Project Management Professional-Chương mở đầu

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Preparing
for the
Project Management
Professional (PMPா)

Certification Exam
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Preparing
for the
Project Management
Professional (PMPா)
Certification Exam
Second Edition
Michael W. Newell,
PMP, ENP
American Management Association
New York • Atlanta • Brussels • Buenos Aires • Chicago • London • Mexico City
San Francisco • Shanghai • Tokyo • Toronto • Washington, D.C.
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Special discounts on bulk quantities of AMACOM books are
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AMACOM, a division of American Management Association,
1601 Broadway, New York, NY 10019.
Tel.: 212-903-8316 Fax: 212-903-8083
Web site: www.amacombooks.org
This publication is designed to provide accurate and authoritative
information in regard to the subject matter covered. It is sold with the
understanding that the publisher is not engaged in rendering legal,
accounting, or other professional service. If legal advice or other expert
assistance is required, the services of a competent professional person
should be sought.
‘‘PMI’’ and the PMI logo are service and trademarks registered in the

United States and other nations; ‘‘PMP’’ and the PMP logo are
certification marks registered in the United States and other nations;
‘‘PMBOK’’, ‘‘PM Network’’, and ‘‘PMI Today’’ are trademarks
registered in the United States and other nations; and ‘‘Project
Management Journal’’ and ‘‘Building professionalism in project
management’’ are trademarks of the Project Management Institute, Inc.
Library of Congress-Cataloging-in-Publication Data
Newell, Michael W., 1945–
Preparing for the project management professional (PMP) certification
exam / Michael W. Newell.—2nd ed.
p. cm.
Includes bibliographical references and index.
ISBN 0-8144-7172-2 (pbk.: alk. paper)
1. Project management—Examinations, questions, etc. I. Title.
HD69.P75 N49 2002
658.4Ј04Ј076—dc21 2002010223
᭧ 2002 Michael W. Newell.
All rights reserved.
Printed in the United States of America.
This publication may not be reproduced,
stored in a retrieval system,
or transmitted in whole or in part,
in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise,
without the prior written permission of AMACOM,
a division of American Management Association,
1601 Broadway, New York, NY 10019.
Printing number
10987654321
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This book is dedicated to my wife, Saralee, who corrects my spelling and
puts up with all my foolishness.
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Contents
Preface xv
Introduction 1
What Is Project Management Anyway? 2
Advantages of Project Management 6
Organizing for Project Management 7
The Projectized Organization 7
The Traditional Organization 9
The Matrix Organization 10
The Project Office 12
How the Project Manager Makes Projects Successful 13
The Project Life Cycle 14
Project Processes 14
Summary 15
1. Scope Management 16
Initiation of the Project 17
Project Charter 17
Constraints and Assumptions 18
Who Are Those Stakeholders? 18
Cost and Its Relationship to Price 19
Overbid or Underbid: Which Is Better for Your Company? 20
Getting to the Scope Baseline 23
Work Breakdown Structure 25
Systems Approach to Work Breakdown Structure 28
Additional Project Breakdown Structures 30

Change Management 30
Project Justifications 31
The Break Even Chart 32
Problems with Break Even Charts 33
Average Rate of Return on Investment 34
Present Value of Money 34
Internal Rate of Return on Investment 39
Summary 44
vii
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viii Contents
2. Time Management 46
Activity Definition 46
Activity Sequencing 47
Activity on Arrow Diagramming 48
Precedence Diagramming Method (PDM) 49
Logical Relationships 50
Finish-Start Relationship (FS) 50
Start-Start Relationship (SS) 52
Finish-Finish Relationship (FF) 53
Start-Finish Relationship (SF) 53
Leads and Lags 54
Diagramming Relationships 55
Project Start and Project Finish Events 55
Logical Precedence Diagram 56
Activity Durations 56
Building the Network Diagram 57
Buffering the Schedule 63
Reverse Resource Allocation Scheduling 67
Critical Path Method (CPM) 67

Program Evaluation and Review Technique (PERT) 68
Monte Carlo Simulation 73
The Simulation 74
Output from the Monte Carlo Simulation 75
Summary 75
3. Cost Management 77
Why We Need Cost Management 77
Project Life Cycle and Project Cost 78
Using the Work Breakdown Structure 78
Cost Estimating 79
Types of Estimates 80
Top Down Estimates 80
Bottom Up Estimates 80
Analogous Estimates 80
Parametric Estimates 81
Definitive Estimates 81
Cost Budgeting 83
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ixContents
Cost Control 85
Earned Value Reporting 85
Cumulative Reporting 85
Earned Value Parameters 86
Difficulties in Data Collection 87
Reporting Work Complete 89
Examples 89
Calculated Values for Earned Value Reports 90
Financial Measures 94
Return on Sales 97
Return on Assets 98

Economic Value Added 99
Depreciation 100
Straight Line Depreciation 100
Accelerated Depreciation 101
Sum of the Years’ Digits 101
Double Declining Balances 102
Summary 102
4. Human Resources Management 104
Project Manager Roles and Responsibilities 104
Strong Matrix, Weak Matrix, and Balanced Matrix 106
Strong Matrix 106
Weak Matrix 106
Balanced Matrix 108
Making Matrix Management Work 109
Personnel and Personal Evaluations 109
Motivation 110
Importance of Motivation 110
Industrial Revolution 110
Scientific Management 111
Learning Curve Theory 111
Depression Era 112
World War II 112
Post–World War II 112
Motivational Ideas 112
Procedures versus Motivation 113
Expectancy Theory 113
Maslow’s Hierarchy of Needs Theory 115
Hertzberg’s Motivation/Hygiene Theory 117
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x Contents

Supervisory Style and Delegation 118
Job and Work Design 118
Job Enlargement 119
Job Enrichment 120
Quality Circles 121
Power 121
Forms of Power 121
Coercive Power and Reward Power 121
Legitimate Power 122
Referent Power 122
Expert Power 123
Representative Power 123
Leadership 123
Theory X and Theory Y Managers 123
Conflict Resolution 124
Forcing 125
Smoothing 126
Compromise 126
Problem Solving 126
Withdrawal 127
Managing Meetings 127
Managing Meetings Effectively 129
Before the Meeting 129
Beginning the Meeting 129
Summary 130
5. Risk Management 132
When to Do Risk Management 133
The Risk Process 133
Risk Management Planning 133
Risk Identification 134

Documentation Reviews 135
Brainstorming 135
Delphi Technique 135
Nominal Group Technique 136
Crawford Slip 137
Expert Interviews 137
Checklists 138
Analogy 138
Diagramming Techniques 138
Recording of Risks Identified 138
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xiContents
Risk Assessment 140
Risk Tolerance 141
Risk Probability 143
The Addition Rule 145
The Multiplication Rule 147
Risk Impact 149
Expected Value 150
Decision Trees 151
Risk Quantification 155
Comparative Ranking 157
Grouping the Risks 157
Affinity Programming 158
Risk Response Planning 158
Risk Strategies 159
Avoidance 159
Transfer 159
Contracting 160
Acceptance 160
Mitigation 161
Risk Opportunities 161
Budgeting for Risk 162

Risk Monitoring and Control 162
Summary 163
6. Quality Management 165
Quality Planning 166
Quality Assurance 167
Cost of Quality 167
Costs of Prevention 168
Costs of Defects 168
Deming’s Fourteen Points 169
Quality Control 169
Sampling Inspection 170
Acceptable Quality Level (AQL) 171
Buyer’s Risk and Seller’s Risk 171
Other Quality Control Techniques 172
Flowcharts and Diagrams 172
Cause and Effect Diagrams 172
Pareto Charts 172
Control Charts 175
Checklists 178
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xii Contents
Kaizen 179
Benchmarking 179
Summary 179
7. Contract and Procurement Management 181
Contract Management 182
Make or Buy 182
Contract Life Cycle 183
Requirement Process 183
Requisition Process 184

Solicitation Process 185
Award Process 185
Contract Process 185
Contract Types 185
Fixed Price Contract 186
Firm Fixed Price Contract 186
Fixed Price Plus Economic Adjustment Contract 187
Fixed Price Plus Incentive Contract 188
Cost Plus Contract 188
Cost Plus Fixed Fee Contract 189
Cost Plus Award Fee Contract 190
Cost Plus Incentive Fee Contract 190
Procurement Management 190
Commodities 190
Unique Products and Services 191
Forward Buying 192
Blanket Orders 192
Split Orders 193
Summary 193
8. Communications Management 195
General Model of Communications 195
Thinking 196
Encoding 196
Symbols 196
Transmitting 197
Perceiving 197
Decoding 197
Understanding 197
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