PMP Exam Preparation

Key Notes for the PMP Exam

PMP Exam Preparation​

Study Notes
This version contains summaries of the PMP Mindset Exam, PMBOK 6, PMBOK 7, Agile Practice
Guide and other books to guide you in the preparation for the exam.

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Content
PMP GUIDE GOLD STUDY NOTES

PMP EXAM MINDSET BRIEF

BEFORE INITIATE A PROJECT

Project Management Basic Concepts

Choosing the approach (Predictive, Hybrid or Agile)
EEF & OPA
Business case vs Benefits Plan
PMO
PMP Questions
INITIATE THE PROJECT

Project Charter
Identify Stakeholder
People: Negotiate Project Agreements
People: Mentor and Collaborate with Stakeholders
People: Promote Team Performance Through the Application of Emotional Intelligence
People: Engage Stakeholders and Build Shared Understanding
PMP Questions
PLAN, EXECUTE, CONTROL & MONITOR THE PROJECT

4. Project Integration Management

5. Project Scope Management
6. Project Time Management
7. Project Cost Management
8. Project Quality Management
9. Project Human Resource Management
10. Project Communication Management
11. Project Risk Management
12. Project Procurement Management
13. Project Stakeholder Management
CLOSE THE PROJECT

The Agile Manifesto and Mindset Exam preparation

ADAPTIVE APPROACH: AGILE, KANBAN, DA, SCRUM, SAFE, Less AGILE
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PMP EXAM MINDSET BRIEF

Throughout this document we are going to see details and explanations of the
PMP Exam Mindset. Let's start with some relevant tips.

Practice makes the master, and the more you practice PMP question models the
better. It is a matter of time until you reach a high understanding of the PMP
exam mindset; it takes a while to perform very well. I always recommend
studying and practicing first, and then when you feel confident, book the exam,
and go for it without hesitation.

Remember all the information that you need is given in the question and the
answer options. Do not answer based on your experience but based on PMI
Mindset. The PMP Exam is about applying best practices not about your
experience.

The PMP exam is structured into four levels of question types: Easy level,
Moderate Level, Difficult Level, and Expert Level. The Easy level is when three
of the four option answers are wrong. In the Moderate you have two potential
right answers, in the difficult level you decide between three right answers for
which one is the most appropriate, and in the Expert level, all of them could be
the right answer but only one is the most appropriate or sometimes you must
choose two options or more.

However, most of the time the way to answer these questions is by focusing on
which one is the very first step to take if following a process or which one is the
best option when the PM must be proactive. We always must Assess first, Then
Review and Last, be proactive and Take Action right away.

People who have taken the PMP exam agree that on average there are 50% of
easy-level questions, 30% moderate questions, 15% difficult questions, and 5% of
expert questions in the real test. Remember that according to the PMI “About
half of the examination will represent predictive project management
approaches and the other half will represent agile or hybrid approaches.
Predictive, agile, and hybrid approaches will be found throughout the three
domain areas (People, Process and Business Enviroment).

Let's move on to the following two moderate-level sample PMP questions;

1.​ A supplier is unlikely to meet the project schedule. Based on the risk response
plan, the project manager secured stakeholder approval to use Uninterrupted
Power Supply (UPS) until the Diesel Generator arrives. However, the UPS changes
won’t be ready in time.

Which risk type is the project manager facing in this situation?

A. Secondary risk
B. Residual risk
C. Primary risk
D. Compliance risk

2.​ A vendor is unlikely that the delivery will be ready on time. The Project Manager's
risk mitigation plan is to use UPS until the Electrical Generator is implemented.
However, this strategy might slow down project execution.

What kind of risk might you introduce to the project?

A. Secondary risk
B. Residual risk
C. Primary risk
D. Compliance risk

See next page for answers explanation.

For question number 1: The risk type that the project manager is facing in this situation
is, B. Residual risk

Explanation:

Residual Risk: The risk that remains after implementing risk response strategies. In
this case, even though the project manager secured stakeholder approval to use
UPS as a risk response, there is still a risk (residual risk) because the UPS changes
won't be ready in time.

Primary Risk: The original risk of the supplier not meeting the project schedule. (The
supplier is unable to meet the project schedule. This risk was the trigger to activate the
risk plan)

Secondary Risk: A new risk that arises as a direct result of implementing a risk response
plan. In this scenario, it's not mentioned that a new risk has emerged due to the risk
response plan.

Compliance Risk: This refers to the risk of not following laws, regulations, or company
policies. There's no indication that this specific risk applies in the given scenario.

So, the correct answer is B. Residual risk.

Again, if you carefully read the questions and the answers, here, you can rule out
answers C and D. Then, by understanding the definition of the types of risk, you may lead
to the right answer.

For question number 2: The risk type that the project manager is facing in this situation
is, A. Secondary risk

Now, following the beforehand explanation we conclude that another risk arises after the
activation of the risk plan strategy, which is slowing project execution. In this situation,
you need to deal with this new risk (Do something), but in the first question, you only
must wait (Do nothing) for the UPS to be ready, maybe in hours.

Again, if you carefully read the questions and the answers, here, you can rule out
answers C and D. By understanding the definition of the types of risk, you may lead to the
right answer.
BEFORE INITIATING A PROJECT

Projects Management Basics Concepts

Projects are undertaken to fulfill objectives by producing deliverables.

Temporary Endeavour: The temporary nature of projects indicates that a project

has a definite beginning and end. The end of the project is reached when one or
more of the following is true:
●​ The project’s objectives have been achieved.
●​ The objectives will not or cannot be met.
●​ Funding is exhausted or no longer available for allocation to the
project.
●​ The need for the project no longer exists (e.g., the customer no
longer wants the project completed, a change in strategy or priority
ends the project, the organizational management provides direction
to end the project).
●​ The human or physical resources are no longer available; or
●​ The project is terminated for legal cause or convenience.

Projects Drive Change: Projects drive change in organizations. From a business

perspective, a project is aimed at moving an organization from one state to
another state to achieve a specific objective.

Projects enable business value creation: PMI defines business value as the net
quantifiable benefit derived from a business endeavour. The benefit may be
tangible, intangible, or both. In business analysis, the business value is considered
the return, in the form of elements such as time, money, goods, or intangibles in
return for something exchanged.

Projects vs Operation:

Projects Operation

●​ Drive Change. ●​ Maintain status quo.

●​ Attain its objectives then end. ●​ Sustain the business and ongoing
●​ Produce unique products, operations.
services, or results. ●​ Produce repetitive products,
●​ Creates Value. services, or results.
Projects Selection Approach: (Predictive, Hybrid or Agile)

Tailoring the project approach is a crucial aspect of project management because not all
projects are the same, and one size does not fit all. Tailoring allows project managers
and teams to adapt the approach to suit the specific needs and characteristics of the
project.

It is up to the project management team to determine the best life cycle for each project.

Characteristics

Approach Requirements Activities Delivery Goal

Predictive Fixed Performed once for the Single Manage Cost

entire project

Iterative Dynamic Repeated until correct Single Correctnes of

Solution

Incremental Dynamic Preformed once for a Frequent Speed

given increment

Agile Dynamic Repeated until correct Frequent Customer Value

Predictive life cycles may also be referred to as waterfall life cycles. also referred to as
plan-driven life cycles. A predictive approach is practical when the project and product
requirements can be defined, collected, and analyzed at the start of the project, or
planned upfront.

Iterative life cycle, the project scope is generally determined early in the project life
cycle, but time and cost estimates are routinely modified as the project team’s
understanding of the product increases.
Iterations develop the product through a series of repeated cycles, while increments
successively add to the functionality of the product.

Incremental life cycle, the deliverable is produced through a series of iterations that
successively add functionality within a predetermined time frame. The deliverable
contains the necessary and sufficient capability to be considered complete only after the
final iteration.
A hybrid life cycle is a combination of a predictive and an adaptive life cycle. Those
elements of the project that are well-known or have fixed requirements follow a
predictive development life cycle, and those elements that are still evolving follow an
adaptive development life cycle.
Remember; the Hybrid Approach is a combination of Predictive + Adaptive
(Iterative+Incremental)
INITIATE A PROJECT
Project Charter

Develop a Project Charter

The first process in the initiating process group is the develop project charter.

The project charter is a document that contains high-level project information,

such as the project’s purpose, objectives, and preapproved financial resources.
The single most important purpose of this document is to convey the formal
authorization for the project. To accomplish this, it is necessary that the charter
clearly shows the business need for the project and that the project objectives
align with the organization’s strategic objectives. For this purpose, two project
management business documents—i.e., the project business case and the project
benefit management plan.

The project charter is the document that formally authorizes a project, which
includes naming the project manager, determining the authority level of the project
manager, and allowing the project manager to start using organizational resources
on the project.

How to identify and classify stakeholders

Steps Definition Techniques Comments

Brainstorming with the project
team, subject-matter experts
●​ Nominal Group (SMEs), and key identified
The first thing the Technique. stakeholders.
Identify project team needs to do ●​ Crawford Slip Interviews with SMEs and key
Stakeholders is to make up a list of Method stakeholders.
project stakeholders. ●​ Affinity Prior projects list of stakeholders.
Diagrams Contracts with vendors and
suppliers.
Social Network Analysis.

Not all stakeholders will X axis Power, Y axis Interest. We

have equal influence or Power Interest Grid have High Power/High Interest, or
Classify the interest in the project, so High Power/Low Interest, and so on
stakeholders it is important to
separate the identified
Salience Model Power, Urgency, and legitimacy
stakeholders into groups
Project Integration Management

Project Integration Management spans across all phases of a project, ( initiation,

planning, execution, monitoring and controlling, and closing) and involves coordinating
all aspects of a project to ensure it runs smoothly and meets its objectives. There
are seven key processes in Project Integration Management, each with its own set of
inputs, tools and techniques, and outputs.

PERFORMING INTEGRATION

The role of the project manager is twofold when performing integration on the
project:

Project managers play a key role in working with the project sponsor to
understand the strategic objectives and ensure the alignment of the project
objectives and results with those of the portfolio, program, and business areas. In
this way, project managers contribute to the integration and execution of the
strategy.
Project managers are responsible for guiding the team to work together to focus
on what is really essential at the project level. This is achieved through the
integration of processes, business environment, and people.
Conflict Management is a common technique that every project manager must apply to
develop the project charter and the project management plan.

The current PMP exam in people’s domain evaluates “ Manage Conflict" and this
topic appears in the exam in many ways, here you can find the most interesting exam
notes regarding Manage Conflict:

1. Key Words:

●​ Low Morale, Conflict, Low Commitment. These are signs of conflict.

●​ Support high-performing team members' growth by encouraging collaboration
and training in agile processes.
●​ Expectancy theory for employee motivation is based on confidence, value, and
compensation.
●​ Address the Definition of Done (DoD) non-compliance in retrospective
meetings.
●​ Address problems with team members individually or collectively based on the
situation.
●​ Conflict resolution methods: Force, Withdrawal, Collaborate/Smooth, etc.
●​ Focus on Five Modes of Conflict Resolution.

2. Responsibility of Project Manager during Issue:

●​ Identify the nature of the issue and plan course correction, particularly for
critical stakeholders.

3. Stakeholder Engagement:
The Planning Approach: There are two known planning approaches: The Traditional
Planning Approach or Upfront Planning (For Predictive Projects) and The
Rolling-Wave Planning Approach (For Adaptive Projects).

●​ Traditional Planning Approach: This approach involves detailed planning

(upfront planning) of the entire project from start to finish before any work
begins. Project managers and teams create a comprehensive project plan,
including all tasks, dependencies, and resource allocations, in advance.
●​ Rolling Wave Planning Approach: Rolling wave planning takes a more adaptive
and iterative approach. It involves planning the near-term activities in detail while
leaving the planning of distant future phases at a higher level. As the project
progresses, plans for the subsequent phases are developed in more detail.

Change Management Plan is a structured approach to help individuals, teams, and

organizations transition from their current state to a desired future state with minimal
resistance and disruption. It is a document that indicates how change requests will
be managed throughout the project.

Characteristics of High-Quality WBS: Deliverable-oriented, Hierarchical structure, and

follows the 100% Rule (sum of lower-level components equals the parent component).
In summary, planning and managing scope involves detailed analysis of technical
requirements, identification of dependencies, and methods like brainstorming, affinity
diagrams, and mind mapping to ensure comprehensive scope definition. Developing a
high-quality Work Breakdown Structure (WBS) is crucial for organizing deliverables.
Continuous engagement with stakeholders, especially the product owner, is vital
for projects with evolving scope. The scope defined in the Project Charter should have
a sponsor agreement before detailed planning commences to ensure project alignment
and success.
Agile Scope Management
Agile Scope Management Key Principles

Agile Scope Management refers to the approach of managing project scope in an agile
environment. It is a dynamic and iterative process that focuses on embracing change
and responding to evolving customer needs throughout the project lifecycle. Unlike
traditional project management, which aims to lock down the scope early and avoid
changes, agile scope management recognizes that requirements and priorities can
change over time.
Project Schedule Management

Project Schedule Diagram Creation

Resource Optimization-Fast Track & Crash

Fast tracking involves overlapping Crashing involves allocating additional

activities. It helps in shortening the project resources, extra manpower, working overtime,
timeline but can also introduce risks and a or using more advanced technology to
higher chance of rework. complete activities faster.
Recommended to use if tasks can be It can help speed up the project, but also incur
overlapped. Use it before Crashing. higher costs due to additional resources.
Recommended to use if your CPI is more than
1.

Resource Optimization-Resource Leveling

The primary goal of resource leveling is to ensure that the demand for resources
does not exceed their availability during the project's execution. This helps in
managing resource constraints, avoiding burnout, and maintaining a more balanced
workload for team members.
 Resource Optimization-Resource Smoothing

It focuses on optimizing resource utilization without changing the project's

critical path. Resource smoothing is particularly useful when resource constraints
exist, and you must balance resource workloads over time.

ALWAYS REMEMBER:
CV, SV, VAC, CPI & SPI ​ ​ > 1 IS GOOD
CV, SV, VAC, CPI & SPI ​ ​ <1 IS BAD.

BUT
TCPI ​ ​ > 1 IS BAD
TCPI​ ​ <1 IS GOOD.

●​ CV = COST VARIANCE
●​ SV = SCHEDULE VARIANCE
●​ CPI = COST PERFORMANCE INDEX
●​ SPI = SCHEDULE PERFORMANCE INDEX

Estimated at Completion means the forecasted amount of money that you would end
up expanding on the project.

Estimated to Complete means the amount of money that you need to finish the project.
 BAC (Budget At Completion)
EV (Earned Value)
PV (Planned Value)
AC (Actual Cost)
SV= EV-PV CV=EV-AC
SPI=EV/PV CPI=EV/AC
if future remain as planned: EAC=BAC/CPI

EAC=AC + BAC - EV ETC=EAC-AC

VAC=BAC-EAC
if CPI & SPI influence the TCPI= (BAC-EV) / (BAC-AC)
remaining work:
OR
EAC=AC + (BAC - EV) /
(CPI*SPI) TCPI= (BAC-EV) / (EAC-AC)

7.2 Estimate Cost

The project team assesses the cost of individual project activities or work packages
based on the available information and historical data.

Key Output: Cost Estimates - Cost estimates are the primary output and include the
estimated costs for each activity or work package. They can be categorized as rough
order of magnitude (ROM), budgetary, or definitive estimates based on the level of detail
and accuracy.
Order of Magnitude (ROM) Estimates: ROM estimates are rough, high-level estimates
made early in the project when limited information is available. They provide a broad
range of potential costs. Class V.

Budgetary Estimates: Budgetary estimates are more detailed than ROM estimates but
are still made early in the project, typically during the planning phase. They provide a
closer approximation of project costs. Class III.

Definitive Estimates: Definitive estimates are the most detailed and accurate estimates.
They are prepared later in the project when detailed project plans, specifications, and
more information are available. Class II or Class I.

In this phase, we can use Montecarlo Analysis simulation.

7.3 Determine Budget

In this process, the cost estimates are aggregated and compiled into a comprehensive
project budget.

8.1 Plan Quality Management

In this process, the project team develops a quality management plan that outlines the
quality standards, metrics, and processes that will be used to ensure that the
project's deliverables meet the required quality criteria.

Key Output: Quality Management Plan - This document defines the project's quality
objectives, roles and responsibilities, quality control activities, and the overall approach
to achieving and assuring quality throughout the project. Identify potential risks and issues
in advance and plan strategies to prevent them.
By prioritizing prevention over inspection, project teams can proactively manage and
maintain the quality of their work, leading to more successful and efficient project
outcomes.

prevention over inspection in project quality management, consider the following

strategies:

Cost of Quality

In project management, the concept of the "cost of quality" refers to the total cost
incurred by a project to ensure that the project's deliverables meet the required
quality standards and satisfy customer expectations. The cost of quality
encompasses both the cost of conformance (preventing defects) and the cost of

The Seven Basic Quality Control Tools, often referred to as the "7 QC Tools," are a set of
tools and techniques used in quality control and process improvement to identify and
solve quality-related problems. They were first developed and popularized by Japanese
quality guru Kaoru Ishikawa and are widely used in various industries to improve product
and process quality. The 7 QC Tools are as follows:

1.​ Check Sheet (Tally Sheet): Check sheets are simple forms or templates used to
systematically collect and record data. They help in organizing and summarizing
data for analysis. Common uses include tracking defects, recording the frequency
of specific issues, and identifying patterns.
2.​ Pareto Chart: The Pareto chart is a bar chart that combines data in a way that
highlights the most significant factors or problems. It follows the Pareto principle
(80/20 rule), which suggests that roughly 80% of the problems are caused by 20%
of the factors. It helps prioritize issues for improvement efforts.
Project Communications Management

90% of PM's time is communicating.

Communication Hierarchical Focus

Project Risk Management

Risk is something that might happen. (An Opportunity or a Threat)

Issue is a risk that already happens.
11.4 Perform Quantitative Risk Analysis

Quantitative risk analysis involves numerically analyzing the effect of identified risks
on project objectives, often using techniques such as Monte Carlo simulations.

Key Output: Project Documents Updates (Quantitative Risk Analysis Results) - This
output provides a quantitative assessment of risk exposure, including potential cost
and schedule impacts. It helps in making informed decisions about risk responses.

11.5 Plan Risk Responses

12.1 Plan Procurement Management

12.2 Conduct Procurement
Here, the project team executes the procurement plan by obtaining bids or proposals
from potential suppliers, evaluating their offers, and selecting the best supplier(s) based
on predefined criteria.

Key Output: Selected Sellers - This output identifies the chosen suppliers or vendors
who will provide the necessary goods or services to the project. Contract agreements
with the selected sellers may also be generated as part of this process.

12.3 Close Procurement

The project team monitors and manages procurement activities, including supplier
performance, contract compliance, and resolution of any issues or disputes.

Key Output: Close Procurement (Performance Reviews) - These reviews provide

information on how well the procurement processes are functioning, including insights
into supplier performance and contract compliance. Change requests related to
procurement may also be generated.

Exam Notes Project Procurement Management

Topic "Process: Plan and Manage Procurement":

1. Key Information:

●​ Internal Resources vs. External Resources: The decision to use internal or external
resources for project needs.
●​ Procurement Management Plan: A document that outlines how procurement
processes will be managed and executed.

2. Types of Contracts:

●​ Fixed Price (FP) or Reimbursement: Contracts that can be fixed price, where the
vendor bears the cost risk, or reimbursement-based, where the buyer reimburses
costs.
●​ Cost Plus Incentive Fee (CPIF): A contract where the vendor receives a base fee
plus additional incentives for achieving specific performance targets.
●​ Firm Fixed Price (FFP): A contract with a fixed price that is not subject to
adjustments.
●​ Fixed Price Economic Price Adjustment (FPEPA): A contract with a fixed price that
includes provisions for price adjustments based on predefined economic factors.

3. Build vs. Buy Decision:

Project Stakeholder Management

13.2 Plan Stakeholder Engagement

Here, the project team develops strategies and plans for engaging with stakeholders
effectively throughout the project.
Key Output: Stakeholder Engagement Plan - This plan outlines how the project team
will engage with stakeholders, including communication methods, frequency, and the
level of engagement needed for each stakeholder group. It also addresses strategies for
addressing their needs and concerns.

The Stakeholder Engagement Assessment Matrix is a dynamic tool that can evolve
throughout a project as stakeholders' levels of interest and engagement change. It helps
project managers tailor their communication and engagement strategies to effectively
address the needs and concerns of different stakeholder groups. Regularly updating the
matrix can ensure that engagement efforts remain relevant and targeted throughout the
project lifecycle.

Stakeholder Unaware Resistant Neutral Supporting Leading

Stakeholder 1 C D

Stakeholder 2 C,D

C: Current Level of Engagement

D: Desired Level of Engagement

Here are the five categories in this matrix:

The Agile Manifesto & Mindset Exam Preparation
What is Agile?

Agile is not a rigid process or methodology but rather a mindset that's ideal for
situations where there's no clear end goal or when that goal is frequently changing.
This mindset emphasizes continuous learning and embraces change as a natural
part of knowledge work. It challenges the traditional assembly line model and enables
teams and organizations to manage uncertainty by delivering value iteratively until the
customer is satisfied.

The Agile mindset emphasizes a set of values and principles outlined in the Agile
Manifesto, which was created by a group of software developers in 2001. The Agile
Manifesto values:

1.​ Individuals and interactions over processes and tools.

2.​ Working software over comprehensive documentation.
3.​ Customer collaboration over contract negotiation.
4.​ Responding to change over following a plan.

These values are underpinned by 12 principles that guide Agile practices, such as
delivering working software in short iterations, welcoming changing requirements, and
maintaining close collaboration between cross-functional teams and stakeholders.

The Agile principles are a set of guiding statements that provide a foundation for Agile
methodologies and practices.
These principles are at the core of Agile methodologies like Scrum, Kanban, and
Extreme Programming (XP), and they guide teams in delivering value, responding to
change, and fostering collaboration in the world of software development and beyond.

The Agile mindset encourages adaptability, continuous improvement,

customer-centricity, and a focus on delivering value early and frequently. It's not
limited to software development; it has been adapted and applied to various fields and
industries to promote flexibility and responsiveness in the face of uncertainty and
change.

Servant Leadership Empowers The Team

Servant leadership is a leadership style that emphasizes the leader's role as a servant to
their team or organization. Instead of the traditional top-down approach, where leaders
make decisions and direct others, servant leaders focus on serving and empowering their
teams. Here's how servant leadership relates to empowering teams:

T-Shirt Sizing:
 ●​ In T-shirt sizing, teams assign sizes to user stories using labels like Small, Medium,
Large, and Extra Large.
●​ This technique provides a high-level estimate based on the perceived size or
complexity of the story.
●​ It is often used for early-stage, rough estimates before detailed planning.

Acceptance Test-Driven Development (ATDD)

It is an Agile software development practice that emphasizes collaboration between
cross-functional teams, including developers, testers, and business stakeholders, to
define and agree upon the acceptance criteria for user stories or features. It is a
refinement of the Test-Driven Development (TDD) process, with a strong focus on
ensuring that the software being developed meets the desired business requirements
and delivers value to the customer.

Principles and Practices of ATDD

1.​ Collaboration: ATDD promotes collaboration among all team members,

including developers, testers, business analysts, and product owners. It
encourages open communication to ensure a shared understanding of
requirements and expectations.
2.​ User Stories: ATDD typically starts with the creation of user stories, which are
concise descriptions of specific user interactions with the software. These user
stories serve as the basis for defining acceptance criteria.
3.​ Acceptance Criteria: Acceptance criteria are specific, concrete conditions or
scenarios that must be met for a user story to be considered complete and
accepted by the product owner or business stakeholders. These criteria serve as
tests to validate that the story has been implemented correctly.
Large Scale Scrum (LeSS)
It is Scrum applied to large-scale development.

The two levels of LeSS – regular LeSS and LeSS-Huge – are built using teams as the
organizational building block.

Regular LeSS is for 2-8 teams, while LeSS-Huge is for over eight teams. In LeSS,
ScrumMasters perform their role full-time for up to three teams at a time. Teams work on
their sprints concurrently and share one product owner, product backlog, and definition
of done for their shippable product. Each team has its own sprint backlog and
retrospectives, with one common “Overall Retrospective” and sprint review. LeSS Huge
adds “Requirement Areas,” which are related clusters of customer requirements. Each
cluster has its own product owner and a group of 4-8 teams, allowing each team to focus
on its area.

LeSS focuses effort on what the customer wants and enforces the principles of scrum to
help teams achieve it.
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DISCLAIMER: The content presented is information collected from multiple sources. It is intended only
for educational and informational purposes. The author disclaims any responsibility for any liability,
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The following study notes were compiled from textbooks and digital resources:

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