Project Management Professional (PMP) Predictive (Plan-Driven) Project Management Syllabus

What is scope creep and how does it differ from gold plating?

Scope creep is the uncontrolled expansion of product or project scope without adjustments to time, cost, and resources. Gold plating is the team adding extra features the customer never requested. Both are uncontrolled additions to be prevented.

What is the primary defense against scope creep?

A clearly defined scope baseline plus a formal integrated change control process, so every requested change is evaluated and approved/rejected before any work is done.

What is the 'Define Activities' process?

Identifying and documenting the specific actions (activities) to be performed to produce the project deliverables, by decomposing work packages. Outputs include the activity list, activity attributes, and a milestone list.

What is a milestone?

A significant point or event in the project; it has zero duration and consumes no resources. Milestones may be mandatory (e.g., contractual) or optional.

What is the Precedence Diagramming Method (PDM)?

An activity-on-node technique for constructing a schedule network diagram that uses nodes for activities and arrows for logical relationships (dependencies).

Name the four logical relationships (dependencies) used in PDM.

Finish-to-Start (FS), Finish-to-Finish (FF), Start-to-Start (SS), and Start-to-Finish (SF). FS is the most common; SF is the rarest.

Differentiate mandatory, discretionary, external, and internal dependencies.

Mandatory = hard logic, legally/contractually required or inherent in the work. Discretionary = soft logic, preferred/best-practice sequencing. External = relationship between project and non-project activities. Internal = relationship within the project team's control.

Define lead and lag in scheduling.

Lead = an acceleration that allows a successor to start before its predecessor finishes (e.g., FS minus 2 days). Lag = a delay imposed on a successor (e.g., FS plus 2 days).

What is the three-point (PERT) estimate using the triangular distribution?

Estimate = (Optimistic + Most Likely + Pessimistic) / 3, i.e., (O + M + P) / 3.

What is the beta (PERT) three-point estimate formula?

Estimate = (Optimistic + 4 × Most Likely + Pessimistic) / 6, i.e., (O + 4M + P) / 6, weighting the most likely value more heavily.

What is the formula for the standard deviation of a PERT activity estimate?

Standard deviation = (Pessimistic − Optimistic) / 6, i.e., (P − O) / 6.

Compare analogous and parametric estimating.

Analogous = top-down, uses values/parameters from a similar past project; faster, less costly, less accurate. Parametric = uses a statistical relationship between historical data and variables (e.g., cost per unit × quantity); more accurate when the model is scalable.

What is the Critical Path Method (CPM)?

A schedule analysis technique that determines the longest path of dependent activities through the network, defining the shortest possible project duration and the activities with zero float (the critical path).

What is total float (slack) and how is it calculated?

Total float is the amount of time an activity can be delayed without delaying the project finish date. Total Float = Late Start − Early Start = Late Finish − Early Finish. Critical path activities have zero (or the least) total float.

What is free float?

The amount of time an activity can be delayed without delaying the early start of any immediately following (successor) activity.

Compare schedule crashing and fast tracking.

Crashing = adding resources to shorten the schedule, which increases cost. Fast tracking = performing activities in parallel that were planned in sequence, which increases risk and possible rework. Both are schedule compression techniques.

What is resource leveling versus resource smoothing?

Resource leveling adjusts start/finish dates based on resource constraints to balance demand with supply; it often changes the critical path. Resource smoothing adjusts activities within their float so resource limits are not exceeded; it does not change the critical path.

What does the 'Control Schedule' process do?

Monitors the status of the project to update the schedule and manage changes to the schedule baseline, using techniques like schedule performance analysis (e.g., SV, SPI), iteration burndown charts, and what-if analysis.

What is the cost baseline?

The approved, time-phased budget (excluding management reserves) used to measure and monitor cost performance. Cost baseline = sum of work package estimates + contingency reserves.

How do contingency reserves differ from management reserves?

Contingency reserves cover identified (known) risks and are part of the cost baseline, controlled by the PM. Management reserves cover unknown/unforeseen work (unknown unknowns), are part of the total project budget but NOT the cost baseline, and require management approval to use.

What is the project budget composed of?

Project budget = cost baseline + management reserves. The cost baseline itself = work package cost estimates + contingency reserves (control account and project-level).

In Earned Value Management, define PV, EV, and AC.

PV (Planned Value) = budgeted cost of work scheduled. EV (Earned Value) = budgeted cost of work actually performed. AC (Actual Cost) = actual cost incurred for the work performed.

What are the formulas for Cost Variance (CV) and Schedule Variance (SV)?

CV = EV − AC (negative = over budget). SV = EV − PV (negative = behind schedule).

What are the formulas for Cost Performance Index (CPI) and Schedule Performance Index (SPI)?

CPI = EV / AC (less than 1 = over budget). SPI = EV / PV (less than 1 = behind schedule).

What is the Estimate at Completion (EAC) formula when current variances are typical?

EAC = BAC / CPI, where BAC is the Budget at Completion. This assumes future performance will continue at the current cost performance rate.

What is the Estimate to Complete (ETC) and the typical formula?

ETC is the expected cost to finish the remaining work. Typical formula: ETC = EAC − AC (or BAC − EV / CPI). It is the forecast cost from now to project completion.

What is the To-Complete Performance Index (TCPI) based on BAC?

TCPI = (BAC − EV) / (BAC − AC). It is the cost performance that must be achieved on remaining work to meet the budget. A TCPI greater than 1 means tighter efficiency is required than achieved so far.

What is the Variance at Completion (VAC) formula?

VAC = BAC − EAC. A positive VAC means the project is forecast to finish under budget; negative means over budget.

What does Joseph Juran's 'cost of quality' (CoQ) include?

Cost of conformance (prevention costs + appraisal costs) and cost of nonconformance (internal failure costs + external failure costs). Investing in conformance reduces failure costs.

Distinguish quality from grade.

Quality is the degree to which a product fulfills requirements (fitness for use). Grade is a category assigned to products with the same functional use but different technical characteristics. Low quality is always a problem; low grade may be acceptable.

Distinguish prevention from inspection and tolerance from control limits.

Prevention keeps errors out of the process; inspection keeps errors out of the customer's hands. Tolerances are the acceptable range of a result; control limits are the boundaries of common-cause variation in a stable process.

What is the difference between 'Manage Quality' and 'Control Quality'?

Manage Quality (executing) is process-focused, auditing and improving quality processes (quality assurance). Control Quality (monitoring) is product-focused, inspecting deliverables to verify they meet requirements and produce verified deliverables.

Compare the three contract types: FFP, T&M, and CPF.

Fixed Price (FFP): set price; seller bears cost risk; best when scope is well-defined. Cost-Reimbursable (e.g., CPF/CPFF): buyer pays costs plus fee; buyer bears more cost risk; used when scope is uncertain. Time & Materials (T&M): hybrid with labor rates but open quantity; used for staff augmentation/small scopes.

In a Cost Plus Incentive Fee (CPIF) contract, how is cost overrun/underrun shared?

The buyer and seller share cost savings or overruns according to a pre-negotiated sharing ratio (e.g., 80/20), and the seller earns an incentive fee for meeting performance targets, subject to maximum/minimum fee limits.

What is a point of total assumption (PTA) in a Fixed Price Incentive Fee (FPIF) contract?

The cost level above which the seller bears all additional costs (100% of overrun). Beyond the PTA, increased costs reduce the seller's profit dollar-for-dollar up to the ceiling price.

What does the 'Conduct Procurements' process produce?

Obtaining seller responses, selecting a seller, and awarding a contract. Key outputs include selected sellers and signed agreements (contracts). Tools include bidder conferences, proposal evaluation, and negotiation.

What is the purpose of 'Control Procurements'?

Managing procurement relationships, monitoring contract performance, making payments and changes/corrections, and closing out contracts. It includes claims administration and procurement performance reviews.

What happens when a contract is closed?

Closing a procurement involves verifying all work and deliverables are acceptable, settling open claims, finalizing payments, formal written acceptance, and documenting lessons learned. Procurements may close before the project ends.

What is risk appetite versus risk threshold?

Risk appetite is the degree of uncertainty an organization is willing to accept in anticipation of a reward. Risk threshold is the specific measurable level of risk exposure above/below which action is taken (the boundary of acceptable variation).

Distinguish individual project risk from overall project risk.

Individual project risk is an uncertain event/condition that, if it occurs, affects one or more project objectives. Overall project risk is the effect of uncertainty on the project as a whole, arising from all sources including individual risks.

What is the output of the 'Plan Risk Management' process?

The risk management plan, which defines how risk activities will be structured and performed: methodology, roles/responsibilities, funding, timing, risk categories (RBS), stakeholder risk appetite, definitions of probability and impact, and the probability-impact matrix.

What is a Risk Breakdown Structure (RBS)?

A hierarchical representation of potential sources of risk (e.g., technical, management, commercial, external), used to categorize and identify risks systematically.

What is the risk register and what does it initially contain?

A document recording details of identified individual project risks. Initially it captures the list of identified risks, potential risk owners, and a list of potential risk responses. It is progressively elaborated with analysis and responses.

What is the difference between the risk register and the risk report?

The risk register documents details of individual project risks. The risk report presents information on sources of overall project risk and summary information on identified individual risks (e.g., distribution and key drivers).

What does 'Perform Qualitative Risk Analysis' do?

Prioritizes individual risks for further analysis or action by assessing their probability of occurrence and impact, typically using a probability-and-impact matrix. It is subjective, fast, and the most common analysis. Output updates the risk register with priorities.

What does 'Perform Quantitative Risk Analysis' do?

Numerically analyzes the combined effect of identified individual risks and other uncertainty sources on overall project objectives (e.g., cost/schedule). Uses techniques like Monte Carlo simulation, decision trees, and sensitivity analysis (tornado diagram).

What is Expected Monetary Value (EMV) and its formula?

EMV is a statistical technique calculating the average outcome when futures are uncertain. EMV = Probability × Impact. Opportunities are positive values, threats negative; summed across outcomes in a decision tree.

What is a tornado diagram used for?

It displays the results of sensitivity analysis, ranking risks/variables by the magnitude of their impact on the project objective so the most influential are shown at the top (widest bars).

What are the five strategies for negative risks (threats)?

Escalate, Avoid, Transfer, Mitigate, and Accept. (Avoid = eliminate the threat; Transfer = shift impact to a third party such as insurance; Mitigate = reduce probability/impact; Accept = acknowledge without proactive action.)

What are the five strategies for positive risks (opportunities)?

Escalate, Exploit, Share, Enhance, and Accept. (Exploit = ensure the opportunity is realized; Share = allocate to a third party best able to capture it; Enhance = increase probability/impact; Accept = take advantage if it occurs.)

When is the 'Escalate' risk response strategy used?

When a threat or opportunity is outside the scope of the project or beyond the project manager's authority. Ownership is transferred to the relevant person/part of the organization (e.g., program or portfolio level), and it is no longer monitored by the project team.

What is the difference between active and passive acceptance of a risk?

Passive acceptance = no action except documenting; deal with it if it occurs. Active acceptance = establishing a contingency reserve (time, money, resources) to handle the risk if it materializes.

What is the purpose of the 'Implement Risk Responses' process?

Carrying out agreed-upon risk response plans, ensuring responses are executed as planned to address overall project risk exposure, minimize threats, and maximize opportunities. It is an executing-process-group activity.

What is the goal of 'Monitor Risks'?

Monitoring implementation of agreed risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness. Tools include risk audits, risk reassessment, and reserve analysis.

What is a residual risk versus a secondary risk?

A residual risk is one that remains after a risk response has been implemented. A secondary risk is a new risk that arises as a direct result of implementing a risk response.

What is a workaround in risk management?

An unplanned response to a risk that was not previously identified or accepted (i.e., a response to an unanticipated event/issue that has occurred), developed reactively rather than from a pre-planned response.

What is a fallback plan versus a contingency plan?

A contingency plan is the planned response executed if a specific identified risk occurs (triggered by a risk trigger). A fallback plan is executed if the contingency plan proves ineffective.