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.

 

 

Top Tips for PMP Exam Preparation in 2022

Let's start with some basic concepts about how to get started studying for the PMP exam preparation. Check it out now!

January 1, 2022

“How can I begin to ensure I pass the Project Management Professional (PMP)® Exam in a short time?” you might be thinking right now. Be patient, be calm, and keep reading this brief essay to learn the steps of this process and how each one connects to the next. To avoid feeling overwhelmed, remember to complete one step before moving on to the next. Preparing for the PMP test will need regular study and comprehension of the subject.

The methods, processes, and resources listed here can help you prepare for and pass the PMP test fast and successfully, along with your devotion. Let’s start with some broad ideas on how to get started with PMP exam preparation.

pmp exam preparation
PMP Exam Preparation

Review the PMP Exam

Before digging into the PMP preparation, you should first understand the PMP exam. The PMP exam is regarded as one of the most challenging projects management exams due to its extensive syllabus, the workload necessary, the kind and length of questions given, test duration, and answer options. It assesses the candidate’s understanding of project management and patience. This is not to say that passing the PMP exam is impossible; if you study hard and prepare effectively, you can pass the certification examination.

Before creating your complete study plan, you may certainly look for a content outline for PMP Exam 2021:

The updated PMP exam will cover three new areas:

  • People: emphasizing the skills and actions required to lead a project team effectively
  • Process: Reinforcing the technical components of project management
  • Business Environment: emphasizing the link between projects and organizational strategy

The new PMP test included the following sections:

  • Although there will be 180 questions (compared to 200 on the last exam), the same number of questions will be graded
  • The exam will take 230 minutes to complete
  • One more 10-minute break for the computer-based test, for a total of two 10-minute breaks. For paper-based tests, there are no planned breaks
  • Multiple answers, matching, hotspot, and restricted fill-in-the-blank questions will be included in the question.

Read more about the NEW PMP EXAM

How to prepare for PMP exam?

How much time would it take to prepare for the PMP Exam?

It depends on your job experience, knowledge level, and academic background. The two categories are listed here to make it easy to understand (based on the academics)

  • Category 1: Candidates having a Project Management academic background
  • Category 2: Others with no project management experience The purpose of this category was to determine the amount of time necessary for preparation depending on the candidate’s academic knowledge or lack of work experience.

Because category 1 applicants will have a basic understanding of the subject and will be familiar with the bulk of the words used in PMBOK or reference books, they will take less time to finish the course than category 2 candidates.

45 days for Category 1 and 60 days for Category 2 will be enough time to prepare for the test and pass it on the first try (PMI permits three attempts, the first is free and the others are charged). However, this varies from person to person and is dependent on their abilities.

The PMP test covers a wide range of project management topics. It is a difficult and comprehensive exam that goes beyond the basics presented in other entry-level exams. It’s not impossible, but it’s clearly out of reach. You may pass the PMP test 2021 with high scores if you have the appropriate materials and effective PMP exam preparation, even an urgent preparation which will be mentioned in the next paragraph.

How to Get a PMP Certification Fast?

So you’ve chosen (or been told) that you’ll finish your PMP in a short amount of time.

To determine your eligibility, create a foundation, and begin a preliminary strategy, follow these 10 Steps to Becoming a PMP:

  • Step 1: Have a look at the Project Management Professional (PMP)® Credentials Handbook
  • Step 2: Confirm your eligibility to become a PMI-certified project manager
  • Step 3: Join PMI and your local PMI Chapter as a member
  • Step 4: Enroll in the PMP Exam
  • Step 5: Read and understand the PMBOK® Guide. Twice
  • Step 6: Buy a PMP Self-Study Course and read a PMP Study Guide
  • Step 7: Attend a PMP Workshop in Person
  • Step 8: Try to answer as many of the PMP Exam Sample Questions as possible
  • Step 9: Work hard in class and make a plan
  • Step 10: Take the Exam
  • Step 11: Earn 60 PDUs every 3 Years (this is a bonus step)

An important point to keep in mind during this process is that earning the PMP certification proves your dedication to the project management industry and demonstrates credibility, allowing you to earn better pay and have a stronger résumé than non-PMP certification holders. So don’t lose hope during this process.

Don’t be alarmed now that you’ve confirmed your eligibility to take the exam. Relax, take a deep breath, and start concentrating… The first and most essential thing to remember is not to feel overwhelmed because there is a lot of material to study and a variety of training options available.

Start clearing your calendar to allow for sufficient daily study time as part of your early preparation, and recognize that this will not be an easy road to success. You will benefit from reading through lessons gained from others who have prepared (and passed) on a “fast track” technique in addition to studying A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

Here are my key tips and resources to allow you to start on the fast path to get the PMP certification and attain the coveted Project Management Professional (PMP)® certification.

Start clearing your calendar to allow for adequate daily study time as part of your early preparation, and recognize that this will not be an easy road to success. You will benefit from reading through lessons gained from others who have prepared (and passed) on a “fast track” method in addition to studying A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

The above are some of our key tips and suggestions to help you get started on the fast track to earning your PMP certification and earning the coveted Project Management Professional (PMP)® designation.

How to Pass the PMP in 30 days?

While we do not suggest studying for and passing the PMP in 30 days, there are instances when you may find yourself in this situation for legitimate reasons. To begin, here we will provide you with a step-by-step guide to creating your own personalized study schedule.  Here are PMP Study Plan templates to help you in getting started.

DomainPercentage on TestStudy time
Initiation0.133.9 days
Planning0.246.2 days
Executing0.319.3 days
Monitoring and Controlling0.257.5 days
Closing0.072.1 days

You’ll also need to take practice exams over this 30-day period, maybe at the 15-day, 21-day, and 29-day marks, or more often. When you add up all of these days, you’ll find that you have 29 days, which leaves you with one more day to review in which you are strong and weak during your PMP certification preparation.

How to Pass the PMP in 10 days?

Attending a PMP Boot Camp is about the only real approach if you have less than two weeks to prepare for and pass the PMP. There are two significant drawbacks to attending a boot camp:

  • The cost of the Boot Camp (which is generally between $1,500 and $2,500)
  • How thoroughly you take in the information (memorization versus true absorption).

The PMP Boot Camps, on the other hand, provide the benefit of time — most boot camps are three to five days long, and the PMP test is offered on the last day. However, the boot camps do need much “self-study” before and during attendance, which can be difficult to plan and organize in such a short time.

Learn more about how to pass

Samples of PMP Study Plan

  • Week 1: Concentrate on the PMBOK Guide’s MAIN DOMAINS

Integration, scope, schedule, and cost are all important factors to consider

Try some practice questions after each chapter

Finish your first mock test before the end of the week

  • Week 2: Go over the remaining topics in the PMBOK Guide

Quality, Resources, Communications, Risk, Procurement, and Stakeholders are all important things to consider

More practice questions are available. PMP Exam Prep should be read

Exam Preparation

Take two additional practice tests

  • Weeks 3–4: Take four mock exams

Pay close attention to any weak spots that the test(s) highlight

Examine the PMBOK guide’s first three chapters

PM Roles, Matrix Types, and PMO Look into Agile Concepts and Professional Conduct as well

Exams and the PMBOK Guide should be read in order

PM Exam preparation, with an emphasis on any weak areas.

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

Tips for PMP Exam Preparation

PMP Practice Test by ABC E-Learning

You’ve come to the correct site if you’re looking for a PMP Practice Test Source. Our PMP Exam Prep is a free website that offers users unique online PMP exam preparation services. Our PMP exam questions were carefully developed and are all based on the actual PMP test structure. Let’s use our free PMP practice exam to boost your comprehension so you can achieve your PMP certification quickly!

Our PMP practice exams have certified hundreds of project managers. You may practice on both the web and mobile versions of our PMP Exam Prep. It’s available for download here:

IOS: PMP® Exam Prep

Android: PMP Exam Prep 2021

Form a study group

It may be a lonely path to studying for the PMP test. After a while, your friends and family will tire of quizzing you and leave you in your own ways. Self-study may get a bit too daunting at times, even with your PMBOK Guide tucked under your arm or PM study flashcards set as your laptop’s screen saver. You have the option of continuing on your own or finding a study partner (or friends) to keep you motivated and on track. A good study group may help you have better PMP preparation while also making learning more enjoyable.

There are a variety of reasons why you would want to join a study group. To begin with, studying in a group relieves the boredom of studying alone. It’s great to be with people who understand—and share—your exam anxiety. In addition, group study provides new and diverse viewpoints and ideas. The synergy of shared experiences generates a deeper pool of information from which to draw throughout the test. A study partner can also assist you in clarifying any subject matter that is unclear or confusing to you. Similarly, you might do the same for your friends; this chance to educate also has another benefit: explaining knowledge to others may help you solidify and clarify it in your own mind.

However, maybe the most significant advantage of studying with others is that it compels you to study. You won’t procrastinate if you’re genuinely dedicated to your group and attend your planned study sessions—which is one of the most common mistakes when studying for the PMP test. Your classmates may be a source of encouragement and support, and they will expect the same from you.

So, which study group would be the greatest fit for you? That depends on your preferences and study habits; however, there are a few options:

  • Study Buddy: This is a picture of you and a coworker. By asking around at work or posting a request on your company’s intranet, you might be able to find a study buddy. It’s a lot easier to arrange only two schedules with a single study companion, and it’s brutally evident if one of you doesn’t come up prepared. At the same time, being there for your buddy becomes important, thus this group arguably demands the most commitment
  • Local Study Group: This group consists of numerous people that gather on a regular basis in their local area. If you want to meet in person but don’t have a study partner in mind, this is a fantastic choice. You can look for a study group by posting a request via social media or forums on the Internet
  • Online Study Group: This group consists of numerous students from diverse geographical places who meet on a regular basis and share their learning through Skype, Google Hangouts/Groups, or other meeting apps. If you have schedule conflicts or can’t commit to a physical place, an online group is ideal since you can join your group from anywhere.

However, forming or joining a study group isn’t the end of the process. Because your study sessions are no longer just you, you’ll need to establish guidelines or ground rules for your study group to succeed. Here are some suggestions for getting the most out of your study group:

  • Maintain a daily meeting time, whether weekly, biweekly, or monthly, and stick to it
  • Do have a clear objective or goal for each meeting – decide what you’ll discuss or review in the following session at the end of each study group
  • Make specific assignments for your meetings; for example, you might designate a different session leader to each meeting, someone who would lead the conversation that week
  • Share contact info, or even better, build an online space where the group may submit questions and other information in between study sessions
  • Respect your group’s (or buddy’s) time by arriving on time and having finished all of your responsibilities
  • Prepare any questions you want to ask the group
  • Don’t be afraid to speak out about things you don’t understand, and don’t be hesitant to speak up about things you do understand – everyone will benefit!
  • Before adjourning, make your plan and discuss assignments for the next session so that everyone understands what they are accountable for.

After preparing for PMP exam, you can learn How to pass the PMP exam on your first try

If you were intending to study for the PMP exam using self-study, you might think about combining your approaches. Because the path to PMP certification preparation may belong, why not invite a friend along for the ride?

In summary, if you want to pass the PMP test in 30 days, or even 10 days, you must build and bring a supportive behavioral approach that includes a Can-Do mindset and strong drive. After that, you must develop a complete strategy. The needed materials, impacted stakeholders, upcoming problems, assumptions made, and a mentor to be engaged will all be identified in this plan.

Next, find and acquire the required materials, as well as develop a thorough study plan. Finally, stick to the plan and keep track of your progress. Hope you will create a complete PMP Exam Preparation for yourself through this article, and pass your PMP test within a short time of preparation.

 

Project Management Process and Its Five Procedures

In this article, we'll go over the entire project management process. Visit our website to get useful information and free PMP Practice Test!

January 1, 2022

We all come with projects in our day-to-day routines, whether at home or at work.

Projects might range from preparing a dinner at home to monitoring the construction of a skyscraper. Whatever the case may be, they all need some level of management to guarantee that they do not end in failure.

We are sure you’d agree that successfully completing a project, whether as a person or as an organization, maybe a difficult task. There are several jobs to do, people to consult, tasks to assign, and, most importantly, deadlines to meet, all while ensuring that the project goes well and that your objectives are achieved.

If you want your project to be completed properly and successfully, you must complete each project at the appropriate time and in the correct sequence.

How do you go about doing that? The solution is simple: project management.

Project management supports the proper management of each step of the process and ensures that it is carried out perfectly. In this article, we’ll go over the entire project management process. You will be able to complete any project with ease and on schedule. Let’s get started without wasting any time!

What Is Project Management?

Project management is known as the process of applying knowledge, tools, skills, deliverables, and strategies to successfully guide a project from conception to completion while ensuring that all project goals are accomplished on schedule and within certain constraints.

In simpler terms, it is the process of overseeing a project from beginning to end to ensure that the objectives are completed on time.

To do so, you must first identify the project goals, how you can achieve them, how long it will take you to accomplish them, what resources you will need to achieve them, and how to overcome any difficulties you may encounter along the way.

Project management gives a framework to what appears to be a complicated process and makes it easier to understand.

Learn more deeply about What is project management

Project Management Process
Project Management Process

 

How the Project Management Process was Created

The Project Management Institute developed five stages of project management, or as we prefer to call them, project management processes.

The Project Management Institute (PMI), which was founded in 1969, is the world’s biggest non-profit membership organization for project managers. This organization establishes guidelines for program, project, and portfolio management. It also offers certificates and training.

So, in the project management world, they’re a big deal! They assembled a team of over 80 PMI members to write A Guide to the Project Management Book of Knowledge (PMBOK Guide), which is now in its fifth edition, in order to standardize project management practices.

This book includes a process standard that may be used for a variety of projects, but it also acknowledges that every project is different. When project managers use the techniques in that guide, projects get simpler.

Read more about Quality Management

Why do you need project management skills?

Project management is a skill that a project manager must possess. The apparent explanation for this is that it helps you in completing your assignments efficiently and on schedule.

Besides, there are a number of other advantages when you have project management processes. You gain the following benefits by employing appropriate project management techniques:

  • Better delivery service efficiency: You work smarter rather than harder and longer to get excellent outcomes.
  • Improved work quality: Your team is able to provide a higher-quality project output.
  • Increased customer satisfaction: Your consumers are pleased, and as a result, they continue to return for more.
  • Team development and growth: When team members communicate consistently, it becomes simpler for them to work together smoothly.
  • Competitive advantage and a greater standing over your competitors: You earn the reputation of being the organization that outperforms the competition.
  • Effective risk assessment: With everything in place, it’s simple to detect potential risks and choose the right plan of action to eliminate or decrease them.
  • Service expansion: You may simply grab fresh possibilities to develop your business if you have a reputation for excellent performance.

Now that you understand what project management is and why you need it, you can move on to the most essential topic: how can I effectively manage my project?

Simplifying The Project Management Process

The best thing about the project management process is that it has procedures in place to assist simplify jobs and make them look more manageable.

There are five procedures you must perform inside any project management process to get the most out of it. These project management process groups will walk you through all you need to know at each stage of the project in order to get the best outcomes possible.

We’ll concentrate on professional projects rather than personal ones in this post. These suggestions, on the other hand, may simply be applied to your own, day-to-day work.

The five project management process groups include Initiating; Planning; Executing; Monitoring and Controlling; and Closing. What problem are we attempting to solve by having five separate process groups? These procedures provide us with the organizational foundation we need to plan, execute, and manage a successful project. With that in mind, let’s take a closer look at each of these process categories to understand why they’re so important to project success.

Procedure One: Initiating

Initiating, according to PMI, aims to form the vision of what has to be done. The sponsor formally approves the project, the first scope is determined, and stakeholders are identified. Stakeholder identification (and subsequent management) is critical in this situation since it may actually make or break the project. These processes are implemented to ensure that initiatives and programs are not only approved by a sponsoring entity but also aligned with the organization’s strategic goals. Projects may be begun and carried out haphazardly if this is not done, with no clear goal or objective.

It’s also worth noting that management chooses and authorizes the project manager here.  Because project managers frequently have accountability but limited authority, it’s critical to authorize and define the PM early on. In a strict sense, if you don’t formally authorize a project, your project doesn’t exist.

Procedure Two: Planning

Establishing the project’s total scope is an important part of the planning process. While it may appear that scope (together with risks, milestones, summary, and budget) was defined at a high level in Initiating, it was not. The project manager uses progressive elaboration, an iterative and increasingly thorough planning approach that allows project documentation to be created at a much more detailed level over time.

PMI identifies twenty-four distinct processes that are involved in planning in the PMBOK® Guide. While a project team can pick which of these to use for a specific project, the message is clear: if you don’t plan, your plan fails. Too many organizations begin a project with very rudimentary preparation, believing that everything will fall into place on its own. But, all too frequently, anarchy reigns when there is no actual or sufficient planning.

The ability of the team to think through the entire project in advance is an important concept in planning. As a result, they examine not just a range of plans, but also all of the things that may go wrong (risks) and how they could respond to them. (For the record, the team should also be on the lookout for unanticipated chances that they may take advantage of.) What kinds of plans are created? First and foremost, there must be a project management strategy that directs all aspects of the project. This is critical since it serves as the project’s overarching governance document.

Without going into depth about each and every document generated, here’s a quick rundown:

  • Documents that define our scope (what we do and don’t do);
  • Documents that outline certain criteria in detail;
  • Documents that offer cost and time estimates;
  • Documents that include a timeline;
  • Quality, communication, risk, and procurement plans are included in these documents.

We also define scope, scheduling, and cost baselines against which we can track our progress (in Monitoring and Controlling). We’re also continuing to think about how we’ll manage and involve key stakeholders throughout the project’s life cycle.

A quick glance at the above reveals the fundamental nature of what is done during Planning. It lays forth your strategy, your route to success. You should make these plans in the same way that an architect would design a blueprint for a structure. The team should have a clear understanding of not just what they’re supposed to do – what’s in and out of scope – but also what it will take to complete the project on time and on budget at the conclusion of this process group.

Procedure Three: Executing

The work is actually done in the Executing process group. The project management strategy will help us in staying on schedule. The project team will begin working on the deliverables here, while the project manager will maintain track of all of the resources. And if it was the only thing that happened, it may have been enough. However, there are a few additional things that must happen throughout the execution process.

Because the project team is so crucial to its success, it stands to reason that developing the team is also important. As a result, it’s assumed that the project manager would not only acquire and manage the team, but will also nurture it through team-building exercises. Similarly, the PM is responsible for managing not only communications but also stakeholder engagement, project and product quality, and – if procurement is involved – supporting the vendor contracting process.

The majority of the funding will be spent and the project’s deliverables will be created in this section of Executing. And it’s probable that this is where we’ll start seeing demands for stakeholder changes. While the project team can put approved modifications into action, only the change control board has the authority to accept or reject them.

Depending on the duration of the project, it might take days, weeks, months, or years to complete. Execution solely, however, is insufficient because it is necessary to keep the project on schedule. This is when the following process group plays its role.

Procedure Four: Monitoring and Controlling

The project manager evaluates the overall performance of the project and makes needed modifications to keep it on track or bring it back on track in the Monitoring and Controlling process group. What exactly does it entail? In the PMBOK® Guide, these are “processes essential to track, review, and control the project’s progress and performance; identify the areas where plan adjustments are needed, and initiate the appropriate changes”. The fact is that you can’t always expect to stick to your schedule. However, the fact that there’s a high possibility you won’t. 

The process of getting back on track, comparing the plan to the actual, evaluating variation, and taking remedial action is known as monitoring and controlling.

Scope, cost, and scheduling are examples of aspects that may be controlled. There are differences in the tools and strategies you would use to regulate each of them. However, they all have baselines that were established throughout the planning process. You don’t make adjustments to these baselines lightly since we’re measuring our success against them. It is possible to make. However, as previously said, changes will need to be carefully monitored and approved on a case-by-case basis.

Determine how you will monitor and control assuming that you are traveling a plan or a route across the country.  If you were lost and didn’t have a GPS, you’d pull over, ask for directions, and get back on track, or you’d alter or update your itinerary based on new information, such as a new road that would reduce the travel time in half.

The lesson here is that expecting yourself to stay on track just because you’ve planned to do so is a recipe for disaster. Only constant monitoring, tracking, and reporting will keep the project on pace to fulfill its goals.

Procedure Five: Closing

From the name, it should be quite obvious what occurs here. You not only formally close the project, but you also receive the customer’s approval and acceptance. Despite the fact that this should be obvious, far too many projects fail. People quit attending meetings and instead turn up at the next one. The same level of rigor being used throughout the project should be applied here as well. By archiving data, holding a lessons learned session, and celebrating and releasing the team, the project manager should properly conclude the project.

In order to avoid reinventing the wheel, the lessons learned, along with other historical information, should be stored centrally and used as input to future initiatives.

The bottom line is that, while these process groups are not always simple to execute, failing to do so might result in the team never realizing the full potential of their highly strategic projects.

The Easiest Way to Structure Your Project Management Process

There will be a lot of progress assessment and tracking once your project starts. And, to be honest, it may be a bit overwhelming.

So, how can you keep track of these things without placing yourself in such a stressful situation? Our project management software is the easy answer.

You can handle every phase of the project management process in one place with our project management software. You will be instructed on the next action to take at each stage of the process, and you will be able to follow the development of your project from start to finish.

You can now complete your tasks more successfully and with more ease thanks to your project management software.

We’ve prepared a checklist of project management processes and the steps to perform inside each procedure to make things even easier for you.

The best feature is that each process is linked to our project management software and can be uploaded with a single click into your account. You may instantly begin controlling your processes.

As you work on your project, this will act as a fast reference guide, reminding you of key tasks to take.

Conclusion

As you can see, project management may be a simple process if you understand the right processes and stages inside each procedure, as well as when and how to take them. Without the five steps of the project management process, no project is complete.

No matter what type of project you’re working on or what industry you’re in, you’ll need to start it, plan it out, launch and execute it, track its progress, and close it out when it’s over.

The benefit of following these project management process groups is that they have a positive impact on your results. Your team produces high-quality results on time, and stakeholders and clients are pleased enough to return. Finally, there is a significant return on investment.

It increases productivity and promotes a positive relationship with the staff in the workplace. It improves your productivity as you go about your everyday duties as an individual.

There’s more good news: using our project management software, you can arrange your management process to make it even easier.

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

Several Effective Project Management Template For Everyone

In order to manage and maintain projects efficiently and intuitively, it is possible to use effective project management templates. Let's start right now!

January 1, 2022

Project management is a task that requires meticulousness because it determines the effective implementation of the project. It plays a key role in tracking and completing projects. However, not everyone knows how to manage projects effectively. That’s why the project management template is built up. Let’s follow this article for more useful information!

What is a project plan template?

The project management pattern is an essential element for scaling successful projects. It briefly describes how the project will achieve the goals and priorities mentioned.

Customizable templates allow you to adjust the content of the template structure as well as the related information to fit your project’s demands and features.

Let’s take a simple example. In case you need to use a project management template from Microsoft Office, it is possible that you have to modify the general template in order to add your company information and specific project features when creating a new project plan. Thanks to the development of customizable templates, now you can have a chance to completely save this information directly in the available template, therefore, it will be automatically populated when you need it.

Learn more about project plan outline in Project planning.

Project Management Template
Project Management Template

 

Types of project management template (Project plan examples)

In the management process of any project, there are a large number of chances for you to use customizable project templates instead of starting from scratch. Below are several opportunities that you should pay attention to. Let’s remember these innovative types of sample project plan templates in case you have to decide to build project management software.

Request forms

In the management software of any project, request forms have the responsibility to capture the work requests when they come in. These types of forms allow you to establish a specific process for the demand of submitting, keeping track, evaluating as well as implementing these requests.

In case you have to create a templated request form, let’s remember to prompt the user/guesses to provide several related details about their work-associated request. Template requests will usually offer a variety of question types, including short-answer questions, paragraphs, multiple choices, date responses,… or some other related ones.

Creative brief templates

The process of creating an effective creative brief template allows you to synthesize and organize requirements into a precise and general theme. Brief request forms often require a general view of the request, including the profile of the audience, specifics on execution, as well as the specific names related to stakeholders within the project.

IT/help desk request templates

The IT/help desk requests are templates designed for the purpose of saving or minimizing technicians’ valuable time as well as optimizing project resources by clarifying important project details or requirements. It also assigns a priority level to the project request with the purpose of workflow optimization.

HR & administrative request templates

This type of form is designed to help department personnel collect important information, minimizing the need to exploit small information from project employees.

Templates designed for tasks, folders, and projects

This type of project management software template allows you to structure or refactor your project or tasks to help optimize the administration process. The folders are created based on variable criteria you set and can be changed depending on your needs.

Templated tasks, folders, and projects is completely ready to give you innovative frameworks to start working smoothly. If you recognize the similarities between your jobs, let’s build a custom template to save time and effort.

Templates for tasks, folders, and projects give you the opportunity to simply duplicate. By building a clear folder structure, you can ensure consistency throughout your project management. With the given templates, you have predefined outlines and structures, helping you to create a new project or task easily without much effort.

Report templates

The report templates are designed with the purpose of helping you create display reports easily. In addition, it is also built to help you track work progress or evaluate work scientifically, helping you distinguish what work is in progress and what needs to be delivered. Reports in project management are also considered an innovative method to report the working progress with related stakeholders.

Here are several popular report templates:

  • Active tasks by assignee: Helps keep track of active tasks, work in progress, and tasks assigned by Stakeholders.
  • Weekly project status: This allows you to track the project’s status, including their finish date, and even the owners.
  • Overdue tasks by assignee: Overdue tasks which are made from the folders or projects.
  • Projects due this month: They are selected projects due this month, including the owner, status, finish date for the purpose of tracking the progress within the month.
  • Unassigned tasks: Keep track of tasks that have not been assigned or are about to be assigned. Helps you to be aware of the upcoming task of the project.

But what in case you’ve got clients or partners who have particular criteria they need to see in reports? On the off chance that you’re working from a standard layout, you’d have to alter the report every time. Luckily, with the customizable formats in your venture administration program, you’ll be able alter the layout and after that run the asked report as numerous times as required, with no extra control required.

Several other popular project plan templates

Here are a few more ventures and exercises that can take advantage of the utilization of formats:

  • Professional services management
  • The event management
  • Product launch
  • Incoming approvals
  • Social media or websites plans
  • Occupation candidate tracking
  • Planning of editorial calendar
  • Agile frameworks

In order to understand how to utilize these project management templates, read more about Project management.

Benefits of customizable templates

It’s fundamental to select a venture administration apparatus that’s adaptable sufficient to bolster distinctive extended prerequisites and people’s special work styles. Customizable formats permit clients to make personal sees and reports that reflect their working fashion and the data they care approximately.

Customizable ask shape formats moreover empower you to differ the data asked and collected based on the client or situation. For example, customizable frame formats give you the adaptability to different questions for diverse sorts of clients or ventures.

After all, the work admissions ask form for a fixed-price benefit venture requires essentially diverse data than the shape for a cost-plus-material and labor project. Customizable layouts are not guaranteed that everybody begins with the proper structure and organize but they moreover lower the chance of fundamental data being missed.

In case you begin to work on a venture, a blank canvas can be alarming. How do you guarantee you’ve got everything you wish/require? How do you align your objectives and needs with other groups? Is there a way to make a formal handle to keep repeating work steady?

The answer, of course, is using these types of customizable templates in the working process of your project management software.

On the off chance that you begin an unused extend from scratch, you and your group are in your possession to gather all of the data almost what assignments, deliverables, prerequisites, etc., are required. In comparison, in the event that you begin with a layout of a comparative template, you as of now have most, of this data, is populated, and your group basically must affirm that it’s all significant.

This procedure brings down the hazard of overlooking critical necessities, and it also decreases the time it takes to gather data and kick off a venture. Customizable formats make duplicating work simple by computerizing tedious forms and keeping up consistency over ventures.

The most important thing is that customizable templates in the management procedure of projects set you and your group up for repeatable victory and make you more proficient.

The above article has provided you with beneficial information about the project management template. 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 Project Risk Management?

You are wondering about project risk management and framework. Visit our website to get useful information and free PMP Practice Test!

January 1, 2022

Risk management is gradually becoming an extremely necessary aspect for every business in the increasingly competitive business market. What is project risk management? How to plan a  risk management framework? Let’s discover more in this article.

What is Project Risk Management?

What is risk in project management?

Until now, there is no unified definition of risk. Different schools or different authors give different definitions of risk. These definitions are rich and varied, but can be divided into two major schools of thought:

  • Classical school: According to the traditional school, the risk is considered bad luck, loss, or danger. It is the loss of assets or the decrease in actual profit compared to the expected profit. Risk is also regarded as uncertainties occurring in the business and production process and adversely affects the existence and development of an enterprise. In summary, from this point of view, the risk is damage, loss, danger, or factors related to danger, difficulty, or uncertainty which may happen to people.
  • Modern school: According to the modern school, the risk is a measurable uncertainty that brings both positive and negative impacts. Risks can bring losses to people, but they can also bring benefits and opportunities. If people actively study risks, people can find preventive measures, limit negative risks, and accept opportunities that bring good results for the future.

Risk consists of 3 factors: the probability of occurrence, ability to affect the object, and duration of influence. The essence of risk is uncertainty, then if it is certain (probability is 0% or 100%), it is not called a risk.

Risks can be distinguished according to the following criteria:

  • Dynamic risk: associated with change, especially in the economy. Those are risks whose consequences can be beneficial, but can also bring loss (the change in customer tastes may be suitable for the product that the business is trading or not? Is the change in technology suitable with the financial capacity of the business, is the change too fast or not?…)
  • Static risks: the consequences of which are related only to the occurrence of losses or not, but not to the possibility of profitability, and are not affected by changes in the economy. Static risks are often related to objects: property, people, civil liability.

Read more about What is project management

What is risk management in project management?

Project risk management is the process of identifying, assessing, and controlling threats to capital and income within an organization. Threats and risks in the business can come from many different sources such as financial uncertainty, legal liability, errors in strategic management; or threats also come from information technology security, data-related risks…

Project risk management is usually performed by managers and leaders to identify situations, problems, and events that may affect the business in the future to promptly take preventive measures. Therefore, they can limit the amount of risk while finding ways to turn the risk into an opportunity for success.

In the management system in the enterprise, project risk management is considered a relatively important factor with core values ​​that need to be considered in parallel with production and business activities.

Project Risk Management
Project Risk Management

 

Project risk management framework

Project risk management plan

So how to manage project risk? Besides the case-only plans and products such as alternative provider lists or insurance policies, companies that successfully manage their risk also use common practices to manage the potential hazards they have identified. In many cases, new positions are created, such as enterprise risk managers, or new departments are developed to integrate risk management into day-to-day operations, including maintenance and repair teams, including quality control and equipment maintenance.

In general, all project risk management processes follow the same basic steps, although sometimes different terms are used to describe these steps. These 5 steps of the project risk management process combine to deliver a simple and effective risk management process.

Project risk Identification

Risk identification is the first step in the PMP risk management process. This step will determine the effectiveness of risk management. Managers need to detect, identify and conduct the treatment and analysis of potential risks in the business.

To be able to do this, it is necessary to know and have clear information about the business, operation method, operation, organizational structure along all issues affecting the business. The risks will depend on different environments such as human resources, financial resources, or stakeholders… Therefore, the risks of one enterprise cannot be applied to the risks of another corresponding enterprise.

Risks in a business can be divided into the following four groups:

  • Strategic risks: risks arising from issues related to governance, business environment, and stakeholders such as customers, competitors, investors… (planning and allocating resources, acquisitions, divestments, and relations with related parties…).
  • Operational risks: risks related to the efficient use of resources in daily operations, risks from processes, systems, people, and culture… or due to the influence of events outside. For example business continuity, daily business processes, information management, safety – health – environment….
  • Financial risks: risks arising from transactions of a financial nature, including purchases, sales, investments, and loans or other business activities (such as interest rate risk, exchange rates, commodity prices, taxes, capital structure, liquidity, credit…);
  • Compliance risks: risks related to the observance of regulations/regulations of enterprises, laws and other legal documents of the State related to business activities of enterprises, issues Legal issues related to contracts/commitments (control environment, ethics, fraud, contract provisions, etc.)

The classification of risks will help us to focus and deal more effectively with the problem that exists.

Project risk analysis in project management

Once you’ve identified potential problems, you need to dig deeper into the risks. In this step, it is necessary to estimate the probability and impact of each risk to decide which risk to focus on first.

Several factors such as the potential financial loss for each organization, the duration of the impact, and the severity of the impact will greatly contribute to an accurate analysis of each risk. Taking a holistic view of risk will help you spot common problems and know how to adapt the project risk management process for future projects.

Project risk response planning

The project risk management plan will be implemented in the most specific and detailed way when approved by the leaders. After that, it will be notified to all employees and relevant departments to implement.

The plan needs to be clearly stated about the tasks and roles of each individual and group to perform well and bring the highest efficiency.

Project risk monitoring and control

The project risk management plan is never perfect. Implementation and actual losses have led to the need to change plans and absorb information to make other rational decisions to respond to risks. Risk monitoring and control include the following steps:

  • Identifying risks and planning strategies these types of risk
  • Classification of risks
  • Keeping track and check existing risks on a regular basis
  • Risk reporting: Risks need to be continuously updated and reported to help leaders or team members understand the status or threats they need to face. Risk reporting needs to be transparent and clear in order to make it accessible to all authorities and understand the situation.

Project management risk assessment

You assess or rank risk by determining risk level, which is a combination of likelihood and consequence. You make the decision about whether the risk is acceptable or if it is serious enough to warrant a change.

  • Determine the rate of incidents since the statistical information does not contain all events that have occurred in the past
  • The opinions and statistics available are considered the primary source of information
  • Rate of incidents will be doubled by events with a negative impact

Recent studies have shown that the benefits of project risk management depend less on the method of management and more on the frequency and manner of risk assessment.

Read more about Project Management Triangle 

Conclusion

Although project risk management is essential for business operations, it also has certain limitations. Many techniques in risk analysis, such as modeling or simulation, will require large amounts of data to be collected. This data collection can be costly and unreliable. At the same time, using data in decision-making may result in poor results if the indicators used to reflect reality are more complex than the situation.

Project risk management also has limitations in terms of lack of analytical expertise and time. Risk management programs are developed to simulate risks and threats that have a negative impact on the company. Although cost-effective, complex programs require trained personnel with comprehensive skills and knowledge to obtain highly accurate results.

In general, project risk management is a process that every business needs to control the risks that may threaten its growth. However, it is necessary to have an appropriate project risk management process and method to optimize human resources and costs.

The above article has provided you with basic information about project risk management as well as how to plan a risk-management framework. Now, it’s time for you to start with the first step of this framework.

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