🎯 PMP Day 3: Complete Training Guide

Scope, Schedule & Cost Management Mastery

Duration: 8 Hours | Focus: Three Critical Knowledge Areas

📋 Day 3 Overview & Learning Objectives

🎯 What You'll Master Today

Core Learning Objectives

  • Master all 18 processes across Scope, Schedule, and Cost Management
  • Apply Earned Value Management (EVM) calculations with confidence
  • Understand Critical Path Method (CPM) and schedule compression techniques
  • Create Work Breakdown Structures (WBS) following best practices
  • Analyze real-world project scenarios and make informed decisions
  • Prepare for 25-30% of your PMP exam questions
Exam Weight Distribution: These three knowledge areas represent approximately 25-30% of the PMP exam. Scope Management (6-8%), Schedule Management (8-10%), and Cost Management (8-12%) are heavily tested with scenario-based questions.

🕐 Today's Schedule

Time Session Topics Key Deliverables
9:00-10:30 AM Session 1 Project Scope Management WBS Creation, Requirements Matrix
10:45-12:15 PM Session 2 Project Schedule Management Network Diagrams, CPM Analysis
1:15-2:45 PM Session 3 Project Cost Management Cost Estimates, Budget Baseline
3:00-4:30 PM Session 4 Earned Value Management EVM Calculations, Forecasting
4:45-6:00 PM Session 5 Practice & Review Sample Questions, Action Plans

🧠 Day 3 Memory Framework

S.S.C. = Success Strategy for Certification

  • Scope - Define what's included/excluded
  • Schedule - Plan when work gets done
  • Cost - Control how much it costs
Essential Keywords for Today: Scope baseline, WBS, requirements, critical path, float, dependencies, cost baseline, EVM, CPI, SPI, forecasting, variance analysis, change control, decomposition, precedence diagramming method
🎯 Session 1: Project Scope Management (9:00-10:30 AM)

🎯 Scope Management Overview

Project Scope Management ensures that the project includes all and only the work required to complete the project successfully. It's about defining what's IN and what's OUT.

Project Scope: The work that must be performed to deliver a product, service, or result with the specified features and functions.
Product Scope: The features and functions that characterize a product, service, or result.
Plan Scope Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
1. Plan Scope Management

Purpose: Creates a scope management plan that documents how the project and product scope will be defined, validated, and controlled.

Key Outputs: Scope Management Plan, Requirements Management Plan
✅ Should Do:
  • Define scope definition process clearly
  • Establish validation procedures
  • Create change control procedures
  • Define WBS creation process
❌ Should Not:
  • Skip scope planning in favor of "getting started"
  • Use one-size-fits-all scope management approach
  • Ignore stakeholder input on scope processes
📖 Scenario: Software Development Project

Situation: You're managing a new mobile app development project. The client wants to start coding immediately without proper scope planning.

Action: Explain that Plan Scope Management must come first to establish how requirements will be gathered, scope will be defined, and changes will be controlled.

Result: Prevents scope creep and ensures all stakeholders understand the scope management approach.

2. Collect Requirements

Purpose: Determines, documents, and manages stakeholder needs and requirements to meet project objectives.

📋 Requirements Categories

Requirement Type Description Example
Business Requirements Higher-level needs of the organization Increase customer satisfaction by 20%
Stakeholder Requirements Needs of stakeholder groups Users need single sign-on capability
Solution Requirements Features and functions of the product System must process 1000 transactions/minute
Functional Requirements What the product must do Calculate taxes automatically
Non-functional Requirements Performance, security, usability 99.9% uptime availability
Transition Requirements Temporary capabilities for transition Data migration from legacy system
Project Requirements Actions, processes for project Monthly status reports required
Quality Requirements Conditions for validation Zero critical defects in production

🛠️ Requirements Gathering Techniques

Interviews

One-on-one conversations with stakeholders. Best for sensitive topics and detailed exploration.

Focus Groups

Moderated discussions with prequalified stakeholders. Great for gathering diverse perspectives.

Workshops

Cross-functional sessions for rapid requirement definition. Effective for complex projects.

Brainstorming

Group creativity technique for generating ideas. Encourages innovative thinking.

Nominal Group Technique

Structured brainstorming with voting. Reduces bias and groupthink.

Delphi Technique

Anonymous expert consensus building. Useful when experts can't meet in person.

Mind Mapping

Visual representation of requirements relationships. Helps identify connections.

Affinity Diagrams

Grouping related requirements. Useful for organizing large numbers of requirements.

Questionnaires/Surveys

Structured data collection from large groups. Cost-effective for broad input.

Observation

Job shadowing and workflow analysis. Reveals actual vs. stated requirements.

Prototypes

Working models for feedback. Clarifies requirements early in the project.

Benchmarking

Comparing practices against industry standards. Identifies best practices and gaps.

💡 Real-World Example: E-commerce Platform

Project: Building a new e-commerce platform for a retail company

Requirements Gathering Approach:

  • Interviews: C-level executives for business requirements
  • Focus Groups: Customer segments for user experience requirements
  • Workshops: IT and business teams for integration requirements
  • Observation: Current customer shopping behavior analysis
  • Prototypes: Mobile app mockups for user feedback
  • Surveys: Large customer base for feature preferences
Exam Focus: PERT formula is frequently tested. Remember: optimistic and pessimistic are 1 standard deviation from most likely. The expected duration uses weighted average (4× weight on most likely). Standard deviation shows uncertainty level.
✅ Duration Estimation Best Practices:
  • Consider resource availability and capability
  • Account for risks and uncertainties
  • Use historical data when available
  • Involve team members in estimation
  • Document assumptions behind estimates
  • Review and refine estimates as project progresses
❌ Duration Estimation Pitfalls:
  • Confusing effort with duration
  • Not considering resource constraints
  • Using only optimistic estimates
  • Forgetting about dependencies
  • Not updating estimates with new information
  • Padding estimates excessively
5. Develop Schedule

Purpose: Analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model.

Key Outputs: Schedule Baseline, Project Schedule, Schedule Data

🎯 Critical Path Method (CPM)

Critical Path: The longest duration path through a network diagram, determining the shortest time to complete the project.
Float (Slack): The amount of time an activity can be delayed without delaying the project end date or another activity.

📐 CPM Calculations

Early Start (ES) = Maximum EF of all predecessors
Early Finish (EF) = ES + Duration - 1
Late Finish (LF) = Minimum LS of all successors
Late Start (LS) = LF - Duration + 1
Total Float = LS - ES (or LF - EF)
Free Float = ES(successor) - EF(current activity)
💡 CPM Calculation Example

Network Diagram:

Activity A: Duration 3 days (Start activity)
Activity B: Duration 4 days (After A)
Activity C: Duration 2 days (After A)
Activity D: Duration 5 days (After B and C)
Forward Pass:
A: ES=0, EF=2 (0+3-1)
B: ES=3, EF=6 (3+4-1)
C: ES=3, EF=4 (3+2-1)
D: ES=7, EF=11 (7+5-1)
Backward Pass:
D: LF=11, LS=7 (11-5+1)
B: LF=6, LS=3 (6-4+1)
C: LF=6, LS=5 (6-2+1)
A: LF=2, LS=0 (2-3+1)
Float Calculations:
A: Total Float = 0-0 = 0 (Critical)
B: Total Float = 3-3 = 0 (Critical)
C: Total Float = 5-3 = 2 days
D: Total Float = 7-7 = 0 (Critical)
Critical Path: A → B → D (12 days total)

⚡ Schedule Compression Techniques

Technique Description Impact on Cost Impact on Risk When to Use
Crashing Adding resources to critical path activities Increases Minimal increase Budget available, resources can be added
Fast Tracking Performing activities in parallel Minimal increase Significantly increases Activities can overlap, risk acceptable
📖 Scenario: Project Behind Schedule

Situation: Your software development project is 2 weeks behind schedule due to complexity in the database design phase. The client needs the product launched on the original date for a trade show.

Crashing Analysis:

Activity Normal Duration Crash Duration Cost to Crash Cost per Day
Frontend Development 10 days 7 days $9,000 $3,000
Backend Development 12 days 9 days $6,000 $2,000
Testing 8 days 6 days $4,000 $2,000

Decision: Crash Backend Development and Testing first (lowest cost per day), then Frontend if more compression needed.

Fast Tracking Option: Start testing activities in parallel with development completion, but increases risk of rework.

🔄 Resource Optimization Techniques

Resource Leveling: Adjusting start and finish dates to address resource over-allocation. May extend project duration.
Resource Smoothing: Adjusting activities within their float to optimize resource usage without extending project duration.
Aspect Resource Leveling Resource Smoothing
Project Duration May extend Does not extend
Critical Path May change Unchanged
Resource Usage Optimizes throughout project Limited to available float
Primary Goal Resolve resource conflicts Optimize resource usage
Critical Path Exam Tips: Activities on critical path have zero total float. If critical path activities are delayed, project end date moves. There can be multiple critical paths. Near-critical paths should also be monitored closely.
6. Control Schedule

Purpose: Monitoring the status of project activities to update project schedule and managing changes to the schedule baseline.

Key Outputs: Work Performance Information, Schedule Forecasts, Change Requests

📊 Schedule Performance Measurement

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)
Schedule Performance Index (SPI) = EV ÷ PV
Metric Positive Value Negative Value Index > 1.0 Index < 1.0
Schedule Variance Ahead of schedule Behind schedule N/A N/A
Schedule Performance Index N/A N/A Ahead of schedule Behind schedule
✅ Schedule Control Best Practices:
  • Monitor critical and near-critical paths regularly
  • Update schedule with actual progress weekly
  • Analyze trends in schedule performance
  • Identify potential delays early
  • Communicate schedule status to stakeholders
  • Use schedule compression when necessary
❌ Schedule Control Mistakes:
  • Only monitoring schedule monthly or less frequently
  • Ignoring near-critical paths
  • Not updating schedule with actual progress
  • Accepting delays without corrective action
  • Poor communication of schedule changes
  • Not maintaining schedule baseline integrity

🎓 Quick Check: Schedule Management

Question: An activity has an optimistic duration of 4 days, most likely of 6 days, and pessimistic of 14 days. What is the expected duration using PERT?

A) 6 days
B) 8 days
C) 7 days
D) 9 days
💰 Session 3: Project Cost Management (1:15-2:45 PM)

💰 Cost Management Overview

Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Project Cost Management: Primarily concerned with the cost of the resources needed to complete project activities.
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
1. Plan Cost Management

Purpose: Establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

Key Output: Cost Management Plan

📋 Cost Management Plan Components

  • Units of Measure: Currency, hours, days, quantities
  • Level of Precision: Rounding rules for cost estimates
  • Level of Accuracy: Acceptable ranges for cost estimates
  • Organizational Procedures Links: WBS component for cost accounting
  • Control Thresholds: Variance thresholds for monitoring
  • Rules of Performance Measurement: Earned value measurement rules
  • Reporting Formats: Cost reports and formats
  • Additional Details: Funding details, procedures for cost tracking

💱 Types of Costs

Cost Type Description Example Project Impact
Direct Costs Directly attributable to project work Team salaries, equipment, materials Fully controllable by PM
Indirect Costs Overhead costs shared across projects Utilities, admin support, facilities Allocated to project
Fixed Costs Do not change with project activity level Insurance, rent, license fees Predictable expense
Variable Costs Change with amount of work performed Materials, contractor hours Scales with project size
Sunk Costs Money already spent and cannot be recovered Research completed, equipment purchased Should not influence future decisions
Opportunity Costs Value of best alternative given up Choosing Project A over Project B Consider in project selection
Cost Types Exam Focus: Sunk costs should never influence future project decisions. Opportunity cost is the value of the next best alternative. Direct costs are fully under project manager control, while indirect costs are allocated.
2. Estimate Costs

Purpose: Developing an approximation of the monetary resources needed to complete project activities.

Key Outputs: Cost Estimates, Basis of Estimates

📊 Cost Estimating Techniques

Technique Accuracy Cost to Prepare When to Use Typical Range
Analogous (Top-down) Low Low Early in project, limited information -25% to +75%
Parametric Medium to High Medium When statistical relationships exist -15% to +25%
Bottom-up High High When detailed WBS available -5% to +10%
Three-Point High Medium When uncertainty exists -10% to +15%
💡 Cost Estimation Examples

Analogous Estimating:

Previous similar website project cost: $50,000
Current project is 20% larger in scope
Estimated cost: $50,000 × 1.2 = $60,000

Parametric Estimating:

Historical data: $500 per function point
Current project: 120 function points
Estimated cost: 120 × $500 = $60,000

Bottom-up Estimating:

Database design: $8,000
Frontend development: $15,000
Backend development: $20,000
Testing: $10,000
Project management: $7,000
Total estimated cost: $60,000

💰 Cost of Quality

Cost of Quality: Total cost of all efforts to achieve product or service quality, including prevention, appraisal, and failure costs.
Cost Category Description Examples Impact
Prevention Costs Costs to prevent defects Training, processes, quality planning Investment upfront saves money later
Appraisal Costs Costs to assess quality Inspections, testing, reviews Find defects before customer
Internal Failure Costs Defects found before delivery Rework, scrap, debugging Costly but contained internally
External Failure Costs Defects found after delivery Warranty work, returns, lawsuits Most expensive, damages reputation

💡 Quality Cost Memory Aid

PAIL Bucket: Prevention, Appraisal, Internal failure, Loss (external failure)

Cost Order: Prevention < Appraisal < Internal Failure < External Failure

3. Determine Budget

Purpose: Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Key Outputs: Cost Baseline, Project Funding Requirements

📊 Budget Components

Cost Baseline: The approved version of the time-phased project budget, excluding management reserves.
Project Budget: Cost baseline plus management reserves.
Component Purpose Who Controls When Used
Work Package Estimates Cost for specific deliverables Project Manager Ongoing project execution
Contingency Reserves Known risks (known unknowns) Project Manager When identified risks occur
Management Reserves Unknown risks (unknown unknowns) Senior Management Unplanned scope changes
💡 Budget Structure Example
Work Package Costs: $450,000
Contingency Reserves (10%): $45,000
Cost Baseline: $495,000
Management Reserves (5%): $25,000
Project Budget: $520,000

📈 Cost Aggregation Methods

  • Bottom-up Aggregation: Sum costs from work packages to control accounts to project total
  • Time-phased Budgeting: Distribute costs across project timeline
  • Funding Limit Reconciliation: Adjust spending to match funding availability
  • Cost Aggregation by Organizational Unit: Roll up costs by department or team
✅ Budget Development Best Practices:
  • Base budget on detailed work breakdown structure
  • Include all project costs (direct and indirect)
  • Establish contingency reserves for identified risks
  • Time-phase the budget to match planned spending
  • Obtain formal budget approval from stakeholders
  • Establish cost baseline for performance measurement
4. Control Costs

Purpose: Monitoring the status of the project to update the project costs and managing changes to the cost baseline.

Key Outputs: Work Performance Information, Cost Forecasts, Change Requests

📊 Cost Performance Measurement

Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC)
Cost Performance Index (CPI) = EV ÷ AC
Metric Positive Value Negative Value Index > 1.0 Index < 1.0
Cost Variance Under budget Over budget N/A N/A
Cost Performance Index N/A N/A Under budget Over budget
📖 Scenario: Cost Control Challenge

Situation: Your project is 6 months into a 12-month timeline. Current project status:

Budget at Completion (BAC): $240,000
Planned Value (PV): $120,000 (50% complete planned)
Earned Value (EV): $100,000 (42% actually complete)
Actual Cost (AC): $130,000

Analysis:

Cost Variance (CV) = $100,000 - $130,000 = -$30,000
Schedule Variance (SV) = $100,000 - $120,000 = -$20,000
CPI = $100,000 ÷ $130,000 = 0.77 (77 cents per dollar)
SPI = $100,000 ÷ $120,000 = 0.83 (83% schedule efficiency)

Interpretation: Project is over budget and behind schedule. Need corrective action for both cost and schedule performance.

✅ Cost Control Best Practices:
  • Monitor cost performance regularly (weekly/bi-weekly)
  • Use earned value management for integrated monitoring
  • Investigate significant cost variances immediately
  • Forecast final project costs based on current performance
  • Implement corrective actions for cost overruns
  • Update cost estimates based on actual performance
❌ Cost Control Pitfalls:
  • Only tracking actual costs without earned value
  • Ignoring small cost variances that accumulate
  • Not updating forecasts with current performance data
  • Delaying corrective action until major problems arise
  • Poor communication of cost status to stakeholders
  • Not maintaining cost baseline integrity

🎓 Quick Check: Cost Management

Question: A project has EV = $50,000 and AC = $60,000. What is the Cost Performance Index (CPI) and what does it indicate?

A) CPI = 1.2, project is under budget
B) CPI = 0.83, project is over budget
C) CPI = 1.0, project is on budget
D) CPI = 0.83, project is under budget
📊 Session 4: Earned Value Management Deep Dive (3:00-4:30 PM)

📊 Earned Value Management (EVM) Overview

EVM is a methodology that combines scope, schedule, and resource measurements to assess project performance and progress.

Earned Value Management: A project management technique for measuring project performance and progress in an objective manner.

📐 EVM Key Measurements

Measurement Symbol Definition What It Represents
Planned Value PV Authorized budget assigned to scheduled work How much work should be done
Earned Value EV Measure of work performed in budget terms How much work is actually done
Actual Cost AC Realized cost incurred for work performed How much the completed work actually cost
Budget at Completion BAC Total planned budget for the project Total planned project cost

📈 EVM Performance Indices

Cost Performance Index (CPI) = EV ÷ AC
Schedule Performance Index (SPI) = EV ÷ PV
Index Good Performance Poor Performance Perfect Performance Interpretation
CPI > 1.0 < 1.0 = 1.0 Cost efficiency: value earned per dollar spent
SPI > 1.0 < 1.0 = 1.0 Schedule efficiency: progress rate vs. plan

📉 EVM Variance Analysis

Cost Variance (CV) = EV - AC
Schedule Variance (SV) = EV - PV
Variance Positive Value Negative Value Zero Value Key Insight
CV Under budget Over budget On budget Cost performance vs. baseline
SV Ahead of schedule Behind schedule On schedule Schedule performance vs. plan

🔮 EVM Forecasting Formulas

Estimate at Completion (EAC) Formulas ▼
EAC = BAC ÷ CPI (Typical Performance)
EAC = AC + BAC - EV (Atypical Performance)
EAC = AC + [(BAC - EV) ÷ (CPI × SPI)] (Both factors)
EAC = AC + Bottom-up ETC (New estimate)
When to Use Each EAC Formula:
  • BAC ÷ CPI: Current cost performance will continue
  • AC + BAC - EV: Current problems are one-time issues
  • AC + [(BAC-EV)÷(CPI×SPI)]: Both cost and schedule impact future
  • AC + Bottom-up ETC: Original assumptions no longer valid
Other Key Forecasting Formulas ▼
Estimate to Complete (ETC) = EAC - AC
Variance at Completion (VAC) = BAC - EAC
To-Complete Performance Index (TCPI) = (BAC - EV) ÷ (BAC - AC)
TCPI with EAC = (BAC - EV) ÷ (EAC - AC)
TCPI Interpretation: The cost performance required on remaining work to meet budget goals. TCPI > 1.0 means harder performance needed; TCPI < 1.0 means easier performance acceptable.
💡 Comprehensive EVM Example

Project Status at Month 8 of 12-month project:

Budget at Completion (BAC): $120,000
Planned Value (PV): $80,000 (should be 67% complete)
Earned Value (EV): $70,000 (actually 58% complete)
Actual Cost (AC): $85,000

Variance Analysis:

Cost Variance (CV) = $70,000 - $85,000 = -$15,000 (over budget)
Schedule Variance (SV) = $70,000 - $80,000 = -$10,000 (behind schedule)

Performance Indices:

CPI = $70,000 ÷ $85,000 = 0.82 (82% cost efficiency)
SPI = $70,000 ÷ $80,000 = 0.88 (88% schedule efficiency)

Forecasting (Typical Performance):

EAC = $120,000 ÷ 0.82 = $146,341
ETC = $146,341 - $85,000 = $61,341
VAC = $120,000 - $146,341 = -$26,341 (over budget at completion)
TCPI = ($120,000 - $70,000) ÷ ($120,000 - $85,000) = $50,000 ÷ $35,000 = 1.43

Interpretation:

  • Project is over budget and behind schedule
  • Getting 82 cents of value for every dollar spent
  • Progressing at 88% of planned rate
  • Will finish $26,341 over budget if performance continues
  • Need 1.43 cost efficiency on remaining work to meet original budget (challenging)
📖 EVM Scenario: Project Recovery

Situation: You're managing a software development project with poor performance metrics:

CPI = 0.75 (very poor cost performance)
SPI = 0.90 (poor schedule performance)
TCPI = 1.65 (unrealistic performance needed)

Available Corrective Actions:

Action Impact on Cost Impact on Schedule Risk Level Feasibility
Add senior developers Increases AC Improves SPI Low High if available
Reduce scope Improves CPI Improves SPI Medium Requires customer approval
Outsource components May improve CPI May improve SPI High Depends on vendor capability
Fast track activities Minimal impact Improves SPI High High but risky

Recommended Approach:

  1. Analyze root causes of poor performance
  2. Negotiate scope reduction for non-critical features
  3. Add experienced resources to critical path activities
  4. Implement fast tracking for low-risk parallel activities
  5. Update forecasts and communicate new expectations

🎯 EVM Best Practices

✅ EVM Implementation Best Practices:
  • Establish clear work packages with measurable completion criteria
  • Use consistent earned value techniques (0/100, 50/50, 25/75, etc.)
  • Update EVM data regularly (weekly or bi-weekly)
  • Focus on trends, not just current period performance
  • Combine EVM with other performance indicators
  • Train team members on EVM concepts and interpretation
  • Use EVM for proactive decision making
❌ EVM Common Mistakes:
  • Measuring progress subjectively (percent complete estimates)
  • Ignoring schedule variance because "time can't be recovered"
  • Using EVM only for reporting, not management decisions
  • Not investigating significant variance trends
  • Overcomplicating the EVM system
  • Poor baseline management and change control
  • Focusing only on cost performance, ignoring schedule

🔍 EVM Limitations

Limitation Description Mitigation Strategy
Critical Path Blind Doesn't show critical path status Combine with CPM analysis
Quality Neutral Doesn't measure quality of work Include quality metrics separately
Baseline Dependent Only as good as original estimates Regular baseline reviews and updates
Late Project Paradox SPI approaches 1.0 near project end Focus on milestone completion dates
Overhead Burden Requires significant data collection Automate data collection where possible

🧠 EVM Memory Aids

PV, EV, AC Triangle

PV: What you PLANNED to spend
EV: What you EARNED (deserved)
AC: What you ACTUALLY spent

Variance Signs

Positive CV/SV: Good news (under budget/ahead)
Negative CV/SV: Bad news (over budget/behind)

Index Interpretation

CPI > 1.0: Getting more than $1 value per $1 spent
SPI > 1.0: Going faster than planned

EAC Quick Check

BAC ÷ CPI: Most common forecast formula
If CPI = 0.8: Project will cost 25% more

🎓 EVM Challenge Question

Question: A project has BAC = $100,000, EV = $40,000, AC = $50,000, and PV = $45,000. The project manager wants to know how much efficiency is needed on remaining work to complete within the original budget. What is the TCPI?

A) 0.80
B) 1.20
C) 1.33
D) 0.89
🎓 Session 5: Practice & Review (4:45-6:00 PM)

🎯 Comprehensive Practice Session

This session combines all Day 3 concepts through practical exercises, exam-style questions, and real-world scenarios.

Exercise 1: WBS Creation Challenge

Scenario: You're managing a corporate event planning project for a 500-person annual conference.

💡 Sample WBS Structure
1.0 Annual Corporate Conference
├── 1.1 Project Management
│ ├── 1.1.1 Project Planning
│ ├── 1.1.2 Stakeholder Communication
│ └── 1.1.3 Project Closure
├── 1.2 Venue Management
│ ├── 1.2.1 Venue Selection
│ ├── 1.2.2 Contract Negotiation
│ └── 1.2.3 Setup Coordination
├── 1.3 Content Development
│ ├── 1.3.1 Speaker Recruitment
│ ├── 1.3.2 Agenda Creation
│ └── 1.3.3 Material Preparation
├── 1.4 Attendee Management
│ ├── 1.4.1 Registration System
│ ├── 1.4.2 Communication Campaign
│ └── 1.4.3 Check-in Process
├── 1.5 Catering & Hospitality
│ ├── 1.5.1 Menu Planning
│ ├── 1.5.2 Vendor Selection
│ └── 1.5.3 Service Coordination
└── 1.6 Technology & AV
├── 1.6.1 Equipment Rental
├── 1.6.2 Setup and Testing
└── 1.6.3 Technical Support
✅ WBS Validation Checklist:
  • Does it include 100% of project scope?
  • Are work packages 8-80 hours each?
  • Is each element mutually exclusive?
  • Are deliverables clearly defined with nouns?
  • Is project management work included?
  • Can work packages be assigned to single responsible parties?
Exercise 2: Network Diagram & CPM Analysis

Challenge: Calculate the critical path for the following activities:

Activity Duration (days) Predecessors Description
A 4 - Requirements Analysis
B 6 A System Design
C 3 A Database Design
D 8 B Frontend Development
E 7 C Backend Development
F 4 D, E Integration Testing
G 2 F Deployment
💡 CPM Solution
Forward Pass:
A: ES=0, EF=3 (0+4-1)
B: ES=4, EF=9 (4+6-1)
C: ES=4, EF=6 (4+3-1)
D: ES=10, EF=17 (10+8-1)
E: ES=7, EF=13 (7+7-1)
F: ES=18, EF=21 (18+4-1)
G: ES=22, EF=23 (22+2-1)
Backward Pass:
G: LF=23, LS=22 (23-2+1)
F: LF=21, LS=18 (21-4+1)
D: LF=17, LS=10 (17-8+1)
E: LF=17, LS=11 (17-7+1)
B: LF=9, LS=4 (9-6+1)
C: LF=10, LS=8 (10-3+1)
A: LF=3, LS=0 (3-4+1)
Float Analysis:
A: TF = 0-0 = 0 (Critical)
B: TF = 4-4 = 0 (Critical)
C: TF = 8-4 = 4 days
D: TF = 10-10 = 0 (Critical)
E: TF = 11-7 = 4 days
F: TF = 18-18 = 0 (Critical)
G: TF = 22-22 = 0 (Critical)
Critical Path: A → B → D → F → G (24 days)
Exercise 3: Comprehensive EVM Analysis

Scenario: Mid-project health check for a mobile app development project

Work Package Planned Value Earned Value Actual Cost % Complete
Requirements $15,000 $15,000 $16,500 100%
UI Design $20,000 $18,000 $19,200 90%
Backend Dev $35,000 $21,000 $28,000 60%
Frontend Dev $25,000 $10,000 $12,500 40%
Testing $5,000 $0 $0 0%
TOTALS $100,000 $64,000 $76,200 -
💡 Complete EVM Analysis
BAC = $120,000 (total project budget)
PV = $100,000 (planned to this point)
EV = $64,000 (earned to this point)
AC = $76,200 (actual cost to this point)
Variance Analysis:
CV = $64,000 - $76,200 = -$12,200 (over budget)
SV = $64,000 - $100,000 = -$36,000 (behind schedule)
Performance Indices:
CPI = $64,000 ÷ $76,200 = 0.84 (84¢ per dollar)
SPI = $64,000 ÷ $100,000 = 0.64 (64% efficiency)
Forecasting:
EAC = $120,000 ÷ 0.84 = $142,857
ETC = $142,857 - $76,200 = $66,657
VAC = $120,000 - $142,857 = -$22,857
TCPI = ($120,000 - $64,000) ÷ ($120,000 - $76,200) = 1.28
📖 Project Recovery Plan

Current Situation Analysis:

  • Project is significantly behind schedule (36% vs 83% planned)
  • Cost performance is poor but manageable (84% efficiency)
  • Backend development is the primary bottleneck
  • Need 28% better cost performance to meet original budget

Recommended Actions:

  1. Immediate: Add senior developer to backend team
  2. Short-term: Fast-track frontend and backend in parallel
  3. Risk mitigation: Negotiate scope reduction on non-critical features
  4. Communication: Update stakeholders on revised timeline and budget
  5. Monitoring: Weekly EVM updates with corrective action triggers
Exercise 4: PMP Exam-Style Questions

Question 1: Scope Management

During project execution, the customer requests a significant change that would add new functionality. The change would increase project duration by 15% and cost by 20%. What should the project manager do FIRST?

A) Implement the change to maintain customer satisfaction
B) Refuse the change because it's outside the original scope
C) Evaluate the change request and submit it to the change control board
D) Ask the customer to fund the additional cost

Question 2: Schedule Management

A project manager needs to compress the schedule by 10 days. The following information is available about critical path activities:

ActivityNormal DurationCrash DurationCrash Cost
A8 days6 days$4,000
B12 days8 days$8,000
C6 days4 days$6,000

Which activity should be crashed FIRST?

A) Activity A ($2,000 per day)
B) Activity B ($2,000 per day)
C) Activity C ($3,000 per day)
D) Crash all activities simultaneously

Question 3: Cost Management

A project has the following status: BAC = $200,000, EV = $80,000, AC = $100,000, PV = $90,000. If the current cost performance continues, what will be the final project cost?

A) $200,000
B) $225,000
C) $250,000
D) $280,000

Question 4: Integrated Scenario

A software project is experiencing the following: CPI = 0.92, SPI = 0.88, and the customer is requesting additional features. The project manager should be MOST concerned about:

A) The cost overrun only
B) The schedule delay only
C) Both cost and schedule performance declining together
D) The customer's additional requests
Day 3 Action Plan & Next Steps

🎯 Key Takeaways from Day 3

✅ What You've Mastered Today:
  • 18 processes across Scope, Schedule, and Cost Management
  • WBS creation following the 100% rule and best practices
  • Critical Path Method calculations and schedule compression
  • Earned Value Management formulas and interpretation
  • Integration between scope, schedule, and cost control
  • Real-world scenario analysis and problem-solving

📚 Study Plan for Continued Success

Timeline Focus Areas Activities Success Metrics
Next 3 Days Formula Memorization Practice 50+ EVM problems daily 95% accuracy on calculations
Week 1 Process Integration Create process flow diagrams Explain all 18 processes
Week 2 Scenario Practice 100+ situational questions 80% correct on first attempt
Week 3 Mock Exams Full-length practice tests Consistent 70%+ scores
Week 4 Final Review Focus on weak areas Ready for exam scheduling

📖 Day 3 Quick Reference Card

Scope Essentials

• WBS = 100% rule
• Validate = Customer acceptance
• Control = Prevent scope creep

Schedule Essentials

• Critical Path = Zero float
• PERT = (O+4M+P)÷6
• Crash = Add resources

Cost Essentials

• CPI = EV ÷ AC
• EAC = BAC ÷ CPI
• TCPI = (BAC-EV)÷(BAC-AC)

EVM Interpretation

• Index > 1.0 = Good
• Index < 1.0 = Bad
• Positive variance = Good

Final Day 3 Exam Tips:
  • Scope, Schedule, and Cost questions represent ~30% of the PMP exam
  • EVM calculations appear in 15-20 questions
  • Focus on WHY processes are done, not just HOW
  • Practice integrated scenarios combining all three knowledge areas
  • Master the difference between Control Quality and Validate Scope
  • Understand when to use different estimation techniques

🔗 Preparing for Day 4

Tomorrow's Focus: Quality, Resources, Communications & Risk Management

✅ Pre-Day 4 Preparation:
  • Review quality vs. grade concepts
  • Refresh knowledge of team development stages
  • Think about communication challenges in your projects
  • Consider risks you've encountered in past projects
  • Bring questions about Day 3 concepts for quick review
Remember that requirements collection is iterative and progressive. The exam often tests which technique is most appropriate for specific situations. Interviews are best for sensitive topics, while brainstorming encourages creativity.
3. Define Scope

Purpose: Develops a detailed description of the project and product scope, establishing what is and is not included.

Key Output: Project Scope Statement

📄 Project Scope Statement Components

📖 Scenario: Office Relocation Project

Situation: Your company is relocating its headquarters. Stakeholders have different expectations about what's included.

Project Scope Statement Example:

Product Scope: New 50,000 sq ft office space fully operational for 500 employees
Deliverables: Lease agreement, office design, furniture installation, IT infrastructure, employee relocation
Acceptance Criteria: All systems operational, 95% employee satisfaction survey, city occupancy permit obtained
Exclusions: Employee housing assistance, company vehicle relocation, cafeteria equipment
Constraints: Must complete by fiscal year end, budget not to exceed $2M, minimal business disruption
Assumptions: Landlord will complete building renovations on time, current lease can be terminated early
✅ Best Practices for Scope Definition:
❌ Common Scope Definition Mistakes:
4. Create Work Breakdown Structure (WBS)

Purpose: Subdivides project deliverables and work into smaller, more manageable components.

Work Breakdown Structure (WBS): A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.

🏗️ WBS Fundamental Rules

The "100% Rule"

The WBS includes 100% of the work defined by the project scope and captures all deliverables (internal, external, interim) in terms of work to be completed.

WBS Level Description Example
Level 0 Project Title Website Development Project
Level 1 Major Deliverables Design, Development, Testing, Deployment
Level 2 Sub-deliverables User Interface Design, Database Design
Level 3 Work Packages Create Login Page, Design User Dashboard
💡 WBS Example: Mobile App Development
1.0 Mobile App Development Project
├── 1.1 Project Management
│ ├── 1.1.1 Project Planning
│ ├── 1.1.2 Project Monitoring
│ └── 1.1.3 Project Closure
├── 1.2 Requirements Analysis
│ ├── 1.2.1 Stakeholder Interviews
│ ├── 1.2.2 Requirements Documentation
│ └── 1.2.3 Requirements Approval
├── 1.3 Design
│ ├── 1.3.1 UI/UX Design
│ ├── 1.3.2 Architecture Design
│ └── 1.3.3 Database Design
├── 1.4 Development
│ ├── 1.4.1 Frontend Development
│ ├── 1.4.2 Backend Development
│ └── 1.4.3 API Integration
├── 1.5 Testing
│ ├── 1.5.1 Unit Testing
│ ├── 1.5.2 Integration Testing
│ └── 1.5.3 User Acceptance Testing
└── 1.6 Deployment
├── 1.6.1 App Store Submission
├── 1.6.2 Production Deployment
└── 1.6.3 Go-Live Support

📏 WBS Best Practices

✅ WBS Creation Guidelines:
  • 8/80 Rule: Work packages should be 8-80 hours of effort
  • Use Nouns: Focus on deliverables, not activities
  • Mutually Exclusive: No overlap between components
  • Collectively Exhaustive: All work is included
  • Outcome-Oriented: Focus on what is produced
  • Include Project Management: PM work is part of the project
❌ WBS Common Mistakes:
  • Using verbs instead of nouns (activities vs deliverables)
  • Including timeline or sequence information
  • Mixing organizational structure with WBS
  • Creating work packages that are too large or too small
  • Forgetting to include project management work
  • Not involving the team in WBS creation
Key WBS Outputs: WBS, WBS Dictionary, Scope Baseline (Project Scope Statement + WBS + WBS Dictionary)
Exam Focus: The WBS is frequently tested. Remember: it's deliverable-oriented (nouns), follows the 100% rule, and work packages are typically 8-80 hours. The scope baseline consists of three components: scope statement, WBS, and WBS dictionary.
5. Validate Scope

Purpose: Formalizing acceptance of completed project deliverables by customers or sponsors.

Validate Scope: The process of obtaining formal acceptance of completed project deliverables from customers, sponsors, or other designated stakeholders.

🔍 Validation vs. Quality Control

Aspect Validate Scope Control Quality
Primary Focus Acceptance of deliverables Correctness of deliverables
Who Performs Customer/Sponsor Project Team
When Performed End of each phase/milestone Throughout the project
Key Question "Is this what we wanted?" "Is this built correctly?"
Output Accepted Deliverables Verified Deliverables
📖 Scenario: Software Module Completion

Situation: Your team has completed the user authentication module for a web application.

Control Quality Process:

Validate Scope Process:

✅ Scope Validation Best Practices:
Exam Tip: Validate Scope is performed at the end of each phase or when deliverables are completed, not just at project end. It focuses on customer acceptance, while Control Quality focuses on technical correctness.
6. Control Scope

Purpose: Monitoring the status of project and product scope and managing changes to the scope baseline.

Scope Creep: Uncontrolled expansion to product or project scope without adjustments to time, cost, and resources.

🎯 Scope Control Key Activities

📖 Scenario: E-commerce Website Scope Creep

Situation: During development of an e-commerce website, the marketing team requests adding a blog section, customer reviews feature, and social media integration.

Scope Creep Indicators:

Proper Control Scope Response:

  1. Stop work on unauthorized additions
  2. Document all requests formally
  3. Analyze impact on schedule, budget, quality
  4. Present options to change control board
  5. Get formal approval before proceeding
  6. Update scope baseline if approved

🚫 Preventing Scope Creep

CONTROL Method:

🎓 Quick Check: Scope Management

Question: A customer has requested a new feature that wasn't in the original scope. The project team immediately starts working on it to keep the customer happy. What should the project manager do FIRST?

A) Let the team continue since customer satisfaction is important
B) Refuse the request since it's not in scope
C) Stop the work and initiate the change control process
D) Ask the sponsor for additional funding
⏰ Session 2: Project Schedule Management (10:45 AM-12:15 PM)

⏰ Schedule Management Overview

Project Schedule Management includes the processes required to manage the timely completion of the project.

Project Schedule: An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources.
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Durations
Develop Schedule
Control Schedule
1. Plan Schedule Management

Purpose: Establishes the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

Key Output: Schedule Management Plan

📋 Schedule Management Plan Components

  • Scheduling Methodology: Critical Path Method, Critical Chain, etc.
  • Scheduling Tool: Software and techniques to be used
  • Level of Accuracy: Acceptable ranges for activity duration estimates
  • Units of Measure: Hours, days, weeks, months
  • Organizational Procedures: Links to WBS and performance measurement
  • Project Schedule Model Maintenance: How updates will be handled
  • Control Thresholds: Variance thresholds for monitoring
  • Rules of Performance Measurement: Earned value rules
  • Reporting Formats: Schedule reports and formats
2. Define Activities

Purpose: Identifying and documenting the specific actions to be performed to produce the project deliverables.

Key Outputs: Activity List, Activity Attributes, Milestone List

🎯 Activity Definition Techniques

Technique Description When to Use
Decomposition Breaking work packages into activities When WBS work packages are too large
Rolling Wave Planning Progressive elaboration of activities When future work is uncertain
Templates Using standard activity lists For repetitive project types
Expert Judgment Expertise from experienced individuals For complex or unique activities
💡 Activity Definition Example: Website Development

Work Package: User Interface Design

Decomposed Activities:

• Create wireframes for main pages
• Design visual mockups
• Develop style guide and branding
• Create responsive design specifications
• Conduct usability testing
• Incorporate feedback and finalize designs
• Obtain client approval for designs
Activity: A distinct, scheduled portion of work performed during the course of a project.
Milestone: A significant point or event in a project. Milestones have zero duration.
✅ Activity Definition Best Practices:
  • Activities should be verb-oriented (what will be done)
  • Each activity should have a clear deliverable
  • Activities should be manageable in size (typically 4-40 hours)
  • Include all activities needed to complete work packages
  • Use consistent naming conventions
3. Sequence Activities

Purpose: Identifying and documenting relationships among the project activities.

Key Output: Project Schedule Network Diagrams

🔗 Types of Dependencies

Dependency Type Description Example Control
Mandatory (Hard Logic) Legally or contractually required Foundation before walls Cannot be changed
Discretionary (Soft Logic) Based on best practices Design before development Can be modified
External Between project and non-project activities Vendor delivery date Outside project control
Internal Between project activities Testing after coding Under project control

🔄 Logical Relationships (Precedence Relationships)

Relationship Description Usage % Example
Finish-to-Start (FS) Predecessor must finish before successor starts 90% Design must finish before coding starts
Start-to-Start (SS) Predecessor must start before successor starts 8% Pour foundation and install plumbing can start together
Finish-to-Finish (FF) Predecessor must finish before successor finishes 2% Testing must finish before documentation finishes
Start-to-Finish (SF) Predecessor must start before successor finishes <1% New system starts before old system shuts down

⏱️ Leads and Lags

Lead: Amount of time whereby a successor activity can be advanced with respect to a predecessor activity.
Lag: Amount of time whereby a successor activity will be delayed with respect to a predecessor activity.
💡 Lead and Lag Examples

Lead Example: Paint primer can start 2 days before wall preparation is complete (FS-2 days)

Lag Example: Concrete must cure for 3 days after pouring before construction can continue (FS+3 days)

🧠 Dependency Memory Aid

MOST Common: FS (Finish-to-Start) - 90% of all relationships

LEAST Common: SF (Start-to-Finish) - Very rare, used in just-in-time scenarios

4. Estimate Activity Durations

Purpose: Estimating the number of work periods needed to complete individual activities with estimated resources.

Key Output: Duration Estimates

📊 Duration Estimation Techniques

Technique Accuracy Cost When to Use
Analogous Estimating Low to Medium Low Early in project, limited information
Parametric Estimating Medium to High Medium When statistical relationships exist
Three-Point Estimating High Medium When uncertainty exists
Bottom-Up Estimating Highest Highest When detailed information available

🎯 Three-Point Estimating (PERT)

Expected Duration = (Optimistic + 4×Most Likely + Pessimistic) ÷ 6
Standard Deviation = (Pessimistic - Optimistic) ÷ 6
💡 PERT Calculation Example

Activity: Develop user login module

Optimistic (O) = 3 days
Most Likely (M) = 5 days
Pessimistic (P) = 9 days
Expected Duration = (3 + 4×5 + 9) ÷ 6
Expected Duration = (3 + 20 + 9) ÷ 6 = 32 ÷ 6 = 5.33 days
Standard Deviation = (9 - 3) ÷ 6 = 6 ÷ 6 = 1 day
Exam Focus: