PMP- PMBOK - Project Lifecycle

PMP- PMBOK - PROJECT MANAGEMENT OFFICE- PMO

PMP- PMBOK - Forward Pass and Backward Pass

Online Sample Exams (200 questions each) - Key to Guaranteed Success in PMP

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PMP Formula Key and PMP Concepts

Earn Value Formulas	PV (Planned Value) = BCWS (Budgeted Cost of Work Scheduled  EV (Earned Value) = BCWP (Budgeted Cost of Work Performed) AC (Actual Cost) = ACWP (Actual Cost of Work Performed) SV = EV – PV (A negative value indicates that project is behind schedule) CV = EV – AC (A negative value indicates that project is over budget) SPI = EV/PV (Less than 1 is behind schedule) CPI = EV/AC (Less than 1 is over budget) EAC = AC + (BAC-EV)    Use when variances are atypical EAC = AC + [(BAC-EV)/CPI]   Use when variances are typical (Note: This is the same as EAC = BAC/CPI) VAC = BAC – EAC ETC = BAC – EV   Use when variances are atypical ETC = (BAC – EV)/CPI   Use when variances are typical ETC = EAC – AC    Use when original estimates were flawed TCPI - To complete performance Index TCPI = BAC-EV/BAC-AC TCP (EAC Based) = BAC-EV/EAC-AC
Calculating Slack or Floa     t What is Free Float?	Critical path is the longest path in the project network diagram and it determines the planned duration. A project can have more than one critical path. Critical path may change during the project life cycle. Total Float (also called Slack, Float, or Project Float) is the total amount of time an activity can be delayed without delaying the project finish date. Free Float/Slack is the amount of time an activity can be delayed without delaying its successor (following activity).   Ø  LS – ES:    Calculates slack with forward pass   Ø  LF – EF:    Calculates slack with backwards pass Lag Time:  Inserted wait time between activities  Lead Time: Overlapping activities, also called paralleling or fast tracking.  “Lead In; Lag Out” For the activities on the critical path float is zero.  Free Float – Amount of delay we can afford in a predecessor without delaying the early start of successor.
Three Point Estimates, or PERT	PERT = PROGRAM Evaluation and Review Technique Holds schedule and lets cost float 3 estimates for each task: Optimistic, Pessimistic, and Most Likely For Beta or Normal Distribution Mean Estimate = (O + 4*ML + P)/6 Standard Deviation (s) = (P – O)/6 For Triangular Distribution Mean Estimates = 0+M+P/3
Accuracy of Estimates	Order of Magnitude:-25% to +75% Budget Estimate:-10% to +25% Definitive Estimate:-5% to +10%
Channels of Communication	Between Team Members = N(N-1)/2 where N is the no of  team members
Project Selection Financials or project Appraisal	NPV (Net Present Value) = FV/(1+r)n  FV= Future Value, r= interest rate, n= no. of time periods Higher NPV is better IRR (Internal Rate of Return) = Solve the NPV equation for “r” Also called Hurdle Rate Higher IRR percentage is better BCR (Benefit/Cost Ratio) Higher BCR is better. Beware, exam can call it CBR, where lower is better ROI (Return on Investment) = Earnings/Investment Higher ROI is better Payback Period = Time to recover cost of the project Lower payback period is better All the Appraisal techniques mentioned above help  in assessing the business justification of the project.

PMP ITTOs- Input, Tools & Techniques and Outputs

Click the link below to download the chart on - Input, Tools & Techniques and Outputs for all the 49 processes based on PMBOK Sixth Edition.

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PMP VS PRINCE2

The PMBOK Guide is knowledge or a collection of recommendations and best practices, while PRINCE2 is a methodology. Following table highlights some of the key differences.

PMBOK Guide	PRINCE2
Knowledge or a collection of recommendations and best practices (Explains what you should know)	Methodology (explains what you should do)
Descriptive (explains the good practices)	Prescriptive (tells you what to do)
PMBOK consists of the tools and techniques of project management and is a guide telling how things could be done whereas PRINCE2 is a methodology, with a clear process, steps and templates.	Answers WHAT, WHEN, and WHOM questions.  PRINCE2 explains exact set of processes or steps to be followed and templates. A project manager following PRINCE2 is very clear about steps to be  followed
PMP is centred  around the project manager and emphasises on what a project manager should and his roles and responsibilities	In PRINCE2 the focus is on three levels of management, Directing (Project Board), Managing (Project Manager) and Delivering (Team Manager). The roles and responsibilities corresponding to each role in all the three levels is defined very clearly

PRINCE2 is popular in countries such as UK, Australia and certain European countries such as Netherlands, Denmark and Germany. PMP is more popular in North America. A good project manager should have both the PRINCE2 and PMP certifications.  Even if one doesn’t have both the certifications still at least one should be familiar with both.  It is a popular scenario in UK after receiving the PRINCE2 certification, the project manager will supplement with PMP training while in North America, PMP members wants to take the PRINCE2 in order to get more on the Project Control and with an additional globally recognized certification.