Table Of Content®
CAPM IN DEPTH:
CERTIFIED ASSOCIATE IN PROJECT MANAGEMENT STUDY GUIDE
FOR THE CAPM® EXAM
Dr. Paul Sanghera, PMP, CAPM
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To life
Whose every day is a project
That I run from time’s shoulders.
To my friends,
the key stakeholders:
Gurmail Kandola, John Serri, and Kulwinder
Baldev Khullar, Ruth Gordon, and Bhupinder
Stanley Wong and Srilatha are a few to name.
With friends, I can see clearly
Through storm and rain.
Friends without whom
Every path is just a trail of dust.
With whom I’m like the first man
Walking on the planet Earth.
Acknowledgments
ach time I get a book published, I re-learn a lesson that transforming an idea into a finished
Ebook takes a project (it produces a unique product—that is, the book—and it has a beginning
and an end) and a project team. As they say (well, if they don’t anymore, they should), first
thing first. Let me begin by thanking Mitzi Koontz for initiating this project. With two thumbs
up, thanks to Cathleen Small for managing this project from the planning stage through the
executing stage, the monitoring/controlling stage, and all the way to the closing stage.
It’s my pleasure to acknowledge the hard work of other members of the team as well:
Judy Littlefield for layout, Sara Gullion for proofreading, and Sharon Shock for indexing.
My special thanks to Belinda Fremouw, the technical editor of this book, for carefully review-
ing all the chapters and offering valuable feedback.
In some ways, writing this book is an expression of the project manager and educator inside
me. I thank some great minds from whom I directly or indirectly learned about management
during my journey in the computer industry from Novell to Dream Logic: Chuck Castleton
at Novell, Delon Dotson at Netscape and MP3.com, Kate Peterson at Weborder, and Dr. John
Serri at Dream Logic. I also thank my colleagues and seniors in the field of education for help-
ing me in so many ways to become a better educator. Here are a few to mention: Dr. Gerald
Pauler (Brooks College), Professor David Hayes (San Jose State University), Professor Michael
Burke (San Jose State University), and Dr. John Serri (University of Phoenix).
Last, but not least, my appreciation (along with my heart) goes to my wife, Renee, and my son,
Adam, for not only peacefully coexisting with my projects, but also for supporting them.
About the Author
ne of the world’s leading experts in project management, Dr. Paul Sanghera is a manager,
Oeducator, technologist, and entrepreneur and has more than 15 years of diverse project
management experience in the computer industry, from Netscape to MP3 and at research labs
from Cornell to CERN. Having worked in various roles, including director of project man-
agement, director of software development, software developer, trainer, and scientist, he has a
broad view of project management. Expertise in multiple application areas, including physics,
computer science, RFID, biotechnology, and nanotechnology, has helped him to master the
global principles of project management that apply to all application areas. Dr. Sanghera has
several industry certifications, including PMP, CAPM, Project+, Network+, Linux+, SCJP,
and SCBCD, and he has contributed to building world-class technologies, such as Netscape
Communicator and Novell’s NDS. As an engineering manager, he has been at the ground
floor of several startups and has been a lecturer at San Jose State University and Brooks College.
He has authored or co-authored more than 100 technical papers published in well-reputed
European and American research journals. Dr. Sanghera is the best-selling author of several
books on science, technology, and project management. He has a master’s degree in computer
science from Cornell University and a Ph.D. in physics from Carleton University. He currently
lives in Silicon Valley, where he runs an information company, Infonential Inc., that specializes
in project management and emerging technologies.
Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii
Chapter 1 Project Management Framework . . . . . . . . . . . . . . . . . . . 1
Basic Concepts in Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Understanding Projects and Project Management . . . . . . . . . . . . . . . . . . . . . . . 4
Understanding a Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Distinguishing Projects from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Understanding Progressive Elaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Understanding a Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Understanding the Project Lifecycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Initiating a Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Planning the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Executing the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Monitoring and Controlling the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Closing the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Understanding Project Management Knowledge Areas . . . . . . . . . . . . . . . . . . 21
Introducing the Project Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Identifying Project Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Identifying the Stakeholder Within: Project Manager . . . . . . . . . . . . . . . 30
Organizational Influences on Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Understanding the Organizational Culture . . . . . . . . . . . . . . . . . . . . . . . . 33
Understanding the Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . 34
Identifying Environmental Factors and Process Assets . . . . . . . . . . . . . . . 39
Origins of Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
vi Contents
Understanding Project Selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Benefit Measurement Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Constrained Optimization Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Expert Judgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Triangular Relationship: Project, Program, and Portfolio. . . . . . . . . . . . . . . . . 46
Some Advanced Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Probability-Related Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Global Project Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Baseline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Project Management Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Big Picture of Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Chapter 2 Project Integration Management . . . . . . . . . . . . . . . . . . 63
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Integration Management: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Developing the Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Obtaining Project Charter Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Developing the Project Management Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Directing and Managing Project Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Input to Directing and Managing Project Execution . . . . . . . . . . . . . . . . 74
Tools and Techniques for Directing and Managing Project Execution . . . 75
Output of Directing and Managing Project Execution . . . . . . . . . . . . . . . 76
Monitoring and Controlling Project Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Performing Integrated Change Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Input to Integrated Change Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Tools and Techniques for Integrated Change Control . . . . . . . . . . . . . . . . 83
Output from Integrated Change Control . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Performing Project Closure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Input to the Close Project Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Output of the Close Project or Phase Process . . . . . . . . . . . . . . . . . . . . . . 86
The Finishing Touch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Reviewing the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Releasing the Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Saying Goodbye: The Project Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Contents vii
Chapter 3 Project Scope Management. . . . . . . . . . . . . . . . . . . . . . 97
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Managing Scope: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Developing the Project Scope Management Plan . . . . . . . . . . . . . . . . . . . 99
Project Scope Management Processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Collecting Requirements for the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Tools and Techniques for Collecting Requirements . . . . . . . . . . . . . . . . . 103
Output of Collecting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Defining the Project Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Input to Scope Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Tools and Techniques for Scope Definition . . . . . . . . . . . . . . . . . . . . . . . 109
Output of Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Creating a Work Breakdown Structure (WBS) . . . . . . . . . . . . . . . . . . . . . . . 112
Decomposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Output of Creating the WBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Before and After the WBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Controlling Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Verifying the Scope of Project Deliverables . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Chapter 4 Project Time Management. . . . . . . . . . . . . . . . . . . . . . 129
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Project Time Management: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Defining Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Input to Defining Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Tools and Techniques for Defining Activities. . . . . . . . . . . . . . . . . . . . . . 134
Output of Defining Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Sequencing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Tools and Techniques for Sequencing Activities. . . . . . . . . . . . . . . . . . . . 137
Output of Sequencing Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Estimating Activity Resource Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 141
Input to Activity Resource Estimating . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Tools and Techniques for Activity Resource Estimating . . . . . . . . . . . . . 142
Output of Activity Resource Estimating . . . . . . . . . . . . . . . . . . . . . . . . . 143
viii Contents
Estimating Activity Duration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Input to Activity Duration Estimating . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Tools and Techniques for Activity Duration Estimating . . . . . . . . . . . . . 145
Output of Activity Duration Estimating . . . . . . . . . . . . . . . . . . . . . . . . . 147
Developing the Project Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Input to Schedule Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Tools and Techniques for Schedule Development . . . . . . . . . . . . . . . . . . 149
Output of the Schedule Development Process . . . . . . . . . . . . . . . . . . . . . 154
Controlling Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Input to Schedule Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Tools and Techniques for Schedule Control . . . . . . . . . . . . . . . . . . . . . . . 158
Output of Schedule Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Chapter 5 Project Cost Management . . . . . . . . . . . . . . . . . . . . . . 167
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Project Cost Management: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Estimating Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Determining Project Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Controlling Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Measuring Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Performance Measurement Analysis for Cost Control . . . . . . . . . . . . . . . 178
Scope, Schedule, and Cost: The Triple Constraint . . . . . . . . . . . . . . . . . . . . . 186
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Chapter 6 Project Human Resource Management. . . . . . . . . . . . . 195
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Planning for Resources: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Human Resource Management: Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . 197
Developing the Human Resource Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Input to Human Resource Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Tools and Techniques for Human Resource Planning . . . . . . . . . . . . . . . 202
Output of Human Resource Planning: The Human Resource Plan . . . . 205
Contents ix
Acquiring a Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Input to Acquiring the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Tools and Techniques for Acquiring the Project Team. . . . . . . . . . . . . . . 209
Output of Acquiring the Project Team. . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Developing the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
Managing the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Input to Managing the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Tools and Techniques for Managing the Project Team . . . . . . . . . . . . . . 219
Output of Managing the Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Motivating Your Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
Chapter 7 Project Communication Management. . . . . . . . . . . . . . 235
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Managing Project Communication: Big Picture. . . . . . . . . . . . . . . . . . . . . . . 236
Identifying the Project Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Input to Identifying Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Tools and Techniques for Identifying Stakeholders . . . . . . . . . . . . . . . . . 241
Output of Identifying Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Stakeholder Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
Stakeholder Management Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Planning Project Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Tools and Techniques for Communication Planning . . . . . . . . . . . . . . . . 246
Output of Communication Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Managing Stakeholder Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Distributing Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Input to Information Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
Tools and Techniques for Information Distribution. . . . . . . . . . . . . . . . . 258
Output of Information Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
Performance Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
What Goes into Performance Reporting . . . . . . . . . . . . . . . . . . . . . . . . . 261
Tools and Techniques for Performance Reporting . . . . . . . . . . . . . . . . . . 261
What Comes Out of Performance Reporting . . . . . . . . . . . . . . . . . . . . . 262
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
