Why do people fail the PMP Exam ?

This is one topic which has been the highlight of discussions for all PMP aspirants. Let me share something from my school of thought :-)

As we all know the Project Management Institute (PMI) is the leader and the most widely recognized organization in promoting project management best practices. It was founded in 1969 and started offering the Project Management Professional (PMP) exam and Certified Associate in Project Management (CAPM) certifications in 1984. Many jobs require the candidate to have completed the PMP exam.

There are many reasons why candidates fail in the exam. The most common reasons are:

They have a shallow understanding and don’t study deeply: This is one of the most common reasons why candidate fail to pass on their first attempt. Both practical and theoretical knowledge is required for one to pass the exam in the first attempt itself.

Solution: I would suggest the exam takers to read PMBOK Guide latest version from cover to cover at least three times. You will be easily answering several questions if you read the Appendix sections from page 345 to 455. Concentrating more on Appendix section G (interpersonal skills) would help you to answer lot of behavioral oriented questions on the exam.

They fail to read all answers: This is another mistake most of the exam takers do. They look at the given options sequentially and if they think the option 1 or 2 is right, they skip the other options.

Solution: Read questions and given answers carefully. Re-read all questions containing negative words such as “not” “least” or “except”. Likewise check for all qualifying words: “all”, “most”, ‘some’, “none” and keywords such as input, output, tools and project management process. Since the exam is four hours you have enough time to go through all the given four options.

They do not think PMBOK is always right: Let me give a simple example here. Below is a sample exam question for your reference

Phase exits, stage gates or kill points are all terms for:
a. GO/No meeting
b. Project closure criteria
c. Kickoff for next phase
d. Phase end reviews

The right choice is “D”. Even though your organization may use different way of assessing the project phases and different terminologies for processes, the PMBOK says before closing a project or a phase the manager should contact Phase-end reviews.

Solution: When you are taking the exam you need to think PMBOK Guide is always right and in order to pass the exam, we need to use the right Key word phases used in PMBOK Guide regardless of whatever you do today to manager your project.

As some of may know already, PMP candidates are limited to three exam attempts within a year. If they fail three times within one year, they will have to wait one more year before submitting their application form. Hence, focus on the passing the pmp certification exam the first time. Anonymous survey results show that less than 50% exam candidates actually pass the exam on their first attempt and I’m pretty sure you can pass it at the first attempt if you avoid the mistakes highlighted here.

Good Luck!

Understanding RACI

A Responsibility Assignment Matrix (RAM), also known as RACI matrix or Linear Responsibility Chart (LRC), describes the participation by various roles in completing tasks or deliverables for a project or business process. It is especially useful in clarifying roles and responsibilities in cross-functional/departmental projects and processes. RACI is an acronym derived from the four key responsibilities most typically used:

• Responsible: Those who do the work to achieve the task. There is typically one role with a participation type of Responsible, although others can be delegated to assist in the work required.

• Accountable (also Approver or final Approving authority): The one ultimately accountable for the correct and thorough completion of the deliverable or task, and the one to whom Responsible is accountable. In other words, an Accountable must sign off (Approve) on work that Responsible provides. There must be only one Accountable specified for each task or deliverable

• Consulted: Those whose opinions are sought; and with whom there is two-way communication.

• Informed: Those who are kept up-to-date on progress, often only on completion of the task or deliverable; and with whom there is just one-way communication.

Very often the role that is Accountable for a task or deliverable may also be Responsible for completing it (indicated on the matrix by the task or deliverable having a role Accountable for it, but no role Responsible for its completion, i.e. it is implied). Outside of this exception, it is generally recommended that each role in the project or process for each task receive, at most, just one of the participation types. Where more than one participation type is shown, this generally implies that participation has not yet been fully resolved, which can impede the value of this technique in clarifying the participation of each role on each task. There is a distinction between a role and individually identified people: a role is a descriptor of an associated set of tasks; may be performed by many people; and one person can perform many roles. For example, an organization may have 10 people who can perform the role of project manager, although traditionally each project only has one project manager at any one time; and a person who is able to perform the role of project manager may also be able to perform the role of business analyst and tester.


The PMBOK Guide 4th Edition (starting in section 9.1) defines RACI as a responsibility assignment matrix (RAM) which is used to illustrate the connections between work packagers or activities and project team members. On larger projects, RAMs can be developed at various levels. For example, a high-level RAM can define what a project team group of unit is responsible for within each component of the WBS, lower level RAMs are used within the group to designate roles, responsibilities and  levels of authority for specific activities. The matrix format shows all activities associated with one person and all people associated with one activity. This also ensures that there is only one person accountable for any one task to avoid confusion. The PMBOK confirms that one example of a RAM is the RACI chart, showing the work to be done in the left column as activities. The assigned resources can be shown as individual or groups. The RACI is just one type of RAM; the project manager can select other options such as "lead" and "resource" designation or others as appropriate for the project. The RACI is particularly important when the team consists of internal and external resources to ensure clear divisions of roles and expectations. 

Important Formulas for the Exam

You will have to understand and if possible memorize the following formulas for the EXAM-


EV = %Complete*BAC

AC = %Spent*BAC

CV = EV–AC (>0 Good)

SV = EV–PV (>0 Good)

CPI = EV/AC (>1 Good)

SPI = EV/PV (>1 Good)

EAC = AC+Bottom up ETC – Best however team has to stop working and spend time

EAC = AC+BAC–EV – Remaining work to be performed at budgeted rate

EAC = BAC/Cumulative CPI – Remaining work to be performed at present CPI

EAC = AC+(BAC–EV)/(Cumulative CPI*Cumulative SPI) – Remaining work to be performed at present rate involving both SPI and CPI

ETC = EAC–AC or Re-estimate

VAC = BAC–EAC

TCPI = (BAC-EV)/(BAC-AC ) or (EAC–AC) – EAC will be used once it is determined BAC is no longer achievable, less then 1 is good

PV = FV/(1+r)ⁿ

Communication Channels = n(n-1)/2

EMV = P*I

PERT EAD = (O+4M+P)/6

PERT Project Duration = Sum of PERT EADs

SD = (P-O)/6

Variance of Activity =  [SD]² = [(P-O)/6]²

SD of Project = Square Root of Var1 + var2 + ……

Range of activity duration = EAD +/- SD

Total Float/Slack = LS-ES or LF-EF – zero on critical path

BCR/IRR/NPV – Bigger is better

Mean – Average

Median – Center number/value or average of center values

Mode – The most frequent number

Contract Incentives Savings = Target Cost – Actual Cost

Bonus = Savings x Percentage

Contract Cost = Bonus + Fees

Total Cost = Actual Cost + Contract Cost

PTA = (Ceiling Price – Target Price)/Buyer’s Share ratio +Target Cost


Terms Used
Planned Value (PV)
Actual Cost (AC)
Earned Value (EV)
Budget At Completion (BAC)
Cost Variance (CV)
Schedule Variance (SV)
Cost Performance Index (CPI)
Schedule Performance Index (SPI)
Estimate at Completion (EAC)
Estimate to Complete (ETC)
Variance At Completion (VAC)
Probability (P)
Impact (I)
Expected Monetary Value (EMV)
Expected Activity Duration (EAD)
Standard Deviation (SD)
Late Start, Early Start, Late Finish, Early Finish (LS, ES, LF, EF)
Point of Total Assumption (PTA)
To Complete Performance Index [TCPI]

Common Terms which can turn Uncommon in the Exam

EEF- Enterprise Environmental Factors can be interpretted as "company culture and existing systems that the project will have to deal with or can make use of". They can be considered as constraints.

OPA- Organization Process Assets are an organizations existing processes, procedures, policies and historical information. These are considered valuable for future projects. They can act as guidelines.

WBS Dictionary- It contains the details of the individual work packages and control accounts. It contains information like Code of account identifier, Description of work, responsible organization, List of schedule milestones, Associated schedule activities, Resources required, Cost estimates, Quality requirements, Acceptance criteria, Technical references, and Contract information.

Baselines- The knowledge areas of scope, time and cost have baselines, which combine to create the performance management baseline for the project.

• Scope Baseline- It includes WBS, WBS Dictionary and the Project Scope Statement.
• Schedule Baseline- This is a version of the project schedule.
• Cost Baseline- It includes all budgets, but does NOT include management reserves.

Fallback Plan- It is a plan which is planned in advance incase the contigency plans do not work

Workaround Plan- It is a plan which is NOT planned in advance and is devised on the spur of the moment.

Configuration Management- This ensures that all the stakeholders are using the same version of all the project documents and plans. It is used for version control.

Hope you all find this information useful to crack a few exam questions. I will keep on updating my blog with useful information which exam aspirants often overlook and assume

PMP Essentials

The objective of this blog is to just list out a few essential topics which some PMP aspirants take for granted or rather assume is that they know and understand everything about it.

• EEF- Enterprise Environmental Factors
• OPA- Organaizational Process Assets
• WBS
• WBS Dictionary
• Assumptions
• Constraints
• Scope, Time and Cost management plans
• Baselines
• Difference between Change and Configuration Management Plan
• Difference between Fallback and Workaround plans

This list can be a little longer depending on the knowledge gaps one has. I will cover these topics in a little more detail in my next blog. Till then you can try to find out more about these terms yourself

Thanks !!!

PMP Exam Preparation

Thank You Praveen (http://www.linkedin.com/in/pmalik)  for the 4 days of effective and efficient PMP Exam prep training conducted by you (17th to 20th May'11). This really helped set the platform for me. After that there was no looking back and I successfully cracked the PMP exam on 30^th June’11. There are a few points which I need to mention to other PMP aspirants.

• Since most of us are working professionals so finding out time to study for the PMP exam is difficult but not impossible. I depends how much thirst one has to crack this prestigious exam at the 1^st attempt. Ideally at least 3 hours daily on weekdays and 5-6 hours on the weekends should be dedicated towards exam preparation.
• Based on my experience during the preparation, I would suggest that, one should read the PMBOK at least 3-4 times very carefully. Apart from this one should also read the Rita Mulcahy book for PMP Exam Preparation. I read both the books about 4 times each. This really helped me understand the concepts and relate all the ITTOs.
• One should at least complete 3 simulations tests (all 4 hours each) to develop that patience level to sit through the grueling exam. There are various simulation tests which one can find out through google. The gap between each of the tests should be at least a week each so that you can effectively measure your performance improvement. A few of the sites from where you can attempt simulation exams are http://www.pmstudy.com/ & http://headfirstlabs.com/PMP/free_exam/ . Apart from this also attempt all the sample questions mentioned every chapter of Rita Mulcahy’s book. Another trick is to draw page number 43 of PMBOK everyday. Remember this page is your Bible and you always need to carry this in your mind. This page will help you crack a lot of exam questions.
•  Remember the questions in the actual exam are very tricky and should be interpreted carefully. The exam tests you from an Expert level, hence the person attempting the exam should have in depth understanding about all the project management knowledge areas and process groups.
• Another challenge which a person can face is the ambience at test center. For me it was quite noisy as there were many other people who were attempting various other exams at the test center. I was fortunately provided with a headphone to help reduce the surrounding noise. Remember patience and concentration is the key to success at the exam center. Solving 200 questions can be quite tasking so take long deep breaths every 30 minutes to help you with your concentration and patience. I was quite nervous a day before the test and as my test was scheduled for the evening, it started getting on my nerves. I did not study during the morning and afternoon of the exam and felt a little better. Remember you need to give your brain enough time to digest all that you have read. So no studying on the last day.
•  On clearing the exam, I felt on the top of the world. I couldn’t sleep the entire night and the next morning when I woke up, I picked my PMBOK and started studying  when it suddenly struck me that I was a certified PMP now. This feeling takes a few days to sink in. It has been a truly overwhelming experience.

Thank You Praveen Once Again.