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CHAPTER 1
STUDY TIPS & ASSESSMENT EXAM
WHAT IS A CERTIFIED ASSOCIATE IN PROJECT MANAGEMENT (CAPM)?
A CAPM is a project manager or project participant who:
• Has been responsible for individual project tasks in his or her area of expertise
• Has a demonstrated understanding of the fundamental knowledge, processes, and terminology as defined within Project Management Institute (PMI) standards
• Has a high school diploma, or equivalent, with at least 1,500 hours of experience as part of a project management team or 23 hours of project management training
• Has passed the CAPM exam administered by PMI
CAPM EXAM SPECIFICS
The exam has the following characteristics:
• It assesses the knowledge and application of globally accepted project management concepts, techniques, and procedures
• It covers the ten Knowledge Areas and five Process Groups as detailed in A Guide to the Project Management Body of Knowledge — Sixth Edition (PMBOK® Guide)
• It contains 150 multiple choice questions
• It includes 15 questions that are pre-exam questions being field-tested by PMI that do not affect your exam score
• It takes up to three hours
The table on the following page summarizes the distribution of exam questions across each of the 13 chapters of the PMBOK® Guide.
Note that the information in this chart may change from time to time. Consult the PMI website (www.pmi.org) for the most current information.
STUDY TIPS
Below is a list of recommended study tips from project managers who have successfully passed the PMP exam. Think about each one and determine which suggestions are the best for your learning style.
• Develop a plan for studying; see page 17 for a sample study plan utilizing the PMBOK® Guide and this study guide
• Follow the plan on a daily or weekly basis; it is important for you to commit to studying
• Plan your study sessions with time limitations
• Study during a time of day when you are most alert
• Vary tasks and topics during lengthy study periods
• Find one special place for studying and use it only for that
• Eliminate distractions
• If daydreaming, walk away
• Take brief breaks (five to ten minutes) after about 50 minutes of study
• Use practice exams
• Your goal should be consistently achieving 80 percent correctness
• Learn the PMBOK® Guide definitions
• Understand the big concepts first
• Review the introductory sections of each of the chapters in this book.
• Try to put the concepts in your own words
• Try to apply concepts to your own experiences (remember your experiences may not reflect the PMBOK® Guide approach)
• Memorize
• Important people and their contributions to project management
• Formulas
• Processes and their order
• Inputs, tools and techniques, and outputs of each process
• The benefits of each tool and technique
• The data gathering, data analysis, and data representation tools and techniques
• Facilitate memorization by using tools like mnemonics
• Prepare for exam day
• Get a good night's rest
• Avoid last-minute cramming
• Have a good breakfast
• Leave books at home
• Go with a positive attitude
• Get to the exam site early
EXAM TIPS
The exam tests your knowledge of the PMBOK® Guide by asking many questions on definitions, inputs, tools and techniques, and outputs, and it has many situational questions that determine how well you apply PMBOK® Guide concepts to real-life situations. Most people can succeed if they follow these simple steps on test day.
• Watch the 15 minute tutorial
• After the tutorial, take a few minutes to jot down key concepts or formulas that you do not want to forget during the exam
• Relax before and during the exam
• Take deep breaths
• Stretch about every 40 minutes
• If you get nervous, try to relax
• Give yourself a goal and reward yourself
• Resist the urge to panic
• Read each question carefully
• Be especially alert when double negatives are used
• Reread ALL questions containing negative words such as "not," "least," or "except"
• If a question is long and complex, read the final sentence, look at the answer choices and then look for the subject and verb
• Check for qualifying words such as "all," "most," "some," "none," "highest-to-lowest," and "smallest-to-largest"
• Check for key words such as "input," "output," "tool," "technique," "initiating," "planning," "executing," "monitoring and controlling," and "closure"
• Decide in your mind what the answer should be, then look for the answer in the options
• Reread the questions and eliminate answer choices that are NOT correct
• The correct answer, if it's not simply a number, will include a PMI term
• Make sure you look at ALL the answer choices
• Mark questions to come back to
TIME MANAGEMENT DURING THE EXAM
• Keep track of time (you have approximately 1 minute and 15 seconds for each question)
• Set up a time schedule for each question
• Allow time for review of the exam
• To stay relaxed, keep on schedule
• Answer all questions in order without skipping or jumping around
• If you are unsure, take a guess and mark the question to return to later; do not linger
• For questions involving problem solving:
• Write down the formulas before solving
• If possible, recheck your work in a different way (for example, rationalize)
• Subsequent questions may stimulate your memory and you may want to reevaluate a previous answer
• A lapse in memory is normal
• You will not know all the answers
• Take your time
• Do not be in a rush to leave the exam
• Before completing the exam, verify that you have answered all questions
FAQS ABOUT THE EXAM
• Can you bring materials with you?
NO
• What is the physical setting like?
It is a small room or cubicle with a computer, chair, and desk
• Can you take food or drink into the exam area?
NO food or drink is allowed
• Can you take breaks during the exam?
YES; you can go to the restroom; your clock is ticking all the time, so you need to determine if you have time and need to take a break to clear your mind
• What are the time constraints?
You have three hours (with an additional 15-minute tutorial and 15-minute survey)
• Are the exam questions grouped by Knowledge Area such as scope, time, and cost?
NO; the 150 questions are randomly scattered across the Process Groups and Knowledge Areas
• Can you take paper and pen into the exam area?
NO; either pencils and paper, or erasable boards and markers are supplied to each tester
• Can you see both the question and the answer choices on the same screen?
YES
• Is there a way to mark out or eliminate answer choices that you immediately know are not correct?
NO; you can work only on the supplied piece of scratch paper or the erasable board
• Is there a way to mark questions you are doubtful of?
YES
• When you are done, can you review the exam?
YES, time permitting
• Can you review just the questions you marked as doubtful?
YES
• Do you get immediate exam results?
YES, if you are taking an online exam; after you are done and press the SEND button, the computer will ask if you are sure, and after you press SEND again, you will fill out an online evaluation of the exam process; a testing center staff person will then give you a detailed report of your results
MEMORIZATION TIPS
Many people like to use creative phrases that jog the memory to remember lists and sequences. Examples of memorable phrases follow for the five Process Groups and the ten Knowledge Areas.
Memorization Tip for the Five Process Groups:
Henry Initiated a committee named PEMCo to Close down the railway line.
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Memorization Tip for the Ten Knowledge Areas:
I Sometimes Stress in Certain situations when Quality is Required and Communication is Required to Perform Successfully.
1. Integration
2. Scope
3. Schedule
4. Cost
5. Quality
6. Resource
7. Communications
8. Risk
9. Procurement
10. Stakeholder
You may want to devise your own memorization tips for processes in each of the Knowledge Areas. Here is an example of a memorization tip for the Project Scope Management processes:
Planning Scope Means you Create Real Direction, a Sense of a Can-W in attitude and a ViSion for Continued Success.
1. Plan Scope Management
2. Collect Requirements
3. Define Scope
4. Create WBS
5. Validate Scope
6. Control Scope
FORMULAS, EQUATIONS, AND RULES
Some formulas, equations, and rules must be memorized to answer exam questions effectively. The most important items to remember are listed here. Most of these are discussed in more detail in the following chapters.
1. Project Schedule Networks
Project schedule diagrams are created after duration estimates and the relationships between the work packages have been determined. Following a path(s) from left to right makes a forward pass.
• Forward pass
• Yields early start (ES) and early finish (EF) dates
• Early finish = early start + duration
• RULE: If there are multiple predecessors, use LATEST EF to determine successor ES
After all paths have been given their forward path, they are traversed from right to left to make a backward pass.
• Backward pass
• Yields late start (LS) and late finish (LF) dates
• Late start = late finish – duration
• RULE: If there are multiple successors, use EARLIEST LS to determine predecessor LF
Once the forward and backward passes have been completed, the total float for the node can be calculated by:
• Total float = late finish – early finish
2. Normal Distribution
Normal distribution, commonly known as a bell curve, is a symmetrical distribution, as shown in Figure 1–1. Each normal curve can be distinctly described using the mean and sum of the values.
The possibility of achieving the project objective in the mean time or cost is 0%, with a 50% chance of falling below the mean and a 50% chance of exceeding the mean. Adding one or more standard deviations (s) to the mean increases the chances of falling within the range. The probability of falling within 1s, 2s, or 3s from the mean is:
• 1σ = 68.27%
• 2σ = 95.45%
• 3σ = 99.73%
3. Triangular Distribution
When there are three possible values, each of which is equally likely, the distribution takes on the shape of a triangle, as shown in Figure 1–2.
• With O = optimistic estimate, P = pessimistic estimate, and ML = most likely estimate
• Mean (μ)
• μ = (O + ML + P) ÷ 3
4. Weighted-Average or Beta/PERT Distribution
Beta distribution is like triangular distribution except more weight is given to the most likely estimate. This may result in either a symmetrical or an asymmetrical (skewed right or skewed left) graph. An asymmetrical graph is shown in Figure 1–3.
• With O = optimistic estimate, P = pessimistic estimate, and ML = most likely estimate
• Mean (µ)
• μ = (O + 4ML + P) ÷ 6
5. Statistical Sums
• The project mean is the sum of the means of the individual tasks: [mu.sub.p] = [mu.sub.1] + [mu.sub.2] + ... + [mu.sub.n]
• The project variance is the sum of the variances of the individual tasks: [V.sub.p] = [V.sub.1] + [V.sub.2] + ... + [V.sub.n]
• The project standard deviation is the square root of the project variance: [sigma.sub.p] = σ = [square root of [V.sub.p]]
6. Probability Distribution
Basic probability theory is applied to situations where uncertainty exists. The theory looks at the total population and breaks it down into components equaling 100 percent.
Given the probability of rain occurring on any day is 40 percent and the probability of the temperature being greater than 70 degrees is 20 percent, what is the probability of a sunny day greater than 70 degrees?
• Rain and greater than 70 degrees: 40% x 20% = 8%
• Rain and less than 70 degrees: 40% x 80% = 32%
• Sunny and greater than 70 degrees: 60% x 20% = 12%
• Sunny and less than 70 degrees: 60% x 80% = 48%
Using probability theory, the chance of a sunny day greater than 70 degrees is 12 percent. Note that all four percentages add up to 100 percent. The total population must always equal 100 percent.
7. Earned Value Management
Earned value management is used to monitor the progress of a project and is an analytical technique. It uses three independent variables:
• Planned value (PV): the budget or the portion of the approved cost estimate planned to be spent during a given period
• Actual cost (AC): the total of direct and indirect costs incurred in accomplishing work during a given period
• Earned value (EV): the budget for the work accomplished in a given period
These three values are used in combination to provide measures of whether or not work is proceeding as planned. They combine to yield the following important formulas:
• Cost variance (CV) = EV – AC
• Schedule variance (SV) = EV – PV
• Cost performance index (CPI) = EV ÷ AC
• Schedule performance index (SPI) = EV ÷ PV
Positive CV indicates costs are below budget.
Positive SV indicates a project is ahead of schedule.
Negative CV indicates cost overrun.
Negative SV indicates a project is behind schedule.
A CPI greater than 1.0 indicates costs are below budget.
An SPI greater than 1.0 indicates a project is ahead of schedule.
A CPI less than 1.0 indicates costs are over budget. An SPI less than 1.0 indicates a project is behind schedule.
8. Estimate at Completion
An estimate at completion (EAC) is the amount we expect the total project to cost on completion and as of the "data date" (time now). There are four methods listed in the PMBOK® Guide for computing EAC. Three of these methods use a formula to calculate EAC. Each of these starts with AC, or actual costs to date, and uses a different technique to estimate the work remaining to be completed, or ETC. The question of which to use depends on the individual situation and the credibility of the actual work performed compared to the budget up to that point.
• A new bottom-up estimate is most applicable when the actual performance to date shows that the original estimates were fundamentally flawed or when they are no longer accurate because of changes in conditions relating to the project:
• EAC = AC + New Bottom-up Estimate to Complete for remaining work
• The original estimate formula is most applicable when actual variances to date are seen as being the exception, and the expectations for the future are that the original estimates are more reliable than the actual work effort efficiency to date:
• EAC = AC + (BAC – EV)
• The performance estimate low formula is most applicable when future variances are projected to approximate the same level as current variances:
• EAC = BAC ÷ CPI
• The performance estimate high formula is used when the project is over budget and the schedule impacts the work remaining to be completed:
• EAC = AC + ((BAC – EV) ÷ (CPI)(SPI))
Formulas to be used with Figure 1–4 above include:
• CPI = EV ÷ AC
• SPI = EV ÷ PV
9. Budget at Completion
• BAC = the total budgeted cost of all approved activities 10. Remaining Budget (RB)
• RB = Remaining PV or
• RB = BAC – EV
11. Estimate to Complete
The estimate to complete (ETC) is the estimate for completing the remaining work for a scheduled activity. Like the EAC formulas above, there are three variations:
• ETC = an entirely new estimate
• ETC = (BAC – EV) when past variances are considered to be atypical
• ETC = (BAC – EV) ÷ CPI when prior variances are considered to be typical of future variances
12. Communications Channels
• Channels = [n(n – 1)] ÷ 2 where "n" = the number of people
13. Rule of Seven
In a control chart, the "rule of seven" states that if seven or more observations occur in one direction either upward or downward, or a run of seven observations occurs either above or below the mean, even though they may be within the control lines, they should be investigated to determine if they have an assignable cause. The reason for this rule is that, if the process is operating normally, the observations will follow a random pattern; it is extremely unlikely that seven observations in a row would occur in the same direction above or below the mean.
The probability of any given point going up or down or being above or below the mean is 50-50 (50 percent). The probability of seven observations being consecutively in one direction or above or below the mean would be calculated as 0.50, which equals 0.0078 (that is, much less than one percent).
14. Profitability Measures
Many projects require an evaluation of the projected profits or returns for the dollars expended. There are a variety of ways to measure profit:
• Return on sales (ROS) measures the ratio of profit to total sales
• ROS = gross profit ÷ total sales or
• ROS = net profit ÷ total sales
(Continues…)
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