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47 PMP Easily Confused Terms w/w In-depth Explanation

To many Aspirants, the PMP® Exam is quite difficult. The fact that there are lots of “jargons” (terms with a
special meaning in the context of the PMBOK® Guide/project management) only makes it harder. Even if
you are a seasoned project manager, the terms found in the PMBOK® Guide may be Greek to you if you have
never run projects based on the PMBOK® Guide framework.

During my study, I have identified a list of “similar but different” terms that I often get confused. I deliberately
tried to explain the terms in my own language as well as adding some common, easy-to-understand examples
as illustrations to further clarify the concepts. And I found this study notes very useful for me to understand
and distinguish between the easily confused PMP® terms. Below is the list I have compiled and the links to the
study notes I have created previously. I was asked by one of my readers to create this list as the individual
articles are quite difficult to find on the website through browsing.

I was very grateful to all the PMP®s and project management specialist who have helped me to clear my PMP®
Exam. So I share this exam prep resources to fellow Aspirants for free as my personal contribution to the
project management field.

By understanding the differences and similarities between these pairs of terms, Aspirants will have a better
grasp of the knowledge of the PMBOK® Guide and project management:

• Run Chart vs Control Chart

• ROM vs Definitive Estimates
• Analogous Estimating vs Parametric Estimating
• Project Risk Management: Avoid vs Mitigate
• Project Risk Management: Enhance vs Exploit
• Contingency Plan vs Fallback Plan
• Nominal Group Technique vs Brainstorming
• EEF vs OPA
• Project vs Operation
• Push vs Pull Communication
• Qualitative vs Quantitative Analysis
• Develop vs Manage Project Team
• Change Control vs Configuration Control
• Project Expeditor vs Project Coordinator

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 • Project Requirements vs Project Scope
• Project Statement of Work vs Project Charter
• Project Statement of Work vs Business Case
• Create WBS vs Decomposition
• RACI: Responsible vs Accountable
• RACI vs RAM
• Project Calendar vs Resource Calendar
• Resource Leveling vs Resource Smoothing
• Functional vs Projectized vs Matrix Organizations
• Project Life Cycle vs Product Life Cycle
• Discrete Effort vs Apportioned Effort vs Level of Effort
• Project Team vs Project Management Team
• Contract Types
• Project Quality vs Product Quality
• Free Float vs Total Float
• Fallback vs Workaround
• Cost Baseline vs Budget
• Control Limit vs Specification Limit
• Crashing vs Fast Tracking
• Common Cause vs Special Cause
• Residual Risk vs Secondary Risk
• Project Scope vs Product Scope
• Cost of Conformance vs Cost of Non-conformance
• Work Package vs Activity
• Critical Path Method vs Critical Chain Method
• Contingency Reserve vs Management Reserve
• Quality Control vs Quality Assurance
• Assumptions vs Constraints vs Requirements
• Corrective vs Preventive Actions
• Statement of Work (SOW) vs Project Scope Statement
• Quality vs Grade
• Accuracy vs Precision
• Accepted Deliverable vs Verified Deliverable

How to Make Best Use of the List

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For every pair of easily confused terms above, there are some background information on where (the
project management domains) the terms are located with brief definitions of each of them. Then a
project example will be used to illustrate the concept more vividly (most of the time the project to be
illustrated is the “preparation for the PMP® Exam” — a project that is very familiar to Aspirants: P).
If applicable, differentiation and applicability of the terms in different scenarios will be further
expounded in the subsequent sections.

During my exam preparation, after looking at the pair, I would think for a while the definitions of the
terms through the sample project. I did not try to remember the definition word by word or learn
them by heart as the PMP® Exam is not a test of your memorization capability — you will just
need to understand the differences between them. This method helps me a lot by reducing the
time and stress on these easily confused terms.

Even if you do not confuse between the project management terms, this list will also serve as a last
minute study notes to test your understanding of the PMBOK® Guide / project management
concepts. I sincerely hope that this will be useful to you!

Quality Control: Run Chart vs Control Chart for PMP Exam

The PMBOK® Guide mentions the Seven Basic Tools of Quality for the Project Quality Management
Area, these seven tools are:

• Cause-and-effect diagram (i.e. “fishbone” / Ishikawa diagram)

• Check sheet
• Control chart
• Histogram
• Pareto chart
• Scatter diagram
• Run chart

Of these Seven Basic Tools of Quality, the Run Chart and the Control Chart are often confused by
many Aspirants as these two look very alike. This post will answer the question: what are
the similarities and differences between Run Chart and Control Chart. (Please note that this post is
not a detailed discussion of run chart and control chart, it includes all that Aspirants need to know for
theexam only.)

Run Chart vs Control Chart for PMP® Exam

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 • Run Chart: A Run Chart simply plots the data of a variable over time.
o Through analysis of a run chart, the following can be derived:
▪ changes / trends of the process over time
▪ any pattern / cycle of the process
o Examples of a run chart:
▪ progress of the project / processes / tasks (percentage completion over time)
▪ expenditure of the project
o Plus: A run chart is easy to draw and interpret. It is useful for analysis of simple processes.
o Minus: Cannot show if the process is in control or stable. Not quite useful for quality control.
• Control Chart: A Control Chart also plots the data of a variable over time (same as the run chart), but
also includes specification limits (Upper Specification Limit USL and Lower Specification Limit LSL)
and control limits (Upper Control Limit UCL and Lower Control Limit LCL).
o Specification Limits: provided in the project plan / contract as a project requirement of the
process;
o Control Limits: specified by the quality requirements of the process (e.g. 3-sigma); if a data go
beyond the control limits or a pattern/trend has been formed, corrective actions must be taken
to correction the deviation.
o Tells whether the process is under control
▪ Telltales of “Out of Control”:
▪ Any data point outside the control limits
▪ Rule of 7: 7 consecutive data points within the control limits but on either
side of the mean
▪ A trend has been formed (e.g. 6 consecutive points forming an increasing or
decreasing trend)

To put it another way, a Control Chart is a Run Chart with 4 line indicating the limits added
(upper/lower specification limits and upper/lower control limits) (plus optional a line indicating the mean
of all data).

Run Chart vs Control Chart Illustrated

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Below is a simple chart illustrating the difference and similarities between Run Chart and Control
Chart?

Conclusion: Run Chart vs Control Chart

To put it simply:

• Run Chart: plotting the value of a variable over time to analyze the trend of a process
• Control Chart: basically a Run Chart by adding a mean, two specification limits (Upper
Specification Limit USL and Lower Specification Limit LSL) and two control limits (Upper
Control Limit UCL and Lower Control Limit LCL) to analyze whether the process is under
control

Estimates: ROM vs Definitive for PMP Exam

In project cost and time management, estimations are often used in arriving at the cost and time at
various stage along the project management cycle as the accurate cost and time will not be 100%
known until the very end of the project. In estimating the cost and time, there are two important
estimate metrics: Rough Order of Magnitude (ROM) Estimate vs Definitive Estimate (note: the
degree of accuracy of the estimates must be clearly stated in the documents).

This post will expound on the similarities and differences of ROM Estimate vs Definitive and what
Aspirants would need to know for the exam.

ROM Estimate vs Definitive Estimate

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 • Rough Order of Magnitude (ROM) Estimate: the differences between estimates and
actual figures may be as large as 50% (more or less)
o used in early stage of the project when things are not very solid/clear and/or for
projects that span a lengthy period
• Definitive Estimate: the differences between estimates and actual figures may be within the
range of -5% to + 10% (more or less)
o used in latter stage of the project and/or the project is simple to estimate

In addition to the ROM Estimate and Definitive Estimate, there are some more estimation ranges:

• Preliminary estimate: within the range of -15% to + 50%

• Budget estimate: within the range of -10% to +25%
• Final estimate: 100% accurate

The degree of accuracy of the estimations will become more accurate as the project proceed as many
unknowns at the beginning of the project will become known later on.

ROM Estimate vs Definitive Estimate Illustrated

Let’s take the project of PMP® Exam study and preparation again for the illustration of the degree of
accuracy of estimation.

At the very beginning of the exam preparation, the Aspirants may have little or no previous knowledge
about the exam syllabus and the PMBOK® Guide. The actual period of time required for the studies
may not be known accurately. The only way to estimate the study period is through the lessons learned
of other exam takers.

And as a rule of thumb, the estimated preparation period for the exam is roughly 3 months of part-
time study, which is considered a Rough Order of Magnitude (ROM) Estimate.

But after going through the exam prep course, the PMP® Aspirant will then be able to understand
the topics for the exam and their knowledge gaps. Hence a more accurate estimate can be made (e.g.
100 days — more like a Definitive Estimate). And at that time, it is often advisable to book the exact
date of the exam, which can also act as a driving force for the PMP® study.

Conclusion: ROM Estimate vs Definitive Estimate

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The various degree of accuracy of estimations mentioned in the PMBOK® Guide and other PMP®
Exam Prep books are listed below:

• Rough Order of Magnitude (ROM) Estimate: within the range of -50% to + 50%
• Preliminary estimate: within the range of -15% to + 50%
• Budget estimate: within the range of -10% to +25%
• Definitive Estimate: within the range of -10% to +10%
• Final estimate: 100% accurate

Analogous Estimating vs Parametric Estimating for PMP Exam

Planning, in particular project cost and time planning, requires a lot of estimation as the work involved has not
happened yet. In real-world project management and the PMP® Exam, estimation usually involves two distinct
types of methods: Analogous Estimating and Parametric Estimating. This post will expound on the similarities
and differences of the two kinds of estimation methods and what Aspirants would need to know for the exam.

PMP® Definitions: Analogous Estimating vs Parametric

Estimating
• Analogous Estimating: the estimation is made by simply taking the values from past
projects/activities with similar scope to the current projects/activities (somewhat like making
an analogy)
o the fastest and easiest estimation method to give a rough estimation
o Requires a combination of historical information and expert judgment (the
information from past projects can be adjusted with consideration of the special
circumstances of the current project, e.g. including inflation, etc.)
however the estimation is least reliable as no two projects are identical
o
o used in cases where there is limited amount of available information early in the project
o also known as “Top-Down Estimating“
• Parametric Estimating: the estimation is based on historical information of very similar
projects with consideration of the scale differences
o by first identifying the unit cost/duration from the past projects/activities and scale
the estimation to the required number of units for the current project/activity
o the estimation is more reliable
o used only when a statistical relationship between historical data and current work can
be established; often have limited use as the nature/details of the current

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 project/activity may differ significantly from previous ones and thus makes parametric
estimating not feasible

Analogous Estimating vs Parametric Estimating Illustrated

Let’s again take the project of PMP® Exam preparation as an example. Before the actual preparation
for the PMP® Exam, Aspirants are highly advised to make a project plan for their PMP® Exam
studies by detailing the scope and estimated timeframe.

There are 10 Knowledge Areas identified in the PMBOK® Guide. Suppose it is known that it would
take 10 hours for going through 1 project management Knowledge Area, the time taken to go through
all the 10 Knowledge Areas would be:

10 hours/Knowledge Area x 10 Knowledge Areas = 100 hours

Parametric Estimating is employed here since we have the data to know the “unit duration” for the
PMP® Exam project (but beware that the length and difficulty of each individual Knowledge Area
for the PMP® Exam is different from the others, the actual time spent on each Knowledge Area
would be quite different in my experience).

Suppose you have taken the CAPM® Certification Exam in the past with a total of 300 hours of
preparation. And since the CAPM® and PMP® Certification Exams are both offered by PMI, you
try to make use of Analogous Estimating here to estimate it would take 300 hours for the PMP®
Exam preparation.

Analogous Estimating vs Parametric Estimating For the

PMP® Exam
Though both Analogous Estimating vs Parametric Estimating are based on the historical information
from the organization/industry to estimate cost/duration for the project/activity, there are some very
noted differences between them:

• Analogous Estimating is considered a top-down approach which is much less accurate than
parametric estimating in which Analogous Estimating is based on simple “analogy”;
• Parametric Estimating is more accurate for projects/activities with components which are
similar and “scalable”, it is based on a unit cost/duration from historical data which
is scaled to give the estimation;

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 • Analogous Estimating is used early in the project where there is limited amount of information
available while Parametric Estimating is used if the project/activity is “scalable”.

In addition to the two types of estimation methods detailed above, the PMBOK® Guide has also
mentioned two other estimation methods:

• Bottom up Estimating — (also known as the “definitive technique”) the most accurate and
time-consuming of all estimation methods in which every single activity is broken down into
details at the bottom level and aggregate the estimations of each individual components to
give an overall estimation.
• Three point Estimating — this more accurate estimation is developed from three estimates
using the PERT (Program Evaluation And Review Technique) formula:
o (Eo + 4Em + Ep)/6
▪ Most Likely Estimate (Em): The estimate when everything goes as normal
▪ Pessimistic Estimate (Ep): The estimate when everything goes (almost) wrong
▪ Optimistic Estimate (Eo): The estimate when everything goes
(almost) smoother than expected
o risks and uncertainty are taken into accounts
o more accurate than Analogous Estimating and Parametric Estimating

Conclusion: Analogous Estimating vs Parametric Estimating

• Analogous Estimating: the estimation is made by making an analogy with similar project
from the past; however, the accuracy is quite low
• Parametric Estimating: the estimation is based on adjusting “parameters” from historical
information; the estimation is more reliable

Project Risk Management: Avoid vs Mitigate for PMP Exam

In project risk management, there are several risk management strategies as recommended in the
PMBOK® Guide fro positive or negative risks:

• For negative risks:

o Mitigate
o Avoid
o Transfer
o Accept

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 • For positive risks (i.e. opportunities):
o Enhance
o Exploit
o Share
o Accept

Out of the four risk management strategies for negative risks, “avoid” and “mitigate” are always not
thoroughly understood and may be easily confused. Both “avoid” and “mitigate” aims at preventing
the risks from occurring, yet there is one crucial different between these two risk management
strategies. This post will expound on the similarities and differences of Avoid vs Mitigate and what
Aspirants would need to know for the exam.

PMP® Definitions: Avoid vs Mitigate for PMP® Exam

• Avoid: taking any possible measures/actions (e.g. changing the project plan or approach) to
completely prevent the risks from occurring / eliminate the adverse effects once they
occur
o not many risks may be avoided (not realistic for most cases)
o avoid usually involves a lot of cost
• Mitigate: taking measures/actions (e.g. changing the project plan or approach) to reduce the
likelihood of the risks from occurring / minimize the impact once they occur
o some residual risks may remain

In addition, there are two more negative risk management strategies as outlined in the PMBOK®
Guide:

• Transfer: the negative impacts related to the occurrence of the risk are shifted to a 3rd party
o the 3rd party will absorb all the losses
o may be arranged in the form of insurance policy or penalty clause
o usually involve contractual arrangements and considerations
• Accept: the negative risks are to be accepted passively
o no active actions / measures are carried out to reduce the likelihood of occurrence /
degree of negative impact which might be caused by the occurrence of the risk
o workarounds may be carried out as a response once the risks occur

Avoid vs Mitigate for PMP® Exam Illustrated

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Let’s take the project of PMP® Exam study and preparation again for the illustration of the meanings
of Avoid vs Mitigate risk management strategies.

One of the most common problem any PMP® Aspirant may face is to be late for the PMP® Exam
owing to traffic jam (which you may just be denied the exam or have the exam time cut). There are a
number of suggestions to this risk as proposed by other Aspirants. We will look into the risk response
strategies for the “Avoid” and “Mitigate” categories:

• Avoid Risk Management Strategy

o Do not take the PMP® Exam at all (avoid the Exam)
o Walk to the PMP® Exam Centre instead of riding a car/bus/train (avoid any traffic)
o Sleep at the door of the PMP® Exam centre the night before
• Mitigate Risk Management Strategy
o Go to the Exam centre at least 1 hours earlier than the Exam time in preparation of
any traffic jam
o Live in a hotel adjacent to the Exam centre to minimize the traffic time
o Book an Exam centre in an area with little traffic jams
o Book the PMP® Exam in the afternoon away from the morning peak hours

The “Do not take the PMP® Exam at all (avoid the Exam)” is certainly not a choice for most
Aspirants. For the other strategies, additional costs from the risk budget may need to be spent. Some,
e.g. booking a hotel room, is more expensive than the others.

Conclusion: Avoid vs Mitigate for PMP® Exam

To distinguish between Avoid vs Mitigate, remember that:

• Avoid: to complete eliminate the likelihood / impact of the risks

• Mitigate: to reduce the impacts / the likelihood of occurrence of the risks

Hope this article can illustrate the differences between Avoid vs Mitigate for Aspirants well.

Project Risk Management: Enhance vs Exploit for PMP Exam

In project risk management, according to different types of risk (positive or negative), the PMBOK®
Guide recommends the following risk management strategies:

• For negative risks:

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 o Mitigate
o Avoid
o Transfer
o Accept
• For positive risks (i.e. opportunities):
o Enhance
o Exploit
o Share
o Accept

Out of the four risk management strategies for opportunities, “enhance” and “exploit” are always not
thoroughly understood and may be considered very similar or even identical as they both would result
in taking advantage of the opportunities. However, there are many reasons why they are separately
identified as one of the risk management strategies. This post will expound on the similarities and
differences of Enhance vs Exploit and what Aspirants would need to know for the exam.

Enhance vs Exploit
• Enhance: taking measures/actions (e.g. changing the project plan or approach) to increase
the probability of the occurrence of opportunities / increase the benefits from the
opportunities
o note that the opportunities may not realize in the end
o may be considered as the opposite of “mitigation” in negative risk response strategy
• Exploit: taking any possible actions to make sure the opportunities will realize
o do everything to realize the opportunities, including adding budgets or carrying out
dramatic actions
o may be considered as the opposite of “avoid” in negative risk response strategy

Enhance vs Exploit Illustrated

Let’s take the project of PMP® Exam study and preparation again for the illustration of the meanings
of Enhance vs Exploit risk management strategies.

An Aspirant, Dave, aims to sit for the exam before the change of the exam syllabus as his employer
has set up a scholarship for the study materials for the current version (the costs of exam prep books
as well as mock exam question banks would be paid by his employer). In order to take advantage of
the offer, Dave has formulated the following actions in the “Enhance” and “Exploit” categories:

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 • Enhance Risk Management Strategy
o Submit application as early as possible
o Spare an extra hour of study time every day
o Make use of an online exam prep course (instead of a classroom course/bootcamp) to
allow him to study anywhere with his mobile phone
o Attempt mock exams early in his preparation to understand his knowledge gap
• Exploit Risk Management Strategy
o Subscribe to an exam coach service to tailor a study plan with an experience PMP®
tutor
o Take leave from work till he has finished all the study and preparation
o Use same day courier service to submit the audit document (if required for an audit)
o Schedule and take the exam before the change of exam version (even if he has not
finished his preparation)
o Book a hotel room in the vicinity of the exam centre for the night before the exam
day

As one can see, in order to carry out the Exploit Risk Management Strategy, a lot of extra money may need to
be spent in order to ensure the opportunity can realize for sure.

Conclusion: Enhance vs Exploit

To distinguish between Enhance vs Exploit, remember that:

• Enhance will increase the % of occurrence of the opportunity or to increase the benefits from
the realization of the opportunities
• Exploit will make the occurrence 100%

Project Risk Management: Contingency Plan vs Fallback Plan for PMP

Exam

In project risk management, actions are required to be planned should identified risks actually occur.
There are two major types of planning: Contingency Plan and Fallback Plan — both the Contingency
Plan and the Fallback Plan are developed in advance during Plan Risk Responses process.

This post will expound on the similarities and differences of Contingency Plan vs Fallback Plan and
what Aspirants would need to know for the exam.

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Contingency Plan and Fallback Plan
• Contingency Plan: a contingency plan is developed to be taken only when risk event occurs
o only for risks that have been accepted (i.e. no proactive actions to be taken to minimize
their occurrence)
o for identified risks (known unknowns)
o developed during Plan Risk Responses process
• Fallback Plan: a fallback plan is developed to deal with risks if the primary planned risk
response is not effective
o to be taken after the Contingency Plan
o for identified risks (known unknowns)
o developed during Plan Risk Responses process

In short, Contingency Plan (also known as Contingent Response Strategies) are developed for specific
accepted risk with certain triggers while Fallback Plan is used when the planned primary risk response
(e.g. Contingency Plan) is not effective (similar to the meaning of “Plan B”).

Contingency Plan and Fallback Plan Illustrated

Let’s take the project of PMP® Exam study and preparation as an example to illustrate the concept
of Contingency Plan and Fallback Plan.

Falling ill during exam preparation is one of the top risks that may adversely affect the exam
preparation and taking. Though in theory there are a number of measures that can be taken to
minimize the risk of falling sick; in reality, there are not much Aspirants can do to avoid the risk.
Hence, many Aspirants will just accept falling ill as an accepted risk.

For every accepted risk, there are two plans that need to be developed:

• Contingency Plan — accelerate the exam preparation by taking annual leave from work so
as to catch up with the original PMP® Exam schedule
• Fallback Plan — postpone the exam date (even if an administration fee is required — a US
$70 fee will be charged if you reschedule or cancel your exam within 30 calendar days of the
appointment)

Conclusion: Contingency Plan and Fallback Plan

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In project risk management, identified accepted risks may be handled (should they occur) with
Contingency Plan and Fallback Plan:

• Contingency Plan: the pre-developed risk response strategies to be taken if the passively
accepted risks occur
• Fallback Plan: the pre-developed risk response strategies to be taken if the primary risk
response is not effective

Note: the costs dealing with identified risks are included in the contingency reserve

In addition, for all unidentified risks (unknown unknowns), workaround would be carried out:

• Workaround: the immediate risk response strategies for unidentified risks in order to contain
the damages against the project plan (the costs dealing with identified risks can be obtained
from the management reserve upon management approval)

Note: the costs dealing with unidentified risks are included in the management reserve

PMP Group Creativity Techniques: Nominal Group Technique vs

Brainstorming for PMP Exam

Nominal Group Technique and Brainstorming are two Group Creativity Techniques
named as PMBOK® Guide ITTOs. These two are indeed quite similar as they both include the
generation of ideas / requirements e.g. in identifying project requirements. Yet, there are some major
differences between Nominal Group Technique and Brainstorming that Aspirants should understand
in order to identify the correct ITTOs for the processes.

This article will help Aspirants to differentiate between Nominal Group Technique and Brainstorming
for the Exam.

Nominal Group Technique vs Brainstorming

• Nominal Group Technique: The Nominal Group Technique is a technique for small group
discussion in which ideas / requirements are ranked / prioritized by all the members of the
group after generation of all the ideas / requirements.
o The Nominal Group Technique was originally developed by Delbecq and VandeVen
as an alternative to brainstorming.

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 o The Nominal Group Technique prevents domination of a single person over the
discussion by allowing the voices of all members to be represented.
o Steps:
▪ All the participants are divided into small groups of 5 or 6
▪ Each group member are allowed several minutes to brainstorm their
requirements / ideas separately
▪ All the requirements / ideas are presented and recorded, no criticism is allowed
▪ After clarifications, all the requirements / ideas are ranked / prioritized by all
group members (e.g. by giving points based on their merits)
• Brainstorming: Brainstorming is a group creativity technique in which member(s) are allowed
to generate as many ideas / requirements as possible without criticism.
o Ground rules: no “NO”s and criticisms are allowed.
o Participants are safe to present their own creative ideas even though some ideas are
unrealistic / absurd.
o All generated ideas / requirements are recorded without any assessments.

Both Nominal Group Technique and Brainstorming are useful Group Creativity Techniques to help the project
team to generate requirements and solutions to problems. These two allow equal opportunities for participants
of all members of the group by avoiding domination.

Summary: Nominal Group Technique vs Brainstorming

According to the above definition, it can be said that the Nominal Group Technique is brainstorming
with prioritization:

• Nominal Group Technique: brainstorming + group ranking / prioritization

• Brainstorming: generating as many ideas as possible in a safe environment without any
judgement from others

Note: other PMP® Group Creativity Techniques mentioned in the PMBOK® Guide include:

• Delphi technique
• Mind mapping
• Affinity diagram
• Multi-criteria Decision Analysis

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PMP Basics: EEF vs OPA

Both Enterprise Environmental Factors (EEF) and Organization Process Assets (OPA) are two of
the core inputs to most project management processes as described in the PMBOK® Guide.
However, many Aspirants find it hard to distinguish between these two. Though I have yet to
encounter a real PMP® Exam question to ask the candidate to select from among a list of documents
which ones are Enterprise Environmental Factors and which are Organization Process Assets. The
knowledge of these two will surely help Aspirants to better understand the practice of project
management according to PMI.

This article will help Aspirants to differentiate between Enterprise Environmental Factors (EEF) and
Organization Process Assets (OPA) for the exam.

Enterprise Environmental Factors (EEF) vs Organization

Process Assets (OPA)
Both Enterprise Environmental Factors (EEF) and Organization Process Assets (OPA) are
support/constraints provided by the outside to the project management team to effectively deliver
the projects.

• Enterprise Environmental Factors (EEF): EEF are conditions that will influence / affect
the project that are not under the immediate control of the project team.
o “Environment” is the key term here.
o The project team need to understand and work with the EEF in order to successfully
carry out the project as these cannot be controlled by the team.
o The project team has little or no influence on the EEF.
o EEF are often seen as constraints or opportunities — i.e. may or may not benefit the
project
o EEF examples:

o technology advancements / breakthroughs — mobile adoption, internet of things,

wearable technologies
o Government policies — pollution limitation, reduction of carbon emission, increase
in the use of renewable energy
o Community involvements
o Project Management Information System (PMIS) — the project templates and
configuration control stored in PMIS are OPA

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 o Skills of human resources
o Industry standards
o Work Authorization System (WAS)
o Organization culture / structure
o External and internal political conditions
o Resources (including money and human) available

Organization Process Assets (OPA): OPA are any specific knowledge and documents (including
processes and plans) that are created / adopted to be used in the performing organization.

• OPA is a collection of all historic information (e.g. lessons learned / process improvements /
requirements / best practices) from the performing organization that is available for use by
the project manager to help achieving project / organization objectives.
• The organization may define which OPA are mandatory and which are recommended.
• When used properly, the OPA help the project manager in the management of the project.
• The OPA may be updated during the project execution as new knowledge is gained.
• OPA examples:
o Lessons learned knowledgebase
o Guidelines
o Project templates
o Recommended workflow/process
o Historic records
o Accounting practices
o Risk / stakeholder register

Summary: Enterprise Environmental Factors (EEF)

vs Organization Process Assets (OPA)
• Enterprise Environmental Factors (EEF): factors related to the environment not under the
(immediate) control of the project team
• Organization Process Assets (OPA): knowledge specific to the performing organization

However, sometimes the differentiation is a bit blurry and the project manager may find it hard to tell
which ones are Enterprise Environmental Factors (EEF) and which ones are Organization Process
Assets (OPA), e.g. Policies and Procedures — that’s why PMI will seldom ask the candidates to
categorize between Enterprise Environmental Factors (EEF) and Organization Process Assets
(OPA).

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PMP Basics: Project vs Operation

One of the most fundamental concept for the Project Management Professional (PMP®) Exam is the
definition of a “Project” as the knowledge around the PMP® Exam is built upon the correct definition
of projects. Yet, in our daily life, “Project” and “Operation” is often confused.

This article will help Aspirants to differentiate between Project vs Operation for the exam.

Project vs Operation
In the PMBOK® Guide, “Project” and “Operation” are defined differently:

• Project: A project is a temporary endeavour that is taken to create a unique deliverable (namely:
product, service or result).
o A project must be unique and non-recurring, i.e. every project is different.
o Every project has a definite begin and end date.
o The ultimate aim of projects are to achieve/align with the strategic objectives of the
organization, e.g. improve efficiency, introduce new products, enhance current products, etc.
o The end products for a project can be a new product, improved products, enhanced operation
procedures, etc.
o Examples: develop a new PMP® Exam reference book, create a new PMP® online training
course, prepare for the PMP® Exam
• Operation: Operations are routine ongoing activities/tasks for the organization.
o Operations must adhere to pre-defined steps/procedures.
o Operations carry on indefinitely until a change is introduced.
o All normal business functions of the organization are considered operations.
o Operations are necessary to sustain the business.
o Examples: printing of PMP® Exam books, delivering online PMP® Exam training to
Aspirants, accounting/staffing/sales management

On the other hand, “Project” and “Operation” do carry some similarities:

• They both have to take limited resources into accounts.

• Both projects and operations are performed by people/human resources.
• Both involve execution and control (e.g. quality control).

Summary: Project vs Operation

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For every Aspirants, understanding the differences between “Project” and “Operation” is just like
learning ABC:

• Project: temporary, unique, aligned with strategic objectives, with a defined outcome (product, service
or result)
• Operation: ongoing, repetitive, vital to sustaining the business

Project Communication Management: Push vs Pull Communication for

PMP Exam

In Project Communication Management, the Project Manager is responsible for communicating

matters related to the project to all the related project stakeholders based on the Project
Communication Plan by using various communication methods, namely Push Communication, Pull
Communication and Interactive Communication. Of these three communication methods, Pull and
Push Communication methods are often confused by fellow Aspirants.

This article will help Aspirants to differentiate between Push Communication vs Pull Communication.

Push Communication vs Pull Communication

• Push Communication: Uni-directional communication sent from sender to receiver.
o Push Communication is recommended if the project manager just want to disseminate
information without any needs to obtain immediate feedback from recipient.
o The message/information conveyed through push communication is usually in written form
and should not be urgent nor sensitive/classified.
o Advantages:
▪ Easy to disseminate message/information to a large pool of recipients in a short while
o Disadvantages:
▪ Not face-to-face
▪ Not easy to verify that the messages have been conveyed successfully and the
recipients understand them correctly
▪ Not suitable for urgent matters
o Examples of Push Communication
▪ Letters
▪ Memos
▪ Emails
▪ Reports

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 ▪ Voice mails
• Pull Communication: Uni-directional communication by providing all related stakeholders
access to certain information.
o All related stakeholders can gain access to (pull) the information provided anytime
they need/want.
o Pull Communication is only suitable for information dissemination that is not urgent
nor critical — if the intended recipients do not read the information, little or no effect
on the project would be resulted.
o Advantages:
▪ Easy to disseminate message/information to even a much larger pool of
recipients in a short while
▪ Information can be retrieved whenever needed
o Disadvantages:
▪ Not face-to-face
▪ Not suitable for urgent / sensitive matters
▪ Not easy to track if all the recipients have accessed the information
o Examples of Pull Communication
▪ websites
▪ wiki / knowledge repositories
▪ bulletin board (e-bulletin board)
▪ dashboard

In addition to Push Communication and Pull Communication, there exists a more efficient
communication method — Interactive Communication.

• Interactive Communication: Bi-directional communication by communicating in real time.

o The most efficient method of communication as interactive communication can
ensure all stakeholders understand the message / information correctly.
o Advantages:
▪ Can check if the recipients understand the message/information delivered.
▪ Allow the recipients to have their queries/doubts answered immediately.
▪ The project manager can collect direct feedback from the recipients to
understand their reception/thoughts.
▪ Suitable for sensitive / classified information.
o Disadvantages:
▪ Time-consuming

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 ▪ In order to remain effective, interactive communication is more suitable for a
smaller group of participants
o Examples of Interactive Communication
▪ Meetings
▪ Phone Calls / Conference
▪ Video Calls / Conference
▪ Workshops

Summary: Push Communication vs Pull Communication

The Project Manager would need to choose the best form of communication methods based on the
nature of the message / information:

• Push Communication: sends the message from sender to recipients; for non-urgent / non-sensitive
matters with a large pool of recipients when urgent feedback is NOT needed
• Pull Communication: provides a place to get the information any time; for non-urgent / non-
sensitive matters with a large pool of recipients when feedback is NOT expected
• Interactive Communication: allows immediate feedback; for sensitive / urgent / difficult matters

Project Risk Management: Qualitative vs Quantitative Analysis for PMP

Exam

In Project Risk Management, the Project Manager is required to carry out both Qualitative Risk
Analysis and Quantitative Risk Analysis. While these two analysis processes are used in risk rating of
all identified and significant risks, the PMBOK® Guide has listed Perform Qualitative Risk Analysis
and Perform Quantitative Risk Analysis as two independent processes for Project Risk Management.

This article will help Aspirants to differentiate between Qualitative Risk Analysis and Quantitative
Risk Analysis.

Qualitative Risk Analysis vs Quantitative Risk Analysis

After project risks are identified in the “Identify Risks” process and registered into the Risk Register,
these risks must be undergone Qualitative Risk Analysis and Quantitative Risk Analysis in order to
assess their implications for risk response planning.

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 • Qualitative Risk Analysis: Qualitative Risk Analysis aims to assess all identified risks for their
probability or likelihood of occurrence and their implications/impact to the project objectives should
they materialize.
o The Risk Score for individual identified risk is calculated by multiplying the probability of
occurrence (P) by impact (I):
i.e. Risk Score = P x I
o The Risks will usually be assigned an value according to the Impact Scale
▪ e.g. an Impact Scale of 1 to 5 with 1 being the lowest impact and 5 begin the highest
impact
o The Risk Score / Impact Scale will facilitate the project manager in prioritizing the risks (i.e.
highly risk score risks must be dealt with first as they will have large impact on the project
success and they are more likely to occur).
• Quantitative Risk Analysis: Quantitative Risk Analysis aims to estimate the effects of risks on the
project objectives in monetary terms/time cost.
o Quantitative Risk Analysis will usually be performed on the risks with highest priority as they
are most important risks to the success or failure of the project.
o Quantitative Risk Analysis is very time consuming as the impact of the individual risks must
be evaluated.

Project Qualitative Risk Analysis and Quantitative Risk

Analysis Illustrated
Suppose you are the project manager of the “Getting PMP® Certified in First Try” project. Below are
a number of identified risks:

• Trapped in a car accident and begin late for the exam.

• A sudden work assignment requires you to work OT every day during your exam preparation.
• Your son falls ill during your exam preparation.
• The World War 3 breaks out during your preparation.
• A new version of the exam (e.g. PMBOK® Guide 6th edition) is administrated while you study for the
old version.
• ……

In Project Qualitative Risk Analysis, every risks is assigned a Impact Scale value:

• Trapped in a car accident and begin late for the exam. (5)
• A sudden work assignment requires you to work OT every day during your exam preparation. (3)

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 • Your son falls ill during your exam preparation. (0 – as you don’t have a son)
• The World War 3 breaks out during your preparation. (1)
• A new version of the exam (e.g. PMBOK® Guide 6th edition) is administrated while you study for the
old version. (3)

In Project Quantitative Risk Analysis, only high impact risks are assessed:

Trapped in a car accident and begin late for the exam — costs involved:

• the exam invigilator will possibly deny entry to the exam and you will need to re-schedule the
PMP® Exam with a fee (A)
• an extra day off from work is required for taking the exam (B)
• the travelling costs to and from the exam centre (C)
• the risk may cost A + B + C

Summary: Qualitative Risk Analysis and Quantitative Risk

Analysis
Assessing project risks involves both Qualitative Risk Analysis and Quantitative Risk Analysis:

• Qualitative Risk Analysis provides a qualitative approach for assessing risks in terms of their relative
impact/likelihood.
• Quantitative Risk Analysis provides a quantitative approach for assessing risks in terms of possible
money/schedule costs

Project Team: Develop vs Manage for PMP Exam

In Project Human Resource Management, there are four processes, namely, Plan Human Resource
Management, Acquire Project Team, Develop Project Team and Manage Project Team. The latter
two are somewhat confusing as they both are related to the management of the project team in our
everyday language.

This article will help Aspirants to differentiate between Develop Project Team and Manage Project
Team.

Develop Project Team vs Manage Project Team

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 • Develop Project Team: Develop Project Team is a process under Project Human Resource
Management in which the project manager tries to improve the competencies, environment and
interaction of team member interaction with a view to enhance project performance.
o The core aim of this process is to provide the suitable training and environment for the team
member to flourish.
o Major tools and techniques to be employed include:
▪ training
▪ colocation
▪ reward scheme
▪ team building (note: forming, storming, norming, performing and adjourning)
▪ ground rules
o A performing team can be expected when the project manager is doing a good job in Develop
Project Team.
• Manage Project Team: Manage Project Team is a process under Project Human Resource
Management in which the project manager tries to track the team member performance, provide
feedback and resolve issues with a view to to optimize project performance.
o The core aim of manage project team is to track performance, resolve issues and conflicts (e.g.
performance issues and interpersonal conflicts).
o Major tools and techniques to be employed include:
▪ performance tracking
▪ appraisals
▪ conflict management
▪ conversation and dialogue
o If soft skills are not useful, disciplinary actions (including termination of employment) may
need to be taken to control the damage to the overall performance of the team.
o Manage Project Team is more difficult than Develop Project Team as the project manager is
required to deal with the most difficult factor of project success — i.e. human. The
interpersonal soft skill of the project manager is put to test when dealing with conflicts and
issues.

Summary: Develop Project Team and Manage Project Team

After acquiring the project team, the project manager is responsible for both develop and manage the
project team:

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 • Develop is to bring out the best of the project team (as a team and individually) through training and
better environment;
• Manage is to resolve issues and conflicts that impede the performance of the team through
interpersonal skills and appraisals.

Project Integration Management: Change Control vs Configuration Control

for PMP Exam

One of the vital element for project management success is to control changes as in the Perform
Integrated Change Control process, otherwise scope creep and missed requirements may result.
Change management in projects involve Change Control and Configuration Control. These two terms
are often used interchangeably in daily work, however, PMBOK® Guide has put specific meaning to
each of them that Aspirants should not get confused.

This article will help Aspirants to differentiate between Change Control and Configuration Control.

Change Control and Configuration Control

• Change Control: In project management, change control is the process to identify, document,
approve/reject and communicate changes to the baselines of the project (project baselines include
scope, schedule, cost and other relevant baselines as required by the project management plan).
o The exact steps of change control is specified in the Change Management Plan by using
the Change Control System.
o Changes need to be proposed in written form as Change Requests which will be studied,
analyzed and approved/rejected by the relevant authorities.
o Change Control ensures all changes to the project are authorized which prevents scope creep
and gold plating.
• Configuration Control: In project management, configuration control is about managing the
specifications of the deliverables and processes with appropriate documentation throughout the
lifecycle of the project from the very beginning to the closure of the project.
o The project configuration provides the information of the latest version of all the approved
product and related documents/components and an archive of all previous versions.
o All the items under Configuration Control are known as Configuration Items (CI).
o Configuration Control is facilitated by the Configuration Control System.
o The exact details of Configuration Management is documented in the Configuration Control
Plan, which is a subsidiary of the Project Management Plan.
o Configuration Management activities usually include:

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 ▪ configuration identification
▪ configuration status accounting
▪ configuration verification / audit to ensure the latest configuration is adopted and
delivered

The PMIS (Project Management Information System) is a tool that facilitates both the Configuration
Control System as well as the Change Control System.

Summary: Change Control and Configuration Control

Both the Change Control and Configuration Control processes aim to protect the project from:

• Change Control is about protecting the project from undocumented changes to the project baselines
by addition/changing requirements, etc.
• Configuration Control is about managing the specifications/versions of the deliverables, processes and
related documents throughout the lifecycle of the project.

Project Expeditor vs Project Coordinator for PMP Exam

The PMBOK® Guide mentions three roles carrying project management responsibilities, namely
Project Manager, Project Expeditor and Project Coordinator. While every Aspirant should be quite
familiar with the role of Project Manager (after all, many of the Aspirants are Project Managers
themselves), the role of Project Expeditor and Project Coordinator may look very similar to them and
the distinction between Project Expeditor and Project Coordinator are not well understood.

This article will help Aspirants to differentiate between Project Expeditor and Project Coordinator.

Project Expeditor and Project Coordinator

In Weak Matrix organizations, there are usually no “real” project managers; even if there is a post of
“Project Manager”, they usually perform the role more of a Project Coordinator or Project Expeditor.
For strong matrix and projectized organizations, Project Expeditor and Project Coordinator may exist
alongside with the Project Manager.

• Project Expeditor: A Project Expeditor usually carries the responsibility of staff assistant /
communication coordinator.
o A Project Expeditor is not given the authority (or very low authority) to make or enforce
decisions.

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 o The Project Expeditor will communicate with various parties of the project to ensure timely
action.
o For larger projects, the Project Manager may have some Project Expeditors assisting them for
communication and logistics.
• Project Coordinator: A Project Coordinator carries the responsibility of partially managing the project
under the supervision of other managers.
o A Project Coordinator is usually given some sort of limited authority to make decision.
o For larger projects, the Project Manager may have some Project Coordinators reporting to
them.

The power or authority of the roles of Project Manager, Project Expeditor and Project Coordinator
is listed in descending order:

1. Project Manager
2. Project Coordinator
3. Project Expeditor

Project Expeditor and Project Coordinator Illustrated

Let’s again take the project of PMP® Exam preparation as an example. Though there is just one
project manager (i.e. that’s you), just imagine there are one project expeditor and one project
coordinator working for you. Then their responsibility may be:

• Project Expeditor
o Purchase the exam study guide and ensure delivery of the book (chase the seller in case the
book is not delivered)
o Purchase the online course for the 35 Contact Hour of Project Management education
o Purchase the online mock exam
o Book the exam date according to instruction of the Project Manager
• Project Coordinator
o Compare different online courses for the 35 Contact Hour of Project Management education
and recommend the best online course
o Compare different online mock exams (or called exam simulator) and make recommendations
o Select which working experiences are to be included in the Application Form
o Help to fill in the PMP® Application Form

Summary: Project Expeditor and Project Coordinator

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Project Expeditor and Project Coordinator are roles that facilitate the running of the projects
depending on the type of organization (functional, weak matrix, balanced matrix, strong matrix or
balanced). The main distinction between Project Expeditor and Project Coordinator is their level of
authority given by senior management:

• Project Expeditors are NOT given the authority (or very low authority) to make or enforce decisions.
• Project Coordinators are given some sort of limited authority to make decision.

Project Requirements vs Project Scope for PMP Exam

In everyday terms, both project requirements and project scope are usually used interchangeably to
refer to what needs to be done for the project. However, these two terms are not identical and should
be studied in more details in order to really understand their definitions from the view of PMI.

This article will help Aspirants to differentiate between Project Requirements and Project Scope.

PMP® Definitions: Project Requirements and Project Scope

• Project Requirements: Requirements are what are expected to be fulfilled by the project from the
users’ point of view.
o Requirements is a collection of items that are the needs of the users — capabilities that are
supposed to be present in the deliverables.
o The Requirements are collected through the Collect Requirements process with the use of
questionnaires, workshops and interviews, etc. with defined stakeholders.
▪ Each requirement must be documented in details with acceptance criteria.
▪ Requirements documentation, requirements management plan and requirements
traceability matrix are produced.
• Project Scope: Project Scope defines the boundary of the project and it is the sum of products, service
and/or results of the project.
o Project Scope is derived from the project requirements that are more thoroughly studied and
documented.
o Project Scope indicates the list of activities/tasks that need to be done in order to fulfil the
requirements.
o In particular, project scope outlines in details what are and are NOT included in the project.
o The project scope statement is produced in the Define Scope process to give a baseline for
understanding and agreement among all stakeholders.

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Project Requirements and Project Scope Illustrated
Let’s again take the project of PMP® Exam preparation as an example.

The project requirements of the end user (i.e. you) may include the following:

• Fulfil the PMI requirements and requisites for applying for the exam.
• Be well prepared for the exam.
• Pass the exam and be PMP® Certified.

And the scope of the project would include:

• Getting the requirement number of working experience hours in project management.

• Getting 35 Contact Hours of project management education by going through an online course from
a PMI R.E.P.
• Applying for the PMP® Exam and paying the exam fee.
• Purchasing and going through a reference prep book.
• Going through several mock exams and compare the results to understand the exam readiness.
• Schedule and take the exam.

Summary: Project Requirements and Project Scope

Project Requirements and Project Scope may be considered as opposite sides of the same coin:

• Project Requirements are the expectations from the stakeholders that the project need to
address. The requirements are usually written in the form of capabilities (what things can be done).
• Project Scope lists out all the work that need to be done in order to deliver products, services and/or
results that provide the capabilities to fulfil the user requirements. The scope is usually written as the
detailed activity list.

Project Statement of Work vs Project Charter for PMP Exam

Similar to the article discussing the differences and similarities between Project Statement of Work
and Business Case, this article will discuss the differences and similarities between Project Statement
of Work and Project Charter. In short, the Project Statement of Work is an input used to create the
Project Charter and both of them contains similar high-level information of the project.

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This article will help Aspirants to differentiate between Project Statement of Work and Project
Charter.

Project Statement of Work and Project Charter

• Project Statement of Work (SOW): The Project Statement of Work is a document providing the
business need and the overview of the qualities/characteristics of intended deliverables/products the
project would deliver. It will also include what are included / NOT included in the project.
o The Project SOW is provided:
▪ (for external projects) customer as the basis for writing the bid document;
▪ (for internal projects) project sponsor
• Project Charter: The Project Charter is a formal document to authorize the project and give the
project manager the authority to spend the project budget.
o The Project Charter includes:
▪ Project purpose / justification
▪ High-level project objectives and product characteristics
▪ Project success criteria
▪ High-level requirements
▪ High-level schedule and budget
▪ Name the Project manager
▪ List out the project approval requirements and approval authority
o The Project Charter is created in the Develop Project Charter process with the following
inputs:
▪ Project statement of work (SOW)
▪ Business case
▪ Agreement
▪ Enterprise environmental factors (EEFs)
▪ Organizational process assets

Project Statement of Work and Project Charter Illustrated

Let’s again take the project of PMP® Exam preparation as an example as this is most relevant to
Aspirants. Imagine you are the senior management of your exam prep project and you are to
create the Project Statement of Work and the Project Charter for your project manager (who,
incidentally, is also you).

The Project Statement of Work would likely to include:

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 • Be qualified for the exam (e.g. 35 Contact Hours of project management education; working
experience; etc.);
• Be well prepared for the exam through studying and mock exam taking;
• Sit and pass the exam in first try to get the PMP® title.

The Project Charter would contain similar items:

• Project purpose: Be able to pass the exam and get PMP® certified as this would add competitive
advantages to the project management career
• Project success criteria: pass the exam in first try
• High-level schedule and budget: study and take the exam within 3 months (which is the norms for
practising project managers), the minimal certification cost for the exam prep and exam is around
US$1000
• Project manager: you

Project Statement of Work and Project Charter

Project Statement of Work is provided by the organization/management to the project manager for
creation of Project Charter:

• Project Statement of Work (SOW) includes the business need and the overview of the
qualities/characteristics of deliverables;
• Project Charter is the document created based on the Project Statement of Work to authorize the
Project Manager to kick off the project and spend the budget.

Project Statement of Work vs Business Case for PMP Exam

Both Project Statement of Work and Business Case are key inputs for the development of Project
Charter and they contains vital information to assist the senior management, project sponsor and
project manager to determine whether the project is feasible in terms of expected results yet the exact
information contained in these two documents are not identical.

This article will help Aspirants to differentiate between Project Statement of Work and Business Case
for PMP® Exam.

Project Statement of Work and Business Case

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 • Project Statement of Work (SOW): The Project Statement of Work is a document providing the
business need and the overview of the qualities/characteristics of intended deliverables/products the
project would deliver. It will also include what are included / NOT included in the project.
o The Project SOW is provided:
▪ (for external projects) customer as the basis for writing the bid document;
▪ (for internal projects) project sponsor
• Business Case: The Business Case includes the business needs of the project with respect to high-
level strategic goals of the performing organization, reasons and grounds (including information on
cost benefit analysis) for identifying and selecting the project.
o Cost benefit analysis information is often presented as:
▪ net present value (NPV)
▪ internal rate of return (IRR)
▪ return on investment (ROI)
o The PMP® Exam does not test on how to create a business case or how to calculate IRR,
NPV or ROI but would assume each project is backed up with a comprehensive business case.

Project Statement of Work and Business Case Illustrated

Let’s again take the project of PMP® Exam preparation as an example as this is most relevant to
Aspirants. Imagine you are the senior management of your exam prep project and you are to write
the Project Statement of Work and Business Case for your project manager (who, incidentally, is also
you).

The Project Statement of Work would likely to include:

• Be qualified for the exam (e.g. 35 Contact Hours of project management education; working
experience; etc.);
• Be well prepared for the exam through studying and mock exam taking;
• Sit and pass the exam in first try to get certified.

The Business Case would likely to include:

• A comparison of the exam and other professional qualifications (e.g. CAPM®, PMI-ACP®, ITIL®,
etc.) ;
• How the PMP® will benefit your professional growth in the long run?
• What are the expected inputs (in terms of money and time) and what is the ROI from getting certified?
• Why is it justifiable to get PMP® Certification?

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Summary: Project Statement of Work and Business Case
Project Statement of Work and Business Case are two different documents provided by the
organization/management to the project manager for creation of Project Charter:

• Project Statement of Work (SOW) includes the business need and the overview of the
qualities/characteristics of deliverables;
• Business Case includes the justifications (usually in financial feasibility) for the existence of the
project and how the project is aligned to strategic goals of the organization.

Create WBS vs Decomposition for PMP Exam

“Create WBS” and “Decomposition” are often used together in the PMBOK® Guide to describe the
process of understanding project deliverables for time and scope management. Though they are often
used together, these two terms actually carry different meanings and should not be confused.

This article will help Aspirants to differentiate between Create WBS and Decomposition.

Create WBS and Decomposition

• Create WBS (Work Breakdown Structure): Create WBS is a process for Project Scope Management.
o The primary aim of Create WBS process is to provide a hierarchical / organization chart for
better depiction of project scope for activities, costs, quality, risks, etc. identification,
estimation and control.
o WBS (Work Breakdown Structure) is the primary output of the Create WBS process.
o The WBS Dictionary is also created to supplement the WBS with additional
information/attributes for each work packages.
o The WBS consists of many layers:
▪ Deliverables
▪ Planning Packages
▪ Control Accounts — when all the work packages under a control account have
been completed, this will trigger some monitoring and controlling activities to be
performed
▪ Work Packages — the lowest level component of WBS, by common practice, a
work package is the amount of work assigned to a single resource that can produces
a verifiable outcome

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 o The creation of WBS follows the 100% rule — the WBS must include 100% of the work
defined by the project scope and captures all deliverables and there is no overlap between
different work packages
o WBS is NOT a project plan or schedule not it is an exhaustive list of all works to be performed
in the project (e.g. project management products/processes are not included).
o Each WBS component must have a unique code (code of account).
• Decomposition: Decomposition is the primary tool for the process of Create WBS in Project Scope
Management.
o Decomposition will break down deliverables into small enough components to be considered
as a Work Package.
o The Work Packages are then used for work effort, cost, and time estimation.
o The Work Packages will need to be further decomposed into Activities and then Tasks later
on for more accurate time estimation with activity sequencing.

Note: In the PMBOK® Guide, there is no recommended or fixed way of how detailed the “Work
Package” or the “Activity” need to be, and that would depend on the project/organization needs.

Create WBS and Decomposition Illustrated

Let’s again take the project of PMP® Exam preparation as an example. The following are my “work
packages” to be included in my PMP® Exam prep (please note WBS and Work Packages would
usually be based on the deliverable and intended outcomes):

• Fulfil the Exam Registration Requirements

• Revise the Exam Syllabus
• Assess My Exam Readiness
• Take the Exam (and pass in first try)

These together will form the ultimate goal of getting PMP® Certified. Let’s take the first “work
package” as an example. By decomposition, the work package “Fulfil the Exam Registration
Requirements” can be further broken down into the following activities:

1. Get 35 Contact Hours of Project Management Education

2. Get enough project management experience
3. Fill in the online exam registration form
4. Pay the exam fee
5. Respond to the audit request

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Of course, these activities can be further decomposed into smaller activities. But care has to be taken
to balance the level of details captured through decomposition. If the WBS and Activity List are overly
detailed, valuable time might be required for the unnecessary details and the project will look overly
complicated.

Summary: Create WBS and Decomposition

Remember this: Creating WBS requires the tool of “Decomposition” and yet “Decomposition” will
also break down the lowest level of WBS (i.e. Work Packages) into Activities and Tasks.

Creating the WBS is a process for project scope management while the tool “Decomposition” is used
in both project scope and time management.

RACI: Responsible vs Accountable for PMP Exam

RACI is a popular type of RAM (Responsibility Assignment Matrix) for the project human resource
management to ensure each project activities are held responsible and accountable by individuals of
the project team. However, “responsible” and “accountable” of the RACI chart are often mixed up
by Aspirants.

This article will try to distinguish between “responsible” and “accountable” according to the
PMBOK® Guide (and thus the PMP® Exam) so that Aspirants will understand the RACI chart more
clearly.

Responsible and Accountable

In the RACI Chart, project individuals / stakeholders are defined as responsible, accountable,
consult and inform statuses for different project activities in order to show their involvement and
responsibility clearly. Among these four status, “responsible” and “accountable” are often not
correctly understood as these two statuses sometimes assigned to the same individual for smaller
activities.

• Responsible: Responsible means the person(s) assigned is/are the ones to carry out and finish the
task
o There can be more than one people responsible for an activity/task
o Responsible individuals can be thought of as the workers for an activity/task
• Accountable: Accountable means the person assigned is

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 o Accountability CANNOT be shared, meaning that there is only ONE individual accountable
for an activity/task
o The accountable person is tasked with the management responsibility (i.e. manager) of the
activity, including progress tracking, issue escalation (if needed) and deliverable assessment
and signing off, they are ultimately answerable for the results and actions taken
o An individual can both be responsible and accountable for an activity/task

RACI: Responsible and Accountable Illustrated

Let’s take the preparation project for the PMP® Exam as an example. For each tasks included in the
exam preparation, the Aspirant is always accountable and responsible:

• “Responsible” means that the Aspirant is the one to do all the studies, attmept mock exams and the
real exam
• “Accountable” means that the Aspirant is the one held answerable for their choice of online exam prep
course, exam simulator, whether or not to read the PMBOK® Guide in full, decide when to take the
exam, etc.

This Responsible/Accountable burden makes the PMP® Exam Prep a stressed and difficult task (as
I have undergone the whole process myself without much assistances from others). That’s why I set
up this exam Prep website to help fellow Aspirants to get the much needed information on how to
choose online training courses, how to pass the audit, how to find quality (and sometimes free) exam
prep resources, etc. with a view to allow them to make informed choices as the accountable person.
And I have uploaded my own study notes to ease the life of those who are responsible for doing the
exam prep.

Wish you PMP® success!

Summary: Responsible and Accountable

It is actually not difficult to distinguish between Responsible and Accountable:

• There is only ONE accountable

• Accountable is ultimately answerable for the decision and deliverable (often after finishing the task)

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RACI vs RAM for PMP Exam

Aspirants will read about RACI and RAM during the Plan Human Resource Management process.
Both RACI and RAM are tools used to ensure each project activities are held responsible by
individuals of the project team so that nothing will be left un-attended.

This article will try to distinguish between RACI and RAM according to the PMBOK® Guide (and
thus the PMP® Exam) so that Aspirants will understand RACI and RAM.

RACI and RAM

RACI and RAM
• RACI: RACI is a popular type of RAM (Responsibility Assignment Matrix) that defines project
individuals / stakeholders as responsible, accountable, consult and inform statuses for different project
activities.
o Explanation on responsible, accountable, consult and inform statuses:
▪ Responsible — those who actually carry out the work to achieve the task objectives.
▪ Accountable — the one individual who is ultimately accountable for the success (or
failure) of a task and will approve the work created by those Responsible. There is
ONE and ONLY ONE Accountable for a specific task / deliverable.
▪ Consulted — those who would have opinions that need to be sought / weighted in
for the task / deliverable and be kept updated of the progress (two-way
communication).
▪ Informed — those who would need to be updated on the task progress (one-way
communication).
o In the project, a role may be performed by many individuals while a person can perform many
roles. However, for each task / activity, it is advisable to have a person assigned to one role
only (though if there is none accountable, the one responsible will also be the de facto responsible person for the
task).
• RAM: RAM stands for Responsibility Assignment Matrix, it is a grid-like responsibility assignment
chart that shows assignment of project resources to individual work package.
o RAM clarifies the roles and responsibilities of project resources in projects and processes.
o RAMs can have different levels (in particular for larger and more complex projects), the higher
levels for programs / project phases while the lower levels for project activities.
o RACI Matrix and Linear Responsibility Chart (LRC) are two popular examples. The
PMBOK® Guide describes RACI in more details as a type of RAM.

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 o Project managers are advised to involve team members when creating the RAM / RACI Chart.

RACI and RAM Illustrated

Let’s take the publication of a PMP® Exam Prep book as an example. Since RACI Matrix is one of
the more popular of Responsibility Assignment Matrix that can clearly describes how the project
resources assigned to each work package, the Project Manager selects RACI Matrix as the format for
RAM. Below is the high-level RACI for the book project (R – responsible, A – accountable, C – consult and
I – inform) :

Within each project phases, there can be lower-level, more detailed RACI Matrices for the various
work packages and tasks defined by decomposition to better illustrate the roles and responsibilities of
different project resources.

Project Calendar vs Resource Calendar for PMP Exam

In the Project Time Management knowledge area of the PMP® Exam syllabus, there are at least two
types of calendars: project calendar and resource calendar. There are some similarities and differences
between these two types of calendars. This article will try to distinguish between Project Calendar
and Resource Calendar according to the PMBOK® Guide (and thus the PMP® Exam) so that
Aspirants will understand these two calendars.

Article Highlights [show]

Project Calendar vs Resource Calendar

• Project Calendar: Project Calendar indicates the days, dates and time the project team is/planned to
be working.
o It shows which days/time of day the project team will be working and which days/time of day
the project will NOT be working (e.g. holidays, etc.).
o The project calendar is concerned about the project environment and constraints (e.g. noisy
work will be restrained during the day).
o Project calendars can be part of Organizational Process Assets (which are input to many
processes).
o e.g. non-urgent road enhancement projects can only be carried out during weekends when the
traffic is low

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 • Resource Calendar: Resource Calendar indicates the days, dates and time a particular resource
(human resources/machines/etc.) will work.
o In the PMP® Exam, Resource Calendar is mainly about Human Resources as it is mentioned in the Project
Human Resource Management Knowledge Group.
o This is because a particular resource may be required to work concurrently for several projects
and its share of availability for a particular project is limited, or there are planned vacation for
resources, etc.
o Resource Calendar is included in the Staffing Management Plan (which is part of the Human
Resource Management Plan)
o Output of Acquire Project Team process — by updating the original Resource Calendar
(which was created in Plan Human resource management) with the details of the team
members which were acquired during Acquire Project Team process

The Project Calendar and Resources Calendars are continually updated during the planning and
executing processes to reflect the changes in project environment and project team availability. These
two types of calendars together help the Project Manager to develop the Project schedule.

Project Calendar and Resource Calendar Illustrated

Let’s take the PMP® Exam prep as an example, for an Aspirant named David having a full-time
project manager job:

• To balance study, family obligations and relaxation, David has decided to set the project calendar
including only weekdays as the weekends are reserved for the family.
• David has also promised his kids for a short trip during Christmas vacation and therefore the second
half of December is excluded from the Resource Calendar.

While developing David’s project schedule, he has to take into accounts the resource calendar and the
project calendar in order to give a realistic and achievable schedule for his project.

Summary: Project Calendar vs Resource Calendar

In the PMP® Exam, Aspirants would need to differentiate between Project Calendar vs Resource
Calendar. As their name suggests:

• the Project Calendar is concerned about the Project

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 • the Resource Calendar is concerned about human resource (team members)

Resource leveling vs Resource Smoothing for PMP Exam

In the Project Time Management knowledge area of the PMP® Exam syllabus, Resource Leveling
and Resource Smoothing are two of the most important Resource Optimization Techniques for
project schedule development to allow most effective allocation of resources to allow the project to
be completed as fast as possible. However, given the two techniques look very similar on the surface,
many Aspirants would misunderstand them and fail to employ the best technique according to the
situation described in the PMP® Exam questions.

This article will try to distinguish between Resource Leveling and Resource Smoothing according to
the PMBOK® Guide (and thus the PMP® Exam) so that Aspirants will understand these
two Resource Optimization Techniques.

Resource Leveling and Resource Smoothing

During “Develop Project Schedule”, activities are usually first sequenced and assigned resources based
on the dependencies between different activities (either mandatory/discretionary dependencies)
without consideration of the loading of different activities. Thus, some resources may be over-loaded.
In order to solve this issue, Resource Optimization Techniques are employed.

• Resource Leveling: Resource Leveling is a resource optimization technique in which the

Project Manager adjusts the start dates and finish dates of different activities in order to
balance the demand for resources vs available supply.
o Resource Leveling is always carried out first
o e.g. Under normal situation, it is generally considered the man hour for each team
member is 45 hours per week, if more than 45 hours’ work is assigned to a member in
a particular week (which is not practical nor recommended by PMI), the activities must
be adjusted by resource leveling and trimmed down to 45 hours — i.e. it takes more
days to complete the activities than originally planned
• Resource Smoothing: Resource Smoothing is a resource optimization technique in which
the Project Manager adjusts the timing of different activities so that the requirement for
resources does not exceed a certain pre-defined limit.
o The pre-defined limit may be statutory or a company policy, e.g. no more than
38 hours’ work in a week

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 o After Resource Leveling, Resource Smoothing is used to ensure the demand for a
particular resource is more balanced over time — i.e. if the original plan requires the
resources to work 45 hours during the first 3 weeks but only 20 hours for the next 2
weeks, resource smoothing will try to “smooth” the hours per week to around 35 for
the 5 weeks of the project duration
o While carrying out resource smoothing, care has to be taken to balance between the
desire pre-defined limit and the overall duration of the project/activities. In this
regards, the desired pre-defined limits may not always be possible.

Resource Leveling and Resource Smoothing Illustrated

Let’s take the PMP® Exam prep as an example. For an aspirant named David, as he is having a full-
time job, the maximum number of hours that can be devoted to exam prep is 20 hours per week.
However, he prefers to work 10 hours per week in order to spare some time for his family.

As David wants to apply for the PMP® Exam as soon as possible, he hope to finish his online exam
prep course and get the 35 Contact Hours Certificate within two week. However, since it is estimated
to take around 50 hours to be able to complete the online course and finish the final exam. The original
plan is NOT feasible as he can only afford 20 hours per week. David has to employ Resource Leveling
to extend the schedule to 2.5 weeks.

However, David also use Resource Smoothing to decrease the workload to around 15 hours per
week in order to leave some breathing space. The final duration of the getting 35 Contact Hours
Certificate is estimated to be around 3.33 weeks.

Summary: Resource Leveling vs Resource Smoothing

Aspirants would need to look for the end goal of the Resource Optimization Techniques:

• If it is for meeting resource constraints (e.g. statutory requirements, resource availability), Resource
Leveling is employed. Resource Leveling is a necessary as the original plan is not practical and
feasible.
• If it is for better utilization of resources or achieving the desired level of efforts (e.g. 38 hours per week
to allow for some buffers of resources), Resource Smoothing is employed. Resource Smoothing is
preferred but not absolutely necessary.

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Functional vs Projectized vs Matrix Organizations for PMP Exam

In the PMP® Exam, one of the most fundamental questions a PMP® Aspirant will be asked is to
distinguish between the type of organization with reference to project management and organizational
structure. Organizations can be broadly divided into three general types: Functional, Projectized and
Matrix (midway between Functional and Projectized). Knowledge about the type of organization is
vital to project success as the project management approach will be dependent on the type of
organization in which the Project Manager is working in.

This article will try to distinguish between Functional, Projectized and Matrix Organizations according
to the PMBOK® Guide (and thus the PMP® Exam) so that Aspirants will understand the different
types of organizations.

Article Highlights [show]

Functional, Projectized and Matrix Organizations

• Functional Organization: Functional organizations are organized around the functions the
organization need to be performed.
o Functions include: Human Resources, Information Technology, Sales, Marketing,
Administration, etc.
o This is the traditional structure of organizations
o The “Project Management” role will be performed by a team member of a functional area
under the management of a functional manager
▪ Resources are controlled and authorized by functional managers
▪ The “Project Management” role would act more like a “Project Co-ordinator” or
“Project Expediter” who do not usually carry the title of “Project Manager”
▪ Project Management is considered a part-time responsibility
▪ Authority of the “Project Manager” is very limited
• Projectized Organization: Projectized Organizations are organized around projects for maximal
project management effectiveness.
o The Project Manager is given more authority and resources control
o The Project Manager is responsible to the Sponsor and/or Senior Management
o The Project Manager is usually a full-time role
o Team members are usually co-located within the same office / virtually co-located to maximize
communication effectiveness

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 o There can be some functional units within organization, however, those units are having a
supportive function only without authority over the project manager
• Matrix Organization: Matrix Organizations are organizations with structures that carries a blend of
the characteristics of functional and projectized organizations.
o Matrix organizations can be classified as weak, balanced or strong based on the relative
authority of the Functional Manager and Project Manager
o If the “Project Manager” is given a role of more like “Project Co-ordinator” or “Project
Expediter”, then the organization is considered “Weak Matrix”
o If the “Project Manager” is given much more authority on resources and budget spending, the
organization is considered “Strong Matrix”
o The differentiations between Funcational Organization vs Weak Matrix and also Projectized
Organization vs Strong Matrix are not very clear cut

Functional, Projectized and Matrix Organizations Illustrated

In order to easily differentiate between the different types of organizations, the following table is
drawn to provide an overview comparison between Functional, Projectized and Matrix (Weak,
Balanced, Strong) Organizations:

In the PMP® Exam, Aspirants are advised to look for the descriptions on the AUTHORITY of the Project
Manager in order to help understanding the type of organization structure the project is being performed in.

Project Life Cycle vs Product Life Cycle for PMP Exam

One of the fundamental knowledge on project management is the understanding of project life cycle
and its difference with product life cycle. Though both project life cycle and product life cycle consist
of various phases, there are some marked difference between the two and Aspirants may be tested on
the understanding of these differences.

This article will try to definite the meanings of Project Life Cycle and Product Life Cycle according to
the PMBOK® Guide (and thus the PMP® Exam) so that Aspirants will be not confuse Project Life
Cycle and Product Life Cycle.

Project Life Cycle vs Product Life Cycle

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 • Project Life Cycle: The Project Life Cycle is a collection of sequential/overlapping project phases
which are determined by the project control needs of the organization.
o Projects are usually divided into phases for enhanced overall control of the project by the
organization. Project Life Cycle may include, but not limited to:
▪ Analysis
▪ Design
▪ Development
▪ Testing
▪ Launch
▪ Closure
o The project phases may be sequential or overlapping.
o Project life cycles will be dependent on the industry, the organization or the type of project.
o Projects within an organization may adopt the same Project Life Cycle definition according to
the Organization Process Assets.
• Product Life Cycle: The Product Life Cycle is a collection of sequential and non-overlapping product
which are determined by the control needs of the organization.
o Product Life Cycle focuses primarily on the product (i.e. the deliverables of the project).
o Product Life Cycle consists of sequential and non-overlapping phases including:
▪ Ideation
▪ Creation
▪ Introduction
▪ Growth
▪ Maturity
▪ Decline
▪ Retirement
o During a product life cycle, a number of Project Life Cycle may be involved to create, improve,
upgrade, etc. the product to match market needs — projects are about bringing changes.

Project Life Cycle vs Product Life Cycle Illustrated

Let’s take the publication of a PMP® Exam Prep book as an example in which the book is the product.

For the Product Life Cycle of the book, the following phases is involved:

• Ideation — including marketing research, determining the focus/features of the book, sourcing a
suitable PMP® coach, etc.

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 • Creation — the author(s) & editor(s) writing and editing the book and designer(s), typesetter(s) and
printer(s) to actually make the book
• Introduction — marketing and sales, customer services
• Growth — the book becomes popular
• Maturity — continual refinement / update based on the latest changes to the exam syllabus
• Decline — may be due to PMP® Exam prep online courses / app become more popular than a book
• Retirement — cease to be offered on the market, maybe replaced by another type of resources or
disappear altogether

During the Product Life Cycle of the Book, a number of projects may be involved:

• Writing and editing of the Book

• Designing and typesetting the Book
• Printing and delivering the Book
• Marketing the Book
• Updating and revising the Book
• …

Within each of these projects, different Project Life Cycle may be defined depending on actual
manufacturing / control needs. For example, for the “Writing and editing of the PMP® Exam Prep
Book”, the following phases may be involved:

• Analysis of readers’ (Aspirants’) needs

• Design of the arrangement and organization of the book
• Development of the book content by the author(s)
• Proof-reading of the manuscripts by the proof-reader(s)/editor(s)
• Test using part/the whole book by selected Aspirants
• …
• Closure

How About Project Management Life Cycle?

In the PMBOK® Guide, the Project Management Life Cycle is defined as:

• Initiation
• Planning
• Executing

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 • Monitoring & Control
• Closing (phase or project)

Each project phase/project must involve all these project management process groups as defined by
PMI in order to successfully carry out the project.

PMP Earned Value Measurement: Discrete Effort vs Apportioned Effort vs

Level of Effort for PMP Exam

Earned Value Management is one of the more difficult topics in the PMP® Exam. Not only does it
requires the Aspirants to remember and apply a number of EVM formulas and mathematics, but also
they will need to understand the concepts behind Earned Value Management in order to differentiate
between different EVM formulas. Discrete Effort, Apportioned Effort and Level of Effort are one
of the least understood concepts in EVM.

This article will try to definite the meanings of Discrete Effort, Apportioned Effort and Level of
Effort (LoE) according to the PMBOK® Guide so that Aspirants will be not confuse Discrete
Effort, Apportioned Effort and Level of Effort (LoE).

Discrete Effort vs Apportioned Effort vs Level of Effort

Discrete Effort, Apportioned Effort and Level of Effort (LoE) are three of the most common
activity types with different techniques to measure earned value (EV) / work performance for
activities in EVM mentioned in the PMBOK® Guide. The activities are decomposed from the Work
Packages in the WBS.

• Discrete Effort: Discrete Effort is work that can be planned and measured with specific output.
o also known as “Measurable Effort”
o the work can be directly associated with a Work Breakdown Structure (WBS) component and
can be measured with percentage of progress
o e.g. the coder has already finished 500 lines of code for the component with an estimated
length of 1000 lines — 50% completion
• Non-discrete Effort: Opposite of Discrete Effort, further divided into two types:
o Apportioned Effort: Apportioned Effort is work which cannot be divided into discrete
efforts and is allotted proportionately to other discrete effort(s).
▪ the work is directly associated with a Work Breakdown Structure (WBS)
component/deliverable, usually cannot be separated from the discrete efforts

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 ▪ Apportioned Effort supports Discrete Efforts and therefore its earned value is
directly proportional to the discrete effort
▪ e.g. inspection, quality assurance, verification, validation activities
o Level of Effort (LoE): Level of Effort is supportive work that do not produce definitive
output but is measured with (passage of) time.
▪ the work is not associated with a Work Breakdown Structure (WBS)
component/deliverable
▪ Level of Effort activities support an activity or the whole project
▪ usually consists of short duration of work repeated periodically throughout the
project
▪ Level of Effort activities cannot be put in the critical path as they do not add
time to the project duration
▪ Level of Effort activities are included to reflect the resource requirements of activities
without deliverables, such as:
▪ project management, meetings, administrative work, accounting,
maintenance

Discrete Effort vs Apportioned Effort vs Level of Effort

Illustrated
For the exam prep project for the PMP® Exam, one would usually have the following activities/effort
involved (to name but a few):

• Exam Prep Project Management

• Getting 35 Contact Hours of Project Management Education
• Applying for the exam
• Responding to the PMI Audit (if needed)
• Finish reading the PMBOK® Guide
• Finish reading a exam prep Book
• Taking mock exams
• Quality assurance of the Exam Prep process / knowledge
• Attempt and pass the PMP® Exam

Since all these efforts would involve project resources, planned value (PV) should be allocated for
each of these activities. Many of these are actually Discrete Effort with measurable progress/results,

49
however, some of these are Apportioned Effort and Level of Effort (LoE) as indicated in the list
below:

• Exam Prep Project Management — Level of Effort (LoE): to overlook the whole PMP® Exam prep
project, measured with the passage of time, will end only after attempting the PMP® Exam (the target
exam date)
• Getting 35 Contact Hours of Project Management Education — Discrete Effort
• Applying for the exam — Discrete Effort
• Responding to the PMI Audit (if needed) — Discrete Effort
• Finish reading the PMBOK® Guide — Discrete Effort
• Finish reading a exam prep Book — Discrete Effort
• Taking mock exams — Discrete Effort
• Quality assurance of the Exam Prep process / knowledge — Apportioned Effort: relative the the
percentage of completion of the whole exam prep
• Attempt and pass the exam — Discrete Effort

Project Team vs Project Management Team for PMP Exam

In the PMP® Exam, Aspirants will come across the terms “Project Team” and “Project Management
Team” in the questions. While these two terms look very similar, they actually carry different meanings
that may be crucial in getting the correct answer.

Aspirants are advised to understand the meanings of “Project Team” and “Project Management
Team” correctly. This post will explain the commonalities and differences between Project Team
and Project Management Team, in particular from the viewpoint of the PMP® Exam.

Project Team vs Project Management Team for PMP® Exam

• Project Team: The Project Team is a collective term describing all the people that are involved to
work on the project, from planning, executing to closing.
o The Project Team includes the Project Management Team.
o Other sub-sets in the project team may include: design team, speciality teams.
o In small projects, the whole team may be responsible for project management and there is
NOT a single Project Management Team defined.
• Project Management Team: The Project Management Team is responsible for the project
management and leadership activities such as: initiating, planning, executing, monitoring, controlling
and closing of the project/project phases.

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 o The Project Management Team is a subset of the Project Team, including the Project
Manager.
o The Project Management Team is NOT responsible for executing out the project.
o The Project Management Team is also known as the core, executive or leadership team.
o Note: In PRINCE2®, the Project Management Team includes senior users, senior suppliers and the project
sponsor/executive in addition to the project manager, this is different from the definition of PMBOK® Guide

Project Team vs Project Management Team Illustrated

Let’s take the project of publishing a PMP® Exam Prep Book as an example. In the book project,
many people, in addition to the author(s), are involved to get the book into the hands of Aspirants:

• Project Management Team — responsible for coordinating and managing the project to ensure the
target publication date and budget are met and the processes are followed through (i.e. overall
successful delivery of the project deliverable)
• Editorial Team — including the author(s), editor(s) and proof-reader(s), etc., responsible for the quality
of the contents of the book
• Logistics Team — to coordinate with the typesetter, printer, delivery services, etc. to get the Exam
Prep book to the vendors (both online and offline)
• Sales and Marketing Team — to publicize the release of the book, to get reviews from users and to
response to orders, etc.

As you can see, the Project Management Team is a small yet crucial team within the Project Team,
but the success of the project is largely dependent on the works of the Project Management Team.
Aspirants are privileged to be able to work in such an important team!

Summary: Project Team vs Project Management Team

Aspirants would need to remember the key differences between Project Team and Project
Management Team:

• Project Team: all the human resources involved in the project (Project Manager is one of them)
• Project Management Team: includes only the human resources responsible for managing and
controlling the project (Project Manager is one of them)

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Project Procurement Management: Contract Types for PMP Exam

Project Procurement Management is usually considered more difficult to most Aspirants as many
project managers do not have sufficient knowledge and experience in dealing with contracting issues
— contract administration, contract types, contract closure, etc. This post will expound on the various
types of contracts that are mentioned in the PMBOK® Guide and what Aspirants would need to
know for the exam.

Contract Types
A contract is required if the organization needs to purchase resources/services from outside the
company. The type of contract needed depends on a number of factors, namely,

• can the scope of the resources/services be well defined

• type of resources/services needed
• complexity of the resources/services
• frequency of changes needed
• type and magnitude of risks involved
• etc.

Generally speaking, there are three major types of contracts to be used in procurement management:

1. Cost Reimbursable (a.k.a. Cost Plus)

2. Fixed Price
3. Time and Material (a.k.a. Unit Price)

Below we will discuss these types of contracts, their pros and cons and when project managers are
advised to use a particular type of contract.

Cost Reimbursable (a.k.a. Cost Plus)

Cost Reimbursable contracts is a type of contractual agreement in which the buyer agrees to pay for
the actual cost of the materials/services plus an additional fee (maybe) for meeting/exceeding
expectations. The risk is higher on the buyer as the buyer needs to bear the risk of over budget.

Listed below are the common forms of Cost Reimbursable Contracts:

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 • Cost Plus Fixed Fee (CPFF) — the buyer would need to pay the actual cost of the work plus a fixed
fee calculated based on the initial estimation
• Cost Plus Incentive Fee (CPIF) – the buyer would need to pay the actual cost of the work plus
an incentive fee if the performance of seller meets mutually agreed pre-defined performance targets
(objective evalution)
• Cost Plus Award Fee (CPAF) – the buyer would need to pay the actual cost of the work plus an
award based on subjective evalution on the seller’s performance by the buyer
• Cost Plus Percentage of Costs (CPPC) – the buyer would need to pay the actual cost of the work
plus a fee calculated based on a percentage of actual cost
• [not mentioned in PMBOK® Guide] Cost Contract – no profit would be earned by the seller and this type
of contract is seen as a kind of volunteering service for NGO

Cost Reimbursable contracts are suitable where the project is complex and the scope is not very well
defined and changes are expected. If the scope increases the cost would increase and the buyer needs
to bear all. Project Manager would make use of Cost Reimbursable contracts when completing the
tasks on schedule is top priority.

Fixed Price

Fixed Price contracts is a type of contractual agreement in which the buyer agrees to pay for the a
fixed agreed total price. The risk is higher on the seller. Incentives may be offered according to
mutual agreement. The risk is higher on the seller as the seller needs to absorb any omissions,
reworks, inflation and other external risks.

Listed below are the common forms of Fixed Price Contracts:

• Firm Fixed Price (FFP) – a fixed price is set for the seller to complete the contract scope unless
there is a change in the scope where amendments to the contract is needed
• Fixed Price Incentive Fee (FPIF) – the buyer would need to pay a fixed price for the completion
of the project plus awarding an incentive if the buyer meets or exceeds the agreed metrics (e.g. cost
saving from the cost ceiling, schedule, performance, scope, etc.)
• Fixed Price with Economic Adjustment / Economic Price Adjustment (FPEA / FP-EPA) – a
fixed price contract in which inflation is taken into account, usually for contracts that span several
years. This contract type offers more protection for cost increase on the seller side.

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Fixed Price contracts are suitable where the project is simple and the scope is very well defined and
changes are not expected. Project Manager would make use of Fixed Price contracts when controlling
costs is top priority.

Time and Material (T&M) a.k.a. Unit Price

Time and Material contracts is a type that is somewhere between Cost Reimbursable and Fixed Price.
It is a contractual agreement that specifies the price based on a per-hour or per-item basis only without
fixing the total amount. A ceiling price may be put in the contract. The risk is similar on both seller
and buyer.

Time and Material contracts are suitable where the project is small or the scope is expected to be
highly variable at the time of signing the contract. Project Manager would make use of Time and
Material contracts when the project is not well defined at the beginning of the project in order to keep
the cost to be under control (e.g. by limiting the project scope based on funding availability).

Conclusion: Contract Types

Aspirants would need to remember that there 3 major types of Contracts:

• Cost Reimbursable (a.k.a. Cost Plus) — risk on buyer, for complex/not well-defined projects
• Fixed Price — risk on seller, for simple/well-defined projects
• Time and Material (a.k.a. Unit Price) — risk similar on both sides, usually for small projects or there
is trust between the two parties

Project Quality vs Product Quality for PMP Exam

Quality is a crucial aspect for project success. Quality is both important for the deliverables (products)
and the management of the project for the creation of the deliverables.

This post will expound on the similarities and differences of Project Quality vs Product Quality and
what Aspirants would need to know for the exam.

Project Quality vs Product Quality

• Product Quality: product quality is the adherence/conformance of the product/deliverable of the
project to the pre-defined requirements/standards.
o Product Quality can be improved and guaranteed by quality control and quality assurance

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 ▪ Quality control: concerned with the activities and measures taken to achieve quality requirements
▪ Quality assurance: a process based approach to ensure the processes and methodology associated with
the production of the final deliverables/products are defect free
• Project Quality: project quality is concerned about the management and implementation of the
project processes to turn the project requirements into project deliverables
o Project Quality is assessed by carrying audit on the project management practices (which is
outside the scope of the PMBOK® Guide, somewhat performed by the role of Project
Assurance in PRINCE2®)

Project Quality vs Product Quality Illustrated

Let’s take the project of PMP® Exam study and preparation as an example to illustrate the concept
of Project Quality and Product Quality. The Product of the exam preparation is of course getting the
PMP® Certificate.

By following closely the recommendations (e.g. exam prep courses, reference book, mock exams,
study plans and advices from exam takers), an Aspirant is able to pass the exam in first try — both the
Project Quality and Product Quality are considered high.

However, an Aspirant can get a quality product (i.e. passing the exam with flying colors) from the
project of exam prep without having a good Project Quality (e.g. constantly delaying the plan, not
following all the pre-defined processes and milestones, skipping some parts of the exam syllabus, etc.)
— low Project Quality and high Product Quality.

Summary: Project Quality vs Product Quality

To distinguish between Project Quality vs Product Quality, always remember the following definitions
of these:

• Product Quality is concerned about the conformance of the deliverables to pre-defined

requirements and standards.
• Project Quality is about the conformance of the management/execution of the project to pre-approved
processes. Project Quality is not to be tested in the PMP® Exam.

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Project Time Management: Free Float vs Total Float for PMP Exam

In project time management, when using the Critical Path Method (CPM) to determine the project
schedule, there are two types of float that are easily confused by many Aspirants: Free Float and Total
Float.

This post will expound on the similarities and differences of Free Float vs Total Float and what
Aspirants would need to know for the exam.

Free Float vs Total Float

A Float/Slack is a schedule flexibility an activity has in a project network diagram which allows the
delay of the activity without causing a specific delay:

• Free Float: the amount of time (float) an activity on the schedule network diagram can be freely
delayed without affecting the early start of the of following/successor activity
o for activities NOT on the critical path
o Free Float can only be non-zero when two or more activities have a common successor activity
o Free Float = ES of successor activity – EF
where ES = Early Start, EF = Early Finish
• Total Float: the total amount of time (float) an activity on the schedule network diagram can be
delayed without affecting the project finish date
o for activities NOT on the critical path
o Total Float = LF – EF (or LS – ES)
where ES = Early Start, EF = Early Finish, LS = Late Start, LF = Late Finish

Note the following:

• Activities on the Critical Path have ZERO free float or total float.
• Total Float and Free Float for an activity may be the same or different depending on the other
activities in the schedule diagram.
• When you are asked to calculate the “Float” for an activity in the PMP® Exam, you are asked to
calculate the “Total Float“.

Free Float vs Total Float Illustrated

Let’s take the project of PMP® Exam study and preparation as an example to illustrate the concept
of Free Float and Total Float. Let’s suppose getting certified consists of the following three activities:
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 • Activity A — Get 35 Contact Hours of Project Management Education (duration: 4 weeks)
• Activity B — Apply for the exam and pass the audit (duration: 6 weeks)
• Activity C — Write mock exams (duration: 3 weeks)

Below is a simplified Schedule Network Diagram:

• Total Float of Activity C = LF – EF = 10 – 3 = 7 weeks

• Free Float of Activity C = ES of successor activity – EF = 7 weeks
• Though the Total Float and Free Float is the same in this case, there are possibilities that that can be different!

Summary: Free Float vs Total Float

To distinguish between Free Float and Total Float, always remember the following definitions of
these:

• Free Float is the amount of time an activity can be freely delayed without affecting the early start of
the of successor activity
• Total Float is the total amount of time an activity can be delayed without affecting the overall project
finish date

Note: Float can be negative (i.e. Negative Float) which indicates that the activity must start before the predecessor
activities have finished to catch up with a target finish date — which is probably caused by a delay in predecessor
activities.

Project Risk Management: Fallback vs Workaround for PMP Exam

In project management, once the original plan does not proceed as expected or there are any changes
in the external environments, the Project Management will need to investigate whether changes to the
original plan is needed. This is where Fallback and Workaround would need to be implemented.
However, Aspirants should need to note that Fallback and Workaround are quite different and they
are to be implemented in different situations. This post will expound on the similarities and differences
of Fallback and Workaround and what Aspirants would need to know for the exam.

Article Highlights [show]

Fallback and Workaround

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 • Fallback: a fallback plan is a plan developed to deal with risks that have been identified during project
planning
o for identified risks
o known unknowns
• Workaround: a workaround is the unplanned response the Project Manager need to take to deal with
emerging risks and risks that are passively accepted as the risk response during project execution (i.e.
there are no pre-determined risk response plan in place)
o for unidentified risks or risks that are passively accepted
o unknown unknowns

Fallback and Workaround Illustrated

Let’s take the project of PMP® Exam study and preparation as an example to illustrate the concept
of Fallback and Workaround.

Timothy, another promising project manager, has determined to get certified in two months’ time.
Tim has formulated a study plan for his exam:

• Week 1-4: finish the online course by watching the course videos on the computer at home and get
the 35 Contact Hours for the exam
• Week 5-6: complete the exam application and take free mock exams to bridge any knowledge gap
• Week 7: take a week off for relaxation
• Week 8: last minute revisions and take the PMP® Exam at the end of Week 8

Tim has also identified two most common risks and their fallback plans:

• not able to finish online course on time: download the PMP® courses onto his mobile phone and
watch the exam prep courses during transit and running (the PM PrepCast™ is ideal for studying on
the go)
• not able to get the recommended results (70%-80%) for the free mock exams: purchase a paid exam
simulator for more practices (at extra costs)

Now when it is at the end of Week 5, Tim is caught in an accident that keeps him hospitalized for 1
week. Tim has to immediately develop a workaround plan this time by moving the relaxation week
(Week 7) up to Week 5 and work on the mock exams in Week 6 – 7 to make up the loss time.

Conclusion: Fallback and Workaround

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Though both Fallback and Workaround are used to deal with risks when they occur, Aspirants would
need to remember that:

• Fallback is pre-developed risk response strategies for identified risks in order to protect the original
project plan (the costs deal with identified risks are included in the contingency reserve)
• Workaround is immediate risk response strategies for unidentified risks (or identified risks that have
been accepted passively) in order to contain the damages to the project plan (the costs deal with
identified risks can be obtained from the management reserve upon management approval)

Project Cost Management: Cost Baseline vs Budget for PMP Exam

In Project Cost Management, project managers will have to deal with Cost Baseline and Cost Budget.
However, these two terms are easily confused in everyday language. In the PMBOK® Guide, Cost
Budget and Cost Baseline are different concepts that need to be distinguished clearly. This post will
expound on the similarities and differences of Cost Baseline and Budget and what Aspirants would
need to know for the exam.

Article Highlights [show]

Cost Baseline vs Budget

• Cost Baseline: Cost Baseline is the authorized time-phased spending plan for the project on which
the project cost performance is to be measured against. As the Cost Baseline is baselined and managed
under configuration management, changes to the Cost Baseline must undergo proper change
management processes.
o The Cost Baseline includes all the project activities/resources costs and the money set aside
to respond to risks identified (i.e. known unknowns) over time and it is usually represented as
an S-curve
o Cost Baseline = Project Cost Estimates + Contingency Reserves
• Cost Budget: the allowable deviations requested based on customer expectations
o The Cost Budget is the estimate of total amount of money required for carrying out the
Project, including money set aside for identified and unidentified risks (i.e. unknown
unknowns)
o The Cost Budget can be thought of as the Cost Baseline over time plus the Management
Reserves
o Cost Budget = Project Cost Estimates + Contingency Reserves + Management
Reserves

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Cost Baseline vs Budget for PMP® Exam Illustrated
Let’s take the project of PMP® Exam study and preparation as an example to illustrate the concept
of Cost Baseline vs Budget.

Paul, a promising project manager, has determined to get certified through self-study and you have
chosen one of the cheapest online training course to get the 35 Contact Hours Certificate in order to
be eligible for the exam, you budget for getting PMP® Certification is as follow:

• PMI Membership Fee: US$139

• Project Management Training through self-study: US$199
• PMP® Exam Fee (for PMI Member): US$405
• You may also need to set aside budget for miscellaneous items (e.g. transportation, exam Prep book, PMBOK® Guide,
mock exams etc.): US$300
• PMP® Certification Cost: US$1043 which is the cost estimate for the PMP® Project

Paul will also need to set aside budget for any identified risks (e.g. unable to finish preparation on time
— postpone the exam, need extra learning aids as the exam is unexpected difficult, re-exam after a
fail, etc.) which is expected to be US$500 (Contingency Reserve).

Paul is also advised (according to PMBOK® Guide) to set aside money for any unknown unknowns
which is set at around 10% of the Cost Estimate at this time (according to his own decision), i.e.
US$100 (Management Reserve).

Therefore, for the PMP® Certification Project,

• Total Cost Baseline = Cost Estimate + Contingency Reserve = US$1043 + US$500 = US$1543
• Total Cost Budget = Cost Baseline + Management Reserve = US$1043 + US$500 + US$100 =
US$1643

Summary: Cost Baseline vs Budget

Aspirants would need to remember the simplified formulas in order to understand the differences
between Cost Baseline and Budget:

• Cost Budget = Cost Baseline + Management Reserve

• Cost Baseline = Cost Estimate + Contingency Reserve
• Cost Estimate = sum of costs for work packages/activities

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In fact, for Project Cost Management, there are a number of terms that Aspirants need to understand:

• Cost Estimate: the aggregated costs for the work packages or activities of the project without making
allowances for risks
• Management Reserves: management reserves are money added to the project overall budget by the
senior management for uncertain events that are not even thought of (also known as “unknown
unknowns”, i.e. risks not shown in the risk register)
• Contingency Reserves: contingency reserves are money added to the project cost estimates by the
project manager for uncertain events / risks that might happen (also known as “known unknowns”)
• detailed explanation of Management Reserves and Contingency Reserves

Project Quality Management: Control Limit vs Specification Limit for PMP

Exam

Control charts are one of the Seven Basic Quality Tools used in Control Quality as described in
PMBOK® Guide to give a visual depiction of the changes in the outcome of a process. Though in
the ideal situation, a process will give the same results for each and every time it runs. However, in
reality, the results will be different from each other owing to a number of factors (common causes
and special causes). The Control Limits and Specification Limits are a threshold for evaluating when
the process is under control or not.

This post will expound on the similarities and differences of Control Limit vs Specification Limit and
what Aspirants would need to know for the exam.

Control Limit vs Specification Limit

• Control Limit: the limit established for the control chart based on statistical analysis or from historical
records
o There are 2 Control Limits: Upper Control Limit (ucl) and Lower Control Limit (lcl) indicating
the maximum and mininium allowable values respectively
o By convention, the Control Limits would usually be±2 or ±3 standard deviations (σ) from the
target value, though this will vary from process to process
o If there are results falling outside the Control Limits, the process is said to be unstable (i.e. out
of control) ; root analysis is needed to investigate the special cause and rework/scrap would be
needed
o In addition, there are still some other pattern that will indicate the process is out of control,
e.g. 7 consecutive data points on either side of mean (Rule of Seven)

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 • Specification Limit: the allowable deviations requested based on customer expectations
o There are 2 Specification Limits: Upper Specification Limit (usl) and Lower Specification
Limit (lsl) indicating the maximum and mininium allowable values respectively
o If there are results falling outside the Specification Limits (but within Control Limits),
improvement works would be needed to adjust the process to give greater precision;
nevertheless the process is still considered stable
o The Specification Limits would be documented in agreements and penalties would be imposed
if the results fall outside these Specification Limits
o Specification Limits must be within the Control Limits

Control Limit vs Specification Limit Illustrated

Let’s take the project of PMP® study and preparation as an example to illustrate the concept
of Control Limit and Specification Limit.

When working on some mock exam papers, your score for 5 different mock question sets were:

Scenario 1

• 72%
• 70%
• 68%
• 69%
• 73%

The mean for the above 5 mock exam paper results is 70.4% which is above the minimum
recommended score (70%) for mock exam results and all these scores were within the control limits
of 2σ (74.5% and 66.3%). So the the Aspirant is said to have a stable performance and is expected to
be able to pass the exam in first try.

Scenario 2

• 62%
• 60%
• 58%
• 59%
• 63%

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Though all the scores are within the control limits (64.5% and 55.3%), the mean of 60.4% is below
the recommended minimum score. Though the PMP® Aspirant has a stable performance, he/she will
likely to fall the real exam.

Scenario 3

• 65%
• 65%
• 66%
• 65%
• 66%
• 65%
• 100%

The mean here is 70.3%, which is above the minimum recommended score (70%) for mock exam
results, however, the exam results with 100% is well beyond the control limits (96.4% and 44%).
Action would be needed to find out the root cause for getting the 100% results (e.g. is it just too easy?).

Scenario 4

The PMP® Aspirant would like to place a Lower Specification Limit of 70% for all the mock exam
results as a threshold for writing the real exam. From the results of the above 3 scenarios, there are
quite a number of results that are lower than this Specification Limit and the Aspirant will need to
study harder and bridge his/her knowledge gap before attempting the real exam. If he/she has booked
the exam, he/she will need to postpone the exam date then.

Summary: Control Limit vs Specification Limit

Aspirants would need to remember Control Limits are there to indicate whether the process/system
is under control or not. Results falling outside the Control Limits would mean the process is unstable
and root cause analysis is needed. Specification Limits are imposed by agreement with customers on
strictly quality requirements, i.e. Specification Limits must be within the Control Limits.

Project Time Management: Crashing vs Fast Tracking for PMP Exam

In Project Time Management, when the Project Management needs to deal with time delay (or the
sudden request from management to deliver the deliverables sooner), there are two important methods to
compress the schedule (schedule compression techniques) so as to catch up with the target dates while
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preserving the project scope: crashing and fast tracking. These two techniques are indeed quite
different and this post will expound on the similarities and differences of crashing vs Fast Tracking
and what Aspirants would need to know for the exam.

Crashing vs Fast Tracking

• Crashing: crashing is a schedule compression technique to shorten the activity duration by adding
extra resources (money and/or human resources)
o involves additional costs as extra resources are needed for
▪ overtime
▪ extra manpower
▪ outsourcing
o normally to be explored after Fast Tracking
o Project Manager needs to judge which activities can be “crashed” with the lowest cost for the
maximum effectiveness
o may create risks for rework/defects
• Fast Tracking: is a schedule compression technique to perform activities in parallel (partial or in
whole) in order to save time
o the activities to be performed in parallel should be analyzed for logical relationship and that
the two activities in question can really be carried our in parallel (i.e. overlapping of part or the
whole activities)
o normally no extra resources are needed
o additional risks may be created
o Fast Tracking is the preferred method for schedule compression

Both Fast Tracking and Crashing must be applied to activities on the Critical Path in order to really
shorten the project duration. When applied on activities not on the critical path, it would only increase
Floats which will not shorten the project duration (note: the Critical Path may be different when there are
delays to activities of the project).

Crashing vs Fast Tracking Illustrated

Let’s again take the project of PMP® preparation as an example.

Suppose you have planned to be well prepared for the exam in 2 months with 3 hours of studies each
day. After one month of PMP® Exam prep, you are 40% complete. Foreseeing that you may not be

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able to be fully prepared at the scheduled time for your exam, you wish to compress your study
schedule in order to finish the remaining 60% of activities in one month.

Now, according to the general recommendation, you begin by Fast Tracking your exam preparation by:

• attempt and pass the final exam for your online exam prep course after you have finished the required
percentage of online courses (e.g. 80%) so that you can get the 35 Contact Hour certificate for your
PMP® Exam application and you can continue to study the remaining contents of the exam while PMI
is assessing your application in order to save time (i.e. carrying out exam application and studying for
the 35 Contact Hours in parallel)
• attempt 1 full-length mock exam paper before you have gone through the whole exam syllabus in order
to understand your readiness for the PMP® Exam

But, after carrying out these “Fast Tracking” techniques, you are still not quite confident that you can
meet your target. So you go to the Crashing technique:

• increase the study time per day to 4 hours on weekdays and 8 hours on weekends (you need to pour
in extra time)
• purchase a pack of PMP® Flashcard to help you remember the key facts faster for your exam (you
need extra money)
• subscribe to the PM PrepCast™ exam prep course so that you can listen to the courses during your
transit time (you need extra money)

With both Fast Tracking and crashing techniques, you are fully prepared for the exam on time and
passed it in first try. Congratulations!

Summary: Crashing vs Fast Tracking

Crashing and fast tracking are the two most common schedule compression technique to shorten the
project duration in case of delays while preserving the project scope. Fast Tracking is to carry out
activities originally in sequence to be in parallel (partial or whole) while Crashing is to add extra
resources to shorten the normal duration of the activities.

Fast Tracking is preferred over Crashing as the former does not involve extra resources and
costs which would affect the project budget performance. However, it is important to note that
both Fast Tracking and Crashing creates risks for rework (otherwise this would have actually been

65
incorporated into the Project Plan at the very beginning) which needs to be carefully balanced with
the benefits of schedule compression.

For information, another effective schedule compression technique is to trim down the project scope,
but this would likely affect the project objectives and thus is not the preferred way to go.

Project Quality Management: Common Cause vs Special Cause for PMP

Exam

There are always variances for the results from a process over time. The results are to be plotted on a
control chart. The closer the results from each other, the smaller the variance (a variance of 0 indicates
that all the results are identical — however this cannot be achieved in reality). The variance may be
caused by a number of factors, which can be broadly divided into two category: Common Cause
and Special Cause. The type of variance cause can be analyzed by the pattern shown on the control
chart.

This post will expound on the similarities and differences of Common Cause and Special Cause and
what Aspirants would need to know for the exam.

Common Cause vs Special Cause

• Common Cause: the normal variances for every process which in random in nature — inherit in the
process (life is not perfect)
o Common cause is normal and cannot be elimiated
o On a control chart, common cause variations would have the pattern of:
▪ all points within the control limits
▪ points distributed randomly on both sides of the average value
o Common cause variance is also known as random cause — i.e. there is not a special reason for
the variation
o The process in question is considered as stable
• Special Cause: causes that are NOT inherent in the process
o Special cause indicates that there may be some sort of defects in the process and the cause of
the variance needs to be dug out
o Special cause can usually be resolved with adjustments to the processes, components or
methods
o On a control chart, special cause variations would have the pattern of either:
▪ a point or more beyond the control limits

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 ▪ some trends of the points (e.g. more than 5 consecutive points on one side of the
average value
o Special cause is also know as assignable cause — that can be attributed to some special reasons

Common Cause vs Special Cause Illustrated

Let’s again take the project of PMP® Exam preparation as an example.

When working on some mock exam papers, your score for 5 different mock question sets were:

• 72%
• 70%
• 68%
• 69%
• 73%

All these scores were within the control limits of 3 standard deviations with the mean of 70.4%
(according to the experience of many Aspirants, a mean of 70.4% would mean that one stands a high
chance to pass the PMP® Exam in first try). The variations in the mock exam results was due to
common causes.

However, after attempting the 6th mock exam question, you got 29% (which is well below the control
limits). The deviation must be due to special causes and you needed to dig out the underlying reasons.
Below are some possible causes:

• this mock exam paper is extremely difficult

• the questions ask you about knowledge that is outside the exam syllabus
• the quality of the mock exam paper is questionable (maybe many of answers to the questions were
wrong or even the questions were wrong)
• you are not familiar with the knowledge areas covered specially in this mock exam
• in case you are taking the exam in paper, you have mismatched the question number and the answer
number
• ……

There might be lots of different explanations the unexpectedly low marks you got from this exam.
You would need to try finding out which one (or more) cause from the above list is the “special

67
causes” so that you could take actions to make things right — and to move closer to your goal of
passing the real PMP® exam.

Summary: Common Cause vs Special Cause

Aspirants would just need to remember that common cause is “common” and that is not considered
a defect while special cause is caused by a “special” reason (defect) which must be resolved in order
for the process to run probably. The use of control charts can bring the matters into light and help
the project manager to differentiate between Common Cause and Special Cause variance.

Risk Management: Residual Risk vs Secondary Risk for PMP Exam

In Risk Management Knowledge Area of the PMBOK® Guide, apart from the primary risks — which
are uncertain events that may have impacts (either positive or negative) on the project objectives if
occur, there are also residual risks and secondary risks. All these types of risks must be identified,
analyzed, monitored and taken care of throughout the project by the project manager. This post will
expound on the similarities and differences of the two kinds of risks and what Aspirants would need
to know for the exam.

Residual Risk vs Secondary Risk

• Residual Risk: the risk(s) that remains after carrying out the risks response or those risks that are
accepted without any risk responses (maybe the cost for the risk response is more than the cost of
dealing with it)
o residual risks must be identified and documented during the risk management process
o a contingency reserve should be set up to tackle these risks should these kinds of risks arise
• Secondary Risk: the risk(s) that are created directly owing to the implementation of a risk response
for primary risks
o since every activity involves risks — the risk responses themselves are no exception,
implementation of a risk response will result in new risks for the project
o a risk response plan would need to be planned and implemented to tackle this kind of risks
o secondary risks may be accepted without further actions if their impact are small on the overall
project objectives

Residual Risk vs Secondary Risk Illustrated

Let’s again take the project of PMP® Exam preparation as an example.

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When planning the study schedule for your exam, the primary risks that may affect your exam prep
schedule are:

• suddenly be fully engaged with a new project during exam prep that leaves no time for studying
• fall ill during exam prep
• change of the exam syllabus
• ……

One risk response activity for not finding enough study time owing to professional engagement would
be to begin the exam prep in a low season (i.e. avoid the peak seasons) by taking reference to the work
pattern for the previous years.

• The residual risk for this risk response would be: an unexpected large-scale project comes up during your
exam prep. In that case, you may need to set aside budget (a “known unknown” — from contingency
reserve) to postpone your PMP® Exam in order to find enough time for studying.

The risk response activity for avoiding falling ill during exam prep would be taking vaccination for
five of the most common contagious disease at the time of exam prep.

• The secondary risk for this risk response would be the vaccines themselves may cause side effects
(including prolonged fatigue or headache) or even cause infection. A risk response plan may need to
be created for this secondary risk.
• As there are countless variety of germs/toxins that can cause illnesses, the 5 vaccines taken may just
be able to protect you against a portion of the most common diseases. You can still be exposed to
some less common diseases — this is the residual risk.

Summary: Residual Risk vs Secondary Risk

Risks are inevitable. In addition to the primary risks, there are also residual and secondary risks for the
PMP® Exam.

Aspirants would need to understand the differences between Residual Risk and Secondary Risk:

• Residual Risks are risks that are left over after implementing a risk response
• Secondary Risks are risks that are created directly by implementing a risk response

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Scope: Project Scope vs Product Scope for PMP Exam

For every project, one of the key activity is to define the “scope”. There are actually two types of scopes —
project scope and product scope. Many Aspirants may mistakenly consider project scope and product scope
are identical, in fact, project scope and product scope are two different concepts. This post will expound on
the similarities and differences of the two kinds of scopes and what Aspirants would need to know for the
exam.

Project Scope vs Product Scope

• Project Scope: includes all the work required to deliver the required project product, service or results
(collectively known as “deliverables”)
o Project Scope is the about the project (including all the processes described in the PMBOK®
Guide) to deliver the product
o Project Scope involves the requirements of the product as well as the methods/processes
involved to deliver the product
o Project Scope is documented in the Project Scope Statement / Statement of Work —
detailing the results of the project as well as the constraints and assumptions
• Product Scope: includes the features and functions of the required product, service or result from the
project
o Product Scope is about the product itself and no more
o Product Scope would describe how the product will look like, how it will work and the results
it will deliver (technical specifications)

Project Scope vs Product Scope Illustrated

Let’s again take the project of PMP® Exam preparation as an example.

The Product Scope is simply “getting a pass in the real exam” as what we Aspirants want is getting
the “Congratulations” screen at the end of the 4-hour exam (of course, the knowledge gained from
studying the PMBOK® Guide is also very valuable to everyday project management work — but I
would say that’s a “by-product”, the PMP® title is the most important part).

For the Project Scope of the exam, it would involves lots of things (which is why getting certified is
not that simple):

• Understand the requirements — i.e. getting a pass in the exam

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 • Estimate the project budget (including the cost of PMP® Exam fee, cost of 35 contact hours course,
exam Prep books, PMBOK® Guide, exam simulators, etc) , develop the study and exam plan and
create the study and exam schedule
• Carry out the study and continually monitor the progress (including whether to defer the exam if
needed)
• Check your study quality by trying Mock Exams
• Write the exam once ready
• Review the results — retake the exam if necessary

Project Scope vs Product Scope

The product is what the project need to deliver and the Product Scope is all about it specifications
(i.e. what it looks like, its features and functions and how it works). The Project Scope is developed
based on the Product Scope that includes all the work (planning, executing, monitoring & controlling
and closing processes) in order to deliver the product with intended results. Many management products
(including project plans, registers, lessons learned, change requests, etc.) are created within the project scope in order to
allow the creation of the product according to the product scope.

As you would have seen, the PMBOK® Guide is mainly about the Project Scope as it provides
guidances on how to carry out the planning, executing, monitoring & controlling and closing
processes.

Cost of Quality: Cost of Conformance vs Cost of Non-conformance for

PMP Exam

Project Quality Management is an important aspect in project management according to the

PMBOK® Guide as the quality of the deliverables directly affects the satisfaction of the customers.
The acts of ensuring quality for the project and deliverables inevitable involve costs and this should
be well considered during the project cost, time, scope and human resources planning.

PMP® Definitions: Cost of Conformance vs Cost of Non-

Conformance
• Cost of Conformance: this is the costs incurred by carrying out activities to ensure the project and
deliverables conform to the quality requirements and avoid failure (i.e. building quality into the project
processes).
o Cost of Conformance can be broadly divided into two categories:

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 ▪ Prevention Costs — money spent on activities/equipment to prevent defects from
arising in the first place, e.g. :
▪ Equipment update and maintenance
▪ Training provided to staff
▪ Documentation
▪ Following quality standards
▪ Time and human resources involved
▪ Quality Assurance activities
▪ Appraisal Costs — money spent on those activities to inspect and dig out defects to
prevent these defects from getting into the hands of the customers, e.g.:
▪ Testing and inspection
▪ Destructive testing loss
▪ Quality Control activities
• Cost of Non-Conformance: this is the money that needs to be spent for not conforming to the quality
requirements.
o Cost of Non-Conformance can also be broadly divided into two categories:
▪ Internal Failure Costs — the costs incurred when defects in the deliverables are
detected internally (i.e. not yet presented to the customers)
▪ Defect Repair
▪ Rework
▪ External Failure Costs — the costs incurred when defects are found the deliverables
have been delivered to customers and in actual use (this is the wrost kind of quality
costs)
▪ Warranty work
▪ Liabilities
▪ Loss of business goodwill

Both the Cost of Conformance and the Cost of Non-Conformance can be collectively referred to as
the Cost of Quality. Cost of Conformance is considered much lower than the Cost of Non-
Conformance. Therefore in the PMP® Exam, quality management advocates “prevention over
inspection”.

Cost of Conformance vs Cost of Non-Conformance Illustrated

Let’s take the project of producing a PMP® Exam Prep Book/PMP® Study Guide (such as the Andy
Crowe’s or Rita’s PMP® book) as an example for illustrating the Cost of Conformance concepts.

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During the writing of the PMP® Exam Prep Book, a lot of time, efforts and money are involved in
the editing and proofreading of the book to ensure all the content of the book is accurate and error-
free. These Cost of Conformance activities include reviews (in multiple times) by the author, editors
and subject matter experts. Oftentimes, current PMP® holders and students are also invited to read
through the book to provide valuable feedback. Extensive testing on printing and production will also
be carried out to ensure the final product (i.e. the PMP® Exam Prep Book) is in the perfect shape for
PMP® aspirants. All these would involve considerable time and costs.

However, if the publisher would like to accelerate the delivery of the PMP® Book to market after a
change of the PMP® Exam syllabus by leaving out these Cost of Conformance activities (i.e. once
the author has finished the writing, it will go directly into printing). PMP® aspirants would initially be
pleased to be able to receive the book so early to facilitate their PMP® Exam preparation. But, they
will later find that the content contains a lot of errors (in definitions, concepts and even the mock
PMP® exams) that hinder their studies or even cost their PMP® Exam failure. A lot of bad comments
and low ratings would be given to the book so other PMP® students will consider this book to be of
low quality — that’s a loss of a lot of reputation and business.

Through this example, PMP® aspirants would understand why PMP® Exam Prep Books are usually
late to the market for several months after the change of PMP® Exam syllabus.

Cost of Conformance vs Cost of Non-Conformance For the

PMP® Exam
In the PMP® Exam, the Cost of Quality is lowest for prevention and inspections (Cost of
Conformance) but highest for failures (involving: rework, defect repair, lost reputation and sales
and external costs — Cost of Non-conformance). As an example, the cost of rework can be as high
as 5000 times the cost for carrying out unit testing. The project manager must try hard to assure project
quality through quality conformance processes and activities in order to minimize the cost of non-
conformance.

The quality activities included in the cost of conformance will affect time, cost and scope of the
project.

Work Package vs Activity for PMP Exam

The terms “Work Package” and “Activity” are commonly by many project managers to refer to “the
tasks to be performed in the project”, many would used these two terms interchangeably. However,

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for the PMP® Exam, “Work Package” and “Activity” carry different meanings and should not be
treated as the same.

PMP® Definitions: Work Package vs Activity

• Work Package: a work package is the lowest level element of the WBS (Work Breakdown Structure)
through decomposition of the project scope in the “Create WBS” process.
o The Work Package is the lowest level in the sense that meaningful estimation of cost and
duration for the scope of work included can be achieved.
o One Work Package can contain many activities which are to be performed by one or more
project team members.
o For Project Scope Management
• Activity: an activity is a small enough unit of work that need to be carried out to fulfil the project
scope.
o The Work Package is further decomposed into activities (which are to be entered into the
“Activity List”).
o The activity list is to be used to develop the project schedule.
o Every activity has a start and end day (duration), there may be some sort of logical relationship
between the activities.
o For Project Time Management

According to the PMBOK® Guide, there is no recommended or fixed way of how detailed the “Work
Package” or the “Activity” need to be. The detail level should be suitable for the project in question
to give meaning estimation and planning. This is one of the project tailoring areas a project
management is given the freedom to define.

Work Package vs Activity Illustrated

Let’s take the project of PMP® Exam preparation as an example. The following are my “work
packages” to be included in my PMP® Exam prep (please note WBS and Work Packages would
usually be based on the deliverable and intended outcomes):

• Fulfil the PMP® Exam Registration Requirements

• Revise the Exam Syllabus
• Assess My PMP® Exam Readiness
• Take the PMP® Exam (and pass in first try)

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And the following are the activities under each work package of PMP® Exam Prep:

• Fulfil the PMP® Exam Registration Requirements

1. Get 35 Contact Hours of Project Management Education with PM PrepCast™ (a
podcast-type downloadable PMP® Exam prep online course)
2. Get enough project management experience
3. Fill in the online PMP® Exam registration form
4. Pay the PMP® Exam fee
5. Respond to the PMP® Exam audit request
• Revise the Exam Syllabus
1. Read the PMBOK® Guide once
2. Read Andy Crowe’s How to Pass the PMP® Exam in First Try once
• Assess My PMP® Exam Readiness
1. Try out online PMP® mock exam question banks
2. Get over 70% for at least 2 full-length PMP® mock exam
• Take the PMP® Exam (and pass in first try)
1. Schedule the PMP® Exam timeslot online through Prometric
2. Get up early on the day of PMP® Exam
3. Get to the Exam Centre 30 minutes early
4. Take and pass the PMP® Exam

As you can see, for each work package there are many activities. The work packages can give us an
overview of what need to be done (for scope estimation) while the activities can give us a detailed
account of what are actually involved (for time estimation).

Work Package vs Activity For the PMP® Exam

It is helpful to think of the following structure:

Project -> Project Phrases -> Project Deliverables -> Work Packages -> Activities

1. A project may contains many project phrases.

2. During each project phrases, some project deliverables are to be created.
3. During Project Scope Management, the deliverable is to be decomposed into work packages in the
WBS for scope estimation.
4. During Project Time Management, the work packages are to be decomposed further to give the activity
list for activity resources estimation, scheduling and sequencing.

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Critical Path Method vs Critical Chain Method for PMP Exam

In Project Time Management, the most important scheduling methods mentioned in the PMBOK®
Guide are Critical Path Method and Critical Chain Method. As their names suggest, there are
similarities and differences between the two “Critical” methods. This post will try to distinguish
between these two types of scheduling methods for the PMP® Exam.

PMP® Definitions: Critical Path Method (CPM) vs Critical

Chain Method (CCM)
• Critical Path Method (CPM): the Critical Path Method is the most popular scheduling method in
the PMP® Exam which involves the calculation of early start (ES), early finish (EF), late start (LS) and
late finish (LF) through forward and backward passes in the project schedule network diagram. This
will facilitate the project manager to estimate the buffers (floats) or the lack of for individual activities
on the schedule network path.
o The Critical Path Method focuses on the sequence of activities/tasks to allow the project team
to visualize the overall flow of the tasks.
• Critical Chain Method (CCM): the Critical Chain Method actually builds on the Critical Path Method
by considering the resource availabilities and their dependencies along all the task chain and adding
buffers to the end of the chain to account for scarcity of resources in order to protect the project
schedule from slipping. This may result in a new Critical Path to be identified instead of the one found
in Critical Path Method.
o The Critical Chain Method is derived from the “Theory of Constraints”, it focuses on resource
availability and dealing with uncertainties/changes.
o Instead of micro-managing the schedule of individual activities of the network path with task-
based buffers, Critical Chain Method focuses on managing the overall buffer of all the
activities on the chain. This will allow the project schedule to be in better control.
o If used properly, the Critical Chain Method will achieve higher efficiency by removing implicit
buffers of individual tasks and lower schedule risks.
o There are 3 types of buffers:
▪ Project Buffer: placed at the end of the project, the project buffer provides
contingency for the critical chain activities
▪ Feeding Buffer: placed at the end of non-critical chains in order to match the the
duration of critical chain
▪ Resource Buffer: placed on the critical chain to allow rooms for the
designated resources to work on the critical chain tasks

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Critical Path Method vs Critical Chain Method Illustrated
The following is a simplified diagram to illustrate Critical Path Method vs Critical Chain Method:

As can be seen from the above diagram:

• The Critical Path Method allows the project team to easily visualize the sequence of tasks and the
estimated duration of individual tasks in a straight-forward manner, something most people are familiar
with. However, since there are no overall buffers to be added to the critical path, project team members
may, while estimating for the duration of individual tasks, try to add “implicit buffers” conservatively
to each task with a view to protect the overall schedule. This may result in “too much” buffers added
to the critical path and make the estimation not efficient. The project manager need to monitor closely
the progress of individual tasks as one task progresses at a slower than expected pace will adversely
affect the whole project schedule.
• The Critical Chain Method, on the other hand, just put the tasks together in a chain by considering
the minimal time needed for individual tasks. An overall “project buffer” is added to the end of the
chain which provides some protection against the project schedule. This may result in higher efficiency
of the buffer estimation by combining the individual implicit buffer for an explicit buffer. Project team
members would be able to provide a more aggressive schedule for each tasks as there is an overall
buffer to protect the project schedule. The project manager will focus on managing the overall buffer
during the executing and monitoring processes.

Critical Path Method vs Critical Chain Method For the PMP®

Exam
How to tell whether the PMP® Exam question is asking about Critical Path Method
or Critical Chain Method? The easiest way is to look carefully for the terms used to describe the
network schedule of the project:

• Terms used in Critical Path Method:

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 o Forward Pass
o Backward Pass
o Early Start
o Late Start
o Early Finish
o Late Finish
o Slack / Float
o Total Slack / Float
o Calculate the Duration
o Critical Path
• Terms used in Critical Chain Method:
o Project Buffer
o Feeding Buffer
o Resources Buffer
o Critical Chain
o resource constraints

By looking for the above terms, Aspirants will be able to distinguish between Critical Path Method
and Critical Chain Method and tackle the questions correctly.

Contingency Reserve vs Management Reserve for PMP Exam

Reserve, by definition, is the money set aside for unexpected events / contingencies / risks so that
the project will still have enough funding to carry on. Setting aside reserves is one of the most
important measures to manage project risks. In PMBOK® Guide, reserves can be sub-divided into 2
type: Contingency Reserve and Management Reserve. This post will try to distinguish between the
two types of reserves.

PMP® Definitions: Contingency Reserve vs Management

Reserve
• Contingency Reserve: contingency reserves are money added to the project cost estimates by the
project manager for uncertain events / risks that might happen (also known as “known unknowns”).
o to manage identified risks
o The amount is calculated based on risk management techniques defined in the risk
management plan (e.g. Expected Monetary Value (EMV) or Decision Tree Method)

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 o the project manager has the full authority to make use of the contingency reserve once the
risk(s) has/have materialized
o contingency reserve is included in the cost baseline (Cost Baseline = Project Cost Estimate
+ Contingency Reserve)
o once a risk is not realized, the contingency reserve set aside for that risk would be released
• Management Reserve: management reserves are money added to the project overall budget by the
senior management for uncertain events that are not even thought of (also known as “unknown
unknowns”, i.e. risks not shown in the risk register).
o to manage unidentified risks (i.e. risks that cannot be identified through the risk management
processes)
o the amount is based on the organization policies and/or complexity of the project (usually
“guessed”(not scientifically) at 5 – 15% of the total budget)
o the management reserve is controlled by a representative from senior management (NOT the
project manager), prior approval must be sought before utilizing the reserve on the project
o management reserve is NOT included in the cost baseline but in the project overall budget
(Project Budget = Cost Baseline + Management Reserve)
o the management reserve would be kept until the end of the project
o NOTE: in reality, management reserve is seldom set aside in real world projects as many consider the
organization would provide extra funding upon project managers’ requests should circumstances require anyway;
however, this is NOT PMP® Exam’s way of doing project management

Contingency Reserve vs Management Reserve Illustrated

To illustrate the difference between Contingency Reserve vs Management Reserve, we will look at the
events that require the use of each:

• You are a project manager for a critical building project in an earthquake prone zone. A minor
earthquake happened yesterday that had destroyed some of the machinery. You, as the project
manager, would immediately make use of the Contingency Reserve to repair / replace the broken
machinery in order to move the project forward. — Since earthquakes are considered a risk (threat) to
the project (know unknown), funding has already set aside as contingency reserve in preparation for
such risks.
• Later in the project, the site the project was working on was struck by a tiny asteroid at night that
resulted in the destruction of the building foundation. You, as the project manager, immediately
reported the event to the senior management which authorized the use of Management

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 Reserve immediately to clear the area and rebuild the foundation. — Since asteroid strike is NOT
considered a risk that is possible enough to enter into the risk register.

Quality Control vs Quality Assurance for PMP Exam

Again in everyday language, there is just a thin line between the meanings of Quality Control (QC) vs
Quality Assurance (QA), many use these two terms interchangeably and fail to differentiate between
the essences of each. In fact, in many projects, both quality control and quality assurance are
performed by the same QA/QC person.

This article will try to definite the meanings of Quality Control vs Quality Assurance according to the
PMBOK® Guide quality management processes so that Aspirants will not confuse these in the exam.

PMP® Definitions: Quality Control vs Quality Assurance

• Quality Control: quality control is in the “monitoring and controlling process group” and is
concerned with the activities and measures taken to achieve quality requirements (as in the Control
Quality process).
o In simpler words, Quality Control is concerned about the quality of the
“products/deliverables“. Its major aim is to ensure the correctness of and check for defects
in the products/deliverables.
o Quality Control is a “reactive” process to inspect the products/deliverables to detect any non-
conformance in them.
o Quality Control is used to verify the quality of the product.
• Quality Assurance: quality assurance is in the “executing process group” and is a process based
approach to ensure the processes and methodology associated with the production of the final
deliverables/products are defect free such that the deliverables/products can fulfil the
quality objectives (as in the Perform Quality Assurance process).
o In simpler words, Quality Assurance is concerned about the “processes“. Its major aim is to
avoid defects in products/deliverable at all by assessing the effectiveness of current quality
control processes and issue change requests as necessary to correct any defects in the
processes.
o Quality Assurance is a “pro-active” process involving understanding the requirements and
formulating measures (e.g. quality audit, training, etc.) to achieve the requirement objectives.
o Quality Assurance is used to manage the quality of the processes.

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As seen from the above, Quality Control and Quality Assurance processes are closely related and
interact with each other. The quality assurance process defines the procedures to carry out
quality control, and feedback from quality control will influence the quality assurance process. Should
defects are found from quality control processes, the information would be used by quality assurance
processes to determine any corrective/preventive measures that are needed. That’s why “Quality
Control Measurements” are an input to the Perform Quality Assurance process in the Quality
Management process group.

Quality Control vs Quality Assurance Illustrated

To illustrate the difference between Quality Control and Quality Assurance, we will look at what each
one would look at in the project:

• Quality Control would examine the final product against the quality requirements set out in the Quality
Management Plan and report as Quality Control Measurements.
• Quality Assurance would make use of the Quality Control Measurements and other information to re-
assess whether the correct methodology and processes are used in the project and the Quality Control
process is looking at the correct/most effective metrics, etc.

Assumptions vs Constraints vs Requirements for PMP Exam

In everyday language, there is just a thin line between the meanings of assumptions, constraints and
requirements. In many cases, these terms may even be used interchangeably. This is not so in the
PMP® Exam and in the PMBOK® Guide. This article will try to definite the meanings
of assumptions, constraints and requirements according to the PMBOK® Guide (and thus the PMP®
Exam) so that Aspirants will be not confuse these terms in the PMP® Exam.

PMP® Definitions: Assumptions vs Constraints vs

Requirements
• Assumptions: these are factors that are used in the planning process to allow plans to be created with
reasonable details (since without those assumptions, forecasts and budgets cannot be made).
Assumptions are reasonably believed to be true based on experience (e.g. lessons learned), knowledge
or information at hand.
o Assumptions are needed for estimating the scope, schedule, costs, etc. during the project
planning and are well documented in project management plans.

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 o The risks of false assumptions are dealt with during risk management planning. If the
assumptions would adversely affect the project if found to be false, the assumptions would be
documented as risks for risk management.
o After completion of the project, the project management will need to assess the accuracy of
assumptions and document any findings in lessons learned.
• Constraints: these are factors that need to be taken into accounts when planning the project.
Constraints are mostly restrictions imposed on the project. However, with good planning, constraints can
be a real benefit to boost effectiveness and efficiency.
o Project managers and the team need to work within the constraints of the project in order to
achieve project success. Managing the constraints is one core responsibility of the project
manager.
o In traditional project management, there is the “triple constraint”/”iron triangle” (i.e. three
most significant restrictions on any project: scope, schedule and cost). However in the
PMBOK® Guide, constraints include a total of 6 competing project constraints:
▪ Scope – what are required/expected of the project?
▪ Time – when will the project need to be finished?
▪ Cost – how much money is provided?
▪ Quality – what is the expectation of the outcome? High or just okay?
▪ Resources – who are the working team members? What equipment/materials are
provided?
▪ Risk – what can go wrong with the project and how to deal with them?
o These constraints on the project are interrelated, change in one constrain will affect some/all
the others. For example, if one skilled team member has just resigned, more time would be
needed to finish the project as members with less experience would not progress at the same
rate. Likewise, the quality, cost, risk, etc. would also be affected.
• Requirements: these are features/capabilities/products/deliverables that expected to be delivered
from the project as interim or end results.
o Requirements focus on the capability of the deliverable rather than the project itself.

Assumptions vs Constraints vs Requirements Illustrated

Suppose you are just named the project manager of a new hybrid car. The sponsor requests, among
others:

1. a demo unit to be created by the next car show in 1.5 years’ time,
2. the car to have a 0-60 mph time of 8 seconds; and

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 3. It meets the statutory emission requirements for clean car rebate.

Which of these is assumption, constraint and requirement?

• Requirements are the easiest to spot as these are features directly related to the deliverable. So “having
a 0-60 mph time of 8 seconds” is a requirement.
• How about “a demo unit to be created by the next car show in 1.5 years’ time”? In plain English, this
is a requirement by the sponsor. However, in project management terms, the 1.5 year is a limiting time
factor which is considered a “constraint” for the project (but not the deliverable). So, “a demo unit
to be created by the next car show in 1.5 years’ time” is a constraint.
• The third one: “meets the statutory emission requirements for clean car rebate” is a requirement in
itself as it is concerned about the cleanliness of the exhaust gas from the car. However, there is an
underlying assumption which is the statutory emission requirement would NOT be changed during
this 1.5 year as the goals are aligned to the current statutory emission requirements which is an
assumption believed to be true at the beginning of the project.

Corrective vs Preventive Actions for PMP Exam

During project execution, there are inevitable change requests. In addition to change requests that are
brought about by scope changes, there are also a number of other reasons, e.g. corrective actions,
preventive actions and defect repairs. In this article, we will discuss about Corrective Actions and
Preventive Actions, their similarities and differences.

While the project baselines (Scope baseline, Schedule baseline & Cost baseline, etc.) will sometimes
be updated owing to considerable changes in the project scope, corrective and preventive measures
should never affect the baselines.

PMP® Definitions: Corrective Actions vs Preventive Actions

• Corrective Actions: these are actions taken when the project deviates from the scope, schedule, cost
or quality plan in order to bring the project performance back to the baselines. Corrective actions are
reactive actions.
o These are actions taken when non-conformances have already been detected to rectify the
cause of the issue.
• Preventive Actions: these are actions taken when the project is likely to trend away from the scope,
schedule, cost or quality plan to ensure the project performance is aligned to the baselines. Preventive
actions are proactive actions.

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 o These are actions taken to prevent issues/problems from occurring in future.

Corrective Actions vs Preventive Actions Illustrated

Suppose you are the project manager of building a production plant. Mid-way in the production plant
building project, you have noticed that the time taken to build the building may be longer than
expected owing to the possible frequent occurrence adverse weather this year. You try to squeeze
more time by asking the machinery to be installed before all the floors have been built. By doing so,
you have ensured the project to be finished within the original schedule. The action taken is
Preventive Action.

During the installation and testing of the production machinery, you found that the products created
from the machine do not meet the requirements documented in the project plan. The team takes a
considerable time solving the problem which results in the late delivery of the machine and may cause
the whole project to deliver late. You try to compress the schedule by asking another team to work
concurrently on site for the rest two machines in order to the installation schedule on time. The actions
taken are Corrective Actions.

Corrective Actions vs Preventive Actions: Which is Preferred?

Given PMI always prefers the project managers to be proactive in their roles, preventive actions are
always preferred. Project Managers should work hard to anticipate and identify any likely occurrence
of issues through proactive measures and respond promptly to prevent it from ever occurring.

Preventive actions will ensure the project to proceed smoothly and follow the baselines closely.

Corrective Actions, Preventive Actions and Defect Repairs

Defect repairs are actions taken when the deliverable does not meet the agreed quality requirements
if the deliverable can still be rectified. Otherwise, a complete rework is needed to create the
deliverables from scratches. Both defect repairs and rework impose a high cost of quality to the project
and are least preferred. Prevention has the lowest cost of quality.

Take the production plant project again, you have delivered the plant to the client but was found that
one production machine fail to produce the products as required in the contract. It was found out that
the wrong kind of components have been used. You need to repair the defects by dismantling part of
the plant and install the machine again (defect repairs). To make matters worse, a floor of the plant
suddenly collapsed while you carried out the defect repair and it was found that the concrete used in
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building the plant was sub-standard. Your company is responsible for dismantling the whole plant and
build it up again (rework). [Hopefully as you are working your way to PMP®, you know the most proper way to
manage projects and these errors will never happen.]

On the other hand, corrective actions and preventives actions are activities done (usually to project
processes) to ensure the project performance align with the baselines and have no direct relationship
to the quality of the final products.

Statement of Work (SOW) vs Project Scope Statement for PMP Exam

In the Project Initiation Process for the PMP® Exam, there are several documents that are created as
the basis for understanding the scope and other requirements of the project, e.g. Project Charter,
Business Case, Project Statement of Work (SOW), Project Scope Statement, etc. The latter two,
namely, “Statement of Work (SOW)” and “Project Scope Statement” are often confused by
Aspirants. This post will help you understand their similarities and differences and help you select
the right answer in your PMP® Exam.

PMP® Definitions: Statement of Work (SOW) vs Project

Scope Statement
• Statement of Work (SOW): is also known as Project Statement of Work (to distinguish with
Procurement Statement of Work) is a document including the high level description of the intended
deliverables of the project.
• Project Scope Statement: a document including more details than Project Statement of Work on the
scope and deliverables of the project, major assumptions and constraints are also added if appropriate.

From the PMOBK Guide definitions, it seems that both Statement of Work and Project Scope
Statement are very similar as they both contains the descriptions of the project deliverables. However,
when researched in more depths, it can be found that:

• Statement of Work (SOW) contains high level information of the project deliverables
• Project Scope Statement contains more details of the deliverables plus assumptions and constraints

Statement of Work (SOW) vs Project Scope Statement

Illustrated
Statement of Work (SOW) contains at least the following three elements:

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 1. Organization strategic plan
2. Business needs
3. High level project scope

These are meant to provide an overarching direction for the project only, NOT the full
implementation details. The high level project scope contained in the statement of work must be
further developed in order for all stakeholders and project team members to really understand what
are expected from the project. This is where the Project Scope Statement comes into play.

Project Scope Statement on the other hands includes lots of details for the project (not necessarily
include all of the following):

• objectives
• project scope
• product scope
• requirements
• boundaries
• deliverables
• acceptance criteria
• constraints
• assumptions
• milestones
• cost estimation
• specifications
• configuration management requirements
• approval requirements
• etc.

The Project Scope Statement may be elaborated progressively over time when more details on
requirements and constraints are known during the requirements collection and scope defining
processes.

Note also that the Project Scope Statement together with Work Breakdown Structure (WBS)
and WBS Dictionary form the Scope Baseline.

Statement of Work (SOW) vs Project Scope Statement: Which

Comes First?
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These two terms are often confused in real-world practice as project managers may use the two terms
interchangeably to refer to documentation containing all the work to be done for the
project. But according to the PMBOK® Guide (as the PMBOK® Guide is intended for medium
to large scale projects), the Statement of Work (SOW) would only contain very high level scope
while the Project Scope Statement contains the full details.

Since the Statement of Work (SOW) contains a high level description of the project scope while the
Project Scope Statement contains the lower level (more detailed) description of the project scope, it
can be easily inferred that the Project Scope Statement is developed from the contents of the
Statement of Work (SOW). So the following documents need to be developed in sequence:

1. Project Statement of Work (SOW) – documenting the very first ideas for the project
2. Project Charter – formally authorising the project and project manager (= SOW + Business Case +
Contract)
3. Project Scope Statement – when the project manager is collecting requirements and defining scope

Project Statement of Work (SOW) vs Procurement Statement

of Work (SOW)
As its name suggest, the Procurement Statement of Work is to be created during Project Procurement
Management. It contains enough detail to allow potential sellers to decide whether they are qualified
or beneficial to pursue the project work. The Procurement Statement of Work includes the following
elements:

• performance (describe what can be accomplished)

• functional (convey the end purpose or result)
• design (convey precisely what are to be done)

The Procurement Statement of Work may be developed by either the seller or buyer. You will just
need to remember that the Project Statement of Work (SOW) is for internal use while
the Procurement Statement of Work (SOW) is for external use.

Quality vs Grade for PMP Exam

In Project Quality Management of the PMP® Exam, the concept of “Quality” and “Grade” is one of
the most easily confused concepts (another equally important terms for quality management is
Accuracy vs Precision which we deal with in a separate article).

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PMP® Definitions: Quality vs Grade
In real life, we have been using the terms “Quality” and “Grade” mostly interchangeably. Low grade
products would be described as low quality and vice versa. In the PMP® Exam, “Quality” and
“Grade” are totally different concepts which aspirants should not get confused. Let’s go to the
definitions of them.

• Quality: a measure of how the product conforms to the requirement / fit for the expected use level.
o If the product has high quality, it should meet the quality requirements set out in the
production specification and is fit for the uses as described. However, if it doe not, it is said
to have low quality.
• Grade: a measure of which level the product is expected to perform.
o If the product is low grade, it is intended / designed to be used on an everyday condition than
in extreme cases.

Quality vs Grade Illustrated

In order to help PMP® Aspirant understand the differences between Quality vs Grade, let’s consider
the following case.

Suppose you are buying a mobile phone, what would you look for?

• If you just want a mobile phone with basic calling functions, the “low grade” option is a mobile phone
allowing you to make and receive phone calls only (probably with a number pad for you to input the
telephone number). A “higher grade” phone would have a small screen to show the telephone
number as well as functions to store and retrieve same frequently used phone numbers.
• If you want the “high grade” or “premium grade” options, you would select the “flagship” phones
which boosts a large touch screen, a camera with high pixel count and aperture, the latest iOS or
Android OS, some killer features (e.g. sexy metal frame design, infra-red control, zoom lens, curved
screen, etc.). You get the idea.
• Usually, the ones with higher price tag attached are the higher grade models.

But besides the features, what you would probably also consider whether the phone is reliable and
durable. This concept is known as the quality. A “high quality” product will do what it is intended
to do reliably while a “low quality” phone may break down after several hours of use (this is quality
issue but NOT grade issue as a phone will never designed to work for several hours only). Like grade,
low quality phones are usually cheaper.

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So, the most sensible advice for purchasing a mobile phone is: always look for a good quality one with
a grade that meets your requirements.

Quality vs Grade: Which is more important?

Judging from the above examples, we can further infer that:

• A product with low grade is acceptable since it fulfils its intended functions and expectations (e.g. less
features) probably at a lower cost.
• A product with low quality is a problem, since it does not meet the requirements and expectations
(e.g. breaks down easily).
• A high quality product will always meet your expectations while a low quality product won’t.

The definitions of Quality and Grade are much different. For the PMP® Exam, Quality is much much
more important and should not be confused with Grade. There is a domain named “Project Quality
Management” but not “Project Grade Management”.

Accuracy vs Precision for PMP Exam (PMBOK Guide)

In Project Quality Management of the PMP® Exam, the concept of “Accuracy” and “Precision” is
one of the most easily confused concepts (another equally important terms for quality management is
Quality vs Grade which we will deal with in a separate article).

PMP® Definitions: Accuracy vs Precision

Accuracy and Precision are descriptions of repeated measurements taken from a process. Let’s go to
the definitions of them.

• Accuracy: a measure of how the measured values close to the target value
o If the measured values are accurate, they may not be precise as they can be larger or smaller
than the target value on a wide range.
• Precision: a measure of how the measured values close to each other (but not necessarily close to
the target value)
o If we say the measurements are very precise, we do not give out any hint on whether the
measurements are accurate (i.e. close to the target value).

Accuracy vs Precision Illustrated

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In order to help PMP® Aspirant understand the differences between Accuracy vs Precision, let’s
consider the following case.

Suppose you are a supplier for metal wire and a client ordered five wire of 100 meters. The wire cutting
machine cuts the wires according to your instruction and you measured them manually to get the
following data:

• First wire: 100.6 m

• Second wire: 100.5 m
• Third wire: 100.7 m
• Fourth wire: 100.7 m
• Fifth wire: 100.5 m

How would you describe the measured values? Accurate or Precise?

Answer: The measured values are precise but NOT accurate. While they are close to each other
(within ~0.2%), they are not close to the desired value of 100 meters.

What about if the following data are recorded:

• First wire: 100.2 m

• Second wire: 100.1 m
• Third wire: 99.8 m
• Fourth wire: 99.8 m
• Fifth wire: 100.0 m

Answer: The measured values are accurate but NOT quite precise. While they are close to the
target (within ~0.2%), they are not as close to each other as in the first case.

Accuracy vs Precision: Which is more important?

The question now is which attribute is more important in quality management? I am sure judging from
the example above, you will see that accuracy is MUCH MUCH MORE important than
precision. The client required wires of 100 meters in length, your job is to give wires with length as
close to 100 meters as possible in order to satisfy the requirement (of course, some client would
welcome if you give more than they request, that would not be considered in this case). A precision
wrong length is still wrong, no matter how precise the measurements are. Only when the output
is accurate then it is meaningful to strike for precision.
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Accepted Deliverable vs Verified Deliverable for PMP Exam (PMBOK
Guide)

Perhaps the definitions of “Accepted Deliverable” and “Verified Deliverable” are one of the most
easily confused concepts by Aspirants. If you search for terms like “PMP® Deliverables”, you will
surely come across these terms: “Accepted Deliverable”, “Validated Deliverable” and “Verified
Deliverable”. What are the differences between them and what you should know to answer PMP®
Exam questions correctly?

[A little background story: the terms “Validate” and “Verify” were used interchangeably in PMBOK®
Guide 4th Edition, in fact there is the term “Validated Deliverable” there. But in the most updated
version of PMBOK® Guide 5th Edition, the definitions of these terms were clarified and they
convey very different meanings. However, most articles on the internet about PMP® were not
updated for the most current PMP® Exam. So, beware of getting wrong definitions for these terms
from your internet search.]

PMP® Definitions: Accepted Deliverable vs Verified

Deliverable vs Validated Deliverable
Let’s go to the definitions of

• Verified Deliverable: Output from project tasks that meets by quality control measures as specified
in Quality Management Plan; an output of the Control Quality (Project Quality Management)
• Accepted Deliverable: The verified deliverables from perform quality control that have been
approved by the Customer / Stakeholders to fulfil the acceptance criteria; an output of Validate Scope
(Project Scope Management)
o Note: in the 4th edition of PMBOK® Guide, “Validate Scope” was termed as “Verify Scope”.

Where is “Validated Deliverable”?

• Validated Deliverable: this term was originally mentioned a lot in PMBOK® Guide 5th Edition but
later amended as “Verified Deliverable” in the errata. Now there is only 1 mention of “Validated
Deliverable” on page 251, however, the term there should also be updated as “Verified Deliverable”.

So, remember, there are only “Verified Deliverable” and “Accepted Deliverable” but NO
“Validated Deliverable”. However, the question remains: why “Validated Deliverable” is not

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amended as “Verified Deliverable”? It all has to do with the clarification of the definitions of
“Validation” and “Verification” in PMBOK® Guide 5th Edition.

PMP® Definitions: Verification vs Validation

• Verification: a quality control process to ensure the deliverables meet the regulation, requirements,
specifications, etc.
o According to the PMBOK® Guide 5th Edition: Verification is “the evaluation of whether or not a
product, service, or system compiles with a regulation, requirement, specification, or imposed condition. It is often
an internal process”.
• Validation: the acceptance process by customers / stakeholders to formally acknowledge the
deliverables meet their requirements.
o According to the PMBOK® Guide 5th Edition: Validation is “the assurance that a product, service,
or system meets the needs of the customer and other identified stakeholders. It often involves acceptance and
suitability with external customers”.

Accepted Deliverable vs Verified Deliverable Illustrated

In order to help PMP® Aspirant understand the differences between Accepted
Deliverable and Verified Deliverable, let’s consider the following case.

Suppose you had purchased a new flat and awarded the renovation contract to Contractor A.
Contractor A had perviously collected and discussed all your requirements and you had agreed to the
quotation.

Contractor A then asked several painters to paint the walls of all bedrooms in beige and the common
rooms in white according to your requirements. After painting, Contractor A would read the contract
again and inspect every room to ensure that the rooms were painted in the correct color [Verification
– that’s the “verified deliverable”].

Afterwards, Contractor A asked you to come and check the work. You and Contractor A walked from
room to room to look closely at the painted walls and you were mostly satisfied with the
work [Validation – that’s the “accepted deliverable”]. However, you suddenly realized that you
wanted the baby room to paint in pink and asked Contractor A to make the amendment [Change
Request] ……

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What to Do the Week before PMP Exam?

After you have gone through the PMBOK® Guide, PMP® Exam prep course(s), exam reference
books and numerous mock exams, how would you spend the very last week leading to the PMP®
Exam?

By making wise use of the final week before the exam, you will be able to increase (hugely) your chance
of passing the exam in the first try. I sincerely invite you to read this personal experience of my PMP®
Exam last week preparation with a view to shed some lights on your last week’s plan

Planning the Final Week

It is often highly desirable to take a whole week’s leave from work and household obligations in order
to focus on getting a pass in the exam. But it is often not practical. I was no exception. I simply
couldn’t afford the luxury of forgetting everything except the PMP® Exam. That’s why a wise plan
for the final week is very important.

Try to sleep well and eat well during the last week. Your health condition will directly affect your
performance. Stay fit and stay health is most important.

• 7 Days before the Exam

o I tried to collect all the study notes and keep them together neat and tidy.
o I wrote down my exam time management plan (e.g. how many time for each PMP® question,

6 how many breaks, when to take breaks, etc.) => click here to view my plan
• Days before the Exam
o I got to the Exam Centre to familiar myself with the traffic, surroundings as well as the
environment of the centre. Surprises are for parties only but not for important occasions as

5 taking the PMP® Exam.

• Days before the Exam
o I went over my study notes and the PMP® Glossary (link here) with a view to refresh my

4 knowledge of the PMBOK® Guide and the exam content.

• Days before the Exam
o I practiced my exam time management plan by taking one full-length 4-hour mock exam (a
list of suggested exams).
o I tried to stick as close as to the original time management plan as possible. I ended up having
to make adjustments to the toilet breaks and the time allocated for each question.

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 o It is often helpful to practise as much as possible. But if you are running short of time, it is
recommended to try at least a full-length 4-hour mock exam in the week leading to your big
day.
o Taking PMP® mock exams would also help to identify knowledge gaps to focus on when

3 reading the study notes tomorrow.

• Days before the Exam
o Another day to go over my exam study notes by focusing on the areas that I got wrong the
day before. I tried to go over the study notes slowly and word by word to dig out any concepts

2 or terms that I had missed during my previous studies.

• Days before the Exam
o I did one 4-hour full mock exam question 2 days before the Exam with a view to give me the
assurance of having studied enough and get the very last practice of the strategies of time
management.
o It is most ideal to take the mock exam at the same time slot as your real PMP® Exam in order
to really understand your stamina at that time of the day.
o Also, I would go over my study notes once again and be psychologically prepared (important

1 tips here).
• Day before the Exam
o Aspirants normally would plan to burn themselves out on the day before the Exam. I did the
very opposite. I did all sorts of things that I liked — playing with kids, reading books (anything
not exam reference books, PMBOK® Guide, etc.), walking around, etc. except even thinking
about the PMP® Exam nor the PMBOK® Guide matters.
o I intentionally “forgot” about the exam to let my brain and body to get the relaxation that was
desperately needed over the previous 2 months of hard work.
o Relaxation is extremely important for aspirants as they will have to keep their focus during the
4-hour exam time. If the brain is over-stressed, keeping the stamina is very difficult.
o I highly advise you to spend the night (preferably the day if you can take a day off) with your
loved ones and make an effort to not think about the exam and whether you can pass or not
… I know it is very difficult.
o The most important tips for today is: have a good sleep!
• On the Date of the PMP® Exam
o I got up early and had a wonderful breakfast with my family.
o I read my own study notes while riding a bus to the exam centre (I planned to get to the exam
centre at least 30 minutes earlier). And before getting to the exam room, I looked first for the
location of the washrooms.
o I just keep telling myself: “Keep calm and get the pass you deserve!”

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o You also deserve a pass for your PMP® Exam!

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