Preparing for the project management professional

399 Pages·2005·3.156 MB·English

by  Michael W. Newell

Preparing
for the
Project Management
(cid:1)
Professional (PMP )
Certification Exam
Third Edition
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Preparing
for the
Project Management
(cid:1)
Professional (PMP )
Certification Exam
Third Edition
Michael W. Newell,
PMP, ENP
American Management Association
NewYork•Atlanta•Brussels•Chicago•MexicoCity•SanFrancisco
Shanghai•Tokyo•Toronto•Washington,D.C.
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LibraryofCongressCataloging-in-PublicationData
Newell,MichaelW.,1945–
Preparingfortheprojectmanagementprofessional(PMP)certification
exam/MichaelW.Newell.—3rded.
p. cm.
Includesbibliographicalreferencesandindex.
ISBN0-8144-0859-1(pbk.)
1.Projectmanagement—Examinations,questions,etc. I. Title.
HD69.P75N49 2005
658.4(cid:1)04(cid:1)076—dc22
2004030682
(cid:3)2005MichaelW.Newell
Allrightsreserved.
PrintedintheUnitedStatesofAmerica.
Thispublicationmaynotbereproduced,
storedinaretrievalsystem,
ortransmittedinwholeorinpart,
inanyformorbyanymeans,electronic,
mechanical,photocopying,recording,orotherwise,
withoutthepriorwrittenpermissionofAMACOM,
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1601Broadway,NewYork,NY10019.
PrintingNumber
10 9 8 7 6 5 4 3 2 1
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This book is dedicated to my wife, Saralee, who still corrects my spelling and puts up
with all my foolishness.
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CONTENTS
Preface xv
Introduction to Project Management 1
WhatIsProjectManagementAnyway? 2
StandardsandRegulations 2
ATrueStory 5
AdvantagesofProjectManagement 6
Organizing forProjectManagement 7
TheProjectizedOrganization 7
TheFunctionalorTraditionalOrganization 9
TheMatrixOrganization 11
TheProjectOfficeandtheProjectManagementOffice 12
HowtheProjectManagerMakesProjectsSuccessful 13
TheProjectLifeCycle 14
ProjectManagementProcesses 15
Summary 17
1. Scope Management 18
InitiationoftheProject 19
ProjectCharter 19
StatementofWork 20
BusinessNeed 20
ScopeDescription 20
EnvironmentalandOrganizationalFactors 21
OrganizationalProcessAssets 21
ChangeManagementProcedure 21
RiskControlProcedures 21
OrganizationalKnowledgeBases 21
ConstraintsandAssumptions 22
ProjectSelectionMethods 22
WhoAreThoseStakeholders? 22
CostandItsRelationshiptoPrice 23
OverbidorUnderbid:WhichIsBetterforYourCompany? 24
Getting totheScopeBaseline 26
WorkBreakdownStructure 28
SystemsApproachtoWorkBreakdownStructure 31
vii
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viii Contents
WorkBreakdownStructureDictionary 32
AdditionalProjectBreakdownStructures 32
ScopeVerification 33
ChangeManagement 33
ProjectJustifications 34
TheBreakevenChart 35
ProblemswithBreakevenCharts 36
AverageRateofReturnonInvestment 36
PresentValueofMoney 37
InternalRateofReturnonInvestment 40
Summary 46
2. Time Management 47
ActivityDefinition 47
ActivitySequencing 48
ActivityonArrowDiagramming 49
GanttChartsandMilestoneCharts 50
PrecedenceDiagrammingMethod(PDM) 51
Logical Relationships 52
Finish-StartRelationship(FS) 52
Start-StartRelationship(SS) 52
Finish-FinishRelationship(FF) 54
Start-FinishRelationship(SF) 55
LeadsandLags 56
Diagramming Relationships 56
ProjectStartandProjectFinishEvents 57
LogicalPrecedenceDiagram 57
ActivityDurations 57
BuildingtheNetworkDiagram 58
BufferingtheSchedule 63
ReverseResourceAllocationScheduling 67
Critical PathMethod(CPM) 68
Program EvaluationandReviewTechnique(PERT) 68
MonteCarloSimulation 73
TheSimulation 73
OutputfromtheMonteCarloSimulation 74
Critical ChainTheory 74
Summary 76
3. Cost Management 77
Why WeNeedCostManagement 77
ProjectLifeCycleandProjectCost 78
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