to the community,Vanina has participated in various com-mittees and organizations.For two years,she served on the board of Women in Technology Internationals(WITI)Orange County network,and helped relaunch the Los Angeles and Orange County networks in 2005.In addition,she has participated in formal mentorship programs by acting as a mentor to tenured professional women in the technology industry,and she has spoken at alumni business conferences.Vanina holds a dual bachelors degree from the University of California,Riverside,is a certified Project Management Professional(PMP)and PMI Risk Management Professional(PMI-RMP),and holds a certification in Human Resources Management.79582ffirs.indd 106/15/09 2:37:40 PMContents at a GlanceIntroduction xxiChapter 1 Foundation of a Project 1Chapter 2 Initiating 25Chapter 3 Planning 59Chapter 4 Executing 177Chapter 5 Monitoring and Controlling 221Chapter 6 Closing 277Chapter 7 Social and Professional Responsibility 293Appendix About the Companion CD 311Index 31579582ffirs.indd 116/15/09 2:37:40 PM79582ffirs.indd 126/15/09 2:37:40 PMContentsIntroduction xxiChapter 1 Foundation of a Project 1Defining a Project 2Project Characteristics 2Operations 3Progressive Elaboration 4Stakeholders 4Defining Project Management 5Project Management 5Programs 6Portfolios 6Project Management Office 7Project Management Skills 8Understanding Organizational Structures 10Functional Organizations 11Projectized Organizations 12Matrix Organizations 12Understanding the Project Environment 14Project Life Cycles and Project Management Processes 15Project Phases and Project Life Cycles 16Project Management Process Groups 17Plan-Do-Check-Act Cycle 21Review Questions 22Answers to Review Questions 24Chapter 2 Initiating 25Introducing the Project Management Knowledge Areas 26Project Integration Management 27Project Scope Management 28Project Time Management 29Project Cost Management 30Project Quality Management 32Project Human Resource Management 33Project Communications Management 34Project Risk Management 35Project Procurement Management 36Initiating a Project 38Needs and Demands 38Feasibility Study 39Project Selection Methods 3979582book.indb 136/5/09 10:51:31 AMxiv ContentsThe Project Charter 45Inputs of the Develop Project Charter Process 46Tools and Techniques of the Develop Project Charter Process 47Outputs of the Develop Project Charter Process 48Identify Stake