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PMP In Depth - Project Management Professional Study Guide for PMP and CAPM Exams PDF

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PMP® In Depth: Project Management Professional Study Guide for PMP® and CAPM® Exams Dr. Paul Sanghera ©2006 Thomson Course Technology,a division of Thomson Learning Publisher and General Manager, Inc. All rights reserved. No part of this book may be reproduced or Thomson Course Technology PTR: transmitted in any form or by any means,electronic or mechanical, Stacy L. Hiquet including photocopying,recording,or by any information storage or Associate Director of Marketing: retrieval system without written permission from Thomson Course Sarah O’Donnell Technology PTR,except for the inclusion of brief quotations in a Manager of Editorial Services: review. Heather Talbot The Thomson Course Technology PTR logo and related trade dress are Marketing Manager: trademarks of Thomson Course Technology,a division of Thomson Heather Hurley Learning Inc.,and may not be used without written permission. Acquisitions Editor: PMI,PMP,PMBOK,and CAPM are registered trademarks of Project Mitzi Koontz Management Institute,Inc. in the United States and/or other countries. All other trademarks are the property of their respective owners. Project Editor/Copy Editor: Cathleen D. Snyder Important:Thomson Course Technology PTR cannot provide software support. Please contact the appropriate software manufacturer’s Technical Reviewers: technical support line or Web site for assistance. Paul Gneco and Anil Punjabi Thomson Course Technology PTR and the author have attempted PTR Editorial Services throughout this book to distinguish proprietary trademarks from Coordinator: descriptive terms by following the capitalization style used by the Elizabeth Furbish manufacturer. Interior Layout Tech: Information contained in this book has been obtained by Thomson Bill Hartman Course Technology PTR from sources believed to be reliable. Cover Designer: However,because of the possibility of human or mechanical error by Mike Tanamachi our sources,Thomson Course Technology PTR,or others,the Indexer: Publisher does not guarantee the accuracy,adequacy,or completeness Katherine Stimson of any information and is not responsible for any errors or omissions or the results obtained from use of such information. Readers should Proofreader: be particularly aware of the fact that the Internet is an ever-changing Heather Urschel entity. Some facts may have changed since this book went to press. Educational facilities,companies,and organizations interested in multiple copies or licensing of this book should contact the Publisher for quantity discount information. Training manuals,CD-ROMs,and portions of this book are also available individually or can be tailored for specific needs. ISBN:1-59863-177-2 Library of Congress Catalog Card Number:2006923222 Printed in the United States of America 06 07 08 09 10 PH 10 9 8 7 6 5 4 3 2 1 Thomson Course Technology PTR, a division of Thomson Learning Inc. 25 Thomson Place ■ Boston, MA 02210 ■ http://www.courseptr.com To life Whose every day is a project That I run from the 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 Each 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 thing first.Let me begin by thanking Mitzi Koontz for initiating this pro- ject.With two thumbs up,thanks to Cathleen Snyder 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,Heather Urschel for proofreading,and Katherine Stimson for index- ing.My special thanks to Paul Gneco and Anil Punjabi,the technical editors of this book, for carefully reviewing all the 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 manage- ment 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 Webor- der, and Dr. John Serri at Dream Logic. I also thank my colleagues and seniors in the field of education for helping 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 Dr.Paul Sanghera is an educator, technologist, and an entrepreneur living in Silicon Valley,California.With a master’s degree in Computer Science from Cornell University and a Ph.D.in Physics from Carleton University,he has authored and co-authored more than 100 technical papers published in well-reputed European and American research journals.He has more than 10 years of project management experience in the computer industry and at research labs at CERN and Cornell. Having worked in various roles, including director of project management at companies such as MP3.com and Dream Logic,director of software development,and software developer,he has a broader view of project management.He has earned several industry certifications,including CompTIA Project+,Network+,Linux+,Sun Certified Java Programmer,and Sun Certified Business Component Developer.Dr.Sanghera has contributed to building world-class technolo- gies such as Netscape Communicator and Novell’s NDS.He has taught technology courses at various institutes,including San Jose State University and Brooks College.As an engi- neering manager,he has been on the ground floor of several startups.He has also authored three technology books published by Apress,Manning,and McGraw-Hill. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . xiii Chapter 1 Project Management Framework . . . . . . . . . . . 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Managing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Understanding a Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Distinguishing Projects from Operations . . . . . . . . . . . . . . . . 5 Understanding Progressive Elaboration . . . . . . . . . . . . . . . . . 6 Understanding a Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Understanding the Project Lifecycle . . . . . . . . . . . . . . . . . . . . 8 Understanding Project Management Knowledge Areas . . . . . 11 Introducing Project Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . 16 Identifying Project Stakeholders . . . . . . . . . . . . . . . . . . . . . . 16 Identifying the Stakeholder Within . . . . . . . . . . . . . . . . . . . 17 Organizational Influences on Projects . . . . . . . . . . . . . . . . . . . . . 19 Functional Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Projectized Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Matrix Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Advanced Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Project Team and Project Management Team . . . . . . . . . . . . 24 Baseline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Contents vii Chapter 2 Initiating the Project . . . . . . . . . . . . . . . . . . . 29 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Origins of Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Understanding Project Selection . . . . . . . . . . . . . . . . . . . . . . . . . 31 Benefit Measurement Methods . . . . . . . . . . . . . . . . . . . . . . 31 Constrained Optimization Methods . . . . . . . . . . . . . . . . . . . 33 Expert Judgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Identifying the Project Stakeholders . . . . . . . . . . . . . . . . . . . . . . 34 Developing a Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Input to Developing the Project Charter . . . . . . . . . . . . . . . 36 Tools and Techniques for Developing the Project Charter . . . 38 Output of Developing the Project Charter . . . . . . . . . . . . . . 38 Developing a Preliminary Project Scope Statement . . . . . . . . . . . 40 Input to Developing the Preliminary Project Scope Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Tools and Techniques for Developing the Preliminary Project Scope Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 The Preliminary Project Scope Statement . . . . . . . . . . . . . . . 41 Obtaining Project Charter Approval . . . . . . . . . . . . . . . . . . . . . . 42 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Chapter 3 Planning the Project Scope . . . . . . . . . . . . . . 49 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Creating the Project Management Plan . . . . . . . . . . . . . . . . . . . 50 Managing Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Developing the Project Scope Management Plan . . . . . . . . . . . . 52 Input for Scope Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Tools and Techniques for Scope Planning . . . . . . . . . . . . . . . 53 Output of Scope Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Defining the Project Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Input to Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Tools and Techniques for Scope Definition . . . . . . . . . . . . . . 56 Output of Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . . 56 viii Contents Creating a Work Breakdown Structure (WBS) . . . . . . . . . . . . . . 60 Decomposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Output of Creating WBS . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Before and After the WBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Chapter 4 Planning Quality and Risk Management . . . . . 71 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Managing Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Planning Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Input to Quality Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Tools and Techniques Used for Quality Planning . . . . . . . . . 75 Output of Quality Planning . . . . . . . . . . . . . . . . . . . . . . . . . 75 Managing Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Planning Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Input to Risk Management Planning . . . . . . . . . . . . . . . . . . 78 Tools and Techniques for Risk Management Planning . . . . . 79 Output of Risk Management Planning . . . . . . . . . . . . . . . . . 79 Identifying Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Input to Risk Identification . . . . . . . . . . . . . . . . . . . . . . . . . 83 Tools and Techniques for Risk Identification . . . . . . . . . . . . 84 The Risk Register:The Output of Risk Identification . . . . . . 86 Analyzing Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Qualitative Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Quantitative Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Planning the Risk Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Input to Risk Response Planning . . . . . . . . . . . . . . . . . . . . . 97 Tools and Techniques for Risk Response Planning . . . . . . . . 98 Output of Risk Response Planning . . . . . . . . . . . . . . . . . . . 100 The Big Picture of Quality and Risk Management . . . . . . . . . . 102 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Contents ix Chapter 5 Planning the Project Schedule. . . . . . . . . . . 113 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 The Long and Winding Road to the Project Schedule . . . . . . . 114 Defining Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Input to Activity Definition . . . . . . . . . . . . . . . . . . . . . . . . 117 Tools and Techniques for Activity Definition . . . . . . . . . . . 117 Output of Activity Definition . . . . . . . . . . . . . . . . . . . . . . . 119 Sequencing Schedule Activities . . . . . . . . . . . . . . . . . . . . . . . . . 120 Tools and Techniques for Activity Sequencing . . . . . . . . . . 121 Output of Activity Sequencing . . . . . . . . . . . . . . . . . . . . . . 124 Estimating Activity Resource Requirements . . . . . . . . . . . . . . . 125 Input to Activity Resource Estimating . . . . . . . . . . . . . . . . 125 Tools and Techniques for Activity Resource Estimating . . . 126 Output of Activity Resource Estimating . . . . . . . . . . . . . . . 127 Estimating Activity Duration . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Input to Activity Duration Estimating . . . . . . . . . . . . . . . . 128 Tools and Techniques for Activity Duration Estimating . . . 130 Output of Activity Duration Estimating . . . . . . . . . . . . . . . 131 Developing the Project Schedule . . . . . . . . . . . . . . . . . . . . . . . . 132 Input to Schedule Development . . . . . . . . . . . . . . . . . . . . . 132 Tools and Techniques for Schedule Development . . . . . . . . 133 Output of the Schedule Development Process . . . . . . . . . . 138 Planning Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Input to Human Resource Planning . . . . . . . . . . . . . . . . . . 140 Tools and Techniques for Human Resource Planning . . . . . 142 Output of Human Resource Planning . . . . . . . . . . . . . . . . 144 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

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