PMP EXAM PREP COURSE · Session 5 THE PMP® EXAM PREP COURSE PMI, PMP and PMBOK are registered...

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Session 5

THE PMP® EXAMPREP COURSE

PMI, PMP and PMBOK are registered marks of the Project Management Institute, Inc.

2

9:00 – 10:15 Procurement Management (Pass the PMP® Exam Ch.10)

10:15 – 10:30 Break

10:30 – 11:45 Stakeholder Management (Pass the PMP® Exam Ch.11)

11:45- 12:15 Ethics and Prof Conduct (Pass the PMP® Exam Ch.12)

12:15 – 1:00 Lunch

1:00 – 2:45 Practice the PMP Exam Questions

2:45 – 3:00 Break

3:00 – 4:00 Wrap up, Questions and Queries

Agenda

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PROCUREMENT MANAGEMENT

Chapter 10 of Pass the PMP® Exam

Chapter 12 of the PMBOK® Guide

Overview

Difficulty Memorisation Exam Importance

Low

Medium

High

4

Procurement Management

USA government-based in its approach

It should be a formal documented process

Buyer = organisation or party purchasing (procuring) the

goods or services from the seller

Seller = organisation or party selling the goods or

services to the buyer

TIP: Read the question carefully to determine if you

are the buyer or seller

5

Procurement Management

Initiating Planning ExecutingMonitoring &

ControllingClosing

Project Management Process Groups

Knowledge

Area Processes

• Plan

Procurement

Management

• Conduct

Procurements

• Control

Procurements

• Close

ProcurementsProject

Procurement

Management

6

Table 3-1. Project Management Process Groups and Knowledge Area MappingA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved

.1 Inputs

.1 Project management plan

.2 Requirements documentation

.3 Risk register

.4 Activity resource requirements

.5 Project schedule

.6 Activity cost estimates

.7 Stakeholder register

.8 Enterprise environmental factors

.9 Organizational process assets

.2 Tools and Techniques

.1 Make-or-buy analysis

.2 Expert judgment

.3 Market research

.4 Meetings

.3 Outputs

.1 Procurement management plan

.2 Procurement statement of work

.3 Procurement documents

.4 Source selection criteria

.5 Make or buy decisions

.6 Change requests

.7 Project document updates

.1 Inputs




.4 Seller proposals

.5 Project documents





.1 Bidder conference

.2 Proposal evaluation techniques

.3 Independent estimates

.4 Expert judgment

.5 Advertising

.6 Analytical techniques

.7 Procurement negotiations

.3 Outputs

.1 Selected sellers

.2 Agreements

.3 Resource calendars

.4 Change requests

.5 Project management plan updates


Project Procurement Management

12.1 Plan Procurement Management 12.2 Conduct Procurements

.1 Inputs



.3 Agreements

.4 Approved change requests

.5 Work performance reports

.6 Work performance data


.1 Contract change control system

.2 Procurement performance reviews

.3 Inspections and audits

.4 Performance reporting

.5 Payment systems

,6 Claims administration

.7 Records management system

.3 Outputs

.1 Work performance information

.2 Change requests


.4 Project documents updates

.5 Organizational process assets updates

12.3 Control Procurements

.1 Inputs




.1 Procurement audits


.3 Records management system

.3 Outputs

.1 Closed procurements


12.4 Close Procurements

7

Figure 12-1. Project Procurement Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved

Plan Procurement Management

8

Inputs Tools and Techniques Outputs


.2 Requirements

documentation

.3 Risk register

.4 Activity resource

requirements

.5 Project schedule

.6 Activity cost estimates


.8 Enterprise environmental

factors

.9 Organizational process

assets

.1 Make-or-buy analysis

.2 Expert judgment

.3 Market research

.4 Meetings

.1 Procurement management plan





.6 Change requests



Plan Procurement Management

Determining which components or services of the

project will be:

– made or performed internally, or

– procured from an external source

Then determining the most appropriate types of

contracts to use on the project

Producing the procurement management plan

9

Tools

Make-or-Buy analysis

– Analysis of ALL factors that go into deciding whether

to produce something in house or buy it externally

– Includes risk factors, cost, IP, and other

organisational factors external to the project

Expert judgment

Market research

Meetings

10


Types of Contract

Fixed price (lump sum) Favours the Buyer

– Incentive fee

– Economic Price Adjustment

Cost reimbursable

– + fixed fee

– + incentive fee

Time and Materials Favours the Seller

11

Point of Total Assumption (PTA)The point at which the seller assumes total

responsibility for all cost increases

Requires a fixed price incentive fee contract with a

target price, ceiling price, target cost and agreed

% split of cost overruns. The difference between

the target cost and the target price is the incentive

After the target price, the incentive starts to get eaten

into because the seller is responsible for some of the

overrun

PTA = (Ceiling price – Target price)

Buyers % share of cost overrun+ Target cost

12

Point of Total Assumption (PTA)

13

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

Mar Apr May Jun Jul Aug Sep Oct

Buyer's Price

Seller's Costs

Seller’s Profit

(Incentive)

Target Cost

Target Price


14

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00


Buyer's Price

Seller's Costs

Seller’s Profit

(Incentive)

Ceiling Price

PTA

Target Cost

Target Price

Point of Total Assumption (PTA)Fixed Price Incentive Fee Contract

15

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00


Buyer's Price

Seller's Costs

Seller’s Profit

(Incentive)

Target Cost

Target Price

Ceiling Price

PTA

Seller’s Loss

Example

16

Target cost: $50,000

Target price: $54,000

Ceiling price: $60,000

Cost overruns are paid

75% by the buyer.

Project Cost Cost Overruns Buyer’s Price Incentive Fee

/Profit

$50,000 $0 $54,000 $4,000

$51,000 +$1,000 $54,750 (+$750) $3,750 (-$250)

$52,000 +$2,000 $55,500 (+$1500) $3,500 (-$500)

~ ~ ~ ~

$58,000 +$8,000 $60,000 (+$6000) $2,000 (-$2000)

$59,000 +$9,000 $60,000 (+$0) $1,000 (-$1000)

$60,000 +$10,000 $60,000 (+$0) $0 (-$1000)

$61,000 +$11,000 $60,000 (+$0) -$1,000 (-$1000)


48000

50000

52000

54000

56000

58000

60000

62000

64000

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000

Seller's Cost Buyer's Price

17

Ceiling Price

PTA

Target Cost

Target Price

Outputs

Procurement management plan

Procurement statement of work

Procurement documents

Source selection criteria

Make or buy decisions

Change requests

Project document updates

18

Conduct Procurements

19





.4 Seller proposals



.7 Procurement statement of

work

.8 Organizational process

assets

.1 Bidder conference

.2 Proposal evaluation

techniques

.3 Independent estimates

.4 Expert judgment

.5 Advertising



.1 Selected sellers

.2 Agreements

.3 Resource calendars

.4 Change requests


updates



Conduct Procurements

Issue bid package to potential sellers

Hold bidder conferences

Evaluate proposals

Select sellers

20

Bidder Conferences

– All interested potential sellers are given procurement

documents, usually in advance

– All potential sellers are allowed to ask questions and

receive answers to ensure a level playing field, where

nobody has more information than anyone else

Just like a formal tender process you may be familiar

with

21

Proposal evaluation techniques

Weighting system: means of ranking potential sellers

Independent estimates: also referred to as ‘should-cost’

estimates, can serve as benchmark

Screening system: filters, such as;

– ISO-9001, ISO-21500

– The PMP exam

22

Other tools

• Expert Judgement

• Advertising

• Analytical techniques

• Procurement negotiations

23


Control Procurements

24




.3 Agreements

.4 Approved change requests

.5 Work performance reports


.1 Contract change control

system

.2 Procurement performance

reviews

.3 Inspections and audits

.4 Performance reporting

.5 Payment systems

.6 Claims administration

.7 Records management

system

.1 Work performance

information

.2 Change requests


updates


.5 Organisational process

assets updates



Is done by both buyer and seller

Do the results match the contract?

– Were the goods or services delivered?

– Were they delivered on time?

– Were the right amounts invoiced or paid?

– Were any additional conditions of the contract

met?

25

Control Procurements: Tools

Contract change control system

– Component of integrated change control

– Procedures, forms, tracking, and dispute resolution processes

Procurement performance review

Inspections and audits

Performance reporting

26



Payment system

– Helps ensure invoices and payments match and the

right amount is being invoiced for the right

deliverables at the right time

Claims administration

– Handles disagreements

– Records management system

27


Close Procurements

28




.1 Procurement audits


.3 Records management

system

.1 Closed procurements


assets updates


Close Procurements

Finally – something else in the closing process!

Every contract must be closed!

Done at the end of the contract – does not mean the

end of the project!

29

Close Procurements: Tools

Procurement audits

– Capture lessons learned from a contracting

perspective

Procurement negotiations – if you encounter a claim or

dispute then go through these stages:

– Negotiation, Mediation, Arbitration, Litigation

Records management system

– Used to archive documentation for future reference

30


Practice Questions

Pass the PMP® Exam p. 295

31


PROJECT STAKEHOLDER

MANAGEMENT

Chapter 11 of PMP® Training Kit

Chapter 13 of the PMBOK® Guide

33

Overview


Low

Medium

High

Project Stakeholder Management

34

Initiating Planning ExecutingMonitoring &

ControllingClosing

Project Management Process Groups

Knowledge

Area Processes

• Identify

Stakeholders

• Plan

Stakeholder

Management

• Manage

Stakeholder

Engagement

• Control

Stakeholder

EngagementProject

Stakeholder

Management

Table 3-1. Project Management Process Groups and Knowledge Area MappingA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved

35

.1 Inputs

.1 Project charter





.1 Stakeholder analysis

.2 Expert judgment

.3 Meetings

.3 Outputs


.1 Inputs






.1 Expert judgment

.2 Meetings


.3 Outputs

.1 Stakeholder management plan


Project Stakeholder Management

13.1 Identify Stakeholders 13.2 Plan Stakeholder Management

.1 Inputs

.1 Stakeholder management plan

.2 Communications management plan

.3 Change log



.1 Communication methods

.2 Interpersonal skills

.3 Management skills

.3 Outputs

.1 Issue log

.2 Change requests




13.3 Manage Stakeholder Engagement

.1 Inputs


.2 Issue log




.1 Information management systems

.2 Expert judgment

.3 Meetings

.3 Outputs

.1 Work performance information

.2 Change requests




13.4 Control Stakeholder Engagement

35

Figure 13-1. Project Stakeholder Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved

Identify Stakeholders

36


.1 Project charter



factors


assets

.1 Stakeholder analysis

.2 Expert judgment

.3 Meetings



Stakeholder

37

• A stakeholder is any person, or organisation, that can

affect, or be affected by your project

• Identify them, their details, their interest in the project,

their expectations and then rank them so you know

which ones are more important

• Then proactively influence them and mange their

expectations, to support your project or at least not

oppose them

Power and Interest Matrix

38

Keep Satisfied

Manage closely

MonitorKeep

Informed

Power

InterestMendelow, A. (1991) ‘Stakeholder Mapping’, Proceedings of the 2nd International Conference on Information Systems, Cambridge, MA

Salience Model

39

Power

Urgency

Legitimacy

DormantDominant

Discretionary

Dangerous

Definitive

Dependent

Demanding

Mitchell, R., Agle, B. and Wood, D. 1997. Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. The Academy of Management Review, 22 (4), pp. 853-886.

Plan Stakeholder Management

40





factors


assets

.1 Expert judgment

.2 Meetings


.1 Stakeholder management

plan



Plan Stakeholder Management

41

This is the process where you develop the

Stakeholder Management plan

The stakeholder management plan guides your

identification of stakeholders and the implementation

of strategies for managing their expectations and

levels of engagement.

Analytical techniques

42

In addition to the Gardner Power and Interest grid,

and the salience model there are other analytical

techniques that can be used to asses stakeholders.

You can use a matrix to asses whether or not a

stakeholder is unaware, resistant, neutral, supportive

or leading

See table on page 309 of Pass the PMP® Exam.

The kick off meeting

43

• The kick off meeting is an excellent tool for managing

stakeholder engagement and expectation as it

transmits a message of confidence to the stakeholders.

Manage Stakeholder Engagement

44


.1 Stakeholder management

plan

.2 Communications

management plan

.3 Change log


assets

.1 Communication methods

.2 Interpersonal skills

.3 Management skills

.1 Issue log

.2 Change requests


updates



assets updates


Manage Stakeholder Engagement

You as Project Manager are making sure the

stakeholders are heard and their needs are addressed

Your goal is to get their support or stop them opposing

your project

Proactive and influencing, begins early and goes

through the project

45

Issue Logs

A great way of keeping track of everything and, if

necessary, escalating it to the risk register

Gives stakeholders a way to see their issues are being

taken care of

46

Interpersonal skills

These include:

– Leadership,

– Decision-making

– Conflict resolution

– Change management

– Active listening

47

Management skills

In addition to leadership skills, there are management

skills a competent project manager must demonstrate

These include:

– Presentation skills

– Negotiation skills

– Time management skills

– Public speaking skills

48

Control Stakeholder Engagement

49



.2 Issue log



.1 Information management

systems

.2 Expert judgment

.3 Meetings

.1 Work performance

information

.2 Change requests


updates



assets updates


Control Stakeholder Engagement

50

• This is where you check that your stakeholder

management plan (and communications management

plan) are working and if not, make changes to them.

• Use the issue log to ensure that stakeholder

engagement is kept high.

Practice PMP Questions


51


ETHICS & PROFESSIONAL

CONDUCT

Chapter 12 of PMP® Training Kit

Overview


Low

Medium

High

53

Ethics & Professional Conduct

Based on the Project Management Institute (PMI)®

Code of Ethics and Professional Conduct

This is very short session – don’t blink!

The values that are important are:

– Responsibility,

– Respect,

– Fairness, and

– Honesty.

54

PMI, (n.d.). Code of Ethics and Professional Conduct. [online] Pmi.org. Available at: http://www.pmi.org/about/ethics/code

Ethics & Professional Conduct

Project Manager is the leader and the buck stops there.

Deal with issues in a direct manner seeking to resolve

them.

Always act ethically and legally.

Always follow the laws of the country.

Always follow the policies of your company.

Act truthfully at all times. Be a whistleblower!

55

The Code Applies to

All the PMI members.

Individuals who are not members of the PMI but meet

one or more of the following criteria:

1. Anyone who holds the PMI certification.

2. Anyone who has applied to for the PMI certification.

3. Anyone who volunteers for the PMI.

56

Mandatory & Aspirational

StandardsThe mandatory standards establish firm requirements,

and in some cases, limit or prohibit practitioner

behaviour.

The aspirational standards describe the conduct that we

strive to uphold as practitioners.

Practitioners who do not conduct themselves in

accordance with these standards will be subject to

disciplinary procedures before the PMI Ethics Review

Committee.

57

Responsibility

Responsibility is our duty to take ownership for

the decisions we make or fail to make, the

actions we take or fail to take, and the

consequences that result.

58

Responsibility

Mandatory

– We follow policies, rules, regulations, and laws.

– We report unethical and/or illegal behaviour.

Aspirational

– We act to positively influence Society Interest, Public

Safety, Environmental Impact.

– We take on only what we are qualified to do.

– We take ownership of our errors and apply corrective

action.

59

Respect

Respect is our duty to show a high regard for ourselves,

others, and the resources entrusted to us.

60

Respect

Mandatory

– We negotiate in good faith.

– We do not abuse our authority or power.

– We do not act in an abusive or aggressive manner.

Aspirational

– We understand the norms, culture, customs of our

stakeholders.

– We listen and understand.

– We treat others how we want to be treated.

61

Fairness

Fairness is our duty to make decisions and act

impartially and objectively.

Our conduct must be free from competing self interest,

prejudice, and favouritism.

62

FairnessMandatory;

– We avoid or disclose Conflicts of Interest.

– We avoid favouritism.

– We say no to bribes.

Aspirational;

– We offer transparency in our decision making

– We remain impartial and objective (not subjective)

– We support equal opportunity for all to access

information

63

Honesty

Honesty is our duty to understand the truth and act in a

truthful manner both in our communications and in our

conduct.

64

Honesty

Mandatory;

– We do not condone deceitful or misleading behaviour.

– We do not act for personal gain.

Aspirational;

– Truth is king.

– Our communications have nothing to hide.

– Accurate reporting is paramount.

65

Practice Questions


66

Practice the PMP Exam…

Covers all course material

You have 120 questions

Mark each one as A, B, C, or D

You have 1 hour and 30 minutes to complete

Good luck!

67

Grade Yourself…

Did you get all questions answered?

Calculate your percentage of correct answered

questions

Use the ‘Where Did I Go Wrong?’ sheet to assess why

you got the answers wrong.

This is a very useful tool to find out your weak areas!

68

Final Test Scores and PMP Success

69

Passed Failed

98

95

93

93

92

90

89

84

84

84 84

83

83

83

82 82

82

81

80

79

78

75

75

74 74

72 72

71 70

69 70

69

68

66

64 66

59

100

90

80PASS

70

60

50

TRY AGAIN40

30

20

10

0


TEST-TAKING TECHNIQUES

The Pareto Principle

Study concepts, not facts

Get the big picture, then work towards greater detail:

rocks before sand

Train your weaknesses, race your

strengths

What kind of information do you struggle with? Spend

your study time on that.

What kind of information do you retain easily?

Learn by teaching

If you can explain it to a non-PMP in plain English, you

understand it.

– Budget at Completion: How much you thought it would

cost when you first started

– Estimate at Completion: How much you think it’s going

to cost now

– Estimate to Complete: How much more it’s going to

cost before it’s done

Learn by teaching

If you don’t have a non-PMP around who’s willing to listen,

explain it to your teddy bear

Student, know thyselfHow do you study; how do you learn?

On test day, you are the rock star, the Olympic

athlete, the diva. What do you need to feel

comfortable?

– Lots of sleep? A chocolate croissant?

Test-taking specifics

Don’t cram during the minutes before the test

Don’t get stuck!

– If you find a question at all confusing, have a guess,

mark it, then go back

– If you have time at the end, go back and look at them

again

6 steps for answering questions

First, read the question fully!

Second, reread the question!

Third, eliminate any obviously wrong answers.

Fourth, place the answers on a spectrum of most right to most

wrong and choose the most right one.

Fifth, organise the answers in order of which would be done first to

the one which would be done last, choose the one you would do

first.

Sixth, Guess! Leave no question unanswered.

77

Test-taking specifics

Read the entire question before looking at the answer

Are you 100% sure you actually read the question?

A bird in the hand…

Count every " F " in the following text:

FINISHED FILES ARE THE RESULT OF YEARS OF

SCIENTIFIC STUDY COMBINED WITH THE

EXPERIENCE OF YEARS...

Do you read things properly?

Did you notice on the previous slide that there were two

‘the’ in the title?

80

Who wants to be a millionaire?

Eliminate as many wrong answers as you can

But don’t phone a friend!

Finally…Nobody has ever scored 100%; don’t worry about

perfection

Learning the PMP material will help you no matter how you

perform on the test

Remember to breathe

…and make sure to turn off your cell phone!

Common Questions about the

ExamIs there a way to mark out/eliminate options that you

immediately know are not the right answer?

Is there a way to mark questions you are doubtful of?

When you are done, can you review the test?

Can you review just the questions marked as doubtful?

Do you get immediate test results?

83

Common Questions about the Exam

Can you bring any materials with you?

What is the physical setting like?

Can you take food or drink into the test area?

Can you take breaks during the exam? Lunch?

84

Common Questions about the Exam

What are the time constraints?

Are the test questions grouped by area such as

Scope, Time Management...?

Can you take paper and pen into the test area?

85

Checklist for the PMP Exam

You must take:

– Two forms of identification – one with a photo on it

– Your eligibility email: Paper-Based Testing Notification

– You MUST visit the site before the exam date

– How long will it take you to get there?

– Where is it?

– Where will you park?

86

Final Tips

Chapter 1 of the Pass the PMP® Exam may make more

sense now

Plan your study until the exam

Form study/revision groups if necessary

87

Final Tips

Do as many practice questions as you can

Get a good night’s sleep

Don’t panic!

88

GOOD LUCK!You’ll all do well

89

PMP EXAM PREP COURSE · Session 5 THE PMP® EXAM PREP COURSE PMI, PMP and PMBOK are registered...

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Transcript of PMP EXAM PREP COURSE · Session 5 THE PMP® EXAM PREP COURSE PMI, PMP and PMBOK are registered...