...at oliver@oliverlehmann.com. Document version: 2.5 This prep test was written by: Oliver F. Lehmann, PMP Email: oliver@oliverlehmann.com Proof reading and editing was done by: Antje Lehmann-Benz, M.A. Email: antje@oliverlehmann.com Questions are based on: PMBOK® Guide 5th Edition PMP® Examination Content Outline Language aids: PMI offers language aids to the real exam in ten languages. A German language aid for this prep test is available for free download here. If you wish to develop a language aid in your own language, don’t hesitate to contact us and ask for support. Language aid development is a great exercise if you want to get prepared for the PMP exam. This document may be freely printed, copied and distributed for private and commercial use, as long as the layout, contents and the copyright notes remain unchanged. Please verify that you have the most up-to-date version at: www.oliverlehmann.com. 2 © 2007-2013 Oliver F. Lehmann, Munich, Germany Preface Contents Questions Answers and References Page 5 87 This document is intended to help you prepare yourself for the PMP® (Project Management Professional) exam, offered by PMI® (the Project Management Institute). In order to pass this preparation test, you should correctly...
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...Accounting Accounting is a crucial part in running a business. There are various forms of accounting that can be used, it is very important to know which technique is best to use for what companies. Once you figure out a particular technique to use, it is important to keep an open mind if there are any changes that need to take place in the business. By keeping an open mind helps the business adjust and be able to make the right decisions. Every business wants to make a profit; accounting is an important part in helping understand how profits and expense amounts are derived. One form of accounting I will focus on is managerial accounting or also known as management accounting. Managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making, and control. Managerial accounting provides economic and financial information for managers and other internal users (Managerial, 2005). When you tell people about managerial accounting, the first thing they ask is “What’s the difference between managerial and financial accounting?” There are both similarities and differences between managerial and financial accounting. The major similarity each field shares, is that they both deal with the economic events of a business. As an example, determining the unit cost of manufacturing a product is part of managerial accounting. Reporting the total cost of goods manufactured and...
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...4. CONTROLLING. PLANNING: Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed. Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to be successful. Planning is concerned with the success of the organization in the short term as well as in the long term. ORGANIZING: Organizing can be thought of as assigning the tasks developed in the planning stages, to various individuals or groups within the organization. Organizing is to create a mechanism to put plans into action. People within the organization are given work assignments that contribute to the company’s goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization. INFLUENCING: Influencing is also referred to as motivating,leading or directing.Influencing can be defined as guiding the activities of organization members in he direction that helps the organization move towards the fulfillment of the goals. The purpose of influencing is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful. CONTROLLING: Controlling is the following roles...
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...Roles and Functions of Health Care Management Planning, controlling, organizing, and leading are the four major roles and functions of management in a healthcare setting and are essential for the growth and survival of the health care industry. Good management skills and the application of management functions provide the framework needed by the health care organization in order to help the manager and staff perform successfully. To better understand the four major management roles and functions of management we must first examine how they apply to the management and the management of others. Leading or leadership is defined as the process of inspiring, motivating and directing behavior. Leadership or a leader must carry a strong vision of the future for the organization, and encompass the ability to influence and lead behavior of front line staff and managers. Leaders inspire and motivate and focus on people. They innovate and inspire. The knowledge, insight and skill of a leader should be greater than the group members and influence the group in such a way that the overall goal becomes their own. A leader carries out important functions on behalf of the organization and acts to an extent as a representative of the group. However, in order to carry out specific functions there must be a plan in place. Planning is the process of setting performance objectives and goals and then deciding what actions should be taken to bring about an outcome in the future. Through planning...
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...Management Functions Paper Audra Rennebu UOPX 8/22/11 Management has been described as a social process involving responsibility for economical and effective planning/regulation of operation of an enterprise in the fulfillment of given purposes. It is a very dynamic process consisting of various elements and activities. Managers exist in every business. In fact, managers do the same types of tasks in all business. Whether a person manages a hair salon or a factory, the manager’s position consists of similar tasks. Planning, organizing, leading, and controlling all serve an important part in achieving management’s vision. Each component is important and one cannot function well without the others. The first component of managing is planning. A manager must determine what the organizations goals are and how to achieve these goals. Much of which comes from the vision and mission statement for the company. Setting objectives for the goal and following up on the execution of the plan, are two critical components of the planning function. For instance, if a manager at my company were to get hired in a different program, they would need a new hiring plan, contract plan, and strategy plan. Planning is necessary to ensure proper utilization of human and non-human resources. Managers are responsible for organization of the company and this includes organizing people and resources. Knowing how many employees are needed for particular shifts can be critical to the success of a company...
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...competitive bid to produce several motor and axle parts and assemblies by proposing a fixed cost for part production. This was one of the first projects to be managed by the VW Mexico project office and they would have to develop and introduce internal processes for the team to follow. To oversee the project the VW Mexico team established a project management office, which was responsible for controlling the budget and schedule for the Jetta-related projects. The VW Mexico project team had to tackle a time and cost constraint for completing the assembly line project on-time and under budget. The project management office helped ensure the project was supported effectively and efficiently by incorporating different project management tools and techniques. The project managers along with members from other teams were able to incorporate a standardized approach for the project to meet the development of project requirements. To help “provide guidelines and criteria for tailoring the organization’s process” (PMI, 2013) the project team included the five process groups of Initiating, Planning, Executing, Monitoring and Controlling, and Closing. During the initiating process group the project manager must define the phases of the project, which was accomplished by dividing it into five phases with nine milestones over two years. During the initiating phase the project manager must clarify what constituted the start and completion of the project. The timeline included...
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...QMDS 400 (001) Project and Quality Management Introduction FU, Qi (Grace) 1st Semester 2014/2015 Learning Objectives Understand the nature and management of projects Describe project life cycle stages Know the nine knowledge areas and five process groups of the project management body of knowledge (PMBOK®). Understand measures of project success and failure 2 2 Different Scenarios As a manager, quite often, one would face managing the following: Building a facility such as a production plant, an airport Running a production plant Designing a commercial ad campaign Developing a new product or service Opening a new branch Merging with another company Running a service organization such as airport, supermarket, library, bank, etc. 3 What is a Project? A project is a temporary endeavor undertaken to create a unique product, service, or result. Characteristics of Projects Temporary – Definite beginning and ending Unique – New undertaking, unfamiliar ground 4 4 Projects Versus Operations Consider the following scenario: You work for a wireless phone provider, and the VP of marketing approaches you with a fabulous idea-"fabulous" because he's the big boss and because he thought it up. He wants to set up kiosks in local grocery and bigbox stores as mini-offices. These offices will offer customers the ability to sign up for new wireless phone services, make their wireless phone bill payments...
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...BSBPMG409A: Apply project scope management techniques Key terms for this unit Glossary Glossary Assumptions Beliefs considered to be true, real or certain for the sake of planning. Benefit measurement method Used in comparing the value of one project against the value or benefits of another, often used in project selection models. Benefit/ cost analysis The process of determining the pros and cons of any project, process, product or activity. Benefit/ cost ratios These models examine the cost-to-benefit ratio. Change control board A board that determines the validity and need of (thus approving or denying) project change requests. Change control system A system to formally accept, review and act upon project change requests. Change requests Requests to expand or reduce the project scope, modify policies, processes, plans or procedures, modify costs, budgets or revise schedules. Requests for change can be direct or indirect, externally or internally initiated and legally or contractually mandated or optional. Only formal, documented requested changes are processes and only approved change requests are implemented. Configuration management Activities focusing on controlling the characteristics of a product or service. A documented process of controlling the features, attributes and technical configuration of any product or service. Sometimes considered a rigorous change control system. Constrained optimisation methods These are complex mathematical formulas and algorithms...
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...„ Project Management Institute, 2002. Used with permission. The underlying theory of project management is obsolete1 Lauri Koskela, VTT Technical Research Centre of Finland Gregory Howell, Lean Construction Institute Abstract In prior literature, it has been generally seen that there is no explicit theory of project management. We contend that it is possible to precisely point out the underlying theoretical foundation of project management as espoused in the PMBOK Guide by PMI and mostly applied in practice. This foundation can be divided into a theory of project and a theory of management. We link theories to the body of knowledge by comparing prescriptions derived from theory to prescriptions presented in the PMBOK. Secondly, we show, by a comparison to competing theories and by an analysis of anomalies (deviations from assumptions or outcomes as implied in the body of knowledge) observed in project management practice, that this foundation is obsolete and has to be substituted by a wider and more powerful theoretical foundation. Introduction In a recent report on the future of project management and its professionals (Project Management Institute 1999), several global trends, such as technological advancements and the accelerated global change, were identified, in relation to which project management can take a leading role in facilitating and enabling the changes involved. The report also contains, in an appendix, a concise study on the development of bodies ...
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...Functions of Management In many businesses organization planning is essential to start and beneficial to succeed. Plans can handle many important assignments and avoid important events early enough to prevent unnecessary decisions. In a business once a plan is made it must be followed to avoid duplicating and wasting valuable time. In my business strategic planning must be delivered to accomplish all objective assignments. Deadlines are mandatory to set goals for each department. A company may face many obstacles but the planning will be an unending course of action. Sometimes unavoidable and one must be prepared to take care of the external factors to be consistently moving forward for the company’s benefit. Depending in the company’s struggle, a company has to use alternative course of action to accomplish certain goals. In a team environment the organization relies on feedback and communication of everyone to finish the objective on time. The Organizer has a tendency to show self-discipline and aim for achievement. The benefit of communicating with the individual is that he or she avoids trouble and achieves high success through planning and persistence. A manager must know his or her subordinates and what he or she is capable of organizing the most valuable resources a company has, its employees (Bateman, Snell, 2007). A group’s success is often assessed by its results and the accomplishment of the objective result. An organizer uses discussion...
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...CDC UNIFIED PROCESS PRACTICES GUIDE PROJECT SCOPE PLANNING Purpose The purpose of this document is to provide guidance on the practice of Project Scope Planning and to describe the practice overview, requirements, best practices, activities, and key terms related to these requirements. In addition, templates relevant to this practice are provided at the end of this guide. Practice Overview Each project’s product and/or service is unique and requires its own careful balance of practices, processes, tools and techniques, etc. to ensure the required work is completed as agreed upon by key project stakeholders. The sum of these along with the product and/or service to be delivered by the project is known as the project’s scope. Getting key parties to agree upon what is the scope of the project’s work is known as project scope planning. The practice of project scope planning is a key management practice for planning and delivering projects successfully. Project scope includes high level features or capabilities that the business team has committed to delivering to a customer as well as those they have not committed to delivering. Project scope is often defined by executive sponsor, steering committee, project sponsor, and the project’s customer with input from other appropriate stakeholders. Understanding and analyzing who project stakeholders are is an important early step in the scope planning process. Project stakeholders are persons and/or organizations such...
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...Management Function of Coordinating / Controlling: Overview of Basic Methods © Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Adapted from the Field Guide to Leadership and Supervision. Basically, organizational coordination and control is taking a systematic approach to figuring out if you're doing what you wanted to be doing or not. It's the part of planning after you've decided what you wanted to be doing. Below are some of the major approaches to organizational control and coordination. Sections of This Topic Include Introduction - "Controlling" Getting a Bad Rap? Administrative Controls Delegation Evaluations Financial Management Performance Management Policies and Procedures Quality Control and Operations Management Risk, Safety and Liabilities Additional Perspectives on the Management Function of Coordinating Also see Related Library Topics Also See The Library's Blogs Related to the Management Function of Controlling In addition to the articles on this current page, see the following blogs which have posts related to the Management Function of Controlling. Scan down the blog's page to see various posts. Also see the section "Recent Blog Posts" in the sidebar of the blog or click on "next" near the bottom of a post in the blog. Library's Leadership Blog Library's Supervision Blog Introduction: "Control" Getting a Bad Rap? Many People Are Averse to Management "Control" New, more "organic" forms or organizations (self-organizing...
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...Functions of Management Paper In my personal opinion Management plays a strong rule in Company’s performance. The most important responsibilities of management are to plan, organize, lead and control despite of their level or status. Below are the four most important functions of management. Planning Planning is the basic function of management. A manager must know their department goal in order to plan properly. A goal cannot be achieved if there is not any proper plan. Planning is deciding in advance how to do, when to do and what to do. A plan is a future action which tells you where we are and where we want to be. Proper planning helps management achieve their goals. It also, helps employees understand their rule and their manager’s expectations. A future goal cannot be accomplished if there is no plan. Planning plays a strong rule in management as it provides a solid goal to the rest of the team and it helps utilize of human and non-human resources. It is an excellent tool as it improves efficiency, reduce cost and reduce confusion. Based on my personal experience Company without proper plan cannot compete with other companies as it does not know what the company goal is, where the company stands and what needs to be done in order to achieve the goal and compete with other successful companies. Organizing In order to achieve organizational goals Management must bring financial and...
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...November 5, 2011 Dear Ms. Amanda Smith: My name is QB of QB Management Consulting LLC. I have reviewed your case study and wish to offer some insight on using the four functions of management to help you gain more success in Smith’s Account and Tax Service. First off I’ll like to say that a successful manager is one that leads their company to a stated objective by using all means available for accomplishing it by known procedures, guidelines and resource accessible. In order to reach this concept four functions are recognized. These four functions are planning, organizing, leading and controlling. Each of these functions helps the manager in a specific manner to aid in their managerial role. I recommend following these four steps in order to achieve the success anticipated for future plans of your company. All four of the referenced functions need to be given an equal amount of time as they are important elements in any organization’s development and growth. The first function I’ll like to address is planning; which is setting your ultimate goals, set of steps and tasks it in a convenient way for your company. First goals need to be set, then strategies and standards need to be implemented, last resources have to be obtained and collected. Planning is considered to be the central function of management because it then sets the pattern for the other three to follow. Planning encompasses at least four elements (Ryszard, 2005): • Evaluating...
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...Week Five Student Guide This week, you will discuss the last of the four fundamental management activities: controlling. Controlling is simply following up on the plan. This includes evaluating the results and determining how to attain better results through planning, organizing, and leading. A primary component of controlling is measuring. Whether you are measuring financial performance by comparing it against a budget, measuring quality through inspection, or measuring efficiencies by tracking certain ratios, you are measuring actual results against a target. An important part of controlling is developing these measurements. Measuring key aspects of the business is critical. Measurements must be specific enough to allow management to determine the cause for deterioration or improvement, but broad enough to be an effective indicator of the business. Measurement data must also be relatively easy to capture. Management cannot justify expense and time to gather data if it is not timely or able to be acted on. Learning how to develop a good control system to keep track of performance within your areas of responsibility is key. A good control system will allow you to remain informed about the functional areas you are accountable for, and it will allow you to develop an action plan to improve. Ultimately, effectively applying all functions of management to achieve business objectives is the true measure of success of an organization. ------------------------------------------------- ...
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