PMP Exam Study Reference Information

It has taken three and half month for me for the preparation on PMP exam, while preparing
the exam, I had searched many Internet links to collect the information. This document
summaries the information, I had collected during my preparation and should be very
useful for any PMP aspirant.

1. Books and Material Reference

Book/Material Name Remark
PMBOK This is basic book and can be downloaded from PMI
website after taking membership. This should be the
first and basic book to be referred.
PMP Project Management Professional This is a wonderful book and covers all the concepts
Study Guide - Tata McGraw-Hill with examples.
PMP Exam Prep (4th Edition) by Rita This book can be used only as a reference material
Mulcahy and covers only key points.
Project Management Professional Study Sample question in this book is really good. Infect
Guide by Kim Heldman-BPB Publication some topics in this books are covered very well. I find
following topics are best covered in this book.
 Project Termination
 Standard Deviation
 Team Development
 Professional responsibilities

PM FASTrack: PMP exam simulation This is a wonderful source of simulated sample

software question and highly recommended.
http://www.wscleary.com/ These links are free sample test questions for the
http://www.vl-p.net/pmp-online-self-test/75- PMP exam preparation.
free-questions.htm
http://www.preparepm.com/mock1.html
http://www.projectdecision.com/selftest.htm
http://www.wscleary.com/website/simulator
www.brainbench.com
http://www.boson.com/tests/pmi.htm
http://www.pmstudy.com/sim1/index.asp
http://www.pmptools.com/pmp/testbank.html
http://www.pm-prepare.com

2. Mathematical calculations and Formulas

Following formulas are very important, I would suggest remember all below in your tips
because many questions are on the basis of these formulas, once understood, it is very
easy to implement.
2.1 Earned Value can best be shown by 'S-Curve'.

Earned Value Management is a methodology used to measure and communicate the real
physical progress of a project taking into account the work complete, the time taken and
the costs incurred to complete that work. Earned Value helps evaluate and control project
risk by measuring project progress in monetary terms. (Kindly refer diagram 1)
PMP Exam Study Reference Information

The three curves on the graph represent:

 Budgeted Cost for Work Scheduled (BCWS) - the budgets for all activities planned to be
completed. (i.e. PV)
 Actual Cost of Work Performed (ACWP) - the real costs of the work charged against the
completed activities. (i.e. AC)
 Budgeted Cost of Work Performed (BCWP) - the planned costs of the work allocated to
the completed activities. This is the Earned Value. (i.e. EV)

Earned Value Analysis uses following formulas: -

 Cost Variance=CV=EV-AC (Note: Negative is over budget and Positive is under

budget)
 Schedule Variance=SV=EV-PV (Note: Negative is behind schedule and Positive is
ahead of schedule)
 Cost Performance Index=CPI=EV/AC
 Schedule Performance Index=SPI=EV/PV
 Estimation at Completion
EAC=BAC/CPI (Note: If no variance from BAC has occurred. This
formula should only be used if you do not have more information)
EAC=AC+ETC (Note: Used when original estimate was
fundamentally wrong)
EAC=AC+BAC-EV (Note: Used when current variance are thought to be
uncommon for the future)
EAC=AC+(BAC-EV)/CPI (Note: Used when current variance are thought to be
common for the future)
 Estimation to Complete=ETC=EAC-AC
 Variance at completion=BAC-EAC
 Cost Variance Percentage= (CV/EV)*100
 Schedule Variance Percentage = (SV/PV)*100
 Percentage Complete= (EV/BAC)*100
 Percentage Spent= (AC/BAC)*100
PMP Exam Study Reference Information

2.2 Other important formulas.

 Communication Channel=N(N-1)/2
 Expected Value=Probability * Impact= Probability * Money at Risk
 PERT=Mean=(P+4M+O)/6
 SD=Standard Deviation= (P-O)/6
 Variance=(SD)*(SD)
 Present Value=FV/(1+k)n
 NPV bigger value is better -Positive value of Net Present Value (NPV) indicates that the
firm will earn a return equal to or greater then the cost of capital.
 IRR bigger is better-Internal Rate of Return (IRR) is the discount rate when NPV=0
NPV assume that cash inflows are reinvested at the cost of capital, where as IRR
assumes that reinvestment at the project IRR.NPV tends to be more conservatives.
 Playback Period small is better-The playback period is the exact length of the time
needed for a firm to recover the initial investment as calculated from cash inflows. It is
least precise of all the capital budgeting method because the calculations do not adjusted
for time value of Money. It ends when cumulative revenue equal to cumulative cost.
 Benefit Cost Ratio bigger value is better- BCR provides a measure of expected
profitability of a project by dividing the expected revenue by expected cost.
BCR= (Present Value of Revenue)/ (Present Value of cost
If BCR = 1 ->No Profit and No Loss
BCR < 1 -> Not a financially attractive project
BCR > 1 -> Financially attractive project

3. Following table has Input, Tools & Techniques and

outputs for all the knowledge areas
Knowledge Areas Inputs Tools & Techniques Outputs
Integration
Project Plan Other Planning Outputs Project Planning Project Plan
Development Historical Information Methodology Supporting Detail
Organization Policies Stakeholder Skills &
Constraints Knowledge
Assumptions Project Management
Information System
Earned Value Mgt (Evm)
Project Plan Project Plan General Management Skills Work Results
Execution Supporting Detail Product Skills & Knowledge Change Requests
Organizational Policies Work Authorization System
Preventive Action Status Review Meetings
Corrective Action Project Management
Information System
Organizational Procedures
Integrated Change Project Plan Change Control System Project Plan
Control Performance Reports Configuration Management Updates
Change Requests Performance Measurement Corrective Action
Additional Planning Lessons Learned
Project Management
Information System
Scope
Initiation Product Description Project Selection Methods Project Charter
Strategic Plan Expert Judgment Project Manager
Project Selection Criteria Identified/Assigned
Historical Information Constraints
PMP Exam Study Reference Information

Assumptions
Scope Planning Product Description Product Analyses Scope Statement
Project Charter Benefit/Cost Analysis Supporting Detail
Constraints Alternatives Identification Scope
Assumptions Expert Judgment Management Plan
Scope Definition Scope Statement Work Breakdown Structure Work Breakdown
Constraints Templates Structure
Assumptions Decomposition Scope Statement
Other Planning Outputs Updates
Historical Information
Scope Verification Work Results Inspection Formal Acceptance
Product Documentation
Work Breakdown
Structure
Scope Statement
Project Plan
Scope Change Work Breakdown Scope Change Control Scope Changes
Control Structure System Corrective Action
Performance Reports Performance Measurement Lessons Learned
Change Requests Additional Planning Adjusted Baseline
Scope Management Plan
Time
Activity Definition Work Breakdown Decomposition Activity List
Structure Templates Supplemental
Scope Statement Detail
Historical Information Work Breakdown
Constraints Structure Updates
Assumptions
Expert Judgment
Activity Sequencing Activity List Precedence Diagramming Project Network
Product Description Method (PDM) Diagram
Mandatory Dependencies Arrow Diagramming Activity List
Discretionary Method (ADM) Updates
Dependencies Conditional Diagramming
External Dependencies Methods
Milestones Network Templates
Activity Duration Activity List Expert Judgment Activity Duration
Estimating Constraints Analogous Estimating Estimates
Assumptions Quantitatively Based Basis Of Estimates
Resource Requirements Durations Activity List
Resource Capabilities Reserve Time Updates
Historical Information (Contingency)
Identified Risks
Schedule Project Network Diagram Mathematical Analysis Project Schedule
Development Activity Duration Duration Compression Supporting Detail
Estimates Simulation Schedule
Resource Requirements Resource Leveling Management Plan
Resource Pool Heuristics Resource
Descriptions Project Management Requirement
Calendars Software Updates
Constraints Coding Structure
Assumptions
Leads And Lags
Risk Management Plan
Activity Attributes
PMP Exam Study Reference Information

Schedule Control Project Schedule Schedule Change Control Schedule Updates

Performance Reports System Corrective Action
Change Requests Performance Measurement Lessons Learned
Schedule Management Additional Planning
Plan Project Management
Software
Variance Analysis
Cost
Resource Planning Work Breakdown Expert Judgment Resource
Structure Alternatives Identification Requirements
Historical Information Project Management
Scope Statement Software
Resource Pool
Description
Organizational Policies
Activity Duration
Estimates
Cost Estimating Work Breakdown Analogous Estimating Cost Estimates
Structure Parametric Modeling Supporting Detail
Resource Requirements Bottom Up Estimating Cost Management
Resource Rates Computerized Tools Plan
Activity Duration Other Cost Estimating
Estimates Methods
Estimating Publications
Historical Information
Chart Of Accounts
Risks
Cost Budgeting Cost Estimates Cost Budgeting Tools and Cost Baseline
Work Breakdown Techniques
Structure
Project Schedule
Risk Management Plan
Cost Control Cost Baseline Cost Change Control Revised Cost
Performance Reports System Estimates
Change Requests Performance Measurement Budget Updates
Cost Management Plan Earned Value Management Corrective Action
(EVM) Estimate at
Additional Planning Completion
Computerized Tools Project Closeout
Lessons Learned
Quality
Quality Planning Quality Policy Benefit/Cost Analysis Quality
Scope Statement Benchmarking Management Plan
Product Description Flow-Charting Operational
Standards & Regulations Design Of Experiments Definitions
Other Process Outputs Cost Of Quality Checklists
Inputs to Other
Processes
Quality Assurance Quality Management Plan Quality Planning Tools and Quality
Results of Quality Control Techniques Improvement
Measurements Quality Audits
Operational Definitions
Quality Control Work Results Inspection Quality
Quality Management Plan Control Charts Improvement
Operational Definitions Pareto Diagrams Acceptance
PMP Exam Study Reference Information

Checklists Statistical Sampling Decisions.

Flow-Charting Rework
Trend Analysis Completed
Checklists.
Process
Adjustments
Human Resource
Organizational Projects Interfaces Templates Role and
Planning Staffing Requirements Human Resource Practices Responsibility
Constraints Organizational Theory Assignments.
Stakeholder Analysis Staffing
Management Plan.
Organizational
Chart.
Supporting Detail
Staff Acquisition Staffing Management Negotiations Project Staff
Plan Preassignment Assigned.
Staffing Pool Description Procurement Project Team
Recruitment Practices Directory.
Team Development Project Staff Team Building Activities Performance
Project Plan General Management Skills Improvements.
Staffing Management Reward & Recognition Input to
Plan Systems Performance
Performance Reports Collocation Appraisals
External Feedback Training
Communications
Communications Communication Stakeholder Analysis Communication
Planning Requirements Management Plan
Communications
Technology
Constraints
Assumptions
Information Work Results Communication Skills Project Records
Distribution Communication Information Retrieval Project Reports
Management Plan Systems Project
Project Plan Information Distribution Presentations
Methods

Performance Project Plan Performance Reviews Performance

Reporting Work Results Variance Analysis Reports
Other Project Records Trend Analysis Change Requests
Earned Value Analysis
Information Distribution
Tools & Techniques
Administrative Performance Performance Reporting Project Archives
Closure Measurement Tools & Techniques Project Closure
Documentation Project Reports Lessons Learned
Product Documentation Project Presentations
Other Project Records
Risk
Risk Management Project Charter Planning Meetings Risk Management
Planning Organization’s Risk Plan
Management Policies
Defined Roles &
Responsibilities
PMP Exam Study Reference Information

Stakeholder Risk
Tolerances
Template For The
Organization’s Risk
Management Plan
Work Breakdown
Structure (WBS)
Risk Identification Risk Management Plan Documentation Reviews Risk
Project Planning Outputs Information Gathering Triggers
Risk Categories Techniques Inputs to Other
Historical Information Checklists Processes
Assumptions Analysis
Diagramming Techniques
Qualitative Risk Risk Management Plan Risk Probability & Impact Overall Risk
Analysis Identified Risks Probability/Impact Risk Ranking for The
Project Status Rating Matrix Project
Project Type Project Assumptions List of Prioritized
Data Precision Testing Risks
Scales of Probability and Data Precision Ranking List of Risks for
Impact Additional Analysis
Assumptions and Management
Trends In
Qualitative Risk
Analysis Results
Quantitative Risk Risk Management Plan Interviewing Prioritized List of
Analysis Identified Risks Sensitivity Analysis Quantified Risks
List of Prioritized Risk Decision Tree Analysis Probabilistic
List of Risk for Additional Simulation Analysis of The
Analysis & Management Project
Historical Information Probability Of
Expert Judgment Achieving the Cost
Other Planning Outputs & Time Objectives
Trends In
Quantitative Risk
Analysis Results
Risk Response Risk Management Plan Avoidance Risk Response
Planning List of Prioritized Risks Transference Plan
Risk Ranking of the Mitigation Residual Risks
Project Acceptance Secondary Risks
Prioritized List of Contractual
Quantified Risks Agreements
Probabilistic Analysis of Contingency
the Project Reserve Amounts
Probability of achieving Needed
the cost and time Inputs to other
objectives Processes
List Of Potential Inputs to a Revised
Responses Project Plan
Risk Thresholds
Risk Owners
Common Risk Causes
Trends In Qualitative &
Quantitative Risk
Analysis Results
Risk Monitoring & Risk Management Plan Project Risk Response Workaround Plans
Control Risk Response Plan Audits Corrective Action
PMP Exam Study Reference Information

Project Communication Periodic Project Risk Project Change

Additional Risk Reviews Requests
Identification & Analysis Earned Value Analysis Updates to the Risk
Scope Changes Technical Performance Response Plan
Measurement Risk Database
Additional Risk Response Updates To Risk
Planning Identification
Checklists
Procurement
Procurement Scope Statement Make or Buy Analysis Procurement
Planning Product Description Expert Judgment Management Plan
Procurement Resources Contract Type Selection Statement(s) Of
Market Conditions Work
Other Planning Inputs
Constraints
Assumptions
Solicitation Planning Procurement Standard Forms Procurement
Management Plan Expert Judgment Documents
Statement(s) of Work Evaluation Criteria
Other Planning Inputs Statement of Work
Updates
Solicitation Procurement Documents Bidder Conferences Proposals
Qualified Seller Lists Advertising
Source Selection Proposals Contract Negotiation Contract
Evaluation Criteria Weighting System
Organizational Policies Screening System
Independent Estimates
Contract Contract Contract Change Control Correspondence
Administration Works Results System Contract Changes
Change Requests Performance Reporting Payment Requests
Seller Invoices Payment System
Contract Closeout Contract Documentation Procurement Audits Contract File
Formal Acceptance
& Closure