Top Project Manager Interview Questions And Answers 2022

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January 1, 2022

Passing a project manager interview is a prerequisite before taking charge of a team or project. Even if you already have lots of experience in managing projects, dealing with these project manager interview questions is not an easy task. Follow this article for more effective methods of answering these questions.

project manager interview questions

 

Technical project manager interview questions

  • In your perspective, what is an ideal project?

This is a question based on your own personality and personal opinion. We will not provide a sample answer. Remember, experience and personal experience are the prerequisites for a proficient answer because you will not know “what is an ideal project” if you have never managed a project. The answer may include the following aspects: ideal duration, the direction of your team, the feature of the project (creative or traditional), or the area in which the project is directed to have a positive impact on society…

  • In the situation of the COVID-19 pandemic, how did you apply to manage your team?

Nowadays, project managers tend to pick up their teammates from an international workforce who can work remotely. Therefore, improving the knowledge and skills to work with teammates is virtually undeniably important. You can describe in detail the method you used to manage your team effectively. In addition, you can also mention some special tools, software, and strategies of your own.

  • What are your initiatives for managing the tasks of your project?

In regard to the scope or size, prioritization is a vital factor for the success of a project. Although any given task is important, you need to prioritize the most urgent project. In case of being asked about prioritization, you should talk about the methods that you use to tell apart between urgency and importance. Remember that this question is not only used to test your leadership ability but also to test your flexibility and adaptability in each case.

  • In your opinion, what do you think is the most important skill for becoming an exemplary project manager?

If you are an expert in project management, you should be aware that there is no single skill/ability which makes successful management. A good manager needs a combination of skills, experience, and knowledge. Skills may include leadership skills, problem-solving skills, or communication skills… You can emphasize your possession of a multiple skill set that can make an impression on the examiner. A concrete example post could be a big plus for this question.

  • Talking about one of the most difficult projects that you have dealt with? What did you do and what is the result of this project?

This is a question asking for personal experience. The purpose of the panel is to consider the way you tackle critical challenges as well as conflicting situations among members in a certain project. Talking about mistakes/conflicts from within the project can make examiners think badly of your leadership. Instead, focus on telling about external factors (for example lack of funding). Also, be clear about how you would deal with these situations. I believe if you have ever worked as a manager, challenging situations are inevitable and you know how to overcome them.

  • What types of customers have you met? How do you deal with customer dissatisfaction with your product/service?

As a project manager, you need to understand customer insights as well as how to deal with customer dissatisfaction. You should know, customer dissatisfaction can come from many factors: poor-quality products or bad customer service. When answering this question, you should show your respect for your customers and that you are willing to accept their authority without any discomfort.

Skills-based project management interview questions

  • How can you deal with challenges for your industry?

This will be a question for your knowledge about your industry. Not only should you tell about challenges that you’ve faced, but also the solution for all of them. Perfect evidence can be your personal experience as well as your methods.

  • Which characteristics do you think are suitable for an individual in project management?

A successful project manager often has a combination of 2 factors: experience and a deep understanding of the project. Even if you have the knowledge and understanding of how to run the project, you still need to have experience in management. Employers want to see these qualities in you, so show it off with specific examples.

Project manager interview questions about communication skill

  • How do you think about the importance of communication?

Remember that one of the most important skills in project management is communication. Without communication, everything factors may fail. Communication is a great solution for all conflicts and is the most important factor in creating the solidarity of a team. Obviously, the members cannot understand each other, or the manager cannot illustrate his/her wishes without communication.

  • What is your communication style with your team?

Your task is to demonstrate to the examination panel that you are a wonderful communicator in your team. Not only can you encourage and motivate your members, but also show that you can help them meet their expectations at work. A good leader is one who makes employees believe that they can achieve success by working with you. You need to be the supporter of your employees, and you need to show that through communication.

  • What are the communication-related challenges that you’ve faced before?

As a project manager, effectively communicating with other team members is very necessary. Communication conflicts can arise during the work process. The purpose of the interviewer is the way you have deal with these challenges in your previous project. You need to prove you can work effectively with your team member no matter what the communication challenges are. For instance, instead of taking face-to-face communication, you can hold a public meeting for all of the members.

Interview questions for project managers on the integrity

  • How do you think about the importance of integrity during the working process?

Consistency and integrity are the two most important factors that make the success of a project. The project managers are responsible for managing financial resources, human resources, external relations, suppliers… Any inconsistency or lack of transparency can cause misunderstanding, suspicion, and even conflicts among members. It is the cause of the failure of a project. Therefore, transparency is a prerequisite for a project manager. Let’s remember that transparency is the currency of trust.

  • How can you deal with disgruntled members?

Let’s show the interviewer that you are always concerned about your members and want to motivate them. Although it is impossible for you to please all the employees in your project, let’s assure that you always try your best to create the professionalism and satisfaction of employees in the company.

Project manager interview questions about customer service

  • What is the role of project managers in understanding customer orientation?

The responsibility of the project manager is to understand the demand of the customers as well as give the method for meeting the expectations of customers. Maintaining an effective relationship with customers even after purchasing process is also important, besides building trust with them.

  • Do you think that you have the ability to meet customer expectations?

In this question, the purpose of the interviewer is to evaluate whether you are a wonderful manager for any project. Obviously, meeting customer expectations is the goal of any project. Don’t answer theoretically. Talk about your own experience, even if it includes mistakes or challenges.

Project manager interview questions about team development

  • During the COVID-19 pandemic, what did you do to boost the motivation of your team members?

Working from home certainly makes many employees feel stressed and unmotivated. The role of a leader/manager is to motivate and help them develop more. List your initiatives.

  • What are applications that you use to boost your team?

This is a wonderful opportunity for you to demonstrate your knowledge in technologies as well as management skills. Please list applications that you use to boost your team and complete your tasks effectively. Besides, you can explain why you use these applications.

Interview questions for a project manager about responsibility delegation

  • Can you talk about your delegation habit?

This is an opportunity for you to demonstrate your leadership skills. Let’s give the interviewer some examples of how you delegate your employees as well as its effectiveness.

  • What are the characteristics of employees that you often delegate responsibility for?

This question will test how you value your employees as well as your vision. Let’s give a relevant example of one type of person that you often delegate responsibility for and explain the reasons.

Project manager interview questions about future career goals

  • What are your short-term project goals?

You can talk about short-term project goals (maybe in 6 months). Let’s illustrate that you have the enthusiasm and you are a work-oriented person while working. In case you have to tell in detail about your career goals, remember to include your applied company in your goals. This will probably impress the interviewer.

  • How can you set and keep track of the goals of your project?

Setting goals is a vital factor that makes the success of any manager because it inspires your employees. Remember to give detailed examples of how you set and tracked these goals. In case there are any challenges in this process, let’s give some solutions.

Questions for project manager interview about risks management

  • Talk about your method for controlling changes in your team/project.

Remember that there is no project without hitches, and the purpose of the interviewer is how you can tackle these changes in your team/project. As a project manager, your responsibility is to anticipate bad situations and quickly adapt to them. Tell about your experiences (which may include failures due to these changes) and talk about how you did to fix them. Also, you can explain why you use these methods to keep track of your project.

Project manager interview questions about task prioritizing and time management skill

  • What is the importance of time management during the working process?

Having wonderful time management skills in the working process allows you to work more smoothly and effectively. It helps you prevent any procrastination that can lead to failure in your project. Proper time management skill poses a positive influence during your working process. Employers want to see your time management skill and how you apply them in managing your team. Show it off with specific examples and evidence.

Project manager interview questions and answers about decision-making skill

  • Why do interviews ask you decision-making questions?

The responsibility of the project manager is to identify and prevent any negative challenges to your project. It is an opportunity to demonstrate your ability making in avoid procrastination and decisions. Therefore, you can be asked about what you’ve done to make decisions as well as any related example.

  • Give examples related to your decision-making skill?

Let’s show specific examples of how to apply your decision-making skill in the workplace, or even outside the workplace. It will help interviewers assess your abilities and whether you are suitable for the project manager position.

Some common mistakes in project manager interview

  • Bragging about your previous achievement

Talking about your previous achievement is an effective way to affirm your competence and experience. Of course, employers always care and appreciate it. However, remember that one of the most important factors of a successful project manager is managing skills and how you can please other team members.

Besides talking about your previous achievement, make sure that your ability to collaborate and motivate your team member is also mentioned. You also need to ensure that you are a person who easily gets along with the team and is able to take responsibility for a team/project.

  • Backbit your previous projects

In the process of working, you will inevitably encounter conflicting situations or a bad impression of the team. However, bad talk about old projects is a taboo thing. You can complain about your past project – it’s your right- but remember that an interview is not a suitable place for that. It shows that you are an immature person and you are willing to badmouth anyone.

Instead, let’s talk about how you have managed the dissatisfaction of your team member. It will demonstrate your effectiveness during the working process and demonstrate that you are qualified to take charge of any position in an organization. Give a few more examples (maybe your failures in managing the team) and your solutions for all of them.

  • Lying about your ability

In fact, “overstating” your abilities or experience is not a worse idea. However, you can completely be exposed if the interviewer is an experienced person. They can quickly realize that you are just bragging about your own abilities. Instead, let’s be honest about your knowledge and skills or even your weaknesses. In addition, you can talk about the methods you are taking to improve yourself and overcome your weaknesses.

  • Poor preparation

You put on a luxury suit and walked into the interview room. Do you smile confidently before the interview panel? Do you think you prepared well enough for the interview?

Remember, you need to be well prepared both in terms of appearance and knowledge. It would be terrible if you walked into the interview room without knowledge of the organization/company that you applied to. Instead, spend at least 2 hours searching for basic information about the place you talk about. That will help you make a good impression in the interview and answer the interview questions more smoothly and fluently.

The above article has provided the basic information of the project manager interview questions as well as what you should do to answer all the questions smoothly and fluently. Hope you guys can have more beneficial information for better preparation.

Visit our websites to get more information and a free PMP Practice Exam. To download, visit our website for your IOS or Android device.

 

What Is Quality Management?

Quality management plays an indispensable role in the developing process of every organization or project. So, what is it? Let's go ahead!

January 1, 2022

Introduction

The project quality management process is the principle applied to ensure that the project results and the process of delivering project results meet the necessary needs of the stakeholders. There is no double that, quality management plays a key role in the developing process of most organizations and determines the success of the project.

However, not everyone fully understands the definition of quality management as well as how to apply this process to the operation of the organization. The following article will provide beneficial information to help you have a more specific perspective on this field.

The definition of quality management

Quality management is the coordinated activities to direct and control an organization or project in terms of quality. Quality direction and control generally includes quality policy and quality objectives, quality planning, quality control, quality assurance, and quality improvement.

Quality management is now applied in every industry, not only in manufacturing but in all fields, in all types of organizations, from large to small scale, regardless of participation in international markets. or not. Quality management ensures the organization does the right things and the things that matter, following the philosophy of “doing the right thing” and “doing the right thing every time”.

Read more about Project Management

Quality Management
Quality Management

 

Why is quality management important?

In any industry, especially companies that want to compete in the international market, quality management plays an important role in the survival of the project and is a necessary factor to help project manage activities well.

Thanks to the project quality management, you can:

  • Improve competitiveness

When quality management is good, the number of defective goods and goods to be produced is less, leading to a reduction in labor and material costs. The cost reduction but the value customers receive from the product still ensures the quality, the price is low, leading to the increasingly enhanced competitiveness of the project.

  • Meeting the requirements of the society

The needs of society are getting higher and higher, along with the increasingly fierce competition in the market. Therefore, projects need to improve quality in accordance with domestic and international standards to enhance prestige and affirm the brand.

  • Good implementation of social responsibility 

When using resources and materials well, it will avoid waste and bad economic, social and environmental consequences. Maximizing cost savings while ensuring quality, the production will be strictly controlled as well as the optimal management method for the organization.

  • Contributing to national benefits

When quality is guaranteed, it not only helps projects develop and have a position in the market but also affirms the country’s reputation in the international market and the quality of life of customers. Since then, the population has also gradually increased.

Principles of quality management

  • Principle 1: Customer orientation

Quality is customer-oriented because retaining and attracting customers will help the organization gradually dominate the market.

Therefore, besides meeting the current needs of customers, it is necessary for improvement and innovation in technology to quickly respond and exceed their expectations by reducing errors, waste products and even complaints occurs.

  • Principle 2: Leadership

Quality management cannot be effective without the foresight and radical commitment of management to specific, clear, and customer-oriented values.

Leadership needs to be in sync between the operational goals and the direction of the organization. Furthermore, directing the development of strategies and measures to mobilize and encourage the participation and creativity of all employees in planning and achieving goals to help improve each person’s personal capacity as well as achieve high results. possible.

  • Principle 3: Members’ participation

The human factor is one of the important factors of the organization, their full participation with their skills, experience, understanding, enthusiasm, and sense of responsibility will help improve internal strength. for the organization.

Each person from high to low position, with any position, has an equally important role in the implementation of quality management. Therefore, the leadership needs to create conditions for each individual to learn and improve their knowledge, professional qualifications, and skills to successfully complete their jobs and positions.

  • Principle 4: The process approach

The result of creating value for the organization is a set of related activities carried out in a logical sequence known as a process. Logically defining and managing the processes implemented in the organization and specifically managing the interactions between those processes is known as the “process approach”.

The management of quality must be viewed as a process, the results of quality management will be good when the activities in the process of creating a product are well managed and interactive. It is a sequence of operations from input to output.

  • Principle 5: Systematic

An organization or project cannot solve the quality problem well when dealing with individual factors affecting the quality management system but must consider and solve them in a synchronous and harmonious manner. 

Concentrating resources to accomplish the common goal of the organization through the identification, understanding, and systematic management of processes related to goals, development strategies to bring efficiency to the organization.

  • Principle 6: Continuous improvement

Principle 1 also clearly states that quality is oriented by customers, whose needs are increasingly changing according to the trend of higher and more diversity. Therefore, quality also requires innovation through continuous, non-stop improvement.

Innovation is a method for projects to improve the quality level to increase competitiveness. Improvement can be the improvement of equipment, technology, management methods or it can be the improvement of resources and structures in the organization. However, improvement also needs to be thorough, small steps or leaps, and stick to the organization’s operational goals.

  • Principle 7: Fact-based decision making

Every action in the quality management process, if it is to be effectively implemented, must be developed and analyzed in a policy manner, not decisions based on inference. And the evaluation process is often based on the organization’s strategy, processes, inputs, and outputs,…

  • Principle 8: Win-win cooperation with suppliers

Partnerships with projects are reciprocal, mutually beneficial, and create value to enhance capacity.

Through a network of internal and external relationships of the organization such as customers, suppliers, training organizations, regulatory agencies, competitors,… Based on those relationships, the organization can identify the development strategy to help penetrate the market. However, the related parties need to pay attention to the cooperation relationship by exchanging as well as the relationship principles in each object group.

Quality management jobs description

This will help employees in the project, as well as candidates, understand their roles, responsibilities for the quality management position to perform well the assigned tasks, describe the management job. Specific and clear quality is absolutely essential. The following are some typical job descriptions of quality management positions in the project.

Job Description Quality Manager

  • Manage and promote the operations of the quality management department; ensure the quality, function, and operation of the project.
  • Manage quality assurance manuals; propose programs & policies on quality assurance.
  • Ensure facilities and operations are in compliance with quality management guidelines and internal standards.
  • Regular audits of the quality management system.
  • Guide QA staff to perform daily tasks and QA tool management.
  • Ensure finished products meet customer requirements and project quality standards.
  • Handling abnormal reports on product quality; make plans and countermeasures to improve, prevent recurrence of errors.
  • Responsible for handling customer feedback reports on product quality.
  • Making general reports on quality, quality conditions and reporting directly to the company’s board of directors.

Job Description of Quality Employees

  • Understand the production technology process, product characteristics.
  • Carry out quality inspection of all stages according to the production process and the company’s regulations; products are 100% controlled at all stages.
  • Participating in testing, handling, and evaluating product quality; building production processes, testing procedures; inspect and supervise research, testing, and production processes.
  • Check the quality of input materials; inspect and supervise product quality in assigned stages according to prescribed inspection standards;
  • Quality inspection of finished and semi-finished products; classify and detect defective products and semi-finished products and request workers to handle and repair them; request to stop production when detecting violations.
  • Check quality, GMP, safety on the production line.
  • Maintain quality system, plan periodic inspection; keep records of inspection items; prepare reports of nonconformities occurring during the inspection.
  • Guide the application and urge the units to implement the newly issued quality documents (processes, regulations, forms, etc.).
  • Proficient in using measuring instruments, reading, and analyzing measurement results.

Requirements for the position of quality manager

Each project will set different criteria to select personnel for the quality management position depending on the field of production and business activities and specific job requirements. However, to apply for a quality manager position, here are some typical criteria:

  • Graduated from university with a major related to the field of production and business of projects. Preference will be given to candidates with QC/QA certification.
  • Experience working in a similar position.
  • Understanding of quality standards and quality management and monitoring processes.
  • Effectively exploit data analysis and statistical analysis tools.
  • Experienced in quality inspection and testing
  • Experience in implementing corrective action programs.
  • Proficient in using MS Office software, QC/QA software, and databases.
  • Strong communication, analytical, time management, executive, and problem-solving skills.
  • Able to work independently under high pressure.
  • Friendly, harmonious, careful, responsible at work.
  • Gender, age according to the regulations of the project.

Several quality management methods

  • Quality check method

This method was formed a long time ago and mainly focuses on the last stage. Based on technical requirements, designed standards, or contract conventions, the quality control department conducts checks to prevent products from spoiling and classifies products according to different levels of quality. Therefore, when it comes to improving quality, it is believed that it is only necessary to improve technical standards by increasing inspection work.

However, with this method, it is not possible to exploit the creative potential of each individual in the unit to improve and improve quality.  

The comprehensive quality control method

The term total quality control was coined by Feigenbaum in the 1951 publication of his book Total Quality Control (TQC). In its third edition in 1983, he defined TQC as follows: Quality control holistic approach is an effective system for unifying the development and quality improvement efforts of different groups into an organization so that marketing, engineering, and service activities can be carried out in the most economical way, completely satisfy the customer.

Total quality control mobilizes the efforts of every unit in the company into processes related to quality maintenance and improvement. This will help maximize savings in production and service, and at the same time satisfy customer needs.

Thus, there is a difference between inspection and quality control. Inspection is the comparison and contrast between the actual quality of the product and the technical requirements, thereby eliminating the waste products. Control is a broader, more comprehensive activity. It includes all marketing activities, production, comparison, quality assessment, and after-sales service, causes finding and remedial measures.

Total Quality Management (TQM)

In recent years, the introduction of many new management techniques, contributing to improving quality management activities, such as the “Just in time” system has been the basis for management theory. total quality TQM.

TQM’s goal is to improve quality and satisfy customers to the best extent possible. The distinguishing feature of TQM over previous quality management methods is that it provides a comprehensive system for managing and improving all aspects related to quality and involving every department and every individual to achieve the set quality goals.

The TQM method has several basic characteristics:

  • Objective: Consider quality first, always customer-oriented.
  • Scale: TQM must be combined with JIT, which means it has to expand the control area.
  • The basis of the TQM system: Starting from people (In the three main blocks of production and business are machinery and equipment, technology methods, information, and personnel). This means that it is necessary to have the cooperation of everyone in the project from leadership to members throughout the process from research – implementation – design – preparation – production – management – service. 

Implementation technique of Deming quality improvement circle: PDCA.

  • Plan: Identify methods for achieving goals. In quality management, tools such as cause-and-effect diagrams, Pareto diagrams are often used to find the causes, analyze and propose appropriate measures.
  • Do (Perform the work): Pay attention to the principle of voluntariness and creativity of each member. Implement appropriate governance actions.
  • Check: The goal is to detect deviations and make timely adjustments during the implementation process. In the work of quality management, the inspection is carried out using statistical methods. Train and train staff (trust people and don’t need to over-check).
  • Act: Correct deviations on a preventive basis (analyze, detect, eliminate causes and take measures to prevent recurrence).

The Deming circle is a quality management tool that helps projects constantly improve, perfect and improve efficiency. Each function of the Deming PDCA circle has its own goals, but they interact with each other and move in the direction of the perception that quality must be taken care of first. 

The process of quality management

Quality planning

To manage quality, it is necessary to build all standard processes, if only a part according to standards, it is only called a quality management approach.

Quality control

It is a part of quality management that focuses on fulfilling quality requirements. Quality control is the control of the processes that create products and services through the control of factors such as people, machines, materials, methods, information, and the working environment.

Raw materials are the main input factors, which have a major influence on quality. Equipment and technology factors are factors of special importance affecting the formation of quality. The human factor here includes all human resources in an organization from the top management to the employees who are involved in the quality process.

When assessing the quality, customers can trust the products and services many times. The high frequency of repeated use shows that the quality meets the needs of customers. In addition, it is also possible to rely on specialized centers and organizations that operate independently of manufacturers or service providers. Don’t judge quality based on subjective, one-sided, or majority opinions.

Quality control includes the following:

  • Human resources control
  • Process control
  • Device control
  • Environment control

Quality Assurance

Quality assurance is a proactive process for defect prevention. It recognizes flaws in processes. Quality assurance activities include planning, regular and independent audits to verify that activities are performing consistently according to defined principles. This is to provide confidence to the stakeholders that the project will meet the stated requirements and standards.

The four overall goals to consider include:

  • Provide assurance that the project is proceeding as planned, the project process has been agreed
  • Measure the effectiveness of the agreed plan and process
  • Learn lessons and improve
  • Identify non-compliance items and opportunities for improvement

Quality improvement

In a production process, the cost of waste often accounts for a significant amount of the cost of production. Quality improvement plays an important role in reducing waste.

Quality problems include two types:

  • Acute quality problem: An acute quality problem is a rare problem. It changes the current state of the system, a solution is needed to restore the status quo.
  • Chronic Quality Issues: Chronic quality problems are frequent problems. There should be solutions to change the status quo, to make the system better.

Distinguishing quality problems is important because each type of problem has a different method and method of problem-solving. Acute quality problems are solved by quality control tools. Chronic quality problems are solved by quality improvement tools. It is a dangerous fact that acute problems are often prioritized to be solved continuously while neglecting chronic problems is a huge waste of problems. Organizations often lack mechanisms to identify and eliminate waste or lack quality improvement.

Find out more about Project Portfolio Management.

Core components of the quality management process

Quality goals

The setting of quality objectives is a common requirement of standards in quality management systems. The objectives are designed to encourage projects to define the strategic goals and objectives of the product quality management process.

Documented objectives give purpose to a customer-centric quality management system in every project. Quality objectives must provide a clear vision for all members of the organization to understand the purpose and value of the quality management system.

Organizational structure and responsibilities

The product quality management system should include a clear and up-to-date model of the structure of the project and the responsibilities of all individuals in the organization. Structure and accountability documentation includes visual guidelines such as clear diagrams and documentation.

Data Management

Data is the core of the approach to total quality management. The quality and availability of data are critical to the success of the product quality management process principle. This is to promote continuous improvement activities and quality control prevention.

A project must be able to provide useful data on effective quality control measures. The data management system should support and strive for constant improvement of remediation activities, by identifying data within the project and data sources collected from third parties.

Guaranteed equipment

The control and calibration of the instruments used to measure quality are integral to the success of a quality management system. Machines and equipment used to verify products or processes must be strictly controlled and calibrated to industry standards. Depending on the equipment, periodic calibration is required for each of these machines prior to each measurement session.

Quality management is both an opportunity and a challenge. Quality improvement is activity throughout the organization to improve efficiency, performance, create additional benefits for the organization and customers. Quality improvement is a constant effort to maintain and improve quality with the principle that the following project must be better than the previous one.

The above article has provided you with beneficial information about quality management as well as its importance and how to build up an effective quality managing process. We all hope that this information will help you have a better start to your manager career.

Visit our websites to get more information and a free PMP Practice Test. To download, visit our website for your IOS or Android device.

What Is A Project Manager?

You are wondering what is a project manager? Visit our website to get useful information and free PMP Practice Test!

January 1, 2022

There is no double that achieving the position of a project manager is always the dream of most individuals. This position not only brings you an attractive salary but also high social status. However, not everyone knows what is a project manager as well as how to take this poison. Let’s follow this article for more beneficial information.

What is a project manager?

A project manager (which is also called PM) is a person appointed by organizations and companies to lead a team/project, and responsible for the accomplishment of project goals.

In reality, the project manager is the intermediary between the client and the project team, to provide both parties with what the other is expecting from the project. Therefore, communication between the client and “the project resources” takes place through the project manager. The project manager leads the team to ensure that the goals are achieved and delivered to the client within the specified deadlines without any errors. The project manager is considered as a locomotive and leads the project to success, as the fate of the entire project depends on them.

The project manager’s role is different from that of a functional or operations manager. Usually, the functional manager is only focused on providing and overseeing a function of the business, while the project manager is the person responsible for ensuring effective business processes.

In general, project managers are responsible for meeting the requirements: work requirements, team requirements, individual requirements. Since project management is an important disciplinary strategy, the project manager is the one who aligns the project strategies and the project team.

What is a project manager?
What is a project manager?

Responsibilities of project managers

So what do project managers do? Project manager roles includes overall management, but they are rarely directly involved in the activities that actually produce the result of the product. The project manager also oversees any project-related tools and techniques to ensure the project is working properly. Here are some specific tasks that a project manager needs to take charge of during their work:

Project manager duties regarding external affairs:

  • Build and maintain good relationships with customers as well as stakeholders of the project.
  • Support stakeholders and partners to come up with ideas and goals for the project to ensure feasibility.
  • Establish and maintain relationships with third-party partners (material suppliers, contractors,…).
  • Meeting with customers when it is necessary to define contract details and clarify each specific requirement of the parties.
  • Participate in relevant conferences, seminars, and training to enhance professional knowledge.

Project management tasks regarding internal affairs:

  • Make a detailed plan to track the project and its progress. Ensure that all the projects can be completed successfully within the given time and budget.
  • Estimate the time, cost, and human resources required to complete the project. Monitor changes related to project scope, schedule, and costs.
  • Allocate available resources of the enterprise and propose to recruit new personnel if the job requires it.
  • Measure the effectiveness of project execution with the right tools and techniques. Monitor the implementation of the project, especially analyze what has been done and not done to draw lessons for the following projects.
  • Report the problem to a higher level when you can’t solve it yourself. Perform other related tasks under the direction of higher-level officials.
  • Monitor budget spending and eliminate unnecessary expenses

After understanding the role of a project manager, let’s see what skills they need to possess!

Project management skills

  • Leadership skill

In essence, the project manager is the team leader of a project. They are responsible for setting the direction and vision for the team and making sure everyone is on the right track to get the project through each stage.

  • Organization and planning skills

A good project manager must have planning skills. They have the responsibility for making plans based on both long-term and short-term goals to achieve success for the project. Project managers must map out the steps needed to take them and create specific plans for completing the project.

The project manager will have to determine the scope and size of the project and then plan the allocation of resources needed to complete the project. It is also important to plan the time and budget to complete the project.

  • Communication skills

Along with leadership, excellent communication skills are critical to any project manager’s success. You need to make sure that all departments and stakeholders are kept up to date on the latest developments in the project. You also need to make sure they understand any changes and are aware of the project’s progress.

You will have to present the plan, convince your superiors to provide enough resources so that you can get the job done. Besides, you also have to communicate and implement plans with team members, so good communication ability will be a strong advantage of a project manager.

  • Risk management skills

Your project will not always go smoothly without a hitch, there will be times when you will have problems with countless objective reasons delaying the project or worse, completing the project with bad results. Projects rarely succeed immediately without at least one hiccup or change of plan. That is the reason why you also need to be a master risk manager in the position of project manager.

The project manager must have the mindset, vision, and even ability to predict what might happen to save the plan, so let’s build flexibility in your project plan to account for unexpected changes.

Certifications for project manager 

There are more attractive opportunities for certified project managers in their career life. Possessing a project management certificate proves the management ability according to the international standard framework from planning, scheduling, budgeting, and interaction with stakeholders. Besides affirming personal values ​​and working capacity, these professional certificates also open the door for PMs to integrate into the international labor market with attractive salaries.

Currently, many educational institutions or organizations offer certifications specifically for project management. The Project Management Institute (which is also called PMI) is the most recognized organization globally. Some main project management certifications are PMP (which stands for the project management professional) and CAPM (which stands for Certified Associate in Project Management).

There are also some common types of certificates as follows:

  • PMP: Professional Project Management Certificate

Being considered the highest standard in project management certifications, the PMP is becoming a rigorous test that checks your knowledge and skills related to project management. The Project Management Institute ( which is PMI) is the organization of this certification. They work continuously for many years with businesses and students with the purpose of ensuring the value of this certificate.

Visit our websites to get more information and free PMP Practice Exam. To download, visit our website for your IOS or Android device.

  • CAPM: Associate Certificate in Project Management

A precursor to the PMP certification and also managed by PMI. This certification is suitable for people who are unable to get a university degree or just have little experience in project management. CAPM is definitely one of the most perfect stepping stones for every project manager.

  • CPMP: Project Management Training Certificate

The most important purpose of the CPMP certìicate is to add more value to project managers via a process of developing leadership, communication, and technical skills. 

  • APM: Associate in Project Management

This is a certificated course in information technology (IT). GAQM’s certifications require a deep knowledge and foundation base in human resources, team direction, adaptability to every change in the team, and good communication skill. Ensuring product or service quality with minimal risk is also a criterion of this certificate. The APM program is also suitable for people who are just starting their careers in the field.

  • MPM: Master Project Manager

The AAPM (which stands for American Academy of Project Management) launched its training program based on criteria for special professions such as fashion, doctors, and lawyers and even arts. Not only focus on professional project managers program but  MPM focus on business/technology as well.

  • PPM: Project Management Specialist

This is a certification for intermediate to experienced Project Managers with a focus on crisis and risk management. This certificate is provided by GAQM.

  • PMITS: Project Management in Information Technology Security

The PMITS certification dives into the intricacies of managing an IT security project. The certification helps candidates strengthen their existing project management skills and sharpen their skills in implementing and managing IT security within the organization.

Nowadays, there is a remarkable increase in the number of universities or educational institutions offering project management certification in numerous fields. 

Project managers can easily get certifications in specific fields such as IT, technology, fashion, or even art… Each type of certificate will have different requirements and costs, depending on the credibility of that certificate.

The salaries of project manager 

The salary that project managers receive depends on their experience and the field they are working in. In general, project managers receive high salaries, and that is the dream of most people. Take a look at the average annual salary of project managers in the table below:

Certification receivedSalary/year
Standard PMP$111,000/year
1 - year experienced PMP$95,000/year
Experienced PMP (1 -> 5 years)$104,000/year
Experienced PMP (5 -> 10 years)$120,000/year
Experienced PMP (10 -> 20 years)$124,000/year
Experienced PMP (more than 20 years)$133,000/year

See more details about project manager earnings and how to increase income in PMP salary

Resume tips for project manager 

The resume is also an important factor in assessing the experience and competence of a project manager. Creating a great resume that can show your personality and strengths will be a plus for interviewers. To have an impressive resume, pay attention to the following factors:

Visual of the resume

Nobody wants to read a resume with too much text or ridiculous colors. It will show that you are poorly organized and disorganized. When designing your resume, you should choose the font, the presentation of the title so that it is clear to ensure that your resume is friendly with the ATS system. If you have a lot of experience, a 2- page resume will be suitable for you. If you have little experience, a one-page resume is the best option.

You should structure your resume so that it best represents your accomplishments. One of the most favored resume formats is the reverse-chronological format. This type of resume will show who you are at the moment as well as your skills, experience, and strengths.

Show your experience in your resume

To have an impressive project manager resume, you must know how to highlight the projects that you have succeeded in. Follow these rules for showing work experience in your resume: 

  • List your most recent job title
  • Add company name with job start and end date
  • Describe your role in the project
  • What achievements have you achieved?

When listing your work experience, you should briefly describe the scope of work you are responsible for and add numbers and percentages to clearly show your achievements.

Show your qualifications on your resume

If you are an experienced project manager, just mention your highest education level. On the contrary, if you are a project manager with little experience, let’s show additional information to prove your competence. For example, you can list more extracurricular activities you have participated in, courses, GPA, …

Show your skills on your resume

Each different area of ​​expertise requires project managers to have corresponding skill sets. To have an impressive resume, you should not list a list of generic skills. It is best to choose the skills that correspond to the job description on the job posting. Add evidence of your skills to your resume. Don’t let the employer think you’re just bragging.

Add other valuable information to your resume

In addition to the information listed above, you should also add to your resume other valuable information to attract employers.

You can add information about the licenses or certificates you have. In fact, successful project managers often possess important certifications. Therefore, you should get more certifications in project management and include them in your resume when applying. Besides, you can add information about the conferences you have attended or information about volunteer activities, community activities that you have participated in.

Interview questions for project manager

Have you ever been overloaded or underperforming?

As a human, everyone has a “power failure”, even if you are in a management position, but the strength of a good project manager is the ability to control yourself, take the initiative to deal with any drop so as not to affect work performance.

Talk about your method for controlling changes in your team/project.

Remember that there is no project without hitches, and the purpose of the interviewer is how you can tackle these changes in your team/project. As a project manager, your responsibility is to anticipate bad situations and quickly adapt to them. Tell about your experiences (which may include failures due to these changes) and talk about how you did to fix them. Also, you can explain why you use these methods to keep track of your project.

What’s the biggest mistake you’ve ever made while working on a project?

Everyone makes mistakes, and there is no exception for the project manager. The problem is that you know how to draw lessons, learn and correct those mistakes. This question shows your honesty, so don’t try to hide it and say you’ve never made a mistake. Instead, let’s choose the right situation, without causing too much impact or damage to the whole.

If team members are not doing their best, what will you do?

Employees who do not do their best can cause work delays, which can negatively affect the project. The interviewers want to know what you do to motivate your subordinates to contribute to the company and deal with that weakness effectively.

Which characteristics do you think are suitable for an individual in project management?

A successful project manager often has a combination of 2 factors: experience and a deep understanding of the project. Even if you have the knowledge and understanding of how to run the project, you still need to have experience in management. Employers want to see these qualities in you, so show it off with specific examples.

Some other common project manager interview questions

  • How do you deal with one member of the project that keeps making mistakes, dragging down the entire team’s performance?
  • During a certain period of time, do you prefer to manage one or more projects at the same time?
  • How do you schedule a project?
  • In your opinion, which criteria affect resource allocation? What do you do to allocate resources efficiently?
  • What is the best way to set up and manage an interdisciplinary project?
  • When leading a project, how many contingency plans do you prepare?
  • If a project doesn’t stick to a pre-set schedule, how do you get it back on track?
  • How do you communicate and maintain good relations with customers, sponsors, and stakeholders?
  • Have you ever failed in a project? What did you learn from that failure?

The above is just a small part of the interview questions. After understanding projects manager job description, salary and necessary skills, you can learn more Project manager interview questions in details.

The above article has answered the question: what is a project manager as well as provided information about this position. Hope you guys can have more beneficial knowledge of project managers and achieve a high position in your career.

What is Project Scope Management?

One of the most important and complex aspects of project management is project scope management. So, what is it? Let's get started!

January 1, 2022

Introduction

Project scope is one of the three core elements of project management: Scope – Time and Cost. In modern project development trends, project scope management is a common occurrence. Building scope management skills, as well as handling project scope arising, is an important requirement for projects in general and project management personnel in particular. In this article, we will present the main processes related to project scope management, and also mention the relevant aspects and treatment options for effective project scope management

What is Project Scope?

Project scope is an important part of project planning that involves identifying and documenting a list of specific project objectives, tasks, costs, and specific deadlines. The project’s scope document, known as the scope statement or terms of reference, explains project boundaries, establishes responsibilities for each team member, and verification and approval processes. Review completed work.

Large projects tend to change as they progress. If a project has been effectively scoped from the outset, it’s easier to manage these changes. When documenting a project’s scope, stakeholders should be as specific as possible to avoid scope creep – a situation where one or more parts of a project end up requiring a lot of work, more time, or even more effort due to poor strategic planning or miscommunication.

Project Scope Management
Project Scope Management

Project Scope Statement PMP

The project scope description is the result of defining the project scope. The project scope description details the project outputs and the work done to produce the outputs.

A project description should include the following:

  • Product scope description: This is a detailed description of the properties, characteristics of a product, service or work result.
  • Product quality standards: Clearly define the standards so that the product can pass the final inspection before being put on the market.
  • Project outputs: Outputs include both products/services and other ancillary outputs such as project management documents and reports.
  • Non-project work: Identify non-project work contents and clearly describe what is out of project scope to help manage customer expectations
  • Project constraints: List and describe project constraints such as project budget, project completion time, or completion schedule for key work items.
  • Project assumptions: Assumptions about events that affect the project and how to effectively resolve them

The role of the project scope description

The project scope description creates a unified understanding among all project actors. Indicate what is not within the scope of the project to help manage the expectations of project stakeholders.

The project scope description allows the project team to conduct detailed planning during implementation. It also provides a basis for assessing whether additional project change or workload requirements are within the project scope.

Why Do Project Managers Need Scope Project Management?

Here are several benefits in terms of scope management recommended to any organization running a new project:

  • Clearly state what the project entails so that all stakeholders can understand what is involved
  • Provides a roadmap that managers can use to assign tasks, organize work, and budget properly
  • Helps focus team members on common goals
  • Prevent projects, especially complex ones, from expanding beyond the established scope.

Project managers often find that setting project scope ensures projects stay focused and deliver on expectations. Scope provides a solid foundation for managing a project as it moves forward and helps ensure that resources are not diverted or wasted on factors out of scope.

Steps Involved in Project Scope Management

Project scope management includes the processes involved in defining and controlling what is and isn’t included in a project. The purpose of this is to ensure that all project personnel agree on the output product as well as the process of implementing and producing the product of that project.

Project scope management includes the following key processes:

Project scope management planning

Scope management for a project begins with creating a management plan for the duration of the project. This process has two important outputs: a scope management plan and a requirements management plan. What are the project requirements? The concept of project requirements is explained in the PMBOK® Guide, Fifth Edition as follows: “conditions or capabilities that must be met in a project or embodied in a product, service, or result in order to satisfy an applicable agreement or specification”.

The requirements management plan will document in detail how project requirements are analyzed, documented, and managed. This plan usually includes the following information:

  • How to plan, monitor and report required activities
  • Ways of expressing the activities of configuration management
  • How to prioritize requests
  • How to use product matrix
  • How to track and record request attributes

Collect project requirements

The next, often the most difficult of the project scope management processes – is gathering project requirements. The problem with this step is the lack of a standard process for collecting and documenting project requirements.

There are several methods to collect requests. Among them, one-on-one interviews are often very effective, but they are time- and resource-consuming. Organizing focus groups and seminars, using creative groups, decision-making techniques, etc. is usually quicker and more cost-effective than face-to-face interviews. In addition, distributing survey questions is also a viable method if the participants provide information honestly and thoroughly. For information technology projects, the project requirements collection can also apply two popular methods: prototyping and document analysis.

Project scope definition

What is scope in project management? The next step in project scope management is to define the details of the work required for the project. This is very important and crucial to the success of the project as it improves the accuracy of the estimated time, cost, and resources. The primary outcome of the scope definition is the project scope statement and project documentation update.

Key inputs for preparing a project scope statement include the project charter, scope management plan, requirements documentation, and organizational process assets such as related policies and procedures. the scope statement, as well as project files and lessons learned from previous similar projects. Although content varies, project scope statements must include at least a description of the product scope, product user acceptance criteria, and details of all project deliverables. 

Build a project work breakdown table (WBS)

After gathering requirements and defining scope, the next step in project scope management is to create a work breakdown table (WBS). The WBS board is often described as an organizational chart, centered on tasks. A project team typically organizes a WBS based on the project’s product, phases, or process groups. In WBS, the work package is the lowest unit. A work package should be defined at the appropriate level so that the project manager can unambiguously establish an estimate of the effort required to complete it, an estimate of the cost of all required resources. design and evaluate the quality of the results when the work package is completed.

There are several different methods for building a work roster:

  • Use the available guide
  • Equivalent application method
  • Top-down approach
  • Bottom-up approach
  • Mind mapping method
  • Confirm project scope

Scope validation

It is very difficult to create a good project scope statement and WBS for a project. However, it is even more difficult, especially for IT projects, to verify project scope and minimize scope changes. Some project teams knew from the outset that the scope was very unclear and that they had to work closely with the project client to design and manufacture the various products. In this case, the project team must develop a scoping process that meets the unique needs of the project. Careful processes must be developed to ensure that the customer gets what they want and that the project team has enough time and money to produce the desired products and services.

Scope validation involves formal acceptance of completed project deliverables. This acceptance is usually achieved by inspection by the customer and then signing on the main products. To receive formal acceptance of the project scope, the project team must clearly document the project’s deliverables and procedures to assess whether they are completed correctly and satisfactorily. 

Project scope management control

Scope control involves managing changes to the project scope while keeping in mind the project goals and business strategy. Users are often unsure of how they want the display to look or what functionality they will need to improve business performance. Developers aren’t exactly sure how to interpret user requirements, and they also have to deal with constantly changing technologies.

The goal of scope control is to influence the factors that cause scope change, to ensure that changes are handled according to procedures developed as part of integrated change control and management as well as handle changes as they happen. The project management plan, requirements document, requirements traceability matrix, work performance data, and organizational process assets are key inputs to scope control.

Steps for Identifying the Scope of Project Management

Depending on the formation conditions of the project, for example, the customer gives the project manager a very detailed and clear product description, the project manager will not need to worry too much about the scope of the project. However, in case the organization realizes the business need and decides to initiate the project, the Project Manager now has to do everything from scratch (collect requirements, evaluate requirements, define scope, find stakeholders…)

With a waterfall implementation project: the project manager should develop and define the product scope during the initialization phase of the project. The most effective way is to hold a meeting with stakeholders and clarify the requirements for the product and close the scope before the end of the launch phase.

With agile/adaptive implementation projects: The product scope may not be finalized at the outset, but the project manager needs to continuously update and clarify the scope during implementation.

Understanding the difference between project scope and product scope helps project managers:

  • Separation of scope related activities during project implementation
  • Understand project workflow
  • Limit the risks associated with the scope
  • Avoid arising/requiring to change the project scope

Besides scope management process, find out more about project management steps in Project Management.

Reasons for the loss of control over the project scope

Loss of project scope control in project management is understood as a loss of control over the change or continuation of the project’s size. This phenomenon occurs when the project scope is not clearly defined, defined, and controlled. This often tends to lead to negative effects and should be avoided during the developing process of any organization.

If budgets and schedules increase with project scope, this change is generally considered an acceptable extension to the project, when the term loss of control over project scope is not used.

Loss of project scope control is often caused by the following main reasons:

  • Customer dishonesty with a defined “free value” policy
  • Poor change control
  • Lack of proper awareness of the objectives needed for the project
  • The poor project manager or project sponsor
  • Poor communication between project stakeholders

Tips for Project Scope Management 

There are 3 common ways to help control project scope well including:

  • Project Charter

It is a highly legal document used to confirm the official approval for the project leader to use the allocated resources to satisfy the requirements for the project. In some organizations, BAs are often involved in the development of business cases and project charters. For the development of project charters, BAs often use the technique of drawing a Context Diagram. The Activity Context Diagram is the starting point for designing the technical aspects of the system.

  • Use Case Diagram

Use Case diagrams contain model elements that represent systems, actors, and use cases, and show relationships between use cases. A Use Case diagram shows:

  • System
  • Agent
  • Use Case

The significant benefit of using a Use Case chart is that it helps business stakeholders think about how they can change the roles people play in their organization. Regarding the system element, the boundary of the system that we want to develop needs to be clearly defined. This also helps the BA to define the project scope.

  • Product Backlog

According to the trend of modern software development, the concept of Product Backlog is a collection of functions that need to be developed by the product. It is regularly updated to meet the changing needs of customers as well as project conditions. According to the Product Backlog, requests with high priority are executed first. Customers will be the first one whose demands will be met.

Read more about Project Financials

The above article has provided you with beneficial information about Project scope management as well as tips for building an effective procedure during the developing process of organizations. We all hope that this information will help you have a better start to your manager career.

Visit our websites to get more information and a free PMP Practice Test. To download, visit our website for your IOS or Android device.

Top 10 PMP Examples with Explanation (2022 updated)

If you want to get PMP examples with detailed explanations. Let’s get started with our free PMP Practice Test!

January 1, 2022

PMP is a designation afforded to those who have completed a project management certification course and then passed the test. Many businesses are looking for PMP-certified personnel to help them improve their project success rates.

So, how do you pass the PMP exam? Because practice makes perfect, it’s a good idea to get acquainted with the questions beforehand. This post will point you in the direction of a few resources where you may find good revision questions. These free resources for PMP examples will definitely assist you in your revision.

Introduction to PMP exam 

The PMP®, or Project Management Professional, is a worldwide recognized exam administered by the Project Management Institute (PMI)®. The test has 200 multiple choice questions that cover the five process categories (Planning, Initiation, Executing, Monitoring and Controlling, and Closing) as well as nine knowledge areas (Scope, Integration, Time, Cost, Quality, Communication, Human Resource,  Risk, and Procurement).

There are 25 out of the 200 questions that are the pretest questions. The pretest questions occur at random throughout the exam, have no bearing on the candidate’s score, and are used in exams to expand the number of questions that may be used in future PMP exams. The exam’s passing score is about 61 percent (106 questions correct out of 175 scored questions).

Take careful note of your mistakes when practicing free PMP sample questions and answers. Then, to reinforce your understanding, return to the related project management subject area and reread the material. That is the only way to learn all you need to know about each of the PMP Exam’s project management processes.

After reading the PMP test sample questions, you can read more about How to pass the PMP exam.

pmp examples
PMP examples

PMP examples with questions and answers

In this post, we’ll go through free PMP questions and answers. We will provide explanations for each of the free PMP test examples.

1. What theory is described in this scenario, and what area within the Responsibility domain of the PMI Code of Ethics and Professional Conduct does this situation refer to? 

A. Expectancy Theory and Accepting Assignments 

B. Hygiene Theory and Professional Demeanor 

C. Achievement Theory and Ensuring Integrity 

D. Self-actualization level of the Hierarchy of Needs and Conflict of Interest     

Correct Answer: A

Explanation: The Expectancy Theory proposes that the expectation of a positive outcome drives motivation. Motivation may drive negative behaviours as well as positive ones. The Responsibility domain covers several elements including the following: ensuring integrity, accepting assignments, laws and regulations compliance, and confidential information. Accepting assignments concerns being honest about your qualifications, and fudging your experience is dishonest.

2. A project manager has just been appointed to a newly approved project and has been tasked with developing the first draft of the project charter. To better understand the financials, the project manager decides to analyze the net present value and payback period calculated for the project. Select the information that the project manager can reference?

A. Project charter

B. Project budget

C. Benefits management plan

D. Business case

Correct Answer: D

Explanation: The business case is an economic feasibility study used to better understand the business need for the project and determine whether the investment is worthwhile. In short, it justifies the need for the project and includes information such as the project description, high-level description of scope, analysis of the problem, financial analysis, and success factors.

3. According to Edward de Bono, what type of alternatives analysis can be exploited to determine a project’s scope?

A. Lateral thinking

B. Bottoms-up

C. Brainwriting

D. Expert judgment

Correct Answer: A

Explanation: Lateral thinking is a form of alternative analysis often used to determine a project’s scope. It was created by Edward de Bono and serves as a means of reasoning and thinking about problems differently than what can be classified as evident.

4. Which of the following is correct?

A. You are working in a weak matrix organization and are in the Executing phase of the project.

B. You are working in a strong matrix organization and are in the Initiating phase of the project.

C. You are working in a strong matrix organization and are in the Executing phase of the project.

D. You are working in a weak matrix organization and are in the Planning phase of the project.

Correct Answer: A

Explanation: The title of project coordinator indicates this is a weak matrix organization and that you are working within one of the business units rather than under the PMO (as you would if you were in a strong matrix organization). The question also states that the work of the project has begun, so you are in the Executing phase of the project.

5. You work as a lead project manager for a company that develops and produces healthcare devices. Recently, your team went through major organizational changes. You discover that your new manager closely monitors what time employees arrive and leave for work. You overhear her saying that she is worried that the team lacks ambition. What type of management style does your new manager perform?

A. Theory X

B. Theory Y

C. Theory Z

D. Theory XY

Correct Answer: A

Explanation: Douglas McGregor defined two models of worker behaviour: Theory X and Theory Y. Your new manager exhibits characteristics of Theory X managers, who believe that most people do not like work, have little to no ambition, and need constant supervision.

6. What produces the highest expense on most projects?

A. Materials

B. Travel

C. Vendors

D. Resources

Correct Answer: D

Explanation: The greatest expense for most projects is resources, both human and material and supplies.

7. Two project team members have been engaged in a dispute that has escalated to the point of involving the project manager. What is the primary source of most disputes among team members?

A. Schedule priorities

B. Budget

C. Technology used

D. Scarce resources

Correct Answer: D

Explanation: The question is asking for the most common source of conflict. The correct answer is scarce resources. The other common sources of conflict include scheduling priorities and personal work styles.

8. To expedite the scheduling process, a project manager alters an existing schedule management plan from a previous program for use on the current one. In this case, the schedule management plan reflects:

A. A lazy project manager

B. An organizational process asset

C. A best practice

D. An enterprise environmental factor

Correct Answer: B

Explanation: Organizational process assets contain historical information from past archived projects, lessons learned, templates, policies, procedures, and other valuable information. In this case, the project manager is using a previous schedule management plan as a template and tailor it for use by the current project. This is recommended practice and prevents having to reinvent the wheel for every project. Instead, the effort is placed on increasing the efficiency and refining existing practices and templates.

9. Your customer has requested a particular colour for the product your project is generating. This is an instance of which of the following?

A. Project description

B. Deliverable

C. Product description

D. Requirement

Correct Answer: D

Explanation: Requirements are the specifications of the deliverables and tell you how you know the deliverable was completed successfully.

10. Which of the following project selection methods is the least precise?

A. Scoring models

B. Net present value

C. Payback period

D. Benefit-cost ratio

Correct Answer: C

Explanation: Payback period is considered to be the least precise project selection method.

To get more PMP exam examples, visit our websites to get free PMP Practice Exam

Conclusion 

It’s not easy to get a PMP certification. As a result, substantial preparation is required prior to taking the certification exam. Before taking the PMP exam, you should acquaint yourself with the test’s format, timing, questions, and, of course, their complexity.

Practice exam questions are a tried-and-true method of getting ready for a test. These questions are almost identical, if not identical, to PMP test questions. Mock exams should also offer you a sense of what the real exam will be like before you take it.

I hope you found these PMP examples to be beneficial. For practice, you’ll need at least 1,000 to 1,500 PMP example questions and then go back to them for detecting mistakes and revising. More than that isn’t needed. Best of luck with your PMP test study.

To download the free PMP Practice Exam, visit our website for your IOS or Android device.

 

Project Planning And How To Write A Good Project Planning

In order to develop excellent project planning, it is not easy as it sounds. Visit our website to get useful information and free PMP Practice Test!

January 1, 2022

Every project has a story to tell about its objectives, team, timeline, and deliverables, and getting the story correct takes detailed project planning and management. Some of the stories are brief and to-the-point, while others are epic books full of twists and turns. Every story is created around a story arc or outline—or, as we call it in project management, a project plan—regardless of length or intensity. So, what is project planning? Let’s learn everything about it with this article!

What is a project plan?

The process of establishing the project scope, objectives, and steps required to complete the work is known as project planning. It is concerned with choosing ahead of time what, when, how, and who will take the essential steps to achieve predetermined goals. In this context, planning is a pervasive management activity that is carried out at all levels of the project hierarchy, with the scope, detail, and scale of the effort differing. One of the most critical processes in project management is project planning. A project management plan is the output of the project planning process.

The project management planning process involves inductive problem-solving. It begins by concentrating on the “what” and “how,” which are intertwined. The project goals, which must be defined at the beginning of the planning process, describe what is to be done. These goals might be new product development, market share maintenance, market share acquisition, profit maximization, expected sales volume, profit maximization, a combination of these, or something like that. 

For project personnel, the objectives get to be the “reason to be.” All following work should be focused on completing them throughout the course of scheduled future time periods. By definition, the project is finished after they are done. The “how” issue for planning revolves around the chosen aims and nature of the product, as well as the level of technology, target market characteristics, business policy, and available manufacturing or developmental procedures. The “how” issues will have an impact on required technical and manufacturing capabilities.

Facilities, equipment, supplies, raw materials, and personnel skills must all be identified and purchased or hired as needed. The product’s manufacturing plans and durations must be compatible with delivery times. These resource decisions are the “who” and “when” parts of the planning process and they are comprised of the input considerations shown in Figure 1. The project manages these resources internally, although they are acquired through external channels. There are two external categories of concerns for project planning that must be taken into account: the project’s organizational environment and the external environment of the firm as a whole.

For those who are studying PMP project planning, the above-detailed information about project planning might be basic knowledge but it is a must-have before starting creating a project plan.

Project Planning
Project Planning

After knowing what is project management plan, let’s find out the role of project planning in the next part.

Purposes of Planning

Communication

For project personnel, project planning is a means of communication and a source of information. The project’s overarching objectives must be communicated to the project team once they have been developed and approved. The expectation is that by involving them in the process of defining specific objectives, they would be able to align their own aspirations with the project’s goals. Information for action is supplied to all levels of the project personnel when the specifics of the plans are planned and costed.

Foundation for Management Action

All other management actions are built on the basis of planning. Managers may plan their operations more efficiently by knowing what is necessary, who is to execute particular duties, how they should be completed, and when events should be scheduled. The requirement for control is inherent in the planning function. Feedback on progress toward completing objectives and goals is gathered when the strategy is implemented. The manager can objectively evaluate progress by comparing actual to planned data, making appropriate adjustments to the master plan, and taking remedial action for ongoing operations. The plan also informs the management about upcoming deadlines and events, indicating when choices must be taken and when feedback systems must be activated and monitored.

Problem Definition and Solution

Planning is a form of problem solving that encourages the definition and solution of problems. The division of objectives into goals and objectives assists in determining difficulties as well as creating and analyzing alternative strategies to fulfill objectives. Each option must be assessed in terms of time and cost, as well as the required product grade of performance. Tradeoffs between these key variables may be required during the original planning stages, but they may subsequently be used to develop workaround strategies if problems arise. This strategy necessitates the development of a comprehensive action plan, which will be the topic of the next paragraphs.

Stages of Project Planning

The beginning of any project is probably the most difficult stage. When there is an unclear or poorly defined goal, getting started might be difficult since there is no clear sense of direction. At other times, the question of how to get there is mixed up with the decision of where to go; the project is outlined before specific objectives are defined. 

Definition of Project Objective

A clear definition of the project objective is the first step in successful project planning. This should ideally be a single phrase, such as “The goal of this project is to make the tax return as simple as possible so that an ordinary citizen with an eighth-grade education may complete the short form in three hours or less without professional assistance.” This goal is clear, attainable, measurable, and specific.

Project Description

The project’s description is the next step. The better a project’s description is, the more likely it is to succeed. The following list shows ten basic questions that should be covered in the description.

  • WHAT is to be done? 
  • WHEN will it occur? 
  • HOW much will it cost?
  • WHO will do it?
  • WHAT products or services will be delivered as a result of the effort?
  • WHAT is the responsibility of both the developer and the user? 
  • WHAT determines task completion? 
  • WHO is responsible for approving the product as completed? 
  • WHAT mechanisms will be used to cope with formal adjustments?
  • HOW will actual progress be measured?

Detailed Work Plan

The steps necessary to attain the goal must be documented when the project has been sufficiently stated. This is the right time to talk about how technology can be used. The engine is one of the subsystems to consider while designing an airplane and describing its performance objectives. Is a suitable engine existing, or will new technology be required to meet the specified performance requirements? Are the actions to be only changes of current equipment, or will they entail new equipment research and development?

Once activities are determined, the planner must start planning resources to complete those activities. Make-or-buy decisions enter the process at this point, when the availability of in-house talents and technology is weighed against the costs of contracting out the effort. Estimates for the budget are made, and staff requirements are established.

The identification of the project control system is an important stage. What measurements and means of communication will be most helpful in evaluating project progress? To codify the information gathered, many project documents need to be created.

How to Write a Good Project Plan

The purpose of studying PMP project planning is for knowing how to write a good project plan.  A project plan is more than just a list of dates on a document. It’s your project’s story, and you don’t want it to be a tall tale!

Any strong project plan should be able to answer the following questions:

  • What are some of the most important deliverables?
  • How will we meet those deadlines and deliverables?
  • What members of the project team will be involved in the deliverables, and what role will they play?
  • When will the team accomplish its milestones, and when will other team members contribute to or provide feedback on those deliverables?

Learning how to develop a project plan is not difficult. To create a well-written and on-target project plan, follow these 8 basic project planning stages.

Read more: Project Management Principles

8 crucial project planning steps

Let’s see how to create a project plan.

Step 1: Investigate the scope and value of your project by conducting research

Make sure you have all of the information before you start drafting a project plan. Examine all of the project’s papers and communications.

Examine the scope of work and any supporting documents. Make an effort to be comprehensive. 

Before you commit to anything, be sure you understand the details and ask thoughtful questions.

In writing a project plan, a competent project manager is well-informed and methodical. At a minimum, you’ll be expected to know everything there is to know about:

  • The project’s objectives
  • The requirements and expectations of your customer
  • Your client’s team composition and decision-making process (i.e., how they’ll evaluate and approve your team’s work)

Understanding your client’s team and process may assist you in answering the following questions:

  • Who is the project’s sponsor, and how approachable is he or she?
  • Who is the project manager, and will they be in contact with you on a regular basis? 
  • Who are the other stakeholders that your team has to be aware of?

Step 2: Ask the difficult questions

Besides all of your questions about your client team and their expectations, set aside some time with your key client contact and ask them some difficult questions about the process, organizational politics, and general risks before developing a project plan. This will demonstrate that your staff has the required experience to deal with a wide range of challenging personalities and situations, as well as that you are invested in the project’s success from the outset.

Questions that may have an influence on a project plan include:

  • Have you and your team discussed how you’ll get feedback?
  • Who is the last person to sign off? Or, alternatively, who owns the project?
  • Is there anyone else we should think about who isn’t on your list (president, boss’s spouse, dean)?
  • What is the deadline for the project? What causes or events (a meeting, an ad campaign, or an event) are driving that date?
  • Are there any dates when you will be unavailable or closed?
  • Will there be any meetings or times during the project when you’d like us to give a presentation to a bigger group (a board meeting) on the current project status?

Step 3: Make an outline for your project management plan

Take some time once you’ve got the answers you need to consider the responses based on the project goals and how your team would approach a similar project.

If you’re not sure where to begin, use the questions at the beginning of this chapter to define the project’s who, what, when, and how. Consider the tasks listed in the scope of work and, using a high-level overview, try to come up with a project planning and management strategy. To verify dates, all you need is a calendar.

An initial outline might be very rough and look like a task breakdown structure. Make sure you include the following in your outline:

  • Deliverables and the tasks involved in their creation
  • The approval process of your client
  • Tasks and deliverables have timelines attached to them
  • Resource suggestions for tasks/deliverables
  • A list of the assumptions you’re basing your strategy on
  • A list of absolutes related to the project’s budget and/or timelines.

Step 4: Consult with your team

The first step in starting a project is to clearly communicate the project goals and the effort required to achieve them. This is due to the fact that a project manager cannot be the only developer of a project plan.

You could try, but if you’re looking for team buy-in, you won’t. That’s because you don’t want to put yourself or your team in an embarrassing situation by failing to reach an agreement on the strategy before presenting it to your customer. That would be equivalent to stabbing each and every one of your colleagues in the back. This does not bode well for the company’s previous reputation.

It’s also a good idea to tap into the super-smart people around you for ideas on how the team might achieve the tasks at hand without blowing the budget or the team’s morale. You may choose between Agile and Waterfall approaches as a project manager, but when it comes down to it, you need to know that the team can realistically execute the plan.

You may also use your project plan review time to challenge your own assumptions and encourage the team to try something new.

For example, if you’re developing a website design project plan, can designers start developing visual concepts while the wireframes are being produced? Will it be appropriate for this project and the team? Is it possible to have two resources working on the same task at the same time?

Not only does it help you develop a project plan to run ideas past the team and have an open conversation about the strategy. It’s also a great assist in terms of having everyone on the same idea regarding the project.

This sort of buy-in and communication builds teamwork and gets individuals enthused about achieving a common objective. It may be extremely beneficial to your team and project as a whole.

Step 5: Make a detailed project plan

When you’ve gathered all of the information you’ll need and spoken with all parties involved, you should feel confident enough to create a good project schedule using whatever tool you choose.

Any effective project planning tool will assist you in formalizing your ideas and organizing them in a logical, readable way.

Ensure that tasks, durations, milestones, and dates are all clearly defined to make your project plan legible. Make a simple project plan—the more straightforward and simple it is to read, the better. You should include the following features in whatever tool you use:

  • Include all relevant project information, such as the client’s name, the project’s name, the version number, and the deadline
  • Create headers and indent subsequent tasks to divide milestones and deliverables into parts. (Reading a long list of activities may be tedious and mind-numbing even for the best of us)
  • Declare which team is in charge of each job (for example, “CLIENT: Provide feedback”)
  • To avoid misunderstanding about who is responsible for what, assign resources to each task
  • Make sure task durations are properly stated. A start and finish date should be assigned to each job
  • Make a note of any tasks that appear to be difficult or require explanation. It’s never a bad idea to go overboard with the details!
  • Make a list of project dependencies. These are vital when preparing for the possibility of delays
  • If you’re feeling fancy, including both your company’s and your client’s logos
  • If you want to go all out, use your company’s branded fonts.

Step 6: Make your plan public

You’ve almost completed the task! You’ve done your research, sketched out your strategy, talked it over with your team, and created a formal project plan. Before you send it over to your clients, do yourself a favor and have someone on your team evaluate it.

Nothing is more embarrassing than being a project manager and providing a plan that has a mistake, such as an inaccurate date. It will take someone 10 minutes, and you will be at ease.

Step 7: Make sure your team is aware of your strategy and that they have read it

You’ll want to double-check that your essential document has been examined after you’ve put so much effort into it.

Make sure to provide a summary of your project plan in prose style when providing it. A brief note that includes the overall approach, resources, assumptions, deadlines, and associated review timeframes can aid you in communicating what the project plan means to the project and everyone involved.

Don’t be hesitant about it: explain the thinking process that went into developing the project strategy and open it up for comments. Setting up a call with a client to go through the strategy line by line might be beneficial. This guarantees that your client comprehends the process and what each plan stage entails.

Sure, you’ll have to explain it a few more times, but at the very least, you’re helping to create excellent project planning standards across the board and informing your clients about how your team works. It also demonstrates that you are concerned.

Step 8: Prepare to continue planning

Some tasks are simple and straightforward, while others are a total nightmare that keeps you awake at 3 a.m. Plans will inevitably alter.

You’re on your way to creating a project plan that’s manageable and well-thought-out if you have a strong team and a defined scope of work. Your best protection against project instability is a well-thought-out project strategy.

You’ll be delighted if you’re a laid-back project manager who can adjust your strategy and plan to go with the flow while identifying the necessary risks. Otherwise, everyday changes will muddle your perspective, causing you to focus on things that aren’t beneficial to your team, customer, or project.

If you want to see more details about how to execute a project management plan, see more about project management process.

The above article has defined the basic information of project planning, the purposes of it, detailed work plan as well as steps for developing a good project plan. Hope you guys can have more beneficial knowledge and skills in building an excellent project plan through this article.

Visit our websites to get more information and free PMP Practice Exam. To download, visit our website for your IOS or Android device.

Scrum vs PMP: Everything You Want To Know

In this post, we'll compare the Scrum vs PMP certifications, as well as their costs, impact on salary, and the differences in the methods themselves

January 1, 2022

Being in charge of a project is not an easy task. Might seem like you’re walking through a minefield if you don’t have the appropriate foundation. When you’re blindfolded. Certification can help you obtain the skills you need for the work while also allowing you to earn more money. But, if you have to choose between PMP and Scrum, which would benefit your career the most? Which project management training and certification should you pursue?

In this post, we’ll compare the Scrum vs PMP certifications, as well as their costs, impact on salary, and the differences in the methods themselves.

Scrum vs PMP Certification

You have a variety of options if you want to get a formal certification for your project management skills. 

However, the PMI Institute’s Project Management Professional (PMP) credential is the most common. It’s particularly useful for organizations that take a more traditional project management strategy. The Project Management Body of Knowledge (PMBOK) approach, which is sometimes conflated with the Waterfall model, provides the foundation for the PMP credential. 

If you wish to work for a smaller, more agile company, such as a breakthrough startup, the chances are that they use Scrum. Scrum has two main certifications: Scrum Alliance’s Certified ScrumMaster (CSM) and Scrum.org’s Professional Scrum Master (PSM).

The PSM certification is held by 341,882 Scrum masters.

Before we continue, it’s important to note that Scrum certification is different from Agile certification.

Having the PSM or CSM certificate demonstrates that you have a basic understanding of Agile, since you must be familiar with the overall Agile principles and values.

However, it only qualifies you for Scrum, a single Agile framework.

You’ll need to look at other certification choices, such as becoming a Certified Agile Coach, if you wish to consult companies on Agile transformation or work for a company that uses a different framework, such as SAFe.

Now that it’s out of the way, let’s go back to Scrum vs PMP! The next part will show the difference between SCRUM and PMP.

If you want to know more about PMP certification, you can read the PMP Certification Requirement 

Scrum Master vs PMP salary

According to Glassdoor, the average project manager salary in the United States is $66,137 per year.

The official salary survey conducted by the PMI showed a much greater yearly income. An average salary of $116,000 was reported by respondents.

Scrum vs PMP
Scrum vs PMP

Source: PMI

On average, project managers holding the PMP certification earned a 22 percent higher income.

The average Scrum Master certification salary in the United States is $97,319, according to Glassdoor.

According to the 2019 Scrum Master Trends study, 51% of respondents said the Scrum Master salary is $75,000 or more annually. The highest earners are distinguished by their certification.

Scrum vs PMP
Scrum vs PMP

Source: 2019 Scrum Master Trends

To summarize all of those figures:

  • The PMP and Scrum certifications both appear to have a direct influence on earning potential.
  • However, someone with a PMP makes more money than someone with a Scrum certification.

Cost of PMP and Scrum Master certification 

It costs $550 to take the PMP test and get certified (USD). 

The course can cost up to $3,000 in training, however the PMP handbook or PMBOK guide can be used to self-study the principles. Each of these books costs about $60.

Let’s take a deeper look at the costs of Scrum certifications.

The PSM1 certification exam is $150, while formal training courses start at $500.

Typically, the CSM test is only given as part of a CSM course. The cost of a course might range from $595 to $1,500. The cost of a course is determined by its location, teacher, and whether it is offered in person or online.

Which is better: PMP or Scrum Master?

The salary implications and certification expenses are insufficiently different to make one option the clear winner. As a result, it is highly dependent on your career objectives and current experience.

Do you wish to work in a field that follows the PMBOK guidelines? The PMP certification is the way to go.

Do you wish to work with startups, tech, and other innovative companies as part of small Agile Scrum Teams? You should pursue certification as a Scrum master.

If you consider taking the PMP test, you can read How to pass the PMP exam on your first try

Scrum vs PMP: Method

Next, let’s look at how each option’s project management methodology works in practice.

Let’s start with the PMBOK model because PMP is centered on it.

The PMBOK model

People used to equate PMBOK with the top-down Waterfall approach in the past. This is due to the fact that it separates project management into five phases or process groups.

The PMBOK, on the other hand, focuses on overarching principles rather than methods.

  • Initiating
  • Planning
  • Executing
  • Monitoring and controlling
  • Closing

Many of the PMBOK principles may be used in the context of a single Sprint or cycle in Agile or Scrum – you’re just completing the five phases once each iteration instead of once per project.

However, most of the PMBOK guide is designed with the assumption that you’ll be utilizing a top-down, pre-planned framework like Waterfall.

It also tends to place a heavy emphasis on documentation, which Agile discourages.

Scrum framework

Scrum is a framework created specifically for Agile methodologies. Rather than attempting to adapt PMBOK to work with Agile, Scrum provides a clear, step-by-step solution.

Rather than following five clearly defined stages that occur just once throughout a project, larger projects are divided into smaller sprints that run 1–4 weeks.

Within each sprint, there are still 5 different phases, although they are known by various names:

  • Pre-planning (or Backlog refinement)
  • Planning (aka Sprint planning)
  • Working (Execution)
  • Sprint review (or Product increment review)
  • Retrospective

What is the difference between PMP (PMBOK) and Agile?

Both the PMBOK and Agile methodologies recommend high-level principles rather than a specific framework to assist your decision-making.

The most distinguishing factor between PMBOK and Agile is their approach to change and stakeholder involvement.

Change is seen as a necessary evil in the PMBOK, which emphasizes structure and control. Agile, on the other hand, is a mindset that accepts and promotes change.

Stakeholders are mostly involved in early-stage planning in the PMBOK. However, with Agile, cooperation occurs throughout the project.

Scrum vs PMP: Sometimes the right choice is both

Unfortunately, as with most things in life, there is no one-size-fits-all solution.

Scrum will be the obvious choice for certain businesses, while PMBOK will work better for others.

For many people, the ideal option is to use both approaches in various areas.

You may also choose to get both certificates over time.

PMBOK for familiar or ongoing projects

You don’t need a revolutionary approach if you know your project inside and out.

Would an agency supplying copy or creative to a repeat customer find clear benefits from forming a Scrum team for the 100th time? Most likely not.

Using PMBOK principles inside your existing team structure is generally your best choice for predictable, known projects.

The Work Breakdown Structure (WBS) in the PMBOK is a good place to start.

Scrum for new and unpredictable projects

Working inside the limitations of a traditional workflow, on the other hand, isn’t always the greatest option.

The Scrum framework is ideal for new projects, such as developing a new product for a new vertical.

Finding a logical product owner is a smart place to start. They might be a significant customer or someone who knows everything there is to know about your customers.

If you’re creating proposal software for salespeople, for example, your internal sales manager may be an excellent Scrum product owner.

The product vision and backlog are user-centric, rather than technical or feature-centric. As a result, even a non-technical person may highlight user stories (features from the user’s point of view).

This will assist you in determining the project’s scope and building a complete Scrum team with all of the skills required to finish it.

With an Agile project strategy, you can get up and running quickly and adapt as the market and client base change. You can build an innovative product that people want even if you have no prior market experience.

About other types of project management certification besides SCRUM, read more about CAPM and PMP.

PMP vs Scrum vs Agile

Agile and PMP or Project Management Professional Certifications depend on where you wish to use your skills

Conclusion

Both the PMP vs Scrum certification have their own ways of contributing to your overall objective. So, It all boils down to your ambitions for the future. You can choose whatever certification will be most beneficial to you and pursue it. This article is a brief rundown of everything we spoke about Scrum vs PMP.

Visit our websites to get more information and a free PMP Practice Test. To download, visit our website for your IOS or Android device.

How hard is the PMP exam?

Passing this exam is not an easy task! How hard is the PMP exam? Let's discover everything with our free PMP Practice Test!

January 1, 2022

Being considered the highest standard in project management certifications, the PMP (which stands for the project management professional) is becoming a rigorous test that checks your knowledge and skills related to project management. However, many people have wondered about how hard is the PMP exam and the reasons why it is difficult. Let’s follow this article for more beneficial information.

How hard is the PMP Exam?

So how difficult is it to get PMP certification or is PMP easy to pass? Because it tests the candidate’s in-depth knowledge about Project Management, PMP exam is considered one of the most difficult exams. In order to take the PMP exam, your responsibility is to pass a preparation course which lasts for 35 hours. The purpose of this course is to bring you the fundamental knowledge of both theoretical and even practical knowledge for passing this exam.

To answer the question Is the PMP exam hard, you should first understand the content of the exam. 

PMP Exam Format – PMP Domains 

The current format of the PMP exam has 5 main domains: initiating, planning strategy, monitor-controlling, performing, and finally, closing project. This part can help you with how to study for the new PMP exam.

Meanwhile, there will be the 3 most significant domains in the new format of this exam:

  • People: this domain will emphasize the skillsets or activities related to the experience of leading a team/project.
  • Process: the purpose of this domain is to check your technical ability in managing a team/project as well as other associated aspects.
  • Business Environment: This domain will emphasize the connection between your leading project and the strategy of the whole organization. Therefore, it will test your understanding of the company or organization as well as how you adapt to it.
how hard is the PMP exam
How hard is the PMP exam?

Although the PMP exam is hard, you can increase your chance of passing it by reading How to pass the PMP exam?

The outline of the PMP exam will have:

  • The domain Initiating accounts for 13% questions of the total question
  • The domain Planning accounts for 24% of the total questions
  • The domain Executing accounts for 31% of the total questions
  • The domain Monitoring and Controlling accounts for 25% of the total questions
  • The domain Closing accounts for 7% of the total questions

With the total number of questions as above, spending approximately 60 hours studying for the PMP exam will help you pass this exam. Besides, it is recommended that you should practice simulator questions on a regular basis. So what do you think? Is PMP hard to get?

In addition, the new PMP exam will be a combination of :

  • 180 questions in total
  • 230 minutes to complete all the tasks
  • One more break for the computer-based PMP exam
  • No other breaks for paper-based PMP exam
  • All the questions of the PMP exam will be a combination of the matching, hotspot, fill-in-the-blank, and multiple choices.

Here are the reasons that explain how hard is it to pass the PMP exam. From the format and number of questions, you need to find a study guide that is suitable and effective for your ability to pass this exam.

Choosing the most suitable study materials will help reduce the study time from 75 hours to 40 hours. Furthermore, you should make a clear study plan which is a combination of mock questions, and preparing documents that bring detailed knowledge about the project management field.

To understand more about the new PMP exam difficulty, read more about

Visit our websites to get more information and free PMP Practice Exam

What is the PMP pass rate or PMP failure rate?

Due to the complex structure and difficult questions, the pass rate is so low is predictable. Remember that the PMI reluctantly does not make public the pass or failure rates of the PMP exam. There are huge estimations from the Internet which are usually launched by providers of 35-hour prep courses.

One of the most significant estimated PMP passing rate is 50-60% on the first try, while the failure rate has fluctuated between 40-50%. This has explained how difficult is the PMP exam.

Reasons for failing the PMP exam

Each individual will have different difficulties in completing the PMP test. Difficulties may come from the test, the candidate’s mental state, or external factors… Here are the basic difficulties that hinder the success of the candidate in completing the PMP test.

  • Plenty of materials

PMP is a difficult exam, and the test takers are mostly people with considerable knowledge and experience. Therefore, the first difficulty that you may face is the overwhelmed amount of material. It will take you a great deal of time just to complete the PMBOK. If you are a person who does not have much experience, you do not even know where to start learning because there is so much material.

  • The complexity of the structure

Obviously, an overly complicated exam structure with a large number of domains and questions will hinder you from completing this test. You may not even score points if your answer is based on your personal experience (although it may be correct). The most effective method is to follow the PMI’s standard.

  • The difficulty of all the questions

Undoubtedly, the questions in the PMP test are generally complicated and easy to make mistakes. It takes you a period of time just to become familiar with the format and how to answer all the PMI questions.

 You can read about the PMP examples to understand the types of questions tested in the PMP exam. 

  • Poor preparation

A remarkable culprit behind the failure of many candidates is a lack of preparation. When you do not spend enough time studying and discovering the materials, it is impossible for you to have a comprehensive knowledge of the material. Candidates often have the habit of cramming knowledge just before the test in the hope of achieving maximum efficiency. However, this habit can negatively affect your performance. Cramming can’t make you better but stress and disappointment. Remember, adding knowledge is a long process that requires huge time and effort.

Learn how to be better prepared for the test with PMP Exam Preparation

  • Schedule unsuitable registration

When scheduling a specific registration, candidates will be motivated to study harder and vice versa. In case you register for the test too early, you will not have enough time to prepare mentally and physically. On the contrary, if you register for the test too late, it just makes you feel stressed and discouraged. Therefore, remember to take a test registration schedule that suits your ability and objectives.

  • Only use free materials instead of preparing course

Self-study is good, but you can hardly succeed without taking any PMP certification course. Only using free tools or materials can lead you to failure in this exam. This is because the free materials updated online may be outdated or unverified.

Don’t hesitate to pay a certain amount for reliable materials, for example, materials that the PMP certification training provider offers.

  • Overconfidence

Most of the candidates for the PMP exam are project managers with lots of experience in leading a team or project. Many of them strongly believe that their previous experience or knowledge gained through the leading process is enough to help them pass the PMP. Therefore, they often skip the process of reviewing and studying the Guide terms and practices of PMBOK.

  • Anxiety

Since this is such an important exam, many candidates often feel nervous and stressed. The reason may be that they are not confident and capable of their own, or have psychological problems. But remember when you can master the material, you will feel more confident in this test.

The above article has answered the question: how hard is the PMP exam as well as provided you with the reasons why this exam is too difficult. We hope that you will get more beneficial information about this exam and achieve a good score. Good luck!

To download the free PMP Practice Test, visit our website for your IOS or Android device.

Leadership vs Management: What are the main differences?

You are wondering the differences between Leadership vs Management? Visit our website to get useful information and free PMP Practice Test!

January 1, 2022

Debates about leaders and managers have been a burning topic of discussion for many years. Distinguishing between Leadership vs Management can help us to better understand the art of leadership and correct our own behavior. Let’s follow this article to learn more about the differences between these two positions.

Leadership and Management definition

Leadership is an influence process in which leadership seeks the voluntary participation of subordinates in achieving organizational goals. Leadership is the process of using and coordinating the activities of individuals in an organization by influencing and directing the behavior of individuals or groups towards organizational goals. Nowadays, leadership is considered one of the most necessary concepts in the science of organization.

The leader may not be as good at expertise as workers, engineers, not as creative as the research department. But leaders must be good at using people, they have the ability to manage and allocate resources appropriately.

Meanwhile, management is an organized, oriented, purposeful, and planned continuous influence of the managing subject on the managed object in order to command, control, and link factors involved in activities. into a unified whole, harmonizing the activities of the stages in a regular manner in order to achieve a definite goal. Management includes the activities of establishing an organization’s strategy and coordinating the efforts of its employees (or volunteers) to accomplish its goals through the application of available resources, such as financial, natural, technological, and human.

Leadership vs Management
Leadership vs Management

 

Remarkable differences between Leadership vs Management

Debates about the difference between management and leadership have been a burning topic of discussion for many years. Distinguish between management and leadership helps us to better understand the art of leadership and correcting our own behavior. So what is the difference between management and leadership?

FeatureLeadershipManagement
MeaningLeadership is the skill of leading others.Management is the art of organizing and coordinating things systematically in an efficient manner.
FoundationTrustControl
PrincipleInspire othersOperation management
PowerInfluenceRule
Focus onEncourage changeMaintain stability
StrategyActivePassive
RequireForesightShort-range perspective

What are the responsibilities of leaders?

In terms of work

Achieving work goals is the most important task for a team leader because assigned work is the reason teams exist.

In terms of each individual

  • Support and encourage each individual in the group
  • Allocate tasks according to individuals’ abilities
  • Clearly explain the individual’s role in the group’s work
  • Evaluate individual performance
  • Protect (when necessary) each individual in the group from others, or even from other individuals in the group.
  • Encourage experienced individuals to help and guide individuals who are trying to be self-reliant.

In terms of the whole group

  • Express enthusiasm for the group
  • Set and agree on general and specific goals and objectives so that everyone knows what needs to be done and why it needs to be done.
  • Ensure common group standards and norms are maintained at all times.
  • Support the group when in trouble
  • Represent the whole team in front of the upper management.
  • Represent the superior leader in front of the group.
  • Coordinate with other teams or departments.

What are the responsibilities of managers?

Here are some specific tasks that a manager needs to take charge of during their work:

Regarding external affairs:

  • Build and maintain good relationships with all customers as well as stakeholders of the project.
  • Support stakeholders and partners to come up with ideas and goals for the project to ensure feasibility.
  • Establish and maintain relationships with third-party partners (material suppliers, contractors,…).
  • Meeting with customers when it is necessary to define contract details and clarify each specific requirement of the parties.
  • Participate in relevant conferences, seminars, and training to enhance professional knowledge.

Regarding  internal affairs:

  • Make a detailed plan to track the project and its progress. Ensure that all the projects can be completed successfully within a given period of time and budget.
  • Estimate the time, cost, and human resources required to complete the project. Monitor changes related to project scope, schedule, and costs.
  • Allocate available resources of the enterprise and propose to recruit new personnel if the job requires it.
  • Measure the effectiveness of project execution with the right tools and techniques. Monitor the implementation of the project, especially analyze what has been done and not done to draw lessons for the following projects.
  • Report the problem to a higher level when you can’t solve it yourself. Perform other related tasks under the direction of higher-level officials.
  • Monitor budget spending and eliminate unnecessary expenses.

These are also the duties of a project manager, see more details about What is a project manager?

What are the traits of managers?

  • Leadership skills

This is an indispensable skill of a manager. Good leadership is tested through success in changing systems and people. The word “leader” is being used when referring to the role of managers because the function of leadership is to handle all the changes in a team/project. Managers need to lead the team to success.

  • Strategy-planning skills

The manager is the decision-maker. A wrong plan will most likely lead to unpredictable consequences. So planning skills are very important to ensure that managers can make reasonable plans and direct all employees to work. During the implementation of the plan, the manager will need problem-solving tools and, when necessary, must make and execute decisions within his or her authority.

  • Problem-solving skills

The problem-solving process can be carried out through the following steps: identifying the problem, finding the root cause of the problem, classifying the problem, finding the solution, and choosing the optimal solution. A good manager will conduct this process skillfully and efficiently.

  • Communication skills

More and more people are realizing the power of relationships, which comes from good communication skills. You must know how to impress with your voice, body language, eyes, and easy-to-understand, convincing expressions. Good communication skills are also effective in human resource management.

  • Visionaries

A leader is much more important than an individual. He always seems to know how to plan everything well and is the one who provides the most useful advice to his associates or subordinates.

  • Assertiveness

As a leader, you are expected to make important decisions while others often try to stay away from it. Even though these decisions will sometimes make a big impact on the relationship between you and the people around you, you have to accept it.

The arrogance and tolerance in decision-making can lead you to mistakes when setting a bad precedent that leads to the loss of your “authority” as a leader. Sometimes you also need to be a little ruthless in firing an employee because his actions greatly harm the interests of the company.

  • Willing to sacrifice personal interests

As a leader of a team, you have to spend a lot of time and effort to manage your subordinates and work well. Even that busyness takes up private time for yourself and your family.

  • Adaptability

A business approach may work today, but tomorrow it will be different. A good leader needs to be aware of that and must be timely in adapting and accepting change. He must stay up to date with new skills, technologies, and methods to promote growth in his work.

What are the traits of leaders?

  • Visionaries

Leaders must be visionaries and have a very broad vision and understanding. They see things that normal people can’t see. Good leaders are people who see the future of the organization, they have big dreams. And know what it takes to get your organization on the right track.

  • Inspiration

Usually, the leader is someone who is not directly involved in the war. They are good at inspiring, they lead their teams to take action for a common goal. Often leaders have good managers who stand shoulder to shoulder as the leaders’ generals. Managers will make small goals for them.

  • Good strategic planning ability

A leader is more than just a visionary. They are also good at strategic planning. They know how to properly allocate resources. They know how to create strategies to solve specific problems. But the leader is often the one who is not good at execution.

  • Coaching genius

Leaders are often the best at recruiting and building teams. They form and train their team, not only in terms of expertise, cohesion but also in creating a common vision.

  • Sensitivity

Sensitivity is a special quality that helps us to read the minds of others. Therefore, let’s understand the thoughts and aspirations of employees to meet and have a way to persuade and lead them. In cooperation, it will be easy to predict the direction of the opponent to prepare a battle plan.

  • Integrity

Looking at people and looking at work for fair judgment is an essential element in creating a healthy working environment. More than anyone else, a leader is the one who takes the lead to show the new integrity that makes people respect and creates a united team.

  • Energy

A leader is a person who confronts all difficulties and challenges to maintain his/her organization. Therefore, willpower is a necessary quality to make them unable to fall.

  • Confidence

Believing in their decisions, leaders make employees believe in what they do. Sometimes it will be difficult, but new confidence makes us optimistic and motivate others to continue.

  • Intelligence

The intelligence of a leader is the comprehensive development and combination of the necessary elements. Maybe they are not the best in a certain field, but with their intelligence, they know how to use talented people to become their effective hands.

Remarkable differences between leader and manager

  • Leaders provide vision, managers set goals

Leaders paint a big picture of what they see and inspire their followers to work together to make that picture a reality. They are responsible for thinking up and putting new ideas into the company’s plans for the next period. Leaders must always have a vision, while constantly developing new strategies and tactics. They, therefore, need to be knowledgeable about the latest trends, research, and skill updates.

Meanwhile, managers focus on setting, measuring, and achieving goals. They control situations so that everything is maintained and operating as planned.

  • Leaders change the agents, managers maintain the status quo of the team

Leaders are always looking for innovation. They accept change even knowing that everything is working properly for better development in the future. Leaders understand and are ready for the fact that changes will often create a ripple of instability in the business/organizational apparatus.

Managers are always committed, sticking to what is working. They choose to tweak the system, structure, and process to make it more efficient.

  • Leaders are unique, managers are learning

Leaders are always themselves. They are self-aware and work hard to build their unique, distinctive personal brand. Leaders are comfortable with their own style and ready to stand out. They are also known to be authentic and transparent.

Managers learn their management skills and abilities through work experiences or from others. They are more inclined to learn to create their own leadership style than to define and create themselves.

  • Leaders accept risks, managers control risks

Leaders are willing to take on new things even when they may fail miserably. They know that the higher the risk, the greater the chance; and failure will be a step on the road to success.

Managers work to reduce risks or unforeseen situations. They always seek to avoid and control these problems rather than head into unsafe things.

  • Leaders prepare for the long term, managers control the short term

Leaders are always visionary. They do what they say they will and work towards a big goal in the distant future. Leaders can work towards this goal with burning motivation without receiving any reward other than reaching the finish line.

In contrast, managers work on short-term goals. They always monitor, check the process and seek recognition and rewards from superiors or from actual performance.

  • Leader expand personal development; Managers develop existing skills

Leaders know if they don’t learn something new every day, they will fall behind. They are always curious and seek to embrace new things in an ever-changing business environment.

Managers often seek to grow from what has made them successful; perfect existing skills and apply proven methods through knowledge and experience.

  • Leadership strengthens trust; Manager relies on control

You can’t be a leader if no one executes your ideas. Leaders are often tasked with building trust, getting people excited about their ideas. When employees are excited to receive ideas, it means that the leader has built their trust. This is essential when business is changing rapidly.

The difference between managers vs leaders is that Managers maintain control of employees, helping them to develop their full potential to create products, services or increase revenue for the business. To get the desired results, managers need to understand the abilities, passions, and desires of each employee.

The main tests between management vs leadership

  • Test of Counting Value and Creating Value

Managers are the people who count their value. Meanwhile,

leaders focus on making their value which is expected to be higher than the value of the team, or the followers.

  • Test of Circles of Influence and Power

Managers will manage the team with authority and rules, which allow creating a circle of power within their team. Meanwhile, leaders influence others by beliefs and aspirations, so, leaders have the ability to create a circle of influence in the team.

  • Test of Leading and Managing

The main task of managers is to manage a team to achieve the set goals according to a certain route. Whereas, leadership finds innovative ways, allowing employees to make a difference to lead the team to success.

Conclusion

In general, both leaders and managers are important and indispensable positions in a team. Although there are certain differences between these two definitions, the lack of one will lead to confusion and a lack of direction for the team. A manager needs to have the qualities of a leader and vice versa.

The above article has defined the concept of Leadership vs Management as well as provided related information about these two positions. Hope you guys can have more beneficial knowledge and achieve a high position in your career.

Visit our websites to get more information and free PMP Practice Exam. To download, visit our website for your IOS or Android device.

 

What Is Project Financials?

Project financials is an extremely important aspect for project managers. So what is it and how to manage it effectively? Let’s go ahead!

January 1, 2022

Introduction

Finance is the lifeblood of every project or organization. In order for money to generate money and bring more profit, effective project financial management skills are one of the most important skills for CEOs. Because, when the money is exhausted, the project goes bankrupt. So what is project financials and how to manage it effectively? The following article will answer these questions for you.

What is project financials?

Finance is a relatively independent mode of movement of money with its functions and storage facilities, its characteristic in the field of distribution is the creation and use of different monetary funds for different purposes of accumulation and consumption.

Project financials is a term used to describe important tools and jobs in the financial system of a project. Activities are related to raising capital and using that capital to invest in assets in a project to generate profits for project owners.

Based on the financial information of the project, the project leader will manage the cash flow in the project for activities to generate profits.

Project Financials
Project Financials

 

What is project financial management?

In economics, financial management of projects in the planning, organization, direction, and control of financial activities such as procurement and use of the enterprise’s monetary funds for necessary activities.

Corporate financial management and accounting and finance are two closely related activities, reflected in the management of financial statements. Financial management needs to apply general management principles to the financial resources in the project.

Financial management is one of the most important jobs of the head because effective financial management not only helpsprojects maximize profits but also supports project growth.

Read more about Project Management.

Principles of project financial management

Each business or project will have its own way of financial management, financial management will depend on the size and field of the company. But there are still principles of financial management that are common to most projects. The following are the principles and functions of corporate financial management today.

  • Review capital requirements

The financial manager of the project needs to plan the budget related to the company’s capital requirements. This planning will anticipate the costs and profits brought in from the implementation plans in the year.

  • Determine the capital composition

Once the budget plan has been completed, the financial manager needs to restructure the capital. Capital restructuring is closely related to the analysis of long-term and short-term liabilities. This will determine whether the company can use its own funds to solve the problem or whether it needs to supplement funds raised from outside.

  • Efficient cash management

Cash management is considered an important principle in financial management. The cash of the project is used to pay salaries, pay debts, maintain stocks, buy raw materials, etc. Failure to manage cash effectively will make it difficult for projects to manage. 

  • Choose the suitable source of capital

In order to bring more profits to the project, managers need to consider and make many options such as: Issuing bonds, stocks, loans received from banks, etc. Choose a suitable form. It will help the project to be more profitable and avoid risks.

  • Smart investment

Having a clear and accurate plan for investing in profitable projects will help projects get a significant source of profit. But if you invest in the wrong way, your project will have to suffer to pay its debts.

  • Consider the value of money

Before deciding to spend a large amount of money, besides learning about the profit it brings. Projects need to learn more about the value of money (increase and decrease) over time due to external factors such as inflation, etc. to allocate cash flow accordingly.

  • Control all activities

The financial manager must cooperate with other administrators in the project, to ensure the effective operation of the project. Every project result has financial implications and it needs to be fully taken into account before implementation.

Importance of project financials management

Project financial management is more precisely the management of cash flow in and out of the project, each project will have its own way of managing its own finances in the most effective way. But the role of financial management for projects is the same. The following are the roles and goals of financial management for projects.

  • Decide the growth and existence of the project.
  • Manage cash flow in and out of all production and project activities of that project or organization.
  • Planning the financial plans of the project.
  • Decide on investment and financing categories.
  • Make it easy for projects to earn profits from equity or borrowed capital.
  • Maximize after-tax profit target.
  • Maximize the return on equity.

Read more about Project Scope Management.

How to effectively manage project financials

Many projects have to go into bankruptcy or are overwhelmed by debt because they do not know how to manage their finances effectively, and here are the most effective ways to manage finances that you should refer to for your project to avoid unnecessary losses.

Systematic financial management

The systematic management of project finances will help your project grow at its best. All loans, receipts, and expenditures, salaries, investment expenses, etc. need to be tracked in great detail. Using financial management software is the most essential for large projects or businesses that want to manage their finances in detail.

Clear revenue and expenditure

The revenues and expenditures of your project need to be clearly understood, having a clear revenue and expenditure plan will help you manage your cash flow more accurately, avoiding a budget deficit. In order to avoid debt, you should not spend more than the profit that the project makes.

Profitable investment

Continually invest the free money of the project in profitable projects, which will create more profits for the project. Efficient, high-return investments will generate huge cash flows.

The balance between risk and return

A good financial manager will certainly know how to balance risk and return: A small amount of risk will bring a small profit, and a large amount of risk will bring you a large return. If you want to bring in a large profit for your project, you must accept a great risk.

Pay attention to taxes

Everyone knows which of our returns are taxed by the state, so it’s essential to consider tax-affected investments right from the start.

There is always a backup plan

No matter how good your options are, unforeseen circumstances can happen. Equip yourself with plan B in advance with backup savings, use insurance services, so that you can easily overcome unexpected crises such as: losing business, being cheated, due to natural disasters, fire,… Having an extra plan B, C or D is something most financial managers have to do.

Use financial management software

According to surveys of financial experts, about 95% of medium and large enterprises use financial management software for their projects. Financial management software brings many benefits to projects such as:

  • Easy capital management
  • Capital management and capital structure
  • Clear revenue and expenditure management
  • Make payments on time
  • Make and approve budget plans easily
  • Allocate resources appropriately for project activities
  • Provide reports and KPIs to help control details of items, avoid overspending
  • High-security system

Always have a reserve fund

Many project managers do not pay attention to building a reserve fund, leading to the fact that when there is a crisis, there is no financial “rescue”. The Covid-19 pandemic is a prime example of how we can have any project crisis that is unpredictable. The room fund will be a sufficient amount of money to keep the project running during difficult times or to invest in potential, one-of-a-kind opportunities.

Normally, projects will deduct part of their profits to build a reserve fund. This fund will guarantee the project to maintain normal operation from 3 to 6 months. To determine how much money is needed for the fund, start by dividing expenses by fixed and variable costs.

Make a specific business plan

A clear and detailed plan will show where the project is in the current market conditions and what goals the project wants to achieve. Financially, planning helps a project allocate the financial resources and project activities needed to drive revenue. Furthermore, let the project manager know how to get the capital needed to keep the project running.

Proper financial allocation is essential for project success. To do this, it is important to know where your project stands in the market, how much is the return on investment, how much is the profit achieved…. Answering these questions will help the manager better manage his finances.

Debt reduction

An equally important principle for effective financial management is to prioritize debt reduction. Bad debts can be a pressure and affect revenue, short-term and long-term plans of the project. Therefore, projects should not carry these bad debts from year to year. Instead, they need to be wiped out to ensure a sustainable and stable financial situation.

Outsource services to minimize costs

To minimize operating costs, you can also consider outsourcing services to handle reports, taxes, etc., instead of needing an independent accounting department (however, this only applies for small projects with few employees).

Update reports regularly

Besides cash flow forecasting, project managers also need to regularly update reports to be able to grasp important business metrics. Once a month, you should compare receipts, expenses, loans, deposits, interest… if any, they will be handled quickly.

Mechanism of project management financials

Fixed asset management

It includes tangible fixed assets and intangible fixed assets. This includes managing in kind, managing quality, calculating and allocating depreciation of fixed assets, repairing, upgrading, and liquidating fixed assets. This is quite a difficult task because it includes solutions for the division of management responsibilities, use, depreciation accounting, and also management in terms of technical and technological aspects.

Management of working assets and working capital

It includes studying the conversion of current assets, structuring and classifying working assets, managing inventory, setting up and using reserve funds, setting discount policies inventory products, working capital flow model, capital turnover analysis skills, and working capital efficiency.

Cash management

It includes cash use planning, borrowing, and debt repayment planning, organization, management, and control of cash funds at the head office and branches, organization of transactions with domestic and foreign banks, establish money safety policies when making payment transactions, especially electronic payment transactions.

Service trade credit management

It includes management of business methods, collection of money, use of service trade-credit software, management of debt and debt collection regimes, payment and purchase issues sell commercial services, use and manage financial-related utilities.

Project capital management

It includes the management of own capital, bank credit, and commercial credit, in addition, the management of stocks and corporate bonds, profits versus profits for reinvestment.

Management of investment decision making

Investment cost analysis is a model to calculate capital potential, investment ability, especially large-scale production and project investment. In particular, special attention must be paid to the analysis of profits and the analysis of risks in investment activities.

Sales and financial risk management

It helps identify and handle potential risks in the project in order to minimize losses.

Steps to effectively manage project financials

Want to effectively manage your project finances? Be sure to complete the following steps!

  • Have a clear picture of the situation of the project

Before you start looking for ways to make your project more financially efficient, make sure to have a clear picture of your current financial situation. Make sure you track, understand and review all key performance metrics on a monthly basis to understand the financial performance of your project.

  • Train financial staff properly

The first step to ensuring you are effectively managing your project accounts is to make sure that the people in charge of them are completely up to speed with both your internal processes and any financial software you use. 

  • Manage daily expenses

Even the most profitable projects can struggle if they don’t have enough money to cover day-to-day expenses. So every project needs to track and know their daily expenses. Expense management helps determine the spending of the project. It will allow you to plan your budget in place for the future.

  • Pay your debts and expenses on time

There are costs that occur when you incur penalties for not paying your debt on time. These are unnecessary costs that can be avoided when planning for the future. Keeping accurate records will save your project time and money. Take notes when payments are due, set reminders for them, and record when payments are made.

  •  Cooperation and communication

Ensure that all departments work and communicate with each other. Encourage a culture of feedback and open discussion. This will ensure that any issues that need improvement are detected as soon as possible.

  • Ensure customers pay on time

Projects can be in big trouble if customers pay late. It affects the cash flow of the project and leads to not having enough money to invest in projects or pay suppliers, etc. Therefore, make sure that your customers pay on time.

  • Effective inventory control

Inventory control affects almost every aspect of project operations. Poor warehouse management, especially for warehousing and distribution, dramatically increases rates of inefficiencies and poor productivity.

Notes when managing small project financials

The financial management of small and medium projects is often overlooked. One reason given is that small project owners are often overwhelmed with many tasks, so they have little time to manage their finances or if they do, they do not do well. In fact, up to 80% of projects of all sizes, without good cash flow management, will fail or even go bankrupt.

Here are some basic ways to help small project owners effectively manage their finances:

  • Sign up for a basic accounting class before you go into the project. The knowledge learned from that course will help you manage the project’s books, avoiding the case of being overtaken by the accountant.
  • Before starting a project, it is advisable to find an accountant who is well versed in the type of project you intend to enter and regularly consult and consult with this person. That will help you know what details to look out for and what to avoid when managing your finances.
  • Investing in technology is never wasted so choose the best financial management software for your project.
  • When the project is just starting to operate, the financial management is not much difficult, the manager should keep track of the books and practice the accounting theories that have been learned.
  • From the outset, managers should establish measures against fraud and dishonesty. These measures include the establishment of internal control and inspection policies.
  • An important note is not to ignore the monthly statements from the bank. On a monthly basis, the manager should reconcile the balance of loans, deposits, and interest with that report.
  • The monthly cash flow statement needs to be updated and monitored regularly and on time.
  • To streamline the human resource apparatus for projects, managers can outsource services.
  • Managers should build monthly financial reports to facilitate monitoring the progress of the project so that they can promptly make the necessary plans.
  • Accounts used for projects should not be combined with personal accounts for cash flow transparency.

Project financials management software

Definition

Project financials management software is a collection of working processes and cash flow control in the production and project process in order to bring profits to the project.

Typically, financial management software will have the following characteristics:

  • Assist in the preparation and approval of budget plans in the project.
  • Allocate financial resources to activities that generate profits for the project.
  • Provide reports with KPIs, thereby helping to identify and control each expense item, minimizing overspending.
  • Control the actual cost of each item for each department and department, helping to end duplicate and unnecessary spending.

What are the benefits of financial management software for projects?

For large-scale projects, the financial workload is extremely large and complex, without the support of software. Here are 3 benefits that financial management software brings to projects:

  • Understand the financial situation of the project: Financial management software is a tool to help summarize, store and quickly update the financial situation of the entire project. Managers will rely on the data on the software to capture the project situation, cash flow in and out of the project, thereby taking reasonable and timely adjustment measures.
  • Capital management and capital use structure: From the updated data on the software, administrators will know where the current capital sources come from, how much proportion they account for to ensure financial safety for the project. Not only that, the current financial management software has the feature of announcing, making reports on the use of capital, displayed daily on the homepage to help users easily monitor and allocate appropriately.
  • Improve the capacity of the financial management apparatus: Thanks to financial management software, projects can easily analyze and make financial statistics quickly, minimizing errors.
  • Moreover, most project financial management software today has the ability to work online, so wherever or whenever, managers can capture the situation of the project.

Several effective project financials management software

Odoo

Odoo enterprise resource planning software integrates more than 30 core modules with more than 1000 custom applications, providing effective support in project administration. Depending on the model, size, and usage needs, projects can choose for themselves the appropriate modules.

Financial Accounting – The accounting module is one of the core modules of Odoo, helping projects integrate bookkeeping with all accounting and financial management activities. Features of Odoo Accounting:

  • Accounting diary
  • Set up the initial accounting system
  • Term
  • Purchasing and Sales Accounting
  • Fund transfer
  • Personnel cost management
  • Easily make accounting reports: balance sheet, cash cage, number of pieces, age of debt…

Sage Live

Sage Live is a complete financial accounting and project solution that allows users to connect CRM, accounting, and financial data in a single application. With unified data, users will save more time building reports and can spend more time on other important issues.

Accounting Seed

Accounting Seed is an accounting application, full accounting and integrated with ERP software. This software helps to track financial data through the entire project lifecycle: from marketing, to project execution, to product sales and back-office accounting, to generating the financial reports required by the client. 

Project financials is considered the life source of the project, if the financial management is not effective, the project will be in danger of standing on the verge of bankruptcy. The above article has provided you with beneficial information about project financials as well as tips for effective financial management during the developing process of organizations.

Hopefully, through this article, you have grasped the concept and know how to effectively manage your company’s finances. We also hope that this information will help you have a better start to your manager career.

Visit our websites to get more information and a free PMP Practice Test. To download, visit our website for your IOS or Android device.